What's Driving This Move?
The decision aligns with Oyo’s preparations for its upcoming Initial Public Offering (IPO). Issuing bonus shares serves to:
* Reward existing investors,
* Enhance liquidity,
* Make its shares more attractive pre-listing.
Moreover, Oyo’s reserves have reportedly strengthened following two consecutive years of profitability, enabling this bonus issue without impacting dividend capacity.
Key Event Date
Shareholders whose names appear on the register of members as of September 30, 2025, will qualify for the bonus shares. This is the record date—the date determining who is eligible.
Mechanism & Funding
* The bonus issue will be funded by capitalizing Oyo’s free reserves, securities premium account, and other eligible reserves as of March 31, 2025.
* Post-issuance, the company’s paid-up equity capital will increase, but this is not treated as dividend income—it's purely restructuring equity.
The Shareholder Experience
Once the issue is approved and executed, shareholders holding shares on the record date will see the bonus shares credited to their demat accounts—typically within a couple of weeks following the record date, assuming settlement norms are met. It’s important to hold shares before the ex-date (preceding the record date) to be eligible.
Financial Snapshot & Pre-IPO Outlook
* Oyo's unlisted shares have witnessed a 25% surge over the past month, suggesting strong investor sentiment ahead of the IPO.
* The company has reportedly achieved EBITDA of Rs.1,100 crore for FY25 and is targeting a valuation of USD 7–8 billion in its IPO filing, expected later this year.
Why It Matters to Investors
1. No cash outlay: You receive additional shares for free, improving your shareholding base.
2. Potential compounding benefit: Future dividends and share appreciation apply to a larger share base.
3. Signal of strength: The bonus issue, combined with profitability, indicates growing financial stability as Oyo approaches its IPO.
Actionable Takeaways
* Ensure your shares are in your demat account before the ex-date, so you’re eligible on the record date (Sept 30, 2025).
* Track official communications from Oyo for updates on the ex-date, bonus allotment schedule, and IPO filing.
* Consider long-term strategy: The bonus issue enhances your equity footprint—plan how this aligns with your investment goals.
No recent blogs