Bengaluru: Delhi High Court has dismissed an interim appeal filed by Zostel (Zo Rooms) which sought to restrict hospitality startup Oyo Hotels & Homes from modifying its shareholding including by way of an IPO. This gives SoftBank-promoted startup interim relief on its IPO plans.

Zostel and Oyo have been fighting in court over the former’s claim of 7% holding in Oyo due to an acquisition gone awry between the two firms. Oyo, a Gurugram-based startup has been rejecting these claims by Zostel.

Sources said Zostel is likely to challenge the latest Delhi High Court.

ET reported on February 10 saying Oyo is likely to reduce the size of its initial public offering (IPO) in view of adverse secondary market conditions and a crash in stock prices of new-age tech startups.

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