The much-anticipated OYO IPO has moved a step closer after its parent company PRISM received shareholder approval to raise Rs 6,650 crore through a fresh issue of equity shares. The approval clears a critical procedural hurdle for the public listing of OYO, which has been preparing for a market debut following a sustained improvement in profitability and operating performance.
The approval was granted at an Extraordinary General Meeting (EGM) held on December 20, 2025. Shareholders voted in favour of the IPO proposal, authorising PRISM to tap public markets subject to regulatory clearances and favourable market conditions.
IPO Size and Capital Utilisation
The proposed IPO aims to raise Rs 6,650 crore, which PRISM plans to use primarily for strengthening its balance sheet, supporting growth initiatives and funding expansion across its hospitality portfolio. The capital is also expected to improve financial flexibility, reduce leverage and support investments in technology and operational efficiency across OYO’s domestic and international markets.
In preparation for the Oyo rooms IPO, shareholders also approved an increase in authorised share capital, enabling the company to issue new shares as part of the public offering.
Bonus Share Issue Approved
Alongside the IPO resolution, PRISM’s shareholders approved that OYO will issue bonus shares in the ratio of 1:19, i.e. 1 new share for every 19 equity shares held as of the Record Date, December 5, 2025.
The bonus shares will be fully paid, funded through capitalisation of reserves or the securities premium account. Fractional entitlements will be rounded up to the next whole number.
Read the whole list of Oyo’s EGM approvals here.
Strong Financial Momentum
The timing of the IPO approval coincides with a marked turnaround in OYO’s financial performance. In Q1 FY26 , the company reported a PAT of over Rs 200 crore, more than double the Rs 87 crore posted in the same quarter last year. Revenue rose 47 % year-on-year to Rs 2,019 crore, supported by higher occupancy, new hotel additions, along growing demand for premium offerings.
Gross Booking Value (GBV) surged 144 % to Rs 7,227 crore, which is driven by double-digit sales growth and increasing traction in brands such as Townhouse and Sunday Hotels.
Founder and Group CEO Ritesh Agarwal has previously stated that the company has remained profitable at the PAT level for the past two years, allowing management to shift focus from cost stabilisation to accelerated revenue growth.
Ratings Outlook and What Comes Next
External confidence has also strengthened PRISM’s IPO narrative. Moody's, a leading credit rating agency, recently reaffirmed the company’s corporate family rating with a stable outlook and expects EBITDA to more than double to around $280 million in FY26, citing cost discipline and expansion of premium storefronts.
With shareholder approval now secured, PRISM will move ahead with regulatory filings and market preparations. The OYO IPO is expected to be one of the most closely watched listings in India’s hospitality sector, as investors assess the company’s ability to sustain profitability and growth in pre IPO market as well as post IPO listing.
.jpeg)
