Zostel files rejoinder, claims OYO's response to SEBI is “misleading” & “misrepresentation of facts”

IPO-bound hospitality unicorn OYO, wrote to market regulator SEBI, denying all allegations made by Zostel Hospitality. It had denied Zostel's request to the Delhi High Court to stay the IPO due to the unfinalized capital structure. In a rejoinder filed with the market regulator, Zostel claimed that OYO's parent company, Oravel Stays, had once again "misrepresented the legal facts" and "misled the authorities" about the acquisition deal between the two companies.

Zostel further stated that OYO's letter was based solely on arguments presented to the tribunal, which the tribunal had considered and rejected. The startup also stated that if the Delhi High Court agrees not to interfere with the tribunal's award, Zostel's shareholders will be entitled to 7% of Oravel.

"That is why we say Oravel's shareholding is not yet frozen or final." Due to the failure to provide for the awarded 7% shares in favour of Zostel shareholders. As a result, the IPO cannot proceed," according to Zostel's letter to SEBI.

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