OYO parent cuts IPO fresh issue target to ₹3,350 crore

OYO's parent company PRISM has scaled back the fresh issue component of its planned initial public offering to approximately ₹3,350 crore, down from the initially targeted ₹6,650 crore, according to sources familiar with the development.

The reduction reflects a significant shift in the company's capital requirements following robust cash generation and a strengthened balance sheet. The hospitality firm originally sized its IPO based on financial projections that have since been superseded by stronger-than-expected operational performance.

"The original issue was sized before the company's more recent financial performance came through. With cash generation remaining strong and the balance sheet improving, the funding requirement has come down," a person aware of the matter said. "The objective is to raise what the business needs while keeping the capital structure efficient."

PRISM plans to service its remaining debt obligations through operating cash flows generated over the next two to three years, reducing reliance on fresh capital raises. The decision demonstrates the company's improved operational efficiency and financial health as it prepares for its market debut.