Oyo's Parent PRISM Boosts Share Capital, Reports Strong Financials Ahead of IPO
Oravel Stays Limited (OYO) is preparing for its IPO with several strategic decisions. The company is increasing its authorized share capital, issuing equity to independent directors, and offering bonus CCPS to existing shareholders. OYO also reported impressive financial results, with profit after tax more than doubling to ₹200+ crore, revenue increasing by 47% to ₹2,019 crore, and gross booking value jumping 144% to ₹7,227 crore.
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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:
| Financial Metric | Current Quarter | Year-on-Year Change |
|---|---|---|
| Profit After Tax | ₹200+ crore | More than doubled |
| Revenue | ₹2,019.00 crore | 47% increase |
| Gross Booking Value | ₹7,227.00 crore | 144% jump |
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.
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