Hospitality startup Oyo has announced an extension of the application deadline for its upcoming bonus issue for equity shareholders. The last date to apply has now been moved from November 1 to November 7, 2025.
What Is the Oyo Bonus Issue?
Under this bonus issuance, every eligible shareholder will receive one preference share for every 6,000 equity shares held. These preference shares come with two options for conversion into equity shares, a fixed conversion option and a milestone-linked option.
1. Fixed Conversion Option
Each preference share will convert into one equity share at a pre-decided rate, giving shareholders a simple and predictable structure.
2. Milestone-Linked Conversion Option
In this option, conversion will depend on certain milestones – specifically, the appointment of investment bankers for Oyo’s planned IPO during the current financial year. This gives long-term investors potential upside based on company performance and IPO progress.
Eligibility and Simplified Process
The company has simplified the application process by removing the earlier requirement of submitting a Client Master List along with election letters. This means shareholders can now apply with fewer documents and complete the process more easily.
However, SoftBank Vision Fund and Ritesh Agarwal’s entities are not eligible for this bonus issue. The total dilution from the issuance will be capped at 5% of the company’s total share capital on a fully diluted basis.
Oyo’s Strong Financial Growth
PRISM, Oyo’s holding company, has shown a sharp improvement in financial performance over the last few years. Its EBITDA rose from Rs 276 crore in FY23 to Rs 893 crore in FY24, and further to Rs 1,102 crore in FY25. In the first quarter of FY26 alone, the company posted Rs 550 crore in EBITDA, highlighting strong operational efficiency and revenue growth.
Oyo’s Upcoming IPO Plans
Oyo is preparing to file its Draft Red Herring Prospectus (DRHP) in November 2025. The company is targeting a valuation of USD 7–8 billion for its much-awaited initial public offering. The IPO is expected to help Oyo strengthen its balance sheet and expand its global hospitality business.
Key Highlights
- Prism (Oyo) extended bonus issue application deadline to November 7, 2025.
- Eligible shareholders get 1 preference share per 6,000 equity shares.
- Two conversion options – fixed and milestone-linked.
- SoftBank and Ritesh Agarwal’s entities excluded from issuance.
- Oyo’s IPO filing planned for November with USD 7–8 billion valuation target.
Conclusion
The extension gives shareholders more time to decide their conversion preference before the company heads toward its IPO. With simplified processes and improving financials, Oyo is positioning itself for a stronger market debut.
Update: OYO Withdraws Current Bonus Resolution
OYO has withdrawn its existing bonus resolution and plans to introduce a new, simplified structure that will include both equity and CCPS holders, unlike the earlier proposal limited to equity holders.
The revised plan will remove the opt-in mechanism, making it a straightforward bonus distribution without any conditional requirements.
