OYO’s parent company, PRISM, has withdrawn its previously announced bonus share proposal following investor concerns over its complexity and limited eligibility.
The company said it will soon introduce a new, simplified bonus structure that ensures equal participation for all shareholders, including both equity and CCPS holders, regardless of holding size.
In its earlier plan, PRISM had proposed one bonus share for every 6,000 equity shares held, linked to a potential IPO pathway for OYO. However, the structure required shareholders to opt in within a short window and was seen as favouring certain investor categories, drawing sharp criticism from smaller shareholders.
In a statement to CNBC-TV18, a PRISM spokesperson said, “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.”
The IPO-bound firm added the move reflects its governance-first approach and commitment to fairness and long-term value creation across all shareholder classes. “The revised structure will reflect our belief that every shareholder deserves equal opportunity in PRISM’s next chapter of growth,” the spokesperson noted.
The decision also follows PRISM’s recent move to extend the opt-in deadline for the original proposal to November 9, amid feedback from investors seeking clarity and greater inclusion. The new bonus plan, once approved, will replace the earlier version and apply automatically to all eligible shareholders.
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