OYO’s Parent PRISM Withdraws 6,000:1 Bonus Share Proposal Amid Backlash

PRISM, the parent company of OYO, has decided to withdraw its previously announced bonus share proposal following investor feedback over its complexity and limited eligibility criteria. The company confirmed that a new and simplified bonus structure will soon be introduced, ensuring equal participation for all shareholders, including both equity and CCPS holders, regardless of their shareholding size.

Details of the Earlier Plan

The initial proposal offered one bonus share for every 6,000 equity shares held, linked to OYO’s potential IPO roadmap. However, the plan required shareholders to opt in within a short time frame, a condition that drew criticism for favouring certain investor categories. Smaller shareholders, in particular, voiced concerns about the fairness and accessibility of the process.

The IPO-bound OYO emphasised that the move aligns with its governance-first approach and its focus on fairness and long-term value creation across all shareholder categories. 

Also Read: OYO Assets Aims for Expansion with 12 New Hotel Acquisitions

Next Steps and Timeline

The decision follows PRISM’s recent move to extend the opt-in deadline for the original proposal to November 9, after receiving requests from investors seeking greater clarity and inclusion. Once approved, the new bonus plan will automatically apply to all eligible shareholders, replacing the earlier version in full.

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