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Hotel & Restaurant Association urges Sebi to reject Oyo's IPO

Mint  

The Federation of Hotel and Restaurant Association of India (FHRAI) is the latest entity to write to market watchdog Securities and Exchange Board of India (Sebi), urging it to suspend hospitality unicorn Oravel Stays Pvt.Ltd.'s (Oyo's) upcoming initial public offering (IPO), for not making adequate disclosures in its draft prospectus. The hospitality body alleged that Oyo has failed to make relevant disclosures around its ongoing investigation by the Competition Commission of India (CCI), as well as failed to disclose the consequences of pending litigation against its subsidiaries. FHRAI claimed that the investigation of the Director General remains pending and is known to be at an advanced stage. Instead of making a fair disclosure on the nature and consequence of the CCI directed investigation, Oravel, in its DRHP, has tried to confound investors by conflating irrelevant issues relating to the interim reliefs sought by RubTub Solutions Pvt Ltd (Treebo) and Casa2Stays Pvt Ltd (FabHotels), alleged FHRAI.