Hospitality tech firm Oyo has withdrawn its controversial bonus issue proposal following concerns raised by shareholders. The company, which recently re-branded its parent entity as Prism, said it will replace the earlier plan with a new, simplified and unified proposal that will apply equally to all shareholders, regardless of the class or size of their holdings.
The decision marks a significant shift in Oyo’s approach to its long-awaited restructuring and potential listing plans. The earlier bonus resolution — aimed at rewarding shareholders ahead of a possible IPO — had come under scrutiny for its complex opt-in mechanism and unequal conversion benefits between different shareholder classes.
Under the withdrawn plan, investors who did not respond to the postal ballot within the specified timeframe were to receive one compulsorily convertible preference share (CCPS) for every 6,000 equity shares held, automatically placing them in the ‘Class A’ category.
Those who actively opted in during the election window could choose to be in ‘Class B’, under which one CCPS would convert into 1,109 equity shares if Oyo appointed merchant bankers for its IPO before March 2026, or only 0.10 equity share if the milestone was not met.
Following widespread feedback, Prism — Oyo’s parent company — had initially extended the opt-in window on Sunday, but has now decided to scrap the plan entirely.
“We are not proceeding with the current resolution and will shortly bring a fresh, unified proposal for shareholder approval,” a company spokesperson said. The revised structure would not require any application process and will apply equally to both equity and CCPS holders.
The withdrawal comes as Oyo continues efforts to streamline its corporate structure and build investor confidence ahead of a potential IPO, which has been on hold amid changing market conditions and regulatory scrutiny.
