OYO Parent Company Considers 1:1 Bonus Share Issue as Unlisted Shares Surge

Oravel Stays Ltd, the parent company of hospitality giant OYO, is making waves in the pre-IPO market as it gears up for its stock market debut. The company has announced that its board will consider a 1:1 bonus share issue, a move that has caught the attention of investors and market watchers alike.

Bonus Share Consideration

The board of Oravel Stays Ltd is set to deliberate on a proposal to issue bonus shares in a 1:1 ratio. This means that for every share held, shareholders could potentially receive an additional share at no extra cost. The company has set September 30, 2025, as the record date for determining shareholder eligibility for the bonus issue.

Unlisted Shares Performance

In a notable development, OYO's unlisted shares have seen a significant uptick in value. Over the past month, these shares have appreciated by 25.00%, indicating growing investor interest in the company ahead of its public listing.

IPO Preparations

The consideration of a bonus share issue comes as Oravel Stays Ltd prepares for its much-anticipated initial public offering (IPO). This move could be seen as a strategy to reward existing shareholders and potentially increase liquidity in the stock once it goes public.

Market Implications

The proposed bonus issue, coupled with the recent surge in unlisted share prices, suggests a positive sentiment surrounding OYO's business prospects. It may also indicate the company's confidence in its future growth and ability to create value for shareholders.

Investor Outlook

For potential investors, this development presents an interesting opportunity. The bonus share issue, if approved, could effectively lower the cost per share for existing shareholders, while the rising value of unlisted shares hints at strong market expectations for the company's future performance.

As Oravel Stays Ltd continues its journey towards becoming a publicly-traded entity, these pre-IPO moves are likely to be closely watched by both retail and institutional investors. The company's performance in the hospitality sector will be crucial in determining its success in the public markets.

Shareholders and potential investors are advised to keep a close eye on further announcements from the company regarding the bonus share issue and any updates on the IPO timeline.