PRISM, Oyo’s parent, plans to cut IPO fresh issue to up to ₹3,350 Cr

PRISM, the parent company of Oyo, plans to nearly halve the fresh issue in its IPO, first reported by CNBC-TV18. The fresh issue is now planned at up to ₹3,350 crore. The earlier size was about ₹6,650 crore, also first reported by CNBC-TV18. Around ₹5,000 crore of that was meant for debt repayment.

YourStory reported the reason: strong cash generation and a better balance sheet mean the company needs less capital. The Economic Times also cited a stronger balance-sheet position. Most of the proceeds are still meant for repaying or prepaying certain borrowings. According to CNBC-TV18, a person familiar with the matter said: "The objective is to raise what the business needs while keeping the capital structure efficient. The plan is to repay the residual debt over the next two to three years through cash flows generated by the business."

The numbers back the shift. EBITDA was ₹2,630 crore in FY26, up from ₹1,080 crore in FY25. Moody's changed its outlook to positive from stable and affirmed the B2 CFR. According to CNBC-TV18, which reported it first, Moody's projects EBITDA of roughly ₹3,000 crore ($315 million) during the coming 12-18 months.

PRISM has earlier filed the UDRHP-I and is moving to the next stage of its IPO. Founder Ritesh Agarwal holds 30.52%. SVF India Holdings (Cayman), a SoftBank subsidiary, holds 40.04%. The company did not respond to ET's request for comment. The news is based on unnamed sources.