Prism, parent of India-based hospitality company Oyo, plans to cut the fresh issue in its proposed IPO to as much as 33.5 billion rupees (US$353 million) from about 66.5 billion rupees (US$701 million), according to people familiar with the matter.

They said the smaller fundraising reflects stronger cash generation and an improving balance sheet. Most of the proceeds would go toward debt repayment or prepayment.

Prism Hotels, Oyo’s parent entity, had earlier received approval from the Securities and Exchange Board of India for a 66.5 billion rupees (US$701 million) fresh issue.

Moody’s recently raised Prism’s outlook to positive from stable while affirming its B2 corporate family rating. The change was tied to expectations of stronger operating performance and cash generation.

🔗 Source: YourStory