The Securities and Exchange Board of India (SEBI) has cleared the initial public offering of Prism, the parent entity of hospitality platform OYO, allowing the company to raise up to Rs 6,650 crore from public markets at an estimated valuation of $7 to $8 billion — ending a years-long pursuit of a stock market listing that began in 2021.
SEBI issued its observations on Prism’s draft papers between June 1 and June 5, 2026. In regulatory terms, an observation letter from SEBI is equivalent to clearance for a public issue.
OYO’s third run at the public market
The development follows Prism’s confidential draft red herring prospectus (DRHP) filing with the market regulator at the end of December 2025, which came days after shareholders approved the fundraise through a fresh issue of equity shares at an extraordinary general meeting held on December 20, 2025.
The company first attempted an IPO in 2021, targeting Rs 8,430 crore at a reported valuation of up to $12 billion. That listing did not materialise after SEBI returned its draft papers. A revised filing in 2023 was subsequently withdrawn in 2024 amid market uncertainty.
Prism is expected to file an Updated Draft Red Herring Prospectus (UDRHP) in July 2026, which will be open for public comments for 21 days before the company proceeds with the final launch.
In a move seen positively by market participants, former SEBI Chairman Ajay Tyagi joined Prism’s board as an independent director in May 2026, ahead of the public issue.
On financials, Prism’s net profit rose 7% to Rs 244.8 crore in FY25 from Rs 229.6 crore the previous year, while revenue grew 16% year-on-year to Rs 6,252.8 crore.
Prism has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Caps, JM Financial, InCred Capital, and Intensive Fiscal Services as book-running lead managers for the issue.
Four more companies cleared in the same window
In the same observation cycle, SEBI also cleared IPOs of Truhome Finance, Veegaland Developers, Advanta Enterprises, and Mehta Hitech Industries. Together, the five companies are expected to raise close to Rs 10,000 crore.
Warburg Pincus-backed Truhome Finance is seeking to raise Rs 3,000 crore through a fresh issue of Rs 1,500 crore and an offer-for-sale of Rs 1,500 crore by promoter Mango Crest Investment Ltd, with proceeds to be used to strengthen its capital base and meet RBI capital requirements.
Veegaland Developers, part of the V-Guard Group, plans to raise Rs 250 crore through a completely fresh issue, with funds earmarked for ongoing and future real estate projects and land acquisitions.
Advanta Enterprises’ IPO will be entirely an offer-for-sale of 3.61 crore shares by promoter UPL Ltd and investor shareholders. Ahmedabad-based Mehta Hitech Industries plans a fresh issue of up to 62 lakh equity shares.
With SEBI’s approval in place, all five companies can move ahead with their IPO launch plans in the coming months.
