India, Aug. 10 -- Budget hostel chain Zostel has withdrawn its plea seeking directions from the Delhi High Court (HC) to the Securities and Exchange Board of India (SEBI) to examine disclosures made by hospitality major PRISM in its draft IPO papers, particularly those relating to Zostel's claimed 7% stake in the OYO parent.

In a statement shared with Inc42, Zostel said it withdrew the application after the HC observed that its concerns regarding the IPO disclosures would be considered by SEBI in any case, given that the draft papers are yet to receive regulatory approval.

"Zostel's rights and remedies remain fully reserved and unaffected. The substantive dispute between Zostel and OYO continues to remain pending before the Hon'ble High...