Mumbai, 12/10: In a big development, Hospitality startup Zostel has asked the market regulator to reject an application from SoftBank Group-backed rival OYO Hotels and Rooms to go public due to a legal tussle between the firms over a deal that fell apart six years ago.
Zostel said OYO’s capital structure was not final and that its draft prospectus filed with the Securities and Exchange Board of India (Sebi) was “replete with material omissions,” showed a copy of a letter Zostel sent to Sebi, seen by Reuters.
OYO said Zostel’s intervention represented “unnecessary and repetitive efforts to create a wrong perception”.
“This shows a pattern of Zostel trying to distract OYO from pursuing its business goals,” it said in a statement to Reuters.
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