Top existing investors of AirBnB, SoftBank, Sequoia and other marquee investors will not sell any shares in the forthcoming IPO of PRISM (Oravel Stays).
The technology-driven global hospitality platform’s IPO will have only a fresh issue of ₹6,650 crore to deleverage and enhance its financial profile.
Incidentally, AirBnB, which is a partly comparable international peer with revenues of Rs 85,167 crore, invested in PRISM and owns over one per cent at the time of the public offer document date. In April 2019, Airbnb made a strategic investment (between $150 million and $200 million) in the company (OYO at that time). This investment was part of OYO’s Series E funding round and was primarily aimed at expanding Airbnb’s presence in emerging markets like India and China while integrating OYO’s vacation homes onto the Airbnb platform, as per their statement.
After filing the public document and getting the first set of regulatory approvals, the PRISM team is now gearing up for institutional investor roadshows, which could potentially value the company at about $7–8 billion, as per investment banking and industry sources.
Partly comparable peers MakeMyTrip and Indian Hotels (Taj Hotels) trade at about 23 times forward EBITDA, as per bankers. Annualising PRISM’s 9MFY26 EBITDA of ₹2,172 crore (and even after removing exceptional one time additions) and forward EBITDA, the same multiple also indicates valuation of anything from ₹63,000 crore to ₹72,000 crore, said an analyst.
PRISM’s public offer is a deleveraging event and not an exit route for existing investors, unlike several recent instances. Public shareholders hold around 36.02 per cent (25.28 per cent assuming full conversion of convertible securities) are holding on to their shares.
The top 10 shareholders include marquee names such as SoftBank’s SVF India Holding (40 per cent holding), Five Stars Capital S.C.A (2.77 per cent), Lightspeed Venture Partners IX, Mauritius (1.74 per cent), A1 Holdings Inc (1.62 per cent), Star Virtue Investment (1.62 per cent), Tanjung Buai Ventures SDN. BHD (1.41 per cent), AirBnB Inc (1.22 per cent) and Peak XV Partners Investments IV (Sequoia, 1.06 per cent).
Even promoter Ritesh Agarwal and his promoter group entities are not selling a single share.
The company has raised approximately $3.5 billion across 21 funding rounds since its inception in 2013. It received ₹40 million as Series A funding in 2014 within the first two years after incorporation.