OYO (Prism) IPO Nearing Reality

OYO (Prism) IPO Nearing Reality – What Should Unlisted Share Investors Do?

The biggest takeaway from the latest development is that SEBI has approved the IPO of Prism (formerly Oravel Stays, OYO’s parent company). This removes a major uncertainty that had been hanging over the company for the last few years.

At the proposed IPO size of Rs. 6,650 crore, market sources indicate a likely valuation of around USD 7–8 billion, making it one of the largest tech and travel IPOs expected in India.

What Has Improved?

A few years ago, OYO was known more for losses than profits. However, the latest financial trend shows significant improvement:

Key observations:

✔ Loss-making business has turned profitable

✔ EBITDA has improved from deep losses to positive territory

✔ Operating margin improved from negative 24% to positive 16.57%

✔ Global travel demand remains strong

✔ Founder Ritesh Agarwal continues to hold significant stake and drive growth

But Investors Should Also Note

Some caution points remain:

✖ Net profit margin is still thin at around 4%

✖ Hotel aggregation remains a highly competitive business

✖ IPO valuation could already factor in much of the turnaround

✖ Growth sustainability after listing will be closely watched

Unlisted Share Available at Rs. 26 – What Should Investors Do?

At Rs. 26, the decision largely depends on your holding period.

Existing Investors

If you already own OYO unlisted shares:

✔ Continue holding

✔ IPO approval is a major positive trigger

✔ Valuation discovery generally improves once DRHP details become public

✔ Further upside may emerge if IPO pricing indicates valuation above current expectations

Fresh Buyers

At Rs. 26:

✔ Suitable only for investors willing to take IPO-related risk

✔ Do not chase aggressively if the unlisted market starts pricing in speculative premium

✔ Accumulate gradually rather than making a lump-sum purchase

Chanakya View

OYO today is very different from the company investors saw during its failed IPO attempt years ago.

The business has moved from large losses to profitability, SEBI approval is now in place, and the company appears set for a public listing.

For investors holding unlisted shares around Rs. 26, the risk-reward still appears favorable, provided they can wait through the IPO process and possible post-listing volatility.

Action Plan

Already Holding OYO Unlisted Shares?
➡ Hold

Fresh Entry at Rs. 26?
➡ Positive for high-risk investors

Target Horizon
➡ IPO listing plus 6–12 months

Risk Level
➡ High

Chanakya Rating
➡ Speculative Buy for IPO-linked opportunity; Hold for existing investors.