- Byju Raveendran, the founder of edtech giant Byju’s, has extended an olive branch to dissenting shareholders by inviting them to participate in the company’s rights issue.
- This offer comes amidst a legal tussle as the Bengaluru bench of the National Company Law Tribunal (NCLT) refused to postpone an extraordinary general meeting (EGM) scheduled for March 29, where Byju’s aims to raise authorized capital for a $200 million rights issue.
- Despite opposition from investors led by Prosus, who sought a stay on the EGM citing concerns over share capital increase and memorandum amendments, Byju’s is pressing forward with its fundraising efforts.
In a bid to resolve dissent among shareholders, Byju Raveendran has made a gesture of inclusion by welcoming those who initially refrained from participating in the funding round to join within the next 72 hours. This comes at a crucial juncture for Byju’s, as the company faces challenges in raising funds to address liquidity concerns. The dispute surrounding the EGM, which seeks to increase the company’s authorized capital and amend its memorandum of association, has led to legal proceedings initiated by a group of investors led by Prosus.
The NCLT’s refusal to delay the EGM indicates the urgency of the matter. Byju’s is reliant on securing at least 50 percent of the votes at the upcoming EGM to proceed with increasing its share capital, essential for issuing shares to new investors as part of the planned rights issue. As the company navigates through these challenges, the invitation to dissenting shareholders reflects Byju Raveendran’s efforts to ensure inclusivity and resolve differences for the benefit of the company and its stakeholders.
