Prism's IPO Roadshow Highlights Acquisition Strategy

Prism, the parent company of OYO, has begun its investor roadshows for its proposed initial public offering (IPO) of Rs 6,650 crore. The roadshows provide an opportunity for the company's management to present its business strategy, financial performance, and growth plans to institutional investors.

The company's acquisition strategy is under the spotlight, with its two largest acquisitions, US-based G6 Hospitality and Europe's OVH, contributing only about 20% of its current profitability. The remaining 80% of its earnings have been generated after the integration of these acquired businesses into the company's operating platform.

Before being acquired by Prism, G6 Hospitality and OVH together generated around Rs 600 crore of EBITDA. However, after integration, the company has seen significant operational improvements, enabling it to generate nearly Rs 2,200 crore, or almost 80% of its current earnings.

Industry experts believe that the acquisitions provided Prism with immediate scale in key international markets, but most of its current profitability has been driven by operational improvements following integration. The company has integrated the acquired businesses onto a common operating platform, covering pricing, revenue management, technology, distribution, procurement, and customer operations.

Prism's financial performance has also improved significantly. For the nine months ended December 31, 2025, the company reported a Global Gross Booking Value (GBV) of Rs 22,946 crore, surpassing the Rs 16,279 crore recorded in entire FY25. Its EBITDA more than doubled to Rs 2,127 crore during the nine-month period from Rs 953 crore in FY25, while profit after tax rose to Rs 748 crore from Rs 245 crore.

As of December 31, 2025, Prism operated 43 brands across more than 35 countries, with a network of 24,303 hotels, 124,668 homes, and 144,583 listings. The company's US business has emerged as a key growth driver following the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands in the US and Canada.

The US business contributed 52.39% of Prism's global GBV during the period, with a GBV of Rs 12,022.51 crore in the first nine months of FY26, up from Rs 4,712.83 crore reported for the entire FY25. In Europe, Prism expanded its homes and listings business to 269,251 properties as of December 31, 2025, from 208,901 as of March 31, 2025.

The company's European portfolio includes brands such as Belvilla, DanCenter, and C. The expansion of its business in the US and Europe has been a key factor in Prism's growth, and the company is expected to continue to focus on these markets in the future.

The success of Prism's acquisition strategy and its ability to integrate acquired businesses into its operating platform will be closely watched by investors as the company prepares for its IPO. The company's financial performance and growth plans will also be under scrutiny, as investors look to understand the potential for future growth and returns.

In conclusion, Prism's IPO roadshow has highlighted the company's acquisition strategy and its ability to generate significant earnings through operational improvements following integration. The company's financial performance and growth plans will be closely watched by investors, and its ability to continue to grow and expand its business will be key to its success in the future.