Zostel is seeking an injunction to restrain Oyo from altering the capital structure of their shareholding, said its legal counsel Abhishek Malhotra.

“Now that they (Oyo) have issued the draft red herring prospectus (DRHP), that will also be taken into consideration by the court when it hears the matter on Thursday. Based on the outcomes of the hearing, we will decide as to when to approach the Securities and Exchange Board of India regarding our objection to the DRHP,” said Malhotra.

• PTC Industries Shares Soar 4% on Inking a Supply Agreement 
• HCL Tech Shares Gain 2% on Partnering Up with Strategy 
• Shares of Shriram Pistons skyrocketed 9% on Acquiring Antolin Lighting
• Stocks in Focus: Lloyds Engineering, SEAMEC, RailTel, and Others
• Overnight Stock Market Movements: Key Developments 

In 2015, Oyo Hotels & Homes signed for Oyo’s acquisition of Zostel. The deal fell through, but Zostel argues in court that it still deserves about 7 per cent in Oyo parent Oravel Stays.