Byju's shareholders approve resolution in EGM; miffed investors skip meeting

Byju's investors EGM: The shareholders who attended the extraordinary general meeting (EGM) held by Think and Learn, the parent company of Byju's, raised no objection to the resolution aimed at increasing the authorised share capital of the company, news agency PTI reported, quoting company sources. The meeting proceeded smoothly with approximately 20 investor representatives in attendance, meeting the requisite quorum, the report said.

The purpose of the EGM was to facilitate the process of raising $200 million through a rights issue by expanding the company's authorised share capital. Despite concerns raised by a group of investors, including Prosus, General Atlantic, Sofina, and Peak XV, none of the dissenting shareholders attended the meeting personally to voice their objections.

The meeting concluded without any disruptions, and details regarding the voting outcome and the culmination of the rights issue will be shared later post scrutiny by the appointed scrutineer, the PTI report added. The report also mentions an investor side source who asserted that the authorised representatives of all investors attended the meeting. They clarified that the option to vote on the resolution through a postal ballot will remain open until April 6, and the final results will be known only after that date.

The resolution's approval comes amid an ongoing legal tussle between Byju's and a consortium of investors over governance issues and alleged mismanagement by Byju's founder and CEO, Byju Raveendran. The dispute has led to multiple legal battles, including proceedings before the National Company Law Tribunal (NCLT).

(With PTI inputs.)