In a significant corporate turnaround, PRISM — the parent company of hospitality major OYO — has withdrawn its contentious 6,000:1 bonus share proposal following sharp investor criticism. The company has now pledged to introduce a simpler, more transparent bonus structure aimed at restoring confidence ahead of its much-anticipated IPO.
The earlier scheme, which tied shareholder rewards to both a tight election timeline and the progress of OYO’s public listing, had drawn backlash from minority investors and governance experts for its complexity and perceived lack of fairness. Under the original ballot, investors holding fewer than 6,000 shares were excluded, while those opting into a specific “Class B” category could potentially receive up to 1,109 shares per CCPS — a clause viewed as disproportionately favoring larger shareholders.
After weeks of investor concern over accessibility and equity, PRISM extended election deadlines and eased documentation norms but ultimately decided to withdraw the plan altogether. “We are not proceeding with the current resolution and will bring a fresh, unified proposal ensuring equal participation for all shareholders,” a company spokesperson confirmed, adding that the new structure would require no application process.
The revised framework will reportedly cover both equity and preference shareholders — a move seen as a step toward inclusive governance. Industry observers say the decision marks a crucial reputational reset for OYO’s parent firm as it navigates final stages of IPO preparation and seeks to reaffirm investor trust in its corporate transparency.
With India’s hospitality sector witnessing a strong rebound and OYO’s listing in focus, the rollback signals PRISM’s intent to prioritize fairness, governance, and stakeholder alignment — key pillars as the company looks to position itself for sustainable, long-term growth in the public market.
Source: Moneycontrol
