OYO's Big Move...IPO Set to Shake Up the Market

Prism, the parent company of budget hotel chain OYO, has filed updated draft papers with SEBI to raise ₹6,650 crore through an Initial Public Offering (IPO). The company said the entire issue will consist of fresh equity shares. It also plans to raise up to ₹1,330 crore through a pre IPO placement. Founder Ritesh Agarwal, SoftBank, and other existing investors will not sell any shares through the IPO.

SoftBank remains the largest shareholder in Prism with a 40.04% stake, while Ritesh Agarwal holds 30.52%, taking their combined ownership to 70.56%. Other investors include Microsoft, Airbnb, Khazanah, Peak XV, and Lightspeed. The company said it will use ₹4,987.5 crore from the IPO proceeds to repay debt. Prism's total net debt currently stands at ₹6,828 crore.