Zostel asks Sebi to reject and suspend Oyo's $1.2-billion IPO

Zostel Hospitality has written to the markets regulator, the Securities and Exchange Board of India (Sebi), requesting it to reject Oyo's draft red herring prospectus (DRHP) and suspend its proposed initial public offering (IPO).

The move can potentially lengthen Sebi's clearance process. The representation filed to the regulator alleges that the $1.2-billion IPO is “non-maintainable as Oravel Stays’ capital structure is not final”, according to the copy of the complaint reviewed by Business Standard.

Accordingly, Oravel’s filing of the DRHP in the current circumstances is illegal, in view of the stipulation contained under Regulation 5(2) of the Sebi (Issue of