About more than 500 ex-employees and employees of OYO have used their stock choices grants to acquire thirty Million plus shares of the firm, as per the authoritarian filings given by the hospitality chain. These shares have been bought by the alumni and employees by exercising their granted ESOPs (Employees’ Stock Option Plan) according to the filings.
When the pandemic impacted the firm severely, OYO resorted to furloughs and pay cuts. This led to offering extremely discounted ESOPs to former as well as current employees.
On the grounds of the previous market value of OYO, which was $9.6 billion, when the firm had raised $5 million from a multinational tech corporation Microsoft in last August, the total worth of the shares bought by the former and current employees of Oravel Stays Ltd, the firm which operates OYO, is estimated to be about ₹3,300 Million.
OYO spokesperson rejected to comment on the situation when contacted for further information.
OYO has broadened its ESOP pool by a proper 41%. It is expected that about 80% of the present employees of OYO have been granted stock options.
As of 31 March 2021, 70.9% of the overall employees at OYO are based out of India. The firm had 5,130 employees all over the globe.
In the past year’s October, the firm had filed for preliminary papers with the market’s supervisory body Securities and Exchange Board of India (SEBI) to gather INR 84,300 Million via a preliminary share–sale.
The planned initial public offering (IPO) consists of a brand new issuance of equity shares, which has an aggregate of up to INR 70,000 Million along with an offer-for-sale of INR 14.3 Million, according to the draft of the red herring prospectus.