Travel-tech company OYO announced on Monday that it will not move forward with its current proposal for a bonus issue. Instead, the firm plans to introduce a “simplified” structure for all shareholders soon, in response to stakeholder feedback.
The decision comes amidst concerns regarding the original proposal’s complexities, including a brief three-day application window and the intricate structure of the Compulsorily Convertible Preference Shares (CCPS). In a statement, OYO indicated that the new bonus framework will ensure equal participation and transparency for all shareholders, including holders of unlisted shares and small holdings.
“We are not proceeding with the current resolution and will shortly bring a fresh, unified proposal for shareholder approval in accordance with the Companies Act, 2013. The revised structure will be announced in the coming days and will not require any application process,” said a spokesperson for PRISM, the parent company of OYO.
Previously, the proposal allowed shareholders to receive one preference share for every 6,000 equity shares held, with options for a fixed conversion into equity or a milestone-linked conversion based on the appointment of bankers for a potential IPO within the current financial year.
On Sunday, OYO extended the application timeline for the earlier resolution and clarified that major stakeholders, including SoftBank Vision Fund and entities associated with Ritesh Agarwal, are not eligible for this issuance.
In August, OYO indicated ambitions to file its Draft Red Herring Prospectus (DRHP) in November, aiming for a valuation of $7-8 billion in its forthcoming IPO.
Published on November 3, 2025.
