Oyo refutes allegations by Zostel

Oyo’s parent firm Oravel Stays has refuted all ‘allegations’ made by Zostel Hospitality, which had requested the markets regulator Sebi to reject the draft red herring prospectus filed by Oyo for its initial public offering. In a letter to the Securities and Exchange Board of India on October 11, 2021, Zostel had said “the IPO is non-maintainable as Oravel’s capital structure is not final” and accordingly “Oravel’s filing of the DRHP (Draft Red Herring Prospectus) in the circumstances, is illegal…”

The DRHP is replete with material omissions and blatant misstatements, intended to mislead the public to invest in Oravel’s shares without an appreciation of the risks involved, it had added.