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Updated – February 28, 2024 at 09:56 PM.
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Bengaluru
Also asks edtech major to consider extending the closure of the rights issue
The Bengaluru bench of National Company Law Tribunal (NCLT), in its order passed on February 27, has directed edtech major Byju’s that the proceeds from the rights issue is to be kept in a separate account till the disposal of the oppression and mismanagement plea filed by the company’s investors.
It has also asked the edtech major to consider extending the closure of the rights issue.
“A period of two weeks is granted to the Authorities for filing reply from the date of receipt of copy of the notice and two weeks thereafter for filing response/rejoinder, if any, thereto from the date of receipt of copy of reply is granted. List the case for further hearing on 04.04.2024,” directed the tribunal.
This comes a day after the tribunal reserved its judgment in the oppression and mismanagement suit filed by four investors against Byju’s. The investors sought for a stay of the $200-million rights issue to close on February 29. The investors alleged that they were being forced to participate as their shareholding would be reduced if they did not participate in the rights issue.
‘Respond in 3 days’
The tribunal has directed the parties to file written submissions of their contentions in three days and has also issued notice to the Ministry of Corporate Affairs (MCA) and Registrar of Companies (ROC).
The hearing, which was five hours long, saw an intense showdown between the investors of Byju’s and the current board of directors of the company.
The investors — Prosus, GA, Sofina, and Peak XV — with support from other shareholders, including Tiger and Owl Ventures, moved the NCLT and sought for an interim relief with a stay on the rights issues, and encumbering and transferring any assets of Byju’s and its subsidiary. Investors also requested the bench to allow maintenance of status quo of shareholding and a complete disclosure of information by the company.
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