OYO extends bonus share election deadline, clarifies IPO-linked reward terms
The move comes as OYO prepares to refile its IPO paperwork later this month, targeting a valuation between $7–8 billion.
Oravel Stays Ltd, the parent company of budget hotel aggregator OYO, has pushed back the deadline for shareholders to choose between competing bonus share options, buying more time for investors to decide whether to bet on the company's long-anticipated initial public offering.
The deadline, originally set for November 1, has been extended to 6 pm on November 7, the company said in a communication to investors reviewed by YourStory.
The move comes as OYO prepares to refile its IPO paperwork later this month, targeting a valuation of $7–8 billion.
At the heart of the extended deadline is an unusual two-tier bonus structure. Under the first scheme, for every 6,000 shares an investor currently owns, they'll get one bonus Compulsorily Convertible Preference Share (CCPS).
Now the investors have two options. First is the default route, where each CCPS is converted to one regular share.
The other option is a bit of a gamble. It's a milestone-linked option where investors stand to gain 1,109 equity shares per CCPS—but only if OYO appoints merchant bankers for its IPO during the current fiscal year ending March 2026. If that deadline is missed, the conversion ratio plummets to just 0.1 shares per CCPS.
OYO clarified multiple times that this structure is essentially a mechanism to recognise long-term shareholders who believe in the company's IPO pathway
"This Bonus Shares is distinct from the earlier 1:1 bonus issue and is structured to reward long-term equity shareholders who believe in the Company’s IPO pathway while still giving some benefits to those shareholders who don’t opt for milestone-based reward," the travel-tech platform said in its official communications.
"The Bonus Shares issuance is a mechanism that allows existing equity shareholders to participate in the Company’s next phase of growth, while reinforcing alignment of interests in the IPO process. It is a vehicle that gives you enhanced optionality and recognition for your early support," OYO added.
The extension follows feedback from the postal ballot process that launched on October 28. OYO has also streamlined requirements, dropping a previous mandate that investors attach Client Master Lists (CMLs) to verify active demat accounts—a step introduced after earlier difficulties crediting shares.
CML from a demat account provider contains all the details of an investor's account, including their personal information, bank details, and unique account identifiers.
The bonus plan, which caps total shareholder dilution at 5% on a fully diluted basis, excludes OYO's largest stakeholders—SoftBank Vision Fund and entities controlled by founder Ritesh Agarwal—who together hold majority stakes through existing preference shares.
OYO's pitch to investors rests partly on a dramatic profitability turnaround. The company reported EBITDA of Rs 276 crore in FY23, which surged to Rs 893 crore in FY24 and Rs 1,102 crore in FY25, according to the shareholder document.
The company said the fiscal year 2026 began "on a strong note" with first-quarter EBITDA of Rs 550 crore, reinforcing its argument that the bonus structure aligns with an IPO backed by sustained profitability.
Edited by Kanishk Singh