Zostel asks regulator to reject SoftBank-backed Oyo’s IPO filing

Legal battle: The logo of OYO on a hotel building in New Delhi. Zostel claims that Oyo’s draft prospectus is ‘replete with material omissions’. — Reuters

MUMBAI: Indian 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,” according to a copy of a letter Zostel sent to SEBI, seen by Reuters.