The National Company Law Tribunal (NCLT), in a hearing on Thursday, refused to stay the extraordinary general meeting (EGM) scheduled for March 29, aimed at increasing BYJU’S authorised share capital for the $200 million rights issue.
A group of investors led by Prosus had voiced opposition to the EGM on March 29, initiated by Think and Learn Private Limited (TLPL)—the parent company of BYJU’S, before NCLT.
The tribunal has listed the case for further hearing on April 4.
Earlier, in an order dated February 27, the NCLT directed that the funds received by BYJU’S for the rights issue be placed in a separate escrow account, with instructions not to withdraw them until the disposal of the oppression and mismanagement suit filed by a group of four investors against the management of the company.
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The petitioners of the lawsuit filed at the NCLT’s Bengaluru bench include prominent investors in BYJU’S such as Prosus, General Atlantic, Sofina, and Peak XV. The investors are also seeking to have the $200 million rights issue declared void before the Bengaluru bench of the NCLT.
In January, BYJU’S floated a rights issue to raise $200 million through equity rights at an enterprise valuation of approximately $220 million, representing a 99% reduction from its peak valuation of $22 billion.
The edtech firm said the rights issue was initiated to provide crucial financial support to address immediate liabilities, including pending salaries to employees.
This NCLT suit represents one of the ongoing battles for the edtech company.
Edited by Suman Singh
