Zo to file complaint with SEBI against OYO Rooms IPO
After the Delhi High court’s decision to adjourn the hearing of the dispute between Zo Rooms and Oyo Rooms on October 7, Zo has decided to file a complaint with the Securities and Exchange Board of India against Oyo’s IPO.
After the merger between Zo Rooms and Oyo Rooms failed over half a decade ago, Zo rooms was shut down. In March of this year, a Supreme Court appointed arbitrator concluded that Oyo Rooms had indeed violated its contractual agreement for the acquisition of Zo Rooms. The latter was then free to pursue the matter further and execute the agreement.
Zo Rooms proceed to then share a notice with Oyo Rooms, demanding its agreed upon 7 percent of shares. This claim was challenged by Oyo in front of the Delhi High Court after which Zo filed a petition asking that Oyo be restrained from changing its current shareholder pattern in any way- including an Initial Public Offering.
Oyo, on the other hand, has continued to claim that the arbitrator did not pass any such instruction to Zo Rooms and that Zo rooms claims are ‘baseless.’
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