As per the company’s notice, shareholders whose names appear in the register of members as on the record date of September 30, 2025, will be eligible for the bonus shares.
The bonus will be issued in the proportion of one equity share for every one existing equity share held. Oyo highlighted that this move comes on the back of two consecutive years of profitability, which have created sufficient reserves to support such shareholder-friendly measures.
These bonus shares, once allotted, will be treated as an increase in the paid-up equity share capital of the company and not as income in lieu of dividends.
The proposed issue will be funded by capitalizing the company’s free reserves, securities premium account, and other permissible reserves as of March 31, 2025.
Notably, this will be Oyo’s second bonus issue after FY 2021–22, underlining its emphasis on long-term value creation.
Oyo IPO developments
Just last week, Oyo secured board approval to pursue a fresh initial public offering (IPO) filing, marking its third attempt at going public. Founder and CEO Ritesh Agarwal leads the board, which also includes high-profile names such as former Starbucks COO Troy Alstead, W Steve Albrecht, and former Indigo co-founder Aditya Ghosh, among others.
Oyo had first filed its draft prospectus with the Securities and Exchange Board of India (SEBI) in 2021, aiming for an IPO size of Rs 8,430 crore, but later withdrew the plan in 2022. A second attempt via SEBI’s confidential filing route in 2023 was also pulled back in 2024.
In May, ET reports stated that Oyo engaged with five investment banks, along with key shareholder SoftBank, to chart out its strategy for a renewed public listing attempt. The discussions involved Goldman Sachs, Citi, Jefferies, and Axis Capital, among others.
Oyo’s Financial Performance
In the financial year 2025, Oyo reported an EBITDA of around Rs 1,100 crore, reflecting an improvement in its operating performance. According to sources, senior bankers remain optimistic about the company’s long-term growth outlook.
Looking ahead, founder and CEO Ritesh Agarwal, in a previous internal communication to Oyo’s senior leadership in March, projected a profit after tax of Rs 1,100 crore for the financial year 2026 and an EBITDA of Rs 2,000 crore.
He credited this expected growth to strong performance in core markets such as India and the US, along with significant contributions from emerging regions in Southeast Asia and the Middle East.
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