Oyo IPO: Oyo sends letter to SEBI, denies hotel association allegations

FHRAI has written to SEBI to reject OYO’s IPO application

Hospitality organization OYO (OYO) on Monday wrote a letter to market regulator SEBI, denying the allegations made by the Federation of Hotel and Restaurant Associations of India (FHRAI). FHRAI has accused Ware of competing, cheating and unfairly disclosing in the draft paper submitted for the initial public offering (IPO). At the same time, FHRAI asked SEBI to cancel OYO’s IPO application.

Meanwhile, FHRAI has also filed an appeal against the NCLAT’s July order, where the NCLT closed the bankruptcy lawsuit against a subsidiary of OYO. FHRAI approached SEBI in October to reject Oyo’s IPO application and suspend the proposed IPO.

OYO has now written a letter denying the allegations, which it has sent to both SEBI and FHRAI. The agency said it was not in a deal to eliminate competition, but as a complaint. OYO further said that it does not have an influential position in the market and therefore cannot abuse its position.

Alleging that the OYO had unilaterally changed the agreement with hotel partners for unexpected reasons, the company stated that it was “forced” to implement such provisions due to the coronavirus epidemic and that no one had committed fraud on its behalf.

FHRAI alleges that the company did not disclose enough about the lawsuit against it in the draft paper submitted by the IPO, which could further hurt retail investors.

However, Oyo said all pending lawsuits against the company were mentioned in the draft paper submitted for the IPO. Oyo submitted draft documents to SEBI on October 1 to raise Rs 8,430 crore through IPO. It has not yet received approval from SEBI.

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