Zostel urges Sebi to discard and suspend Oyo's proposed IPO
By MYBRANDBOOK
Zostel (Zo Rooms) has written to Securities and Exchange Board of India urging the regulator to reject Oyo's draft red herring prospectus (DRHP) and suspend its proposed initial public offering (IPO). A news source has reviewed a copy of the letter. Earlier the news source reported about Zostel's plan to move Sebi on October 4, saying it had firmed up plans to ask the regulator to restrict Oyo's $1.2-billion IPO, citing its ongoing legal dispute with the Gurgaon-based firm.
In its letter to Sebi, Zostel said Oyo’s IPO is “non-maintainable as Oravel’s capital structure is not final”. Accordingly, Oravel’s filing of the DRHP in the circumstances, is illegal, in view of the stipulation contained under Regulation 5(2) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations).”
It added, “The DRHP is replete with material omissions and blatant misstatements, intended to mislead the public into investing into Oravel’s shares without appreciation of the risk involved.”
The Zostel’s note includes a presentation by Oyo promoter SoftBank which in an earnings report in 2016 mentioned that Oyo had acquired Zostel.
Zostel, Oyo's erstwhile rival, said its shareholders “have a right to get issued in their favour, 7% of the equity securities of Oravel”. It added that since Oravel has failed to grant these, it should be prohibited from making any public offer of its shares.
“The management, the directors, the officers and the independent directors of Oravel, as well as book running lead managers of the IPO have been derelict in their duty to carry out necessary due diligence in the matter, resulting in their failure to ensure Oravel’s adherence to the norms and regulations enacted to prevent companies from defrauding the investing public,” Zostel told Sebi.
Earlier, Oyo in a statement has overruled Zostel’s claim that it ought to receive a 7% stake in the firm. It said that Zostel is trying to “distract” from its business.
Earlier this year, Oyo challenged the Supreme Court-appointed arbitrator’s award in favour of Zostel in the Delhi High Court. In August, Zostel moved an application seeking to stop Oyo from modifying its cap table, “including by way of an IPO”. These pleas are slated to be heard next in the high court on October 21.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
AMD Pensando driving innovation in the DPU architecture space
AMD Pensando stands out in the DPU (Data Processing Unit) market with its u
Bolstering its commitment to help build a truly self-reliant B
CP PLUS is dedicated to spreading a sense of security to every corner of In
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
PDRL - Passenger Drone Research Pvt. Ltd.
SAMSUNG INDIA ELECTRONICS LTD.
DRUVA SOFTWARE PVT. LTD.
ADITYA INFOTECH LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Dr. Arvind Gupta
Arvind Gupta is the Head and Co-Founder of the Digital India Foundatio...
ICONS OF INDIA : SANTHOSH VISWANATHAN
Santhosh Viswanathan is the the Vice President and Managing Director f...
Icons Of India : AMIT CHADHA
Amit Chadha serves as the CEO and Managing Director of L&T Technology ...
PARTNER SPEAKERS
PSU
BSE - Bombay Stock Exchange
The Bombay Stock Exchange (BSE) is one of India’s largest and oldest...
PFC - Power Finance Corporation Ltd
PFC is a leading financial institution in India specializing in power ...
DRDO - Defence Research and Development Organisation
DRDO responsible for the development of technology for use by the mili...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Shantanu Narayen, CEO- Adobe Systems Incorporated
Shantanu Narayen, CEO of Adobe Systems Incorporated, is renowned for h...
Indian Tech Talent Excelling The Tech World - Anirudh Devgan , President, Cadence Design
Anirudh Devgan, the Global President and CEO of Cadence Design Systems...
Indian Tech Talent Excelling The Tech World - ARVIND KRISHNA, CEO – IBM
Arvind Krishna, an Indian-American business executive, serves as the C...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
