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HomeTechNCLT refuses to stay Byju’s EGM over $200 million rights issue

NCLT refuses to stay Byju’s EGM over $200 million rights issue

NCLT refuses to stay Byju’s EGM over 0 million rights issue


The National Company Law Tribunal (NCLT), Bengaluru, did not grant a stay on Byju’s extraordinary general meeting (EGM) on March 29 to increase the firm’s authorised share capital with regards to the $200 million rights issue.

Investors of Byju’s parent Think & Learn, led by Prosus, had moved NCLT seeking a stay on the planned EGM and block the rights issue.

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The tribunal, during Thursday’s hearing, said it won’t put a stay on the EGM and the matter will be heard next on April 4. The tribunal also directed Byju’s to share all the relevant information sought by investors linked to the company financials including the rights issue.

Byju’s has said its $200 million rights issue –at a 99% discount to its peak valuation of $22 billion–has been fully subscribed. A group of investors have locked horns with the company over the fundraise and are seeking the removal of company founder Byju Raveendran as CEO along with a change in board. Raveendran’s wife and cofounder Divya Gokulnath and his brother Riju Ravindran are the other members of Think & Learn’s board.

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