OYO's Next Big Leap: IPO Plans, Bonus Shares, and a Governance Reset

OYO is preparing for a pivotal shift in its journey — after years of restructuring and cost recalibration, the company is now laying the groundwork for a public listing. The latest corporate actions show a clear narrative: OYO wants to go public, streamline its capital structure, and reset shareholder rights ahead of a market-facing chapter.

A) The Road to Listing: Raising Capital

The company plans to raise up to ₹6,650 crore through a fresh issue of equity shares as part of its Initial Public Offering (IPO). The shares will be listed on the NSE and BSE, marking a major milestone for one of India's most closely watched unicorns.

The share price will be decided through the book-building process, with flexibility for employee discounts, anchor investors, and other institutional categories. The company also has the option to retain up to 1% over-subscription and may offer a pre-IPO placement — which, if exercised, will reduce the size of the main IPO.

Once listed, the newly issued equity will carry the same rights as existing shares. However, all pre-issue shares will remain locked in for six months, signaling regulatory compliance and stability for incoming public investors.

B) Expanding the Share Capital Structure

Ahead of the IPO, the company is reshaping its share capital to accommodate upcoming issuances — specifically the bonus shares and fresh equity for the public issue.

OYO’s authorised capital increases from ₹24,31 crore to ₹24,91 crore, with the number of equity shares (face value ₹1 each) rising from 1,700 crore to 1,760 crore.

Interestingly, the structure and count of preference shares — which reflect past funding rounds — remain unchanged. These will continue to play a role until they convert into equity, likely before the IPO.

C) The Bonus Share Move: 1 for 19

To reward existing shareholders and restructure the equity base ahead of the IPO, OYO has approved a bonus issue of shares.

• Bonus Ratio: 1 share for every 19 existing shares

• Record Date: December 5, 2025

The bonus issue will be funded from the company's free reserves or securities premium, turning retained capital into equity and increasing liquidity ahead of listing.

This also triggers a technical adjustment across:

• Employee Stock Option Plans (ESOPs)

• The total option pool

• The exercise prices of outstanding employee grants

• Conversion calculations of all Series A–G Preference Shares

This ensures no shareholder class is unfairly diluted.