The industry body has also moved the CCI against Oyo for engaging in anti-competitive practices. The investigation is presently in advanced stages.
The legal counsel Oyo on its behalf said that, Zostel's petition seeking reliefs are beyond the scope of the award.
Earlier, the board of Oravel Stays had approved an increase in the authorised share capital of the company from Rs 1.17 crore to Rs 901 crore.
OYO recently raised $9.6 billion in fresh capital from Microsoft at a post-money valuation.
IPO will comprise a mix of primary issue and sale of secondary shares. JP Morgan, Kotak Mahindra Capital and Citi will reportedly manage share sale