Oyo IPO: Zostel seeks SEBI review of updated DRHP over litigation disclosures, says report

Zostel has approached SEBI to examine disclosures in Oyo's updated DRHP for its planned IPO, alleging that the filing presents a selective view of an ongoing legal dispute over a claimed 7% equity stake in the company. The dispute originates from a 2015 non-binding term sheet for Oyo's acquisition of Zostel, with Zostel requesting SEBI to ensure completeness and materiality of disclosures before permitting the IPO to advance. Oyo is looking to raise around ₹6,650 crore through a fresh equity issue, with no offer-for-sale component included.