OYO IPO 2026: PRISM (Formerly Oravel Stays) Files ₹6,650 Crore UDRHP with SEBI

India's most-talked-about hospitality startup is finally heading to the stock market — for the third time. On June 29, 2026, Oravel Stays Limited, now operating under the corporate name PRISM, filed an Updated DRHP with SEBI, bringing one of the longest-pending startup IPO sagas in Indian history a major step closer to reality.

What most people still call "the OYO IPO" is technically the listing of PRISM, the rebranded global parent that now owns OYO, Motel 6, and several other hospitality brands.

What Is the OYO IPO, and How Big Is It?

The OYO IPO is a 100% Fresh Issue, meaning the company raises new capital rather than letting existing investors exit.

OYO IPO issue size is up to ₹66,500 million (₹6,650 crore), with a possible pre-IPO placement of up to ₹13,300 million that could reduce the fresh issue size. Target valuation is estimated at $7–8 billion — a steep reset from the $10–12 billion the company chased back in 2021.

The OYO IPO price band and OYO IPO open date are yet to be announced and will be confirmed once SEBI completes its review and the Red Herring Prospectus is filed.

Wait, Is It OYO or PRISM?

In September 2025, Oravel Stays rebranded its corporate identity to PRISM. OYO remains the flagship consumer brand, especially in India, but it's now just one part of a larger portfolio that includes Townhouse, Sunday, Palette, and — in the US — Motel 6 and Studio 6. So while everyone keeps calling it the "OYO IPO," the listed entity will actually carry the PRISM name.

OYO's Third IPO Attempt: What Changed Since 2021

OYO submitted its DRHP in 2021, aiming for a valuation of $10-12 billion. However, SEBI rejected its submission; OYO submitted again in 2023, only to withdraw its DRHP in 2024 owing to poor market conditions. The third try by OYO got SEBI approval on June 2, 2026. Prior to this date, Ajay Tyagi, who once chaired SEBI, became an independent director of the company in May 2026.

What Does PRISM (OYO) Actually Do Now?

This is no longer just a budget hotel app. The company spans hotels, homes, and listings verticals — brands include OYO, Townhouse, Sunday, Palette, and Motel 6/Studio 6 in the US, following the 2024 acquisition of G6 Hospitality from Blackstone for $525 million. As of December 2025, it operated across 35+ countries with over 290,000 storefronts combined and has served 119 million+ customers since inception. India remains its largest market by hotel count, but now accounts for only around 30% of total group revenue — a sign of how global the business has become.

Financials: From Losses to Profit

(Amount in ₹ Crore)

Use of IPO Proceeds

The major portion, approximately ₹4,988 crore, is used for servicing debt of subsidiary company Oravel Stays Singapore, mostly in relation to debt raised for the purchase of G6 Hospitality (Motel 6). The remaining part is used for corporate purposes with a limit of 25% of the gross proceeds.

Key Risks to Know

• No valuation benchmark yet — price band isn't set, so EV/EBITDA and P/E comparisons aren't possible
• Profitability quality questions — FY25 PAT includes deferred tax credits and exceptional items
• No dividend history in the last three fiscals
• PFIC tax risk for US investors given the company's American exposure via G6 Hospitality
• Track record of two withdrawn attempts means real investor appetite is still unproven

What Happens Next

The SEBI filing was done on June 2, 2026; the company will go ahead with the process of filing the RHP, along with an established price band after which the date for the OYO IPO can be decided. The listing is expected on BSE and NSE in the second half of 2026. The lead managers are JM Financial, SBI Capital Markets, Axis Capital, Citigroup, Goldman Sachs, InCred Capital Wealth Portfolio, Intensive Fiscal Services and ICICI Securities.

Why It Matters

Here is a third try, which comes with a fundamentally different company compared to 2021, including global reach, Motel 6 purchase, company re-branding, and a governance fix by way of Ajay Tyagi. However, the valuation revision and earnings quality considerations imply that a more careful look at the listing may be warranted beyond what media reports alone reveal.

Read the full DRHP here.

-Tanisha Mulewa, Team Research Bigul

Bonanza Portfolio Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000212137 | SEBI Regn. No. DP: IN-DP-62-2015 | PMS: INP 000000985 | Research Analyst ID: INH100001666)

Disclaimer: This article is for informational purposes only and is purely based on public information. It does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.