PRISM, the parent company of hospitality major OYO, has received approval from its shareholders to raise up to ₹6,650 crore through an initial public offering (IPO), marking a key milestone in the company’s public market journey.
According to regulatory filings, the proposed IPO will include a fresh issue of equity shares aggregating up to ₹6,650 crore. The capital raised will strengthen the company’s balance sheet and support long-term growth initiatives.
Ahead of the IPO, PRISM has also approved a bonus share issue, under which existing shareholders will receive one bonus equity share for every 19 shares held. The bonus shares will be issued by capitalising the company’s share premium and reserves, the filing showed.
The company revised its bonus share ratio following feedback from investors and shareholders, signalling efforts to align shareholder interests ahead of the public issue. Market participants often view bonus issues as a confidence-building measure prior to an IPO, as they enhance liquidity and broaden retail participation.
PRISM, which houses OYO’s core business operations, has been working towards improving governance structures, operational efficiency, and financial discipline as part of its IPO preparation. The shareholder approval clears the way for the company to initiate discussions with market regulators and appoint merchant bankers for the public issue process.
While the company has not yet disclosed the exact timing of the IPO, the approval indicates that PRISM is moving closer to tapping the capital markets amid improving sentiment for large consumer internet listings in India.
The IPO is expected to be closely watched, given OYO’s scale in the hospitality sector and its presence across multiple domestic and international markets.
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