Hospitality technology company OYO has taken a significant step toward its stock market debut by filing an updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI). The proposed ₹6,650 crore Initial Public Offering (IPO) will consist entirely of a fresh issue of equity shares, allowing the company to raise capital for debt reduction and future expansion.
Unlike many large IPOs, the offering will not include an Offer for Sale (OFS), meaning existing investors and promoters will not sell their holdings through the issue.
OYO Moves Closer to Stock Market Listing
OYO's parent company, Prism (formerly Oravel Stays), had initially submitted a confidential Draft Red Herring Prospectus (DRHP) with SEBI in December 2025. After receiving regulatory observations earlier this month, the company has now filed its updated public draft prospectus.
The IPO marks another milestone in OYO's 14-year journey from an Indian budget hotel startup to one of the world's largest hospitality platforms.
How Will OYO Use the IPO Funds?
According to the updated DRHP:
₹4,987.5 crore will be used to repay or prepay existing borrowings.
The remaining proceeds will be allocated toward general corporate purposes, including future business expansion.
Since the IPO consists entirely of a fresh issue, the company itself will receive the entire amount raised from public investors.
Pre-IPO Placement Also Under Consideration
Before filing its final Red Herring Prospectus (RHP), Prism may also raise up to ₹1,330 crore through a pre-IPO placement.
If completed, the amount raised through the private placement will reduce the size of the fresh issue accordingly.
OYO Reports Strong Financial Performance
The company's latest financial disclosures indicate continued business growth.
For the first nine months of FY26 (ending December 31, 2025):
Revenue from operations stood at ₹6,941 crore
Net profit reached ₹748 crore
Notably, OYO's revenue during the first nine months of FY26 has already exceeded its total revenue of ₹6,259 crore recorded during FY25.
OYO's Global Hospitality Network Continues to Expand
As of December 31, 2025, OYO reported operations across:
More than 35 countries
43 hospitality brands
24,303 hotels
124,668 homes
144,583 total property listings
14,937 storefronts in India
Since its launch in 2012, the platform has served more than 119 million unique customers, with approximately 68% of bookings coming directly through its own channels.
Overseas Markets Drive Revenue Growth
OYO's business has become increasingly global over the past few years.
According to the company:
Around 84% of total revenue now comes from international markets
The United States contributed approximately 27% of revenue during 9M FY26
Europe accounted for nearly 24%
A key driver behind this growth has been OYO's acquisition of G6 Hospitality, which operates the well-known Motel 6 and Studio 6 hotel brands across the United States and Canada.
India Business Also Expanding
While overseas operations contribute a majority of revenue, OYO continues strengthening its domestic presence.
The number of company-serviced hotel storefronts in India increased from:
1,053 (March 31, 2025)
to 1,573 (December 31, 2025)
The expansion reflects the company's continued investment in premium managed properties across India.
Founder Ritesh Agarwal's Entrepreneurial Journey
Founded in 2012 by entrepreneur Ritesh Agarwal, OYO initially focused on organizing India's fragmented budget hotel sector.
Today, at the age of 32, Agarwal has emerged as one of India's youngest self-made billionaires and has been featured in the Hurun Global Rich List 2026, with an estimated net worth of ₹18,402 crore.
What the IPO Means for Investors
OYO's proposed IPO represents one of India's most closely watched public offerings in the hospitality sector. The proceeds will significantly strengthen the company's balance sheet by reducing debt while supporting its long-term expansion strategy across international markets.
Investors will closely monitor the company's final pricing, valuation, subscription details, and listing timeline once SEBI grants the necessary approvals.
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