India, July 10 -- Budget hostel chain Zostel has withdrawn an urgent application it had filed with the Delhi High Court seeking protection for a 7% stake it has claimed in IPO-bound PRISM, the parent company of hospitality chain OYO.

Zostel had argued that 7% of OYO's total share capital be escrowed or it be provided equivalent security until the time the dispute between both parties is over as its appeal would be rendered meaningless once PRISM dilutes its shareholding and lists on the bourses.

The fresh plea was filed by Zostel after OYO filed its updated DRHP with SEBI last month to raise Rs.6,650 Cr through a fresh issue of shares. The court dismissed the application as "not pursued" in view of its March 2022 order.

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