OYO IPO: No Offer-for-Sale; Founder Ritesh Agarwal, SoftBank To Retain Stakes

New Delhi: OYO Founder Ritesh Agarwal and SoftBank will not offload their shares in the proposed IPO of hospitality technology company Prism, as per the Updated Draft Red Herring Prospectus (UDRHP) filed on Tuesday.

The filing shows that SoftBank-owned SVF India Holdings remains the largest shareholder with a 40.04 per cent stake in Prism, the parent firm of OYO. Agarwal’s aggregate shareholding, including his direct stake and holdings through RA Hospitality and Patient Capital, stands at 30.52 per cent. Collectively, the promoters — Agarwal and SVF India Holdings — own 70.56 per cent of the company’s pre-issue paid-up capital on a fully diluted basis.

Prism said it may undertake a pre-IPO placement of securities worth up to Rs 1,330 crore before filing its Red Herring Prospectus. The pre-IPO placement, if completed, would be adjusted against the size of the fresh issue and cannot exceed 20 per cent of the proposed offering.

For the nine-month period ended December 2025, Prism reported revenue from operations of Rs 6,940.97 crore, of which Rs 5,814.27 crore came from overseas markets and Rs 1,126.7 crore from India.

The company reported a net profit of Rs 748.39 crore during the first nine months of FY26 till December, compared with a profit of Rs 244.82 crore in FY25 and Rs 229.58 crore in FY24.

The IPO filing comes months after the company completed a major corporate rebranding exercise. In September 2025, OYO parent Oravel Stays Limited was renamed Prism, reflecting its growing international footprint and strategic focus on premium hospitality and diversified travel offerings.

Founded by Ritesh Agarwal in 2012 as a budget hotel aggregation platform, OYO has evolved into a global travel and hospitality technology company operating across more than 35 countries and serving over 100 million customers.

Its portfolio now spans hotels, vacation homes, extended-stay properties, co-working spaces and event venues through brands including Sunday, Palette, Townhouse, CheckMyGuest, Belvilla, DanCenter, Motel 6, Studio 6, Innov8 and Weddingz.in.

The company’s global expansion accelerated with the acquisition of US-based G6 Hospitality, operator of Motel 6 and Studio 6, in 2023, significantly strengthening its presence in North America.

Prism initially filed preliminary IPO papers through Sebi’s confidential pre-filing route in December 2025, a mechanism that enables companies to receive regulatory feedback before publicly disclosing detailed offer documents. The route has gained popularity among large technology and consumer-facing companies seeking greater flexibility in their listing preparations.

The latest filing marks another attempt by the OYO parent to enter public markets after it had filed and subsequently refiled draft papers in 2021 for a proposed Rs 8,430-crore IPO before eventually withdrawing them in May 2024.

Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, InCred Capital Wealth Portfolio Managers, Intensive Fiscal Services, JM Financial and SBI Capital Markets are acting as the book-running lead managers to the issue.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)