After CCI penalty, FHRAI writes SEBI to stop OYO IPO

16 Nov 2022 , 04:03 PM

The Federation of Hotel and Restaurant Association of India has written a letter to SEBI to stop the proceedings of the IPO of OYO, as reported by the Economic Times. This has come after the Competition Commission of India found the company liable for unfair trade practices and imposed a penalty.

The CCI has imposed penalties of more than Rs392 crore on online travel service providers MakeMyTrip, GoIbibo and OYO for unfair trade practices. 

FHRAI also issued a statement in which it said that the company has been found guilty to indulge in unfair business practices which affect the business of small hotels. Therefore, the IPO of OYO should not be allowed in the interest of the hospitality sector, consumers, and potential investors.

In October 2021, OYO had filed preliminary papers with SEBI to raise Rs 8,430 crore through IPO. However, it has not launched the IPO yet due to volatile market situations.

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