Updated March 21st, 2024 at 22:00 IST

Investors oppose BYJU’s EGM in NCLT but get no respite

BYJU's called the extraordinary general meeting (EGM) on March 29 for raising the company’s authorised share capital, after a $200 million rights issue

Reported by: Business Desk
Byju Raveendran controversy | Image:Byju Raveendran
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BYJU's EGM: A select group of investors for embattled edtech BYJU’s have approached the National Company Law Tribunal (NCLT) to resist the extraordinary general meeting called by its parent Think and Learn on March 29.

The NCLT has, however, not provided any immediate respite to the investors, sources told PTI.

The extraordinary general meeting or EGM called upon by BYJU’s is for raising the authorised share capital of the company, after the company issued a $200 million rights issue recently. 

"Investors who are miffed by BYJU's approached NCLT, Bengaluru to stay the EGM called by the company, but the court denied any immediate relief. The tribunal has listed the matter for hearing on March 28," a source said. 

BYJU’s did not immediately comment on the matter, while a query PTI sent to the edtech and some of the major investors remains unanswered. 

Four investors, namely Prosus, General Atlantic, PeakXV and Sofina signed a suit, backed by Tiger and Owl Venture among others, alleging oppression and mismanagement on part of BYJU’s management before the Bengaluru bench of the NCLT demanding the ouster of CEO Byju Raveendran from the helm of the company, and for his family - wife Divya Gokulnath and brother Riju Raveendran to be removed from the board of the company, calling for appointing a new board. 

The petition by investors also declared the recently-concluded rights issue as void, rBesides, the suit also sought to declare the just-concluded rights issue as void. 

The NCLT also ruled for the funds received through the rights issue to be kept in an escrow account, as part of an interim order dated February 27, saying the money cannot be accessed till the matter is disposed.

The investors, holding around 32 per cent stake in the edtech firm, had called the EGM on February 23 saying that over 60 per cent of the investors in the meeting voted in favour of the proposed resolutions, which include removal of the CEO. 

BYJU maintained that 47 per cent of the investors voted in favour. 

The edtech company had sought intervention from the Karnataka High Court against the EGM, which put the passed resolutions on hold until the next hearing on March 28. 

(With PTI Inputs)

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Published March 21st, 2024 at 22:00 IST