The battle with Zostel is not a simple one eitherOne of the biggest ongoing legal battles OYO is fighting at the moment is the one with Zostel Hospitality, which has reached out to India’s market regulator Securities and Exchange Board of India to reject OYO’s IPO. The company has reportedly called OYO’s IPO as “Illegal”.
A Supreme Court-appointed arbitrator had found OYO to be in breach of the agreement, which made Zostel eligible for a 7% stake in OYO’s parent company Oravel Stays.
Last month before OYO filed its DRHP, Zo Rooms moved a fresh petition to the high court in order to restrain OYO from modifying its shareholding pattern, which would prevent the company from raising any more capital and even halt its IPO. OYO – which earlier accused Zostel of forum hunting – has condemned Zostel’s move to approach SEBI, saying that the company is attempting to overreach the ongoing Delhi high court proceedings.[Via]