Travel-tech platform OYO on Monday said it will not proceed with the current bonus issue proposal and instead will introduce a "simplified" structure for all shareholders shortly.
The company will introduce a "simplified" structure that includes all holders of its unlisted shares, ensuring equal participation and transparency, following shareholder feedback.
The decision comes amid concerns from some online users about the short three-day application window and the complex structure of the Compulsorily Convertible Preferential Share (CCPS) resolution proposed by the company earlier via postal ballot.
In a statement, OYO said the new, simplified bonus structure will apply to all shareholders, including those with small holdings and CCPS holders.
"We are not proceeding with the current resolution and will shortly bring a fresh, unified proposal for shareholder approval in accordance with the Companies Act, 2013. The revised structure will be announced in the coming days and will not require any application process," a PRISM spokesperson said.
PRISM is the parent company of OYO.
Under the proposed resolution, which has now been withdrawn, shareholders were to get one preference share for every 6,000 equity shares held. They could either opt for a fixed conversion, where each such share became one equity share, or a milestone-linked option, with the milestone being the appointment of bankers for its potential IPO during the current financial year.
On Sunday, OYO extended the application timeline for the previous resolution and also clarified that SoftBank Vision Fund and Ritesh Agarwal's entities, which hold majority stakes in the form of preference shares, are not eligible for this issuance.
In August, PTI reported that Oyo plans to file its Draft Red Herring Prospectus (DRHP) in November, aiming for a $ 7-8 billion valuation for its IPO.
