Oyo's Parent PRISM Boosts Share Capital, Reports Strong Financials Ahead of IPO

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.

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