Zostel has withdrawn its latest plea before the Delhi High Court over its concerns about OYO’s proposed IPO disclosures. The court allowed Zostel to withdraw the plea and gave it the freedom to approach the court again at a later stage.

The court also said that SEBI should first examine Zostel’s complaint, as OYO’s IPO documents are still under regulatory review.

What is the dispute?

Zostel and OYO have been involved in a legal dispute since 2015. Zostel claims that it is entitled to nearly 7% of OYO’s equity from a proposed transaction between the two companies. The claim is still being contested.

Zostel had approached SEBI, saying that OYO’s IPO documents did not properly disclose the dispute and its possible impact on OYO’s ownership.

What does this mean for OYO unlisted investors?

The withdrawal of the court plea is a positive procedural development for OYO’s IPO, as there is no immediate court intervention on Zostel’s complaint.

However, it does not mean that the dispute has been settled. Zostel’s equity claim remains unresolved, and SEBI will now have to examine its concerns as part of the IPO review.

For unlisted investors, the key things to watch are SEBI’s response, any changes to OYO’s IPO disclosures, further court proceedings, and the overall progress of the IPO.