Zostel urges Indian markets regulator to reject Oyo's IPO plan

Zostel urges Indian markets regulator to reject Oyo's IPO plan

Visual from OYO website

Zostel Hospitality Pvt. Ltd, which owns Zostel Hostels and ZO Rooms, has written to markets regulator Securities and Exchange Board of India (Sebi), urging it to reject the draft prospectus filed by hospitality unicorn Oravel Stays Ltd, which operates brand Oyo and suspend the latter’s proposed initial public offering (IPO).

Citing the reason for its request, Zostel said Oyo’s “IPO is non-maintainable as Oravel’s capital structure is not final.”

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