Oyo Hotels & Homes intends to proceed with its plans to file a draft red herring prospectus (DRHP) for the initial public offering (DRHP).IPO) this week, even if a legal hurdle is being caused by a rival stayed.

On Wednesday, Justice C Harishankar Delhi High Court (HC) did not pass any direction on the joint submissions of OYO and Jostel (so roman) on a failed takeover deal.

The High Court will next hear the matter on October 7.

While Oyo has challenged
The Supreme Court-appointed arbitrator’s order was originally passed in March On the controversy, Zostel filed an application late last month, seeking to ban Oyo from modifying its shareholding structure or cap table through an IPO.

ET was the first to report on Wednesday that
Jostel had approached the High Court for resolution of a dispute Related to a buyout agreement dated six years ago. This comes at a time when OYO is planning to file DRHP soon for its 1-$1.2 billion IPO.

OYO has lined up advocates Mukul Rohatgi and Harish Salve to represent the case, while Amit Sibal is representing Zostel.

Sibal said during the court proceedings on Wednesday that Zostel does not intend to stall Oyo’s IPO, but requested the court whether Oyo’s shares be kept in an escrow account till the outcome of the arbitral award challenged by Oyo. could.

Sibal argued that this would ensure that Zostel’s rights on the 7% stake in Oyo are protected, assuming it should get it.

Oyo’s lawyers contested the claims in a brief discussion on Wednesday.

Oyo’s legal counsel in a statement to ET said, “The petition filed by Jostle seeks reliefs which are outside the purview of the award. The award does not confer any relief which entitles them to freeze the shareholding pattern of OYO in any manner or to create an escrow account. OYO’s stand is that this petition is not maintainable and is without merit in any case.

“They (Oyo) want to file the DRHP with the market regulator SEBI by this week,” said a person with knowledge of the matter. However, it could spread to next week, the person said.

Oyo told ET that the adjournment of today’s hearing has no impact on the ongoing corporate affairs at Oyo.

“We strongly believe that the legal position of Zostel’s interim relief is extremely weak. A similar relief to freeze the shareholding of OYO was earlier rejected by arbitration proceedings,” the statement said. Oyo said this is “a part of a pattern by Jostel to distract Oyo from achieving its business goals.”

Zostel’s legal counsel did not comment on the court proceedings.

OYO added an arbitration award, which the company has challenged, granted no shareholding to Zostel (in Oyo), and Zostel opted not to appeal the award, but tried to slip into a non-maintenance interim relief. Has been doing.

If Oyo stops filing its DRHP in the coming days, it will join the growing list of startups like
Paytm,
Policybazaar India, And
hero Those who have applied for IPO this year here.

ET reported last week that Oyo
Targeting a valuation of over $12 billion in its IPO And most of its public issue will be through issue of fresh shares.

Oyo’s final value in September was $9.6 billion and a 7% stake in it would be valued at around $672 million.