OYO IPO: Moody’s Ratings revises parent firm Prism’s outlook to ‘positive’ ahead of offering
Moody’s Ratings expects OYO’s EBITDA to grow to around ₹3,000 crore over the next 12-18 months
Moody's Ratings has upgraded the outlook on OYO parent company Prism from stable to positive, ahead of the company's planned IPO. This positive outlook is based on expectations that OYO will maintain stronger earnings and free cash flow generation in the next 12-18 months, supporting further debt reduction while preserving excellent liquidity.
The rating affirmation also highlights OYO's leading position in the budget accommodation market in India, Europe, and the US, as well as its geographic diversification. The company is expected to generate around ₹3,000 crore (approximately $315 million) in EBITDA over the next 12-18 months, up from ₹2,630 crore (approximately $315 million) in FY25.
OYO's IPO plans to raise around ₹6,650 crore ($660 million), with a portion used to repay debt, which would accelerate deleveraging and bolster the company's credit profile.
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