# Zostel withdraws Delhi HC plea on claimed 7% OYO stake ahead of IPO
2026-08-10T14:49:35+00:00 | Business & Economy | Indian Opinion Desk
Corroboration: 1 independent outlet
Zostel has withdrawn its plea from the Delhi High Court that sought to compel SEBI to examine disclosures in OYO's draft IPO papers, particularly regarding Zostel's claimed 7% stake in the hospitality major. The court noted that OYO's draft offer document has not yet been cleared by SEBI and indicated that Zostel's objections should first be considered by the market regulator, granting Zostel the liberty to reapproach the court later. The move is the latest development in a long-running legal dispute that began in 2015 when OYO signed a non-binding term sheet to acquire parts of Zostel's business, a deal that never materialised. In 2021, an arbitral tribunal held the term sheet had become binding, but the Delhi High Court set aside that award in May 2025, calling it contrary to public policy. Zostel has now withdrawn its Supreme Court challenge and filed a fresh appeal in the Delhi High Court under the Arbitration Act. OYO confidentially filed its IPO papers in December 2024, and its updated DRHP in June 2025 seeks to raise Rs 6,650 crore to repay borrowings and fund growth.
## Coverage
- inc42.com
- ndtvprofit.com
Tags: arbitration dispute, Delhi High Court, IPO, OYO, SEBI, Zostel
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