OYO(OYO Unlisted shares), which operates under PRISM, is reportedly planning to reduce its IPO size from ₹6,650 crore to ₹3,350 crore. The company is also looking to go public in the current financial year. Meanwhile, OYO’s unlisted shares are trading at around ₹21.50 per share on Unlisted Network.

But why is OYO reducing its IPO size when its financial performance is improving?

OYO had initially planned to raise ₹6,650 crore through a fresh issue, with the money intended to repay debt. Now, with the reported issue size nearly halved, questions have emerged about its fundraising plans. The company has not officially confirmed the reason for the proposed reduction. Better cash generation, changing funding needs or market conditions could be possible factors.

Looking at its FY26 performance, OYO has reported significant growth. Revenue increased by around 50%, rising from ₹6,253 crore in FY25 to ₹9,358 crore in FY26. EBITDA more than doubled from ₹1,036 crore to ₹2,509 crore, while profit after tax (PAT) increased from ₹245 crore to ₹994 crore. The company also reportedly generated net cash of ₹269 crore.

The improvement is not limited to its financial results. Moody’s recently revised PRISM’s outlook from Stable to Positive and expects EBITDA to reach around ₹3,000 crore over the next 12–18 months. Fitch expects revenue to grow by 9–14% in FY27–FY28 and EBITDA leverage to decline from 5.2x in FY26 to around 3.8x by FY28.

These developments suggest that OYO’s profitability and ability to manage its debt could continue to improve if the projections are achieved.

For those tracking OYO in the unlisted market, the next big things to watch are the final IPO size, the valuation at which the company plans to list and how much of the proceeds will go towards debt repayment.