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BYJU’S Investors Prosus, GA, Sofina, Peak XV Move NCLT Over Mismanagement

Inc42 · 1y ago

BYJU’S Investors Prosus, GA, Sofina, Peak XV Move NCLT Over Mismanagement

A petition has been filed against edtech giant BYJU'S by four investors, seeking to declare the company's founders unfit to run it. The investors are calling for the appointment of a new board and want to declare an ongoing rights issue as void. They have raised concerns about BYJU'S loss of control over subsidiaries, a term loan default, failure to hire a CFO, and a deliberate default in sharing information with shareholders. The investors are also seeking various remedies, including a forensic audit and direction to share information with investors.

Related News

Byju’s investor consortium moves NCLT against rights issue

Livemint

Livemint · 1y ago

Byju’s investor consortium moves NCLT against rights issue

A consortium of investors including Prosus, General Atlantic, Sofina, and Peak XV Partners has lodged a petition against Byju's rights issue, accusing the company of suppressing investor rights and mismanagement. The investors argue that Byju's management did not share relevant financial information with them and conducted an "oppressive" and non-transparent rights offer. They are seeking the declaration of the rights issue as void, the removal of the founders and management, and a forensic audit of the company. Byju's spokesperson stated that the company has not received a notice on the NCLT petition.

Keep Proceeds From Rights Issues In Escrow Account, Consider Extension Of Issue: NCLT To BYJU’S

Inc42 · 1y ago

Keep Proceeds From Rights Issues In Escrow Account, Consider Extension Of Issue: NCLT To BYJU’S

The National Company Law Tribunal (NCLT) has ordered BYJU'S to keep the proceeds from its rights issue in a separate escrow account and consider extending the closure date of the rights issue. This order comes in response to a petition filed by a group of investors including Prosus, Peak XV Partners, General Atlantic, and Sofina. The NCLT has also asked relevant authorities to submit their replies within two weeks. The next hearing for the case is scheduled on April 4th.

Top Investors May Opt Out Of Byju’s $200 Mn Rights Issue

Inc42 · 1y ago

Top Investors May Opt Out Of Byju’s $200 Mn Rights Issue

BYJU'S top investors, including Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA, may not participate in the edtech company's $200 million rights issue. These investors collectively hold a 25% stake in BYJU'S parent company, Think and Learn Pvt Ltd, and have filed a petition against the rights issue, citing oppression and mismanagement. Meanwhile, BYJU'S CEO Byju Raveendran confirmed in a letter to shareholders that the rights issue had been fully subscribed. The company's board composition and leadership have also been questioned, with investors calling for an extraordinary general meeting to discuss changes.

Battle Over Rights Issue: Disgruntled Investors Accuse BYJU’S Of Violating NCLT’s Orders

Inc42 · 1y ago

Battle Over Rights Issue: Disgruntled Investors Accuse BYJU’S Of Violating NCLT’s Orders

BYJU'S is facing further trouble as investors allege that the edtech giant violated a National Company Law Tribunal (NCLT) order by allotting shares without increasing authorized capital. The investors, including Prosus, General Atlantic, Sofina, and Peak XV, have filed an affidavit placing their concerns on record. By not increasing authorized capital, BYJU'S would be in violation of the NCLT's interim order. BYJU'S has denied the allegations and has 10 days to respond to the NCLT. Additionally, the company has filed an application for arbitration in the ongoing dispute. Last month, BYJU'S founder Byju Raveendran mentioned the possibility of allowing disgruntled investors to participate in the company's rights issue.

BYJU’S Insolvency: Now, Investors Move SC

Inc42 · 1y ago

BYJU’S Insolvency: Now, Investors Move SC

Investors of BYJU'S, including General Atlantic, Peak XV Partners, Sofina S.A., and MIH Edtech Investments, have approached the Supreme Court to address concerns regarding mismanagement, alleged fund syphoning, and financial irregularities. The investors are seeking the court's permission to address these issues. The Board of Control for Cricket in India (BCCI), represented by Solicitor General of India Tushar Mehta, and Byju Raveendran, founder of BYJU'S, have requested an early hearing of the matter.

Expecting Challenge To NCLT’S Order, BYJU’S Investors File Caveats In SC

Inc42 · 1y ago

Expecting Challenge To NCLT’S Order, BYJU’S Investors File Caveats In SC

Investors of edtech startup BYJU'S have reportedly filed caveats in the Supreme Court (SC) urging that they be heard before any order is passed on potential pleas against a recent National Company Law Tribunal (NCLT) order. The NCLT's order had greenlit BYJU'S $200 million rights issue, but directed the company to keep the proceeds in a separate account. In response, backers Prosus, Sofina, Peak XV Partners, and General Atlantic (Singapore) filed separate caveats. BYJU'S has been facing legal challenges from its investors, leading to a public standoff and a recent extraordinary general meeting seeking to remove the founder and CEO.

Grapevine: Byju’s likely in a soup over rights issue; Dailyhunt in M&A news

VCCircle

VCCircle · 1y ago

Grapevine: Byju’s likely in a soup over rights issue; Dailyhunt in M&A news

Byju's, the parent company of the popular edtech startup Byju's, may encounter challenges with its upcoming $200 million rights issue. Shareholders Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA, who jointly own 25% of the company, have filed a petition with the National Company Law Tribunal (NCLT) claiming their preemptive rights have been violated. The dispute could potentially delay the rights issue and impact Byju's fundraising plans. In other news, Dailyhunt, an Indian news aggregator, is reportedly considering mergers and acquisitions as part of its expansion strategy.

Byju’s investors file caveats in SC

Thehindubusinessline

Thehindubusinessline · 1y ago

Byju’s investors file caveats in SC

Investors of Byju's, the edtech company, have filed a plea with the Supreme Court to be heard before the court decides on a potential plea against a National Company Law Tribunal (NCLT) order. The investors, including General Atlantic and Sofina, have lodged separate caveats at the top court. This comes after the NCLT directed Byju's to hold the proceeds from a rights issue in a separate account until the disposal of an oppression and mismanagement plea by investors. Byju's has faced several legal challenges recently, including insolvency petitions from US lenders and the Board of Control for Cricket in India.

NCLT Refuses To Stall BYJU’s EGM On $200 Mn Rights Issue

Inc42 · 1y ago

NCLT Refuses To Stall BYJU’s EGM On $200 Mn Rights Issue

The National Company Law Tribunal (NCLT) has refused to stay the extraordinary general meeting (EGM) of education technology company BYJU'S, scheduled for March 29. The EGM is being called to increase the company's authorised share capital following a $200m rights issue. Four investors, including Prosus and General Atlantic Singapore, had requested a stay due to alleged oppression and mismanagement. The NCLT said that decisions made at the EGM could be challenged, and the bench confirmed that any EGM can go ahead, although statements from the EGM could be challenged.

Prosus sees promise in India, brushes off Byju’s and other blows

Business Today

Business Today · 3m ago

Prosus sees promise in India, brushes off Byju’s and other blows

In a period where major global investment players like SoftBank, Peak XV, and Tiger Global are exercising caution with Indian startups, Prosus remains optimistic about India's growth potential. Despite challenges with investments such as Byju's, Prosus continues to see promising opportunities in the Indian market, setting it apart with its more positive outlook compared to other investors adopting a more conservative approach.

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