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The parent company of OYO, PRISM, has approved an increase in its authorised share capital from INR 2,431.13 crore to INR 2,433.13 crore by adding 20 lakh compulsorily convertible preference shares (CCPS) of INR 10 each. It is also issuing sweat-equity shares (about 47.5 lakh each) to independent directors Troy Matthew Alstead and William Steve Albrecht at INR 37.12 per share, with a three-year lock-in. Existing shareholders will receive bonus CCPS at one bonus for every 6,000 equity shares held. These moves form part of a comprehensive structuring effort as PRISM advances toward filing its draft prospectus and targeting a USD 7-8 billion IPO.
The hospitality-tech company OYO's parent firm, PRISM, has undertaken fresh corporate actions in furtherance of its planned initial public offering. Sources say the company has moved to raise its authorised share capital from INR 2,431.13 crore to INR 2,433.13 crore by issuing an additional 20 lakh CCPS of INR 10 each. Advertisement
This decision follows prior shareholder approvals in August and September for capital expansion and fundraising tied to the IPO readiness agenda. The current proposal is intended to make space for issuing bonus CCPS to existing equity shareholders.
In communication sent to shareholders, the company stated that the increase is "in addition to the earlier increase... which was undertaken as part of the company's preparations for its proposed IPO and to accommodate other capital/fund-raising transactions."
In parallel, PRISM plans to grant about 47,46,768 equity shares each to its independent directors, Troy Matthew Alstead and William Steve Albrecht, by way of sweat equity. These shares are valued at INR 37.12 per share and will remain locked in for three years from allotment. The allocation is intended to compensate the directors for their value addition and professional contribution to the company's governance and strategic direction.
For existing equity shareholders, the company proposes issuing bonus CCPS at the ratio of one bonus CCPS for every 6,000 equity shares held. These bonus CCPS will be capitalised from free reserves and the securities premium account. They will be non-redeemable and compulsorily convertible into equity shares.
Sources familiar with the matter indicate that these multiple corporate measures form part of a "multi-pronged-IPO structuring effort, aimed at simplifying PRISM's capital structure, rewarding existing shareholders, and aligning governance with public-market expectations." Their view is that the IPO filing preparations are now at an advanced stage.
Earlier, it was reported that OYO plans to file its Draft Red Herring Prospectus around November, with a target valuation in the range of USD 7-8 billion.
Source PTI
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