OYO IPO 2026: SEBI Clears Prism’s ₹6,650 Cr Issue

SEBI approval moves Prism’s IPO process forward

Prism, the global hospitality technology company that operates OYO, has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering, according to people familiar with the matter and reports cited by CNBC-TV18. The clearance marks a key procedural milestone for one of the most watched new-age listings in India’s start-up ecosystem. Prism is seeking to raise up to ₹6,650 crore through a fresh issue of equity shares. People aware of the development said the proposed IPO could value the company at around $1 billion to $1 billion. Prism declined to comment, as per the reports.

What the regulatory nod means at this stage

SEBI’s approval indicates the regulator has completed its review of the company’s confidential filing and allowed the process to move to the next disclosure phase. Following the clearance, Prism is expected to file an updated Draft Red Herring Prospectus (UDRHP-1). This updated draft is expected to be made public and opened for comments. Reports said the public review window will remain open for 21 days. This step increases transparency for investors by placing the updated prospectus in the public domain.

Key deal details: issue size and valuation target

The fundraise under discussion is up to ₹6,650 crore, and it is described as a fresh issue of equity shares. People familiar with the matter said Prism is targeting a valuation of about $1 billion to $1 billion. CNBC-TV18 also reported the IPO as being around ₹6,600 crore in one reference, while multiple mentions in the same set of reports cite ₹6,650 crore. The company is also described as SoftBank-backed in the reports. The listing timeline has not been finalised, with sources saying the company is evaluating market conditions and broader listing timelines.

How the IPO plan unfolded: December filing to SEBI clearance

Prism confidentially filed its draft IPO papers with SEBI in December 2025, according to the reports. The confidential route allows companies to keep key filing details out of the public domain during initial regulatory review. The filing followed shareholder approval at an extraordinary general meeting held on 20 December, where investors cleared a proposal to raise up to ₹6,650 crore via a fresh issue. After SEBI’s nod, Prism has now entered what sources described as the final stages of preparation for the IPO process. Reports also noted that this is Prism’s third attempt at an IPO.

What happens next: Updated DRHP and a 21-day comment window

The next procedural step is the filing of the updated DRHP (UDRHP-1). Sources told CNBC-TV18 the updated document is expected to be filed by the first week of July, and other reports said “early July.” Once filed, the updated DRHP is expected to be made public and remain open for comments for 21 days. This period is a standard part of the public scrutiny process around offer documents. It also provides a window for market participants to review disclosures and raise observations.

Listing timeline depends on market conditions

Sources said Prism is monitoring broader market conditions and listing timelines as it prepares for the next phase. One report linked the timing uncertainty to war-led market volatility, noting the company is yet to decide a listing timeline in that context. The company’s posture, as described by sources, is to evaluate when market conditions are suitable rather than committing to a fixed date. This approach has been reflected in the decision to watch conditions while planning to submit updated draft papers by early July.

Why this is being watched: size, category, and investor focus

The proposed offering is described as one of the most closely watched IPO plans in India’s start-up space. Prism operates OYO, which places the company in the hospitality and travel technology category, an area that has seen heightened investor scrutiny around business models and disclosures. The reported valuation range of $1 billion to $1 billion also positions it among the larger potential new-age listings. SEBI’s approval is therefore being tracked not only as a company-specific step but also as a signal of how quickly the pipeline of tech-focused IPOs could move.

Context: Prism joins a broader IPO queue

Reports also said SoftBank-backed Prism joins Zepto in the IPO queue. Zepto’s listing is referenced in the same coverage as potentially being a $1 billion issue that could reach the markets as early as July if market conditions are stable. The juxtaposition highlights how issuers are sequencing filings and timelines around market stability. For Prism, sources said the focus remains on evaluating market conditions and the broader listing timeline before finalising the next steps beyond the updated DRHP filing.

Key facts at a glance

Timeline of the reported milestones

Conclusion: approvals in place, disclosures and timing next

Prism’s SEBI approval is a major checkpoint for OYO’s long-awaited listing process, but the near-term focus now shifts to the updated DRHP and the 21-day public comment phase. Reports indicate Prism is preparing to file the updated draft by early July while continuing to evaluate market conditions and listing timelines. The next public disclosures in the updated prospectus are expected to be the most important reference point for investors tracking the proposed ₹6,650 crore fresh issue and the $1 billion to $1 billion valuation range. Until a firm schedule is chosen, the process remains tied to how the company and its advisors assess broader market stability in the weeks ahead.