HC rejects Zostel's plea for 7% stake in OYO

14 February 2022

In what looks to be a significant relief for Softbank-backed hospitality operator OYO, the Delhi High Court has rejected Zostel's claim to a 7% stake in the latter ahead of its initial public offering (IPO). The decision was made today by a single-judge bench of the Delhi High Court, led by Justice C Hari Shankar. Last year, Zo Rooms, which has been involved in a legal dispute with Oyo, filed an appeal at the High Court demanding protection of its rights. Zostel was attempting to prevent Oyo from progressing with its IPO because to the shareholder conflict. In today's verdict, Zostel's attempt was dismissed.