ZO Rooms will take its case against OYO to the Securities and Exchange Board of India (SEBI) on the grounds of violation of ICDR regulations.
It will allege that OYO has misrepresented the facts about their litigation issue in the DRHP. Earlier this month, OYO had filed a draft prospectus to raise ₹8,430 crore through an IPO.
This is the latest in the ongoing dispute between the two companies which dates back to 2015. Over half a decade ago, Zo Rooms, the budget hotel accommodation chain owned by Zostel Hospitality, was shut down after the merger talks between the two, which could have resulted in Zo Rooms getting a seven percent stake in Oyo, failed.