Prism Life (PRISM), the holding company of hospitality chain OYO, has secured shareholder approval to raise up to Rs 6,650 crore through an initial public offering (IPO), a decisive step that clears a key regulatory and governance hurdle as the company prepares to list on Indian stock exchanges.
Shareholders approve IPO and bonus issue
At an Extraordinary General Meeting (EGM), PRISM’s shareholders passed a special resolution permitting the company to issue fresh equity and access public markets when conditions are suitable. The approval provides management flexibility to initiate the IPO after obtaining necessary regulatory clearances and assessing market appetite.
Shareholders also approved a bonus share issue in the ratio of 1:19, under which existing investors will receive 19 additional shares for every share held. The bonus is intended to increase stock liquidity and make the shareholding more accessible post-listing.
Context: a long-awaited move to public markets
PRISM’s plans to go public have faced multiple delays due to market volatility, regulatory procedures and internal restructuring. The company, earlier known as Oravel Stays, rebranded to Prism Life to present a broader corporate identity beyond its flagship OYO brand.
Founded by Ritesh Agarwal, OYO began as a budget hotel aggregator and has since evolved into a global hospitality technology platform working with hotels, homeowners and commercial property owners across several countries. In recent years, PRISM focused on simplifying its corporate structure, enhancing governance and shoring up its balance sheet ahead of an IPO bid.
Financial recovery underpins renewed IPO push
Improved financial performance has been central to reviving PRISM’s public listing plans. In the latest financial year, the company reported revenue exceeding Rs 6,200 crore with double-digit year‑on‑year growth and returned to net profitability, reflecting tighter cost control and operational efficiencies.
Quarterly indicators, including growth in gross booking value, point to rising demand across PRISM’s hospitality portfolio. Management and investors view the turnaround as evidence of improved business fundamentals and long‑term sustainability.
Use of proceeds and timing
The proposed IPO is expected to primarily comprise a fresh issue of shares, aimed at raising capital for growth rather than providing exits for existing stakeholders. Proceeds are likely to be deployed to strengthen technology platforms, expand into new markets, enhance offerings for hotel partners and improve customer experience.
No firm timeline for the public offering has been announced. The shareholder nod enables PRISM to proceed with regulatory filings with the Securities and Exchange Board of India (SEBI) once market conditions and regulatory reviews are favourable.
Implications for India’s startup ecosystem
PRISM’s move toward a public listing is being watched closely by entrepreneurs, investors and analysts. A successful IPO could place OYO among a select group of Indian consumer‑tech companies that have achieved scale while reporting improved profitability, offering a potential benchmark for other high‑growth startups considering public markets.
