New Delhi: Prism, which owns hospitality brand Oyo, has received clearance from the Securities and Exchange Board of India for its initial public offering, through which it plans to raise ₹6,650 crore in fresh capital, people aware of the matter said.The company is now expected to file its updated draft red herring prospectus (DRHP) in the next six to eight weeks, one of the people said. Another person said it could happen in early July.The company confidentially filed its draft IPO papers in December, marking its third attempt to go public. Sebi in 2021 returned its first IPO application, asking the company to refile with updated financials. Oyo subsequently submitted a revised application but withdrew it in 2024 and instead opted for a private funding round.While the Gurugram-based company had initially proposed a $1.2 billion IPO, its latest confidential filing was for an issue that is 40-60% smaller, according to people aware of the matter.Queries sent to the company remained unanswered at the time of going to press Tuesday.Sebi's approval comes at a time when many new-age companies have lined up IPOs. But volatile market conditions and continued FII outflows have prompted several of them to reassess plans. Walmart-owned PhonePe, which had the regulator's approval, and Flipkart have both deferred their listing timelines. Quick commerce firm Zepto remains an exception and is expected to file its updated DRHP within the next 8-10 days, according to people familiar with the matter.Oyo is targeting a valuation of ₹50,000-60,000 crore ($5-7 billion) for its public offering, one of the people cited earlier said, adding that the final valuation will depend on market conditions. In 2024, the company raised capital at a valuation of $2.3 billion, well below its peak valuation of $9 billion during a 2021 funding round led by Microsoft. The company has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Caps, JM Financials, InCred Capital and Intensive Fiscal Services as book-running lead managers for the IPO.
Oyo parent gets Sebi nod for Rs 6,650-cr public offer
Oyo, the hospitality brand, has secured approval from the Securities and Exchange Board of India for its initial public offering. The company plans to raise ₹6,650 crore through this IPO. Oyo is expected to file its updated draft red herring prospectus in the coming weeks. This marks the company's third attempt to go public.
TL;DRAI
Prism (Oyo's parent) cleared SEBI for ₹6,650 crore IPO after two failed attempts, targeting $5-7B valuation versus $9B peak in 2021. Startup valuations face hard correction; Oyo's smaller raise and PhonePe/Flipkart deferrals signal market risk aversion and compressed exit multiples.
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