Oyo parent Prism calls for an EGM to consider raising Rs 6,650 crore via IPO

Oyo parent Prism calls for an EGM to consider raising Rs 6,650 crore via IPO

Prism, the parent company of hospitality major Oyo, has called an Extraordinary General Meeting (EGM) on December 20 to seek shareholder approval for raising up to Rs 6,650 crore through a fresh issue of shares as part of its proposed initial public offering (IPO), according to a copy of the EGM notice reviewed by Moneycontrol.

The move marks the most definitive step yet in Oyo’s renewed attempt to tap public markets.

The company is seeking extensive enabling approvals from shareholders to structure and execute the issue, undertake pre-IPO placements, modify its capital structure and overhaul its governance framework in line with requirements for a publicly listed company. If cleared, these resolutions will give Prism the mandate to proceed with its long-delayed listing plan.

This will be the company’s third attempt at a public listing. Oyo first filed its draft red herring prospectus (DRHP) in September 2021, aiming to raise around $1.2 billion at a valuation of $11–12 billion, but postponed the issue due to unfavourable market conditions.

It made a second attempt in 2023, when it confidentially pre-filed draft IPO papers after slashing the planned offer size to $400–600 million, but did not move forward with a public issue. The latest resolutions suggest Prism is again preparing to approach the market.

The company is seeking approval to raise up to Rs 6,650 crore through a fresh issue of equity shares, including a 1 percent oversubscription option. The resolution gives the board broad authority to structure the offer, determine pricing and allot shares at par or premium.

It also allows Prism to undertake pre-IPO placements, issue shares under a green shoe option to a stabilising agent and extend discounts or reservations, including for employees.

Prism has asked shareholders to authorise the board to appoint book-running lead managers, determine investor allocation, execute agreements, open escrow accounts and make all necessary filings with SEBI, the Registrar of Companies and stock exchanges. These enabling powers are intended to provide the company with full operational flexibility to execute the public issue once approved.

The EGM will also consider increasing the authorised share capital from Rs 24,31 crore to Rs 24,91 crore as part of a broader pre-IPO restructuring. The updated capital structure includes multiple series of compulsorily convertible preference shares (CCPS), which will need to be converted into equity ahead of the listing to comply with public-market norms.

Prism has proposed issuing bonus shares in a 1:19 ratio — one new share for every 19 existing shares — with a record date of December 5, 2025. The bonus issue will be funded by capitalising free reserves, securities premium or other eligible accounts as of March 31, 2025. The company will also adjust the conversion ratios for all CCPS series to maintain investor parity following the bonus issue.

The EGM will be conducted via video conferencing on December 20 at 5:30 pm IST. If shareholders approve the resolutions, Prism will have the mandate to proceed with its long-pending IPO plans, subject to regulatory clearance and market conditions.