People familiar with the matter said over 80 per cent of current employees at Oyo have been granted ESOPs and around 12,000 current and former employees hold the company’s ESOPs.
As per the special resolution passed by the shareholders of Oravel Stays, the parent company of Oyo, in the extraordinary general meeting held on September 10, approval was granted to increase the employee stock option pool of the company by adding 20 crore stock options of a face value of Rs 1 each from the present limit of 43,82, 40,000 stock options of a face value of Rs 1 each of the company which upon exercise shall become an aggregate of 63,82,40,000 stock options.
As per an extract of the explanatory statement to the notice of the extraordinary general meeting, the existing and proposed ESOPs pool details mentioned the existing ESOPs pool size before subdivision and bonus issuance of a face value of Rs 10 each as 10,956, the ESOPS pool after subdivision of a face value of Rs 1 each as 1,09, 560, besides mentioning the ESOPs pool size after bonus issuance of a face value of Rs 1 each as 43,82,40,000.
In April this year, Paytm had earlier expanded its ESOP pool to $604 million at the time of DRHP filing. Ola expanded its pool to $410 million this year.
Last week’s filings showed that the board of Oravel Stays approved the increase in the authorized share capital of the company from Rs 1.17 crore to Rs 901 crore. Last week, Oyo announced that Microsoft had made a strategic equity investment in the company but it did not divulge the size of the stake.
ET was the first to report in its edition dated July 30 that Microsoft has finalised a strategic investment for an undisclosed amount in Oyo.
Oyo said it has also entered into a ‘multi year alliance’ with Microsoft to co-develop ‘next-generation’ travel and hospitality products and technologies.
The company is likely to file its DRHP with market regulator SEBI within the next few months.
