PRISM slashes IPO primary raise to ₹3,350 crore

OYO’s parent entity, PRISM, intends to cut the primary capital component of its upcoming initial public offering by almost half, according to The Hindu BusinessLine. Sources cited by the publication stated on Tuesday that the fresh issue will be capped at ₹3,350 crore, down from the earlier target of nearly ₹6,650 crore. This adjustment occurs as the company advances toward the next phase of its listing process.

The Hindu BusinessLine attributes the reduction to the firm’s sustained cash inflows and a strengthening balance sheet. These financial improvements have decreased the external funding required, allowing PRISM to lower the primary capital it seeks to raise. A source familiar with the details noted that the initial sizing predated recent performance data, enabling a more efficient capital structure. The strategy aims to secure only the necessary funds while planning to clear remaining liabilities within two to three years using internal cash flows.

Most of the proceeds from the revised issue are designated for settling or prepaying specific borrowings. This focus on debt reduction continues from the company’s earlier filing of its Updated Draft Red Herring Prospectus. The Hindu BusinessLine also highlighted that Moody’s Ratings recently upgraded PRISM’s outlook to positive from stable, maintaining its B2 corporate family rating. The rating agency anticipates earnings before interest, taxes, depreciation and amortisation will reach approximately ₹3,000 crore within 12 to 18 months, driven by platform expansion and new storefront additions.

Financial performance has shown significant growth, with OYO’s EBITDA more than doubling to ₹2,630 crore in fiscal 2026 from ₹1,080 crore in the prior year, as reported by The Hindu BusinessLine. The company, established in 2013 by Ritesh Agarwal, sees the founder retaining a 30.52 per cent stake. SoftBank Group Corp’s subsidiary, SVF India Holdings (Cayman) Ltd, remains the largest shareholder with a 40.04 per cent holding, according to the publication’s details on ownership structure.