Investors oppose Byju’s March 29th EGM, NCLT denies any immediate relief
The miffed investors led by Prosus want to remove Byju’s founder and CEO Byju Raveendran and his family members from the board. Photo: Bloomberg
A group of aggrieved investors have opposed an extraordinary general meeting on March 29, called by Think and Learn, owner of Byju’s brand, before company tribunal NCLT, Bangalore but failed to get any immediate relief, according to sources.
Byju’s has called the extraordinary general meeting (EGM) on March 29, to increase authorised share capital of the company following the recent $200 million rights issue.
“Investors who are miffed by Byju’s approached NCLT, Bangalore 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.
Query sent to Byju’s and some of the lead investors elicited no reply.
A group of four investors of Byju’s has filed an oppression and mismanagement suit against the management of the company before the National Company Law Tribunal (NCLT), Bengaluru Bench, seeking to oust the founders, including CEO Byju Raveendran, and appoint a new board.
Besides, the suit also sought to declare the just-concluded rights issue as void.
The petition has been signed by four investors — Prosus, General Atlantic, Sofina, and Peak XV — along with support from other shareholders, including Tiger and Owl Ventures.
The tribunal has asked embattled edtech firm Byju’s to consider extending the closing date of the $200 million rights issue, a request that the management hinted it would not accept even as estranged investors flagged technicalities that prevented the closure of the issue on Wednesday.
In an interim order dated February 27, the NCLT, Bengaluru Bench, said the funds received by the company through the rights issue should be kept in a separate escrow account and should not be withdrawn till the disposal of the matter.
The miffed investors led by Prosus want to remove Byju’s founder and CEO Byju Raveendran and his family members from the board.
These investors, who hold around 32 per cent stake in the edtech firm, had called EGM on February 23 and claimed that over 60 per cent of the investors in the meeting voted in favour of resolutions proposed by them including removal of the CEO.
However, sources close to Byju’s put the number at 47 per cent.
Byju’s has approached Karnataka High Court against the EGM which has put the resolution passed by the miffed investors on hold. The next date of hearing on the matter is also listed on March 28.
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First Published: Mar 21 2024 | 9:27 PM IST