Oravel Stays (OYO) Declares 1:1 Bonus Share Ahead of IPO Filing; Record Date Set For Sept 30

Oravel Stays Limited (OSL), which owns and operates an online hotel booking platform 'oyorooms.com' has announced that the Board at their meeting held on August 27, 2025, considered and recommended the issue of bonus shares in a 1:1 ratio.

The bonus shares will be credited to the holders of the equity shares of the company whose names shall appear in the Register of Members or in the records of the Depository Participants as of Tuesday, September 30, 2025, set as the record date for the purpose of the same. The 14th Annual General Meeting (AGM) of the corporation will take place on Friday, September 26. The deadline for voting at the AGM has been set by the company for Friday, September 19, 2025.

Oravel Stays Limited (OYO) confirmed in a statement that the Board's decision to recommend bonus shares is based on:

• Strong operational performance and improved financial position over recent years;
• Desire to reward long-term shareholders for their continued support;
• Making shares more affordable and accessible to retail investors;
• Improving market liquidity of the Company's shares; and
• Capitalising accumulated reserves in a tax-efficient manner for shareholders

"The proposed 1:1 bonus issue shall be funded by capitalising the Company's free reserves, securities premium account and/or any other permissible reserves of the Company, standing as at March 31, 2025. The Company has demonstrated strong financial performance by generating profits for the last two consecutive years, which has resulted in adequate provisions to support this bonus issuance," said Oravel Stays in a statement.

With the goal of releasing a draft red herring prospectus (DRHP) in November 2025, Oravel Stays (OYO) is aggressively preparing for its initial public offering (IPO). The company aims to go public in March or April 2026. According to Angel One, the public issue is likely worth Rs. 8,430 crores. This will involve a fresh equity share sale of Rs. 7,000 crores and an offer for sale of approximately Rs. 1,430 crores. The company plans to launch its IPO in the second half of 2026 and is currently in a discussion period with mutual funds and other institutional investors.

Commenting on FY26 projections, OYO has said in a report that it is projecting robust FY26 financial performance with EBITDA of INR 2,492 Cr (+127% YoY), driven by strong GBV growth (+94%) and improved operating leverage (operating costs falling from 12% to 8% of GBV). Contribution profit and adjusted gross profit are expected to rise sharply, highlighting efficiency gains and scalability.

The company had an excellent first quarter of FY26, posting a 47% YoY rise in revenue to Rs 2,019 crore and an enormous spike in profitability, with EBITDA jumping 3.3x YoY to Rs 550 crore in the quarter that ended in June 2025. Strong growth was also shown by net profit (PAT), which more than doubled (+135% YoY) to Rs 200 crore. A noteworthy 145% YoY growth in Gross Booking Value (GBV) to Rs 7,277 crore further demonstrated the company's growing scale and market presence.

OYO is establishing itself as a major growth engine with significant revenue potential by rapidly expanding its mid-premium and premium company-serviced portfolio in India, adding 5x YoY to 1.1K storefronts by Q1 FY26.