Zo to lodge complaint with SEBI against Oyo IPO
- ByManjeet Singh | October 7, 2021
Following an adjournment announced by the Delhi High Court on October 7, Zo Rooms decided to approach SEBI with immediate effect against Oyo’s IPO as a result of its ongoing dispute with Oyo.
As of Wednesday, either Oct. 7 or Oct. 8, Zo’s legal counsel expects to send its complaint.
Since the Zo Rooms budget hotel chain was shut down over a decade ago, the companies have been fighting legal battles because they had begun talks for a merger, which would have given Zo Rooms a 7 percent stake in Oyo.
Oyo was finally found to be in breach of its purchase agreement with Zo Rooms by a court-appointed arbitrator on March 1. Zo Rooms can now proceed with its acquisition.
Although the arbitrator did not give directions for the issuance of shares to Zo Rooms, Oyo received a notice from Zo in April seeking enforcement of the award, including transferring seven percent shares of Oyo to Zostel shareholders. Oyo challenged the award in the Delhi High Court, which prompted Zostel to file an execution petition and a motion requesting that Oyo refrain from engaging in any IPO.
Oyo has in the past criticized Zostel’s claims for being “baseless” and alleged forum hunting at the time when the company is getting ready for an IPO.
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