Oyo Proposes 1:1 Bonus Share Issue Ahead of IPO at September AGM

Gurugram, September 5, 2025: Oravel Stays Limited said its 14th Annual General Meeting (AGM) will be conducted on September 26, 2025, through video conferencing. The primary agenda among the things to be decided upon is a 1:1 bonus issue of shares, something that precedes the company’s much-awaited initial public offering (IPO).

Oravel Stays Limited, operating under the Oyo brand, is India’s largest hospitality and travel-tech player providing value and premium stays under hotels, homes, and holiday accommodations. The firm is going for an IPO, and these corporate actions are being undertaken to strengthen its capital base and position it favorably for investors.

Bonus Issue Details

The Board of the company has recommended the issuance of one new fully paid face value of ₹1 equity share for each current equity share in their holding, with a record date of September 30, 2025. Bonus shares will be issued by capitalizing Oyo’s free reserves, securities premium account, or other permitted reserves as of March 31, 2025. The above-mentioned shares shall have the same rights as the current equity shares and rank pari passu with the current equity shares in all ways.

Before and After Capital Structure

After the bonus issue, the face value equity shares of the company ₹1 each will go up from 1,70,09,73,571 shares before bonus to 3,40,19,47,142 shares after bonus. Due to this, the issued capital will go up from ₹170.09 crore to ₹340.19 crore.

Bonus Issue Mechanics

The firm has declared a 1:1 bonus issue, which means the shareholders will be issued one extra share per share they hold. Every share has a face value of ₹1. The record date for identifying eligible shareholders has been set at September 30, 2025. The bonus shares would be issued from the free reserves of the company, securities premium, and other allowable reserves, as per the rules. After the issue, the action would practically double the number of outstanding equity shares.

Adjustments for CCPS, CCCPS and ESOPs

The firm explained that the conversion ratios of its Series A–G Compulsorily Convertible Preference Shares (CCPS/CCCPS) will be pro-rata adjusted to ensure proportional entitlement. Likewise, outstanding stock options under the ESOP 2018 plan, as well as the exercise price, will be adjusted proportionally in accordance with the 1:1 bonus ratio.

Strategic Rationale

In its explanatory statement, Oyo stated that the bonus issue evidences:

• Improved operational performance and years of consecutive profitable years.
• An intent to reward long-term shareholders.
• Increased accessibility for retail investors.
• Enhanced market liquidity.
• A tax-effective utilization of built-up reserves.

This will be Oyo’s second bonus issue in recent years, after one in FY 2021–22, indicating steady shareholder value creation.

Other AGM Proposals

• Reappointment of Aditya Ghosh, Non-Executive Director, by rotation.
• Appointment of Walker Chandiok & Co LLP as new statutory auditors, in place of S.R. Batliboi & Associates, upon expiry of a 10-year tenure.
• Authorized Share Capital enhanced from ₹16,311.36 crore to ₹24,311.36 crore to meet the bonus issue and future needs.
• Enlargement of ESOP Pool by 8.8 crore options under ESOP 2018.

Oyo’s upcoming AGM on September 26, 2025, will finalise a 1:1 bonus share issue, effectively doubling its equity shares and adjusting CCPS, CCCPS, and ESOPs proportionally. Other corporate decisions include the reappointment of a director, the appointment of new statutory auditors, and an enlarged ESOP pool. These actions reflect structured capital management and operational preparedness ahead of the company’s IPO.

REF: https://oyo-investor-relations.s3.ap-southeast-1.amazonaws.com/AGM+Notice/OSL-AGM+2025+Notice.pdf

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