OYO (Oravel Stays Ltd.) is issuing Bonus Compulsorily Convertible Preference Shares (CCPS) to all its equity shareholders.
If you held OYO shares as on 24 October 2025, you’ll get
👉 1 Bonus CCPS for every 6,000 equity shares you own.
So, for every 6,000 shares, you’ll receive one CCPS — free of cost.
If you hold less than 6,000 equity shares, you will not get any Bonus CCPS.
There will be no fractional entitlement — which means if your holding is, say, 5,999 shares, you’ll get zero CCPS.
A CCPS (Compulsorily Convertible Preference Share) is not a normal share.
It’s a type of share that will automatically convert into equity shares later under specific conditions.
In short — you get the CCPS now, and it will turn into equity shares later, depending on which option you choose.
OYO is offering two ways (options) to convert your Bonus CCPS into equity:
If you do nothing, you’ll automatically fall under the Default Option.
Each Bonus CCPS will convert into 1 Equity Share.
👉 1 CCPS = 1 Equity Share
You don’t have to inform the company for this; it’s automatic.
If you want to take a higher-risk, higher-reward route, you can opt for the “Milestone-Based Option.”
Here’s how it works:
If OYO appoints a merchant banker for its IPO during FY 2025–26 (the “Milestone”),
👉 1 CCPS = 1,109 Equity Shares
If OYO fails to achieve this milestone,
👉 1 CCPS = 0.10 Equity Shares
So, it’s a conditional reward — massive upside if IPO preparations move forward, minimal conversion if not.
Class A Bonus CCPS Holders → Those who do not opt for the Milestone-Based Option. Their CCPS will convert 1:1 (default).
Class B Bonus CCPS Holders → Those who opt for the Milestone-Based Option. Their CCPS will convert 1:1109 or 1:0.10, depending on IPO progress.
You must inform OYO in writing within 3 working days from the date the postal ballot notice was sent.
You’ll need to fill out and submit the election letter (Annexure B) provided by the company.
If you don’t send the election letter within that time, you’ll automatically fall into Class A (the default 1:1 conversion).
The Milestone is clearly defined as:
“Appointment of the bankers during FY 2025–26 in connection with any proposed initial public offering (IPO) of the Company.”
So, if OYO formally appoints a merchant banker during FY26, the milestone is considered achieved.
OYO is doing this for three main reasons:
To reward existing shareholders without immediately increasing equity capital.
To keep flexibility before IPO approval — CCPS don’t immediately dilute equity.
To align investor benefit with IPO success — shareholders gain only if the IPO actually progresses.
This structure ties investor benefit directly to IPO readiness.
There’s no change for now — CCPS are not counted as equity until they convert.
However, if the milestone is achieved (IPO banker appointment), and CCPS convert at 1:1109, the equity base will expand significantly, affecting overall percentage holdings.
OYO is giving flexibility to investors:
Conservative investors can stick to the safe 1:1 default.
Optimistic investors confident in the IPO process can choose the 1:1109 milestone-based option.
It’s like choosing between a fixed return and a performance-linked bonus.
The Bonus CCPS carries a nominal dividend rate of 0.01% per annum (non-cumulative).
Dividends are payable only when declared by the board.
This is a rare and creative corporate structure — combining:
A bonus reward,
A convertible preference instrument, and
A performance trigger (IPO milestone).
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