PRISM, the parent company of Oyo, has announced a significant change in its bonus structure, aiming to create a more inclusive framework for all its shareholders. This move represents a shift in the company's approach to shareholder benefits and could have implications for its future growth strategies.

Key Points of the New Bonus Structure

• Inclusivity: The new structure will encompass all shareholders, including both equity shareholders and CCPS (Compulsorily Convertible Preference Shares) holders.
• Automatic Application: Unlike the previous structure, which required an opt-in process, the new resolution will apply automatically to all shareholders.
• Withdrawal of Current Resolution: PRISM is withdrawing its current resolution to make way for the new, unified proposal.
• Equal Participation: The revised structure aims to provide equal opportunities for all shareholder classes in the company's growth.

Comparison of Old and New Bonus Structures

Implications and Outlook

This move by PRISM signifies a strategic shift in how the company views and values its diverse shareholder base. By creating a more inclusive bonus structure, PRISM is potentially aiming to:

1. Strengthen shareholder relations
2. Simplify its corporate structure
3. Ensure equitable treatment of all investor classes

While the specific details of the new bonus structure are yet to be revealed, this announcement suggests that PRISM is adapting its strategies to create a more unified and potentially more attractive investment proposition.

The company's decision to withdraw its current resolution and present a fresh, unified proposal underscores its commitment to transparency and equal treatment of shareholders. This could be seen as a positive step towards building investor confidence, especially important for a company that has previously considered the possibility of an IPO.

As PRISM moves forward with this new shareholder-friendly approach, it will be interesting to observe how this impacts the company's overall valuation and its positioning in the market. Shareholders and market observers will likely be keen to see the detailed terms of the new bonus structure once they are officially presented by the company.

PRISM, the parent company of OYO, has announced significant changes to its bonus issue for equity shareholders, extending the deadline and simplifying the application process. This move comes in response to feedback received during the postal ballot process.

Key Updates on Bonus Issue

• Deadline Extension: The deadline for the bonus issue has been extended from November 1 to November 7, 2025.
• Bonus Ratio: Shareholders will receive one preference share for every 6,000 equity shares held.
• Conversion Options: Shareholders can choose between fixed conversion or milestone-linked conversion to equity shares.
• Dilution Cap: Total dilution is limited to 5% of total share capital on a fully diluted basis.
• Process Simplification: The requirement to submit a Client Master List has been removed, streamlining the application process.

Shareholder Eligibility

It's important to note that PRISM's largest shareholders, including SoftBank Vision Fund and founder Ritesh Agarwal's entities, which hold majority stakes in preference shares, are not eligible for this bonus issuance.

Financial Performance

PRISM has reported strong financial growth over the past few years:

The company's EBITDA has shown significant improvement, with a notable jump from Rs 276.00 crore in FY2023 to Rs 1,102.00 crore in FY2025. The first quarter of FY2026 alone has already achieved an EBITDA of Rs 550.00 crore, indicating continued strong performance.

This bonus issue and the company's robust financial growth suggest PRISM is focusing on rewarding its shareholders while maintaining a strong financial trajectory. The extension of the deadline and simplification of the process may allow more shareholders to participate in this corporate action.