Byju's predicament: On March 29, Byju held an extraordinary general meeting (EGM), but the National Company Law Tribunal (NCLT), in Bengaluru, declined to order a postponement. The purpose of the EGM was to raise the share capital of the edtech company in relation to the $200 million rights issue.
Prosus led a group of Byju's investors that petitioned NCLT to halt the rights issue and grant a stay on the scheduled EGM.
The following hearing is set for April 4 after the tribunal declined to impose a stay.
The panel also ordered Byju's to divulge all pertinent data, including the rights issue, that investors had been requesting in relation to the company's financials.
Four of Byju's investors, Prosus, General Atlantic, Peak XV Partners, and Sofina, have requested a stay on the rights issue from the tribunal.
The NCLT had previously instructed Byju's to hold onto the money raised in an additional escrow account and refrain from taking it out until the dispute was resolved.
Once one of the most popular companies in India, Byju's has experienced a number of setbacks since 2023, including the resignation of its auditor, the filing of bankruptcy by lenders against a holding company, and a lawsuit in the US contesting the conditions and payback of a loan. Because of problems with compliance, financial mismanagement, and governance, investors decided this year to remove CEO Byju Raveendran. Byju's had a valuation of $22 billion in 2022.
