Oyo's parent PRISM increases authorised share capital ahead of planned IPO

IPO-bound Oyo's parent firm PRISM has initiated a fresh round of corporate actions, including an increase in its authorised share capital as part of its preparations for a potential public listing, sources said on Thursday.

In August, PTI had reported that Oyo plans to file its Draft Red Herring Prospectus (DRHP) in November, eyeing a USD 7-8 billion valuation for its IPO, according to sources.

The company has proposed to increase its authorised share capital from Rs 2,431.13 crore to Rs 2,433.13 crore by adding 20 lakh CCPS (Compulsarily Convertible Preference Shares) of Rs 10 each.

This follows earlier shareholder approvals in August and September 2025 for capital expansion linked to IPO readiness and other fund-raising activities.

 

The current proposal is to further increase the authorised share capital to accommodate the issuance of bonus CCPS.

In a communication to shareholders, Oyo said, "The increase in the authorised share capital is in addition to the earlier increase in the authorised share capital, as already approved by the Board and the shareholders of the Company which was undertaken as part of the company's preparations for its proposed IPO and to accommodate other capital/fund raising transactions."  The company has also proposed issuing approximately 4.75 million (47,46,768) equity shares each to Independent Directors Troy Matthew Alstead and William Steve Albrecht as sweat equity, valued at Rs 37.12 per share.

The issuance will form part of their compensation recognising their "value addition and professional contribution" to the company's governance and strategic direction. The shares will be locked in for three years from allotment.

The company also proposes issuance of bonus CCPS to existing equity shareholders in the ratio of 1 bonus CCPS for every 6,000 equity shares held, capitalised from free reserves and the securities premium account.

The bonus CCPS are non-redeemable and compulsorily convertible into equity shares, as per the letter sent to shareholders.

Sources privy to the matter said, "These actions are part of a multi-pronged-IPO structuring effort, aimed at simplifying PRISM's capital structure, rewarding existing shareholders, and aligning governance with public-market expectations. The proposal suggests that the IPO filing preparations are now at an advanced stage".