IPO-bound hospitality giant OYO is issuing 4,333 bonus equity shares to 12 equity shareholders at a face value of INR 10. According to regulatory filings accessed by Inc42, OYO will be allotting 1,833 and 2,273 equity bonus shares to its founder Ritesh Agarwal and OYO’s holding entity RA Hospitality Holdings respectively.
The hospitality giant’s investor SoftBank will be receiving 79 bonus equity shares, whereas Lightspeed Venture Partners has been allotted 49 bonus equity shares.
Others who will be allotted bonus equity shares include OYO’s chief human resource officer Dinesh Ramamurthi, Sequoia Capital, Ivy Ventures, Do Moonstone Advisors, DIG Investments, Vinod Sood, Anuj Tejpal, and Misha Kohli.
The filings revealed that the allowance of bonus equity shares will be in the proportion of 25 new equity shares for every 160 equity shares.
According to a source close to the development, this is part of a capital restructuring exercise after the latest capital infusion from Microsoft and HT Media.
The issuance of equity bonus shares will not impact OYO’s shareholding pattern. Currently, Masayoshi Son’s SoftBank holds 46% shares in the company, Agarwal holds 34%, about 7% shares are held by employees and the remaining shares are held by other investors, the source said.
“The issuance of bonus shares is part of a series of steps being taken for share capital restructuring. Post all these capital restructuring exercises and the fresh capital infusion in the last rounds with Microsoft and HT Media, the direct and indirect shareholding on a fully diluted basis of Ritesh Agarwal and other shareholders in OYO global wouldn’t have any major change,” the source added.
The development comes a few days after OYO increased its authorised share capital from its existing INR 1.17 Cr to INR 901 Cr. Last month, OYO also raised $5 Mn in part of Series F round from US tech giant Microsoft. The hospitality unicorn had allotted 5 equity shares and 80 preference shares to the US tech giant. The fresh capital infusion helped OYO’s valuation to touch $9.6 Bn.
Prior to that, OYO bagged $660 Mn in term B (TLB) funding from global institutional investors. The Gurugram-based company had then said that the offer was oversubscribed by 1.7 times and the company received commitments of close to $1 Bn institutional investors. The hospitality unicorn is looking to raise $1.5 Bn via IPO at a valuation of $14 Bn to $16 Bn and has shortlisted investment banks JP Morgan, Kotak Mahindra Capital and Citi.