If Zostel wins the case, it will be entitled to 7% stake in OYO or equivalent amount:Court Says

A division bench of Delhi High Court has ruled that hospitality startup Zostel’s (Zo Rooms) claim of a 7% ownership in IPO-bound OYO parent Oravel Stays, if eventually allowed, will also confer an option for an amount equivalent to that stake to be paid to Zostel, in the latest hearing of a long-running dispute between the two parties.

The court order, dated March 14 also directed OYO to inform SEBI about this latest order of the division bench of Delhi HC. The bench, which was hearing Zostel’s appeal against the interim relief given by a single judge — in February — to OYO Hotels & Homes to go ahead with its plan for a public listing, said it has taken cognisance of prayers by both parties who have also agreed a consensual order should be passed while disposing the appeal by Zostel.

The order did not specifically mention how the value of 7% of OYO will be arrived at.

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