Oyo Rolls Out BOGO Offer for Shareholders Ahead of IPO

Fast Summary

• Oyo’s IPO Plans: Oravel Stays Ltd (Oyo) is preparing for its initial public offering (IPO), marking its third attempt at going public.
• Bonus Share Announcement: The company’s board will consider issuing bonus shares at a ratio of 1:1. Shareholders listed by September 30, 2025, qualify for these shares.
• Financial Reserves and Funding: The bonus issue will utilize free reserves, the securities premium account, and other permissible reserves as of march 31, 2025.This follows two consecutive years of profitability.
• Unlisted Shares Surge: Oyo’s unlisted shares have risen by 25% in the past month.
• Leadership and Key Players: the board includes founder Ritesh Agarwal and prominent members like former Starbucks COO Troy Alstead and Indigo co-founder Aditya Ghosh.
• Previous IPO Attempts: Oyo filed draft prospectuses in both 2021 and a confidential filing route in 2023 but withdrew each plan before relaunching discussions in May with investment banks including Goldman Sachs and Citi.
• Recent Financial Growth: For FY 2025,Oyo reported an EBITDA of approximately Rs 1,100 crore with optimistic projections for FY26.

!Oyo secures board nod to for IPO with stronger financial outlook: Sources

Indian Opinion Analysis

The upcoming consideration of bonus shares underscores Oyo’s strategy to enhance shareholder trust ahead of its much-awaited IPO launch.This progress reflects improved financial health following two years of profitability-a crucial factor that signals stability to potential investors during market debut preparations.

Despite previous setbacks with postponed filings in both domestic prospectus submissions and confidential routes via SEBI, oyo aims to showcase robust growth metrics this time around. The increase in unlisted share prices amid positive EBITDA figures from FY25 sets favorable conditions for investor confidence as it prepares for another attempt at listing. Tho, the timeline extends into late fiscal quarters (September record date), which gives plenty of room for further developments or adjustments.

The leadership structure featuring seasoned executives complements aggressive market outreach strategies targeting core regions like India alongside emerging markets-including Southeast Asia-further highlighting its focus on lasting expansion plans post-listing.Read More