Federation of Hotel & Restaurant Associations of India on Tuesday said it has written to Sebi to stop OYO from launching its IPO in the wake of a penalty assessed by the Competition Commission of India on the hospitality and trip- tech establishment for illegal business practices. OYO, still, said the Federation of Hotel & Restaurant Associations of India (FHRAI) is misrepresenting the CCI order and the letter to Securities and Exchange Board of India (Sebi) is to distract attention from the administrative commission meeting of FHRAI being held as null and void by the NCLT, which has also ordered a court- covered AGM of the hospitality assiduity body.
In October this time, the Competition Commission of India (CCI) slighted penalties totaling further than Rs 392 crore on online trip enterprises MakeMyTrip, Goibibo, and hospitality services provider OYO for indulging in illegal business practices. ” Now that OYO has been set up shamefaced of indulging in anti-competitive and illegal business practices thereby affecting the business of small hospices and suppressing competition, it’s imperative that its IPO (original Public Offering) shouldn’t be allowed in the interest of the hospitality sector, consumers and implicit investors,” FHRAI said in a statement.
Further, the association said it has requested” Sebi to stop/ bar OYO’s IPO sweats with immediate effect”. The hospitality assiduity body contended that” OYO is responsible for the systemic depredation of the budget member hostel business and its request as a means to achieve an ideational billion- bone valuation which is a serious cause of concern for the hospitality ecosystem of the country.” When communicated, a prophet of OYO said,” FHRAI is also fully misrepresenting the CCI order, by claiming (the aggregators were)’ set up to be indulging in raptorial pricing, extravagant and illegal commissions, misrepresentation of information and arbitrarily levied service freights. We hope that the controller takes note of this willful misrepresentation of its order.”
” FHRAI is again resorting to making incorrect sensational statements” to distract attention from” the fact that NCLT has held the administrative commission meeting of FHRAI as null and void, has ordered fresh choices and has ordered a court- covered AGM in the presence of a designee of the court,” the prophet said.
In October 2021, OYO filed primary papers with Sebi to raise Rs8,430 crore through an original share trade. So far, it has not launched an IPO, citing the unpredictable nature of the request. FHRAI said in 2019, it had filed a complaint against OYO and Make My Trip- Goibibo with the CCI and contended that OYO’s systemic depredation of the budget member hospices caused serious torture to the hospitality sector of the country.
About OYO (Oravel Stays Private Limited)
Our Mission – OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full stack technology that increases earnings and eases operations. Bringing affordable and trusted accommodation that guests can book instantly. We strive to make the lives of our patrons easier by multiplying revenue channels and using our technological expertise to maximize demand.
What we do – OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology that increases revenue and eases operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 157,000 hotel and home storefronts across India, Europe, and Southeast Asia and 35 countries. Oravel Stays Limited (formerly known as Oravel Stays Private Limited).