- NCLT, Bengaluru, denies stay on Byju’s EGM scheduled for March 29 to discuss a $200 million rights issue, amid investor opposition led by Prosus.
- Tribunal directs Byju’s to provide investors with relevant financial information, refusing to block the rights issue, with the next hearing set for April 4.
- Byju’s faces a series of challenges since 2023, including auditor resignation, bankruptcy proceedings, and investor vote to remove CEO Byju Raveendran.
The National Company Law Tribunal (NCLT) in Bengaluru declined to grant a stay on Byju’s extraordinary general meeting (EGM), slated for March 29, concerning a $200 million rights issue, amidst opposition from investors led by Prosus. Despite the investor plea for a halt on the EGM and the rights issue, the tribunal’s decision ensures the proceedings move forward as scheduled. However, NCLT instructed Byju’s to furnish all requested financial information to investors regarding the rights issue, emphasizing transparency in the process. The next hearing on the matter is scheduled for April 4, allowing further deliberation on the dispute between Byju’s and its investors.
Byju’s, once lauded as one of India’s premier startups, has encountered a string of challenges since 2023, including auditor resignations, bankruptcy proceedings initiated by lenders against a holding company, and legal disputes over loan terms in the US. Moreover, this year witnessed investors voting to remove CEO Byju Raveendran over governance issues, financial mismanagement, and compliance concerns. With a valuation of $22 billion in 2022, Byju’s struggles underscore the volatility and scrutiny surrounding high-profile tech companies in India’s startup ecosystem.
