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.

Oravel Stays Limited, operating under the brand name Oyo and parented by PRISM, is making significant moves in preparation for its Initial Public Offering (IPO). The company has announced a series of strategic decisions aimed at strengthening its financial position and corporate governance.

Authorized Share Capital Increase

PRISM has decided to increase its authorized share capital from ₹2,431.13 crore to ₹2,433.13 crore. This increase will be achieved by adding 20 lakh Compulsorily Convertible Preference Shares (CCPS) of ₹10 each. This move is seen as a crucial step in the company's IPO preparation process.

Equity Issuance to Independent Directors

In a move that aligns with good corporate governance practices, PRISM plans to issue approximately 47.5 lakh equity shares each to two Independent Directors:

• Troy Matthew Alstead
• William Steve Albrecht

These shares will be issued as sweat equity at ₹37.12 per share, with a three-year lock-in period. This decision not only rewards the directors for their contributions but also aims to ensure their long-term commitment to the company's growth.

Bonus CCPS for Existing Shareholders

PRISM has also announced a bonus issue for its existing shareholders. The company plans to issue bonus CCPS at a ratio of 1 bonus CCPS for every 6,000 equity shares held. This move is likely to be well-received by the current shareholders, potentially increasing their stake in the company.

Strong Financial Performance

Alongside these corporate actions, PRISM has reported impressive financial results for the latest quarter:

The company's Profit After Tax has more than doubled from ₹87.00 crore in the same quarter last year to over ₹200.00 crore. This substantial increase in profitability, coupled with strong revenue growth and a significant jump in Gross Booking Value, demonstrates PRISM's robust financial health.

These strategic moves and strong financial performance indicate PRISM's readiness for its upcoming IPO. The increase in authorized share capital, equity issuance to independent directors, and bonus CCPS for existing shareholders are all positive signals for potential investors. As the company continues to prepare for its public offering, market observers will be keenly watching for further developments in this space.