Zostel seeking an injunction to restrain OYO, hearing tomorrow

Photo: OYO Hotels & Homes
Zostel is seeking an injunction to restrain Oyo from altering the capital structure of their shareholding, said its legal counsel Abhishek Malhotra.

 

“Now that they (Oyo) have issued the draft red herring prospectus (DRHP), that will also be taken into consideration by the court when it hears the matter on  Thursday. Based on the outcomes of the hearing, we will take a decision as to when to approach the Securities and Exchange Board of India regarding our objection to the DRHP,” said Malhotra. 

 

In 2015, Oyo Hotels & Homes signed for Oyo’s acquisition of Zostel. The deal fell through, but Zostel is arguing in court that it still deserves about 7 per cent in Oyo parent Oravel Stays.       



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel