News > Zostel plans to take Oyo IPO complaint to Sebi

Zostel plans to take Oyo IPO complaint to Sebi

Zostel plans to tell Sebi that Oyo is seeking a share sale while an arbitration award is pending in court, in violation of listing regulations. It is learnt to have obtained a legal opinion on this matter.

At the crux of the issue is a 2015 contract the two companies signed for Oyo’s acquisition of smaller rival Zostel. The deal fell through, but Zostel is arguing in court that it still deserves about 7% in Oyo parent Oravel Stays.