Oyo Parent Prism Halves IPO Size, Leaving More Debt to Be Repaid From Cash Flow

Oyo Parent Prism Halves IPO Size, Leaving More Debt to Be Repaid From Cash Flow

A smaller IPO is being sold as a sign of strength, but Prism may simply be playing it safe. After two abandoned IPO attempts, a smaller raise could mean it doubts demand at its old valuation, or just wants a smoother sale.

SoftBank-backed India's Oyo Hotels owner halves proposed IPO, filing shows

Prism, the company behind Oyo Hotels, has slashed its initial public offering (IPO) size from 66.5 billion to 33.5 billion rupees. Initially aiming for a lofty $12 billion valuation back in 2021, Prism has encountered a series of delays, including a confidential filing in March 2023 and its third postponement in May.

OYO-parent PRISM to nearly halve IPO fresh issue size to up to ₹3,350 cr: Sources

Reduction in the issue size follows continued strong cash generation and an improving balance-sheet position, which lowered the amount of capital the company needs to raise compared with what was originally envisaged, sources said.

OYO IPO: PRISM Cuts Fresh Issue to INR 3,350 Crore

OYO’s parent PRISM has cut its proposed IPO fresh issuance by almost half to INR 3,350 crore from roughly INR 6,650 crore on the back of strong cash creation and improved balance sheet. Most of the IPO proceeds will be used to repay or prepay debt.