By

, ET BureauLast Updated: Oct 20, 2026, 06:19:00 PM IST

Synopsis

PRISM is set to scale back its initial public offering from Rs 6,650 crore to Rs 3,350 crore in light of its robust cash flow and enhanced balance sheet. The majority of the newly structured funds will focus on repaying or prepaying debts. Moody's Ratings has adjusted PRISM's outlook to positive, anticipating growth in EBITDA. Notably, OYO's founder, Ritesh Agarwal, and SoftBank maintain substantial stakes in the venture.

Oyo parent PRISM is planning to cut the size of the fresh issue in its proposed initial public offering to Rs 3,350 crore from ₹6,650 crore, sources familiar with the matter told ET.

People cited above said the reduction in the issue size follows a stronger balance-sheet position, which has lowered the amount of capital the company needs to raise compared with what was planned previously. The company did not respond to requests for comment.

A source familiar with the matter said funding requirements have come down, and the company is reducing the amount of primary capital it was planning to raise.

"The company intends to repay the residual debt over the next two to three years through cash flows generated by the business,” another person said.

Under the revised structure, most of the issue proceeds are proposed to be used towards repayment or prepayment, in part or full, of certain borrowings. The revised issue comes as PRISM moves towards the next stage of its proposed IPO following its earlier filing of the UDRHP-I.

Global ratings agency Moody's recently revised the outlook on PRISM to Positive from Stable, while affirming the company's B2 corporate family rating. Moody's expects that PRISM will sustain stronger earnings and free cash flow generation over the next 12–18 months, supporting further debt reduction and maintaining very good liquidity. Moody's also expects PRISM's EBITDA to grow to approximately Rs 3,000 crore over the next 12–18 months, supported by continued expansion of its global hospitality network and the addition of new storefronts to its platform. The agency highlighted the company's improving profitability, with EBITDA more than doubling to Rs 2,630 crore in FY26 from Rs 1,080 crore in FY25.

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