OYO Extends Bonus Share Election and Drops Paperwork as IPO-Linked Plan Faces Scrutiny

Overview

• OYO moved the selection deadline for its bonus issuance from November 1 to November 7 and removed the Client Master List requirement for applications.
• Under the plan, shareholders receive one CCPS for every 6,000 equity shares, with a default conversion of one CCPS into one equity share.
• An opt-in Class B offers conversion into 1,109 shares if merchant bankers are appointed for an IPO in FY25–26, with conversion falling to 0.1 share if the milestone is missed.
• OYO said the issuance excludes SoftBank Vision Fund and entities linked to founder Ritesh Agarwal and caps dilution at a maximum of 5% on a fully diluted basis.
• The changes follow public warnings from market voices calling the original setup a potential 'daylight heist,' as OYO prepares to file its DRHP in November targeting a reported $7–8 billion IPO valuation.