Oyo to Consider 1:1 Bonus Issue as Unlisted Shares Surge Ahead of IPO

IPO-bound Oyo, officially known as Oravel Stays Ltd, is set to consider a 1:1 bonus issue, offering shareholders one new equity share for every existing share, as per news reports. This strategic move comes amid a stronger financial performance and a 25% rise in its unlisted share value over the past month.

1:1 Bonus Issue Boosts Shareholder Value

As per news reports, Oyo’s board will evaluate the proposal for a 1:1 bonus share issue, meaning each shareholder will receive 1 equity share for each currently held. Shareholders eligible for this bonus must be listed in the company's records on or before September 30, 2025. The bonus share allocation will be drawn from the company’s free reserves, securities premium account, and other internal reserves as of March 31, 2025. This marks Oyo’s second bonus issue since FY 2021-22.

Strong Financial Backdrop Supports Bonus Plan

Oyo has reported improved financial performance, with FY 2025 EBITDA reaching ₹1,100 crore. For FY 2026, the company is projecting EBITDA of ₹2,000 crore and a profit after tax of ₹1,100 crore. This progress reflects strength in its core markets such as India and the US, as well as growing activity in Southeast Asia and the Middle East.

Unlisted Shares Jump 25% Amid IPO Buzz

As per news reports, Oyo’s unlisted shares have surged 25% in the past month. This uptrend comes as the company steps up efforts for a fresh IPO filing, aiming at its third attempt to go public, having earlier withdrawn applications in 2022 and 2024.

Read More: Urban Company IPO to Deliver Bumper Returns for Accel and Elevation Capital!

IPO Plans in Motion Again

As per news reports, Oyo has obtained board approval for a renewed IPO effort. The leadership, chaired by Founder and CEO Ritesh Agarwal, includes industry veterans such as Troy Alstead and Aditya Ghosh. The company has been working with several investment banks to structure its listing strategy effectively, reflecting long-term growth confidence among key stakeholders.

Conclusion

With a 25% rise in unlisted share prices and a strong financial footing, Oyo’s 1:1 bonus issue indicates a commitment to shareholder value ahead of its IPO. As the new record date nears, the move aligns with its strategic ambition for a successful public debut.

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