Ahead of IPO, Oyo expands share capital through stock split, bonus issue

The Softbank-backed travel technology firm is expected to file its DRHP with Sebi in the next few months

IPO-bound Oyo has expanded its paid-up share capital base through a two-step process. The first step involves a 1:10 split of all equity and preference shares. As the next step, the equity shareholders have then been allotted 3,999 bonus shares for each share held, and for preference shareholders, the conversion ratio to equity shares has been changed from 1:1 to 1:4,000, recent regulatory filings show.

The expansion in share capital seems to be in the run-up to the company's upcoming initial public offering (IPO) to ensure that the market value per share reaches an affordable and easily tradable price band.