OYO Withdraws Bonus Resolution Plan, Introduces Unified Structure for All Shareholders

Hospitality technology firm OYO has decided to withdraw its existing bonus resolution plan, opting instead to introduce a new, unified structure for all its shareholders. This decision comes after the company received feedback from investors regarding the initial proposal.

The original plan had distinct categories for investors. Those who did not respond to the postal ballot were to be classified under ‘Class A’, receiving one bonus compulsory convertible preference share (CCPS) for every 6,000 equity shares held. Investors who actively opted in within the designated election window could choose ‘Class B’, where the conversion of one CCPS into equity shares was contingent on OYO appointing merchant bankers for its IPO before March 2026.

Following initial feedback, OYO's parent PRISM extended the opt-in window. However, the company has now chosen to roll back the plan entirely. The new proposal will be a single, comprehensive structure applicable to all classes of shareholders, irrespective of their holding size, and will not necessitate any application process.

A company spokesperson stated, “We are not proceeding with the current resolution and will shortly bring a fresh, unified proposal for shareholder approval.” This action is highlighted as a reflection of OYO's commitment to governance-first growth and fairness.

Impact: This change demonstrates OYO's responsiveness to shareholder concerns, which could boost investor confidence. The simplification of the bonus structure might improve its appeal. However, the need to re-propose a plan could introduce minor delays in OYO's broader corporate actions, including potential IPO preparations. Rating: 5/10.

Difficult terms: Bonus resolution plan: A plan detailing the distribution of bonus shares or other benefits to shareholders. Shareholder feedback: Opinions and suggestions provided by individuals who own shares in a company. Postal ballot: A method for shareholders to cast their vote on company matters by mail. Compulsorily convertible preference share (CCPS): A type of preference share that must be converted into equity shares under specific conditions. Equity shares: The basic form of stock representing ownership in a company. IPO (Initial Public Offering): The process by which a private company first offers its shares to the public. Merchant bankers: Financial institutions that advise companies on issuing new securities and managing IPOs. PRISM: The parent entity of OYO. Unified proposal: A single plan designed to apply universally to all relevant parties.