In a remarkable move that comes on the eve of its long-awaited Initial Public Offering (IPO), the famous hospitality major OYO, whose officially registered name is Oravel Stays Ltd., has announced something very important in connection to the issue of bonus shares in the ratio of 1:1. This specific move means that for each and every one of the already present equity shares held by the shareholders, they will be eligible to get one extra equity share at no additional cost. The motion relating to the said bonus shares will be duly examined and then put to vote through the company’s forthcoming 14th Annual General Meeting (AGM). This significant event will be held on September 26, 2025, and will be digitally conducted through video conferencing to cater to all the participants.
The OYO proposed bonus issue record date has also been fixed at September 30, 2025. This implies that the shareholders who are the OYO share holders as on the said date will be able to get the bonus share, provided such resolution at the AGM gets approved.
This strategic move is made by OYO as it prepares for its third attempt at a public float. The release of bonus shares is generally regarded as a shareholder-friendly move to enhance the liquidity of the company stock and broaden the accessibility to the stock among retail investors. By the doubling of the number of available shares, the share price will become cheaper and may induce larger participation in the upcoming IPO.
The OYO company board of directors has expressed a firm sense of assurance in the company’s general financial stability and health as an organization. The assurance comes mostly because the company has achieved two profitable years in a row, and this acts as the most important factor that allows the company to make this strategic move. Following this encouraging trend, the proposed issue of bonus is supposed to be carried through by using the available free reserves of the company and the securities premium account.
Apart from the offer of issue of bonus share, other key items in the AGM are the reappointment of Aditya Ghosh as a non-executive director and appointment of Walker Chandiok & Co LLP as the new statutory auditor. The development has generated quite a stir in the markets, and OYO’s new IPO plans have gathered a significant amount of momentum. The company has reportedly contacted different investment banks to schedule its public issue. The bonus share issue evidently reveals OYO’s bid to spread good cheer among the investor community and open the path for a successful stock exchange initiation.
Bonus Issue
The AGM of the OYO has recommended the issuance of 1 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.