OYO to Give 1:1 Bonus Shares Before IPO

Oravel, the parent company of hospitality giant OYO, is fully preparing to enter the stock market. It has created a stir in the pre-IPO market. Now the company has announced that it will issue 1:1 bonus shares. In such a situation, investors and market watchers are keeping an eye on it.

The board of Oravel Stage Limited is set to deliberate on a proposal to issue bonus shares in a 1:1 ratio. This means that for every share held, shareholders can get one additional share at no cost. The company has set September 30, 2025 as the record date for determining the eligibility of shareholders for the bonus issue.

The price of Oyo's non-listed shares has seen tremendous growth. In the last one month, these shares have increased by 25.00%. This indicates that investors' interest in the company is increasing before its public listing.

Preparations for IPO

The idea of issuing bonus shares comes at a time when Oravel Stage Limited is preparing for its initial public offering (IPO). The move can be seen as a strategy to reward existing shareholders and potentially increase liquidity in the shares when they go public.

Just last week, Oyo received board approval for an IPO. Founder and CEO Ritesh Agarwal leads the board. It also includes well-known names like former Starbucks COO Troy Alstead, W Steve Albrecht, and former Indigo co-founder Aditya Ghosh.

This is Oyo's third attempt to launch an IPO. It first filed its draft prospectus with the Securities and Exchange Board of India (SEBI) in 2021, aiming to raise Rs 8,430 crore, but later withdrew the plan in 2022. The second attempt through SEBI's confidential filing route in 2023 was also withdrawn in 2024.

Financial Performance of Oyo
In FY25, Oyo recorded EBITDA of around Rs 1,100 crore, reflecting improvement in its operating performance.

(Disclaimer: The information given here regarding IPO is not an investment opinion. Since investing in the stock market is subject to market risks, please consult a certified investment advisor before investing.)