PRISM, the parent company of OYO, has withdrawn its previously announced 6,000:1 bonus share proposal following investor feedback regarding its complexity and limited eligibility. The company stated that it will soon introduce a revised and simplified bonus share structure designed to ensure equal participation across all categories of shareholders, including both equity and CCPS holders, irrespective of their shareholding size.
Earlier Bonus Plan Details
The withdrawn plan had proposed issuing one bonus share for every 6,000 equity shares held, a structure linked to OYO’s potential initial public offering (IPO) roadmap. However, the scheme required shareholders to opt in within a short time frame, which drew criticism for being restrictive and favouring certain investor groups. Several smaller shareholders raised concerns about the limited accessibility and fairness of the process.
Company’s Rationale
OYO, which continues to prepare for its IPO, emphasised that the decision to withdraw the earlier proposal aligns with its governance-first approach and commitment to ensuring transparency and fairness for all investors. The company reiterated that its goal remains the creation of long-term value across the entire shareholder base.
Next Steps
The withdrawal follows PRISM’s recent move to extend the opt-in deadline for the initial proposal to November 9, after receiving requests from investors seeking additional clarity and broader inclusion. The company confirmed that once approved, the new bonus share plan will automatically apply to all eligible shareholders and will fully replace the earlier version.
Summary:
PRISM, the parent company of OYO, has withdrawn its 6,000:1 bonus share proposal after investor concerns about its complexity and limited participation. A new, simplified bonus structure will be introduced to include all shareholders equally, aligning with OYO’s governance and fairness principles as it continues preparations for its IPO.
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