OYO parent PRISM plans smaller IPO fresh issue of Rs 3,350 crore

OYO parent PRISM plans to cut the fresh-issue component of its proposed initial public offering to up to Rs 3,350 crore from almost Rs 6,650 crore, according to PTI reporting carried by Economic Times Markets on October 20. People familiar with the matter attributed the proposed reduction to stronger cash generation and an improved balance sheet.

The change concerns the primary capital PRISM intends to raise through newly issued shares. It remains a source-reported plan rather than an announced final offer size. Most of the revised proceeds would be directed towards repaying or prepaying certain borrowings, either partly or in full.

Lower capital requirement, continued debt reduction

The people cited by PTI said the earlier fundraising target had been set before the company’s more recent financial performance became available. Stronger internal cash generation has since reduced the amount of external capital the business needs.

Under the earlier proposal, about Rs 5,000 crore of the planned Rs 6,650 crore raise was earmarked for debt repayment. The revised proposal retains debt reduction as its main use of funds, though the reporting does not specify a new rupee allocation for that purpose.

A person familiar with the matter said PRISM intends to repay its remaining debt over the next two to three years using cash generated by the business. The company is moving towards the next stage of its proposed IPO after an earlier updated draft prospectus filing.

Moody’s lifts outlook, leaves rating unchanged

Moody’s Ratings has changed PRISM’s outlook from stable to positive while retaining its B2 corporate family rating. The outlook revision is distinct from a rating upgrade: the rating itself has not changed.

Moody’s expects OYO’s earnings before interest, taxes, depreciation and amortisation, or EBITDA, to reach around Rs 3,000 crore over the next 12–18 months as the company expands and adds storefronts to its platform. That figure is a forecast, not a reported result.

OYO’s reported EBITDA for FY26 was Rs 2,630 crore, compared with Rs 1,080 crore in FY25. EBITDA is an earnings measure and should not be read as equivalent to cash available for debt repayment.

Founder and SoftBank remain major shareholders

Ritesh Agarwal, who founded OYO in 2013, holds a 30.52% stake, according to the reporting. SVF India Holdings (Cayman) Ltd, a SoftBank Group subsidiary, is the largest shareholder with 40.04%.