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.

• Stocks Under F&O Ban 
• Indian Hume Pipe Soars 9% on Rs 738 Cr Rajasthan Order
• Max Estates Jumps 6% as Q1 Pre-Sales Surges 5x
• Raymond Realty Soars 12% on Q1 Pre-Sales Jump
• Zydus Lifesciences Jumps 4% on Apollo Cancer Test Tie-Up

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.