OYO, a major hospitality company, has increased its Employee Stock Option Plan (ESOP), by 41 percent with the addition 20 million shares.
According to a filing to the Registrar of Companies, the company added 20 million shares of the face worth of Re 1 to its existing ESOP pool, bringing it to a total of 63 billion shares.
OYO is expected to be valued at $14-16 billion by market participants at its IPO. This will include its larger ESOP pool, which will increase its value at $1 billion.
OYO was the first company in India to offer highly discounted ESOPs for both active and inactive employees. This was after the Covid-19 impact caused pay cuts and furloughs.
People in the know claim that over 80 percent of OYO’s current employees have been granted ESOPs.
Oravel Stays Private Limited (parent company of OYO) recently approved an increase in the authorized share capital of OYO from Rs 1.17 crore up to Rs 901 million. In the coming months, the travel tech giant is expected to file its DRHP at SEBI, the market regulator.
It applied to be converted into a public limited corporation.