stayed (so roman) has written to the market regulator Securities and Exchange Board of India, request to decline it OyoDraft Red Herring Prospectus (DRHP) And Suspended Its proposed initial public offering (IPO) ET has reviewed a copy of the letter. we
First reported plans to transfer Zostel to SEBI on October 4Ltd. said it had planned to ask the regulator to ban Oyo’s $1.2 billion IPO, citing an ongoing legal dispute with the Gurgaon-based firm.

in your letter to SelfZostel said OYO’s IPO “is not maintainable as Orawell’s capital structure is not final”. Accordingly, in view of the conditions contained under regulation 5(2) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), filing of DRHP of Orawell is illegal under the circumstances. ”

It said, “DRHP is replete with material omissions and blatant misstatements intended to mislead the public without appreciating the risk involved in investing in Orawell shares.”

Interestingly, Zostel’s note includes a presentation by OYO promoter SoftBank, which mentioned in an earnings report in 2016 that OYO had acquired Zostel.

OYO’s former rival Zostel said its shareholders “have the right to issue 7% of Orwell’s equity securities in its favour”. It states that since Orwell has failed to deliver these, it should be barred from making any public offering of its shares.

“The Management, Directors, Officers and Independent Directors of Orawell as well as the Book Running Lead Manager of the IPO are not performing their duty to perform the necessary due diligence in the matter, resulting in their failure to ensure compliance with Orawell to the norms and regulations framed to prevent companies from cheating the investing public,” Zostel told SEBI.

Oyo, in the previous statements, is
Jostel’s claim rejected that he should acquire a 7% stake in the firm, saying
Zostel is trying to “distract” it from its business.

Earlier this year, Oyo challenged
Award of Supreme Court-appointed arbitrator in favor of Zostel In Delhi High Court. In August, Zostel filed an application to block Oyo from revising its cap table, which included “via an IPO”. The next hearing on these petitions in the High Court will be on October 21.