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Byju’s top investors move to NCLT to stop $200 mn rights issue
The Arc Web
·
1y ago
Medial
A group of investors, led by Prosus, has filed a lawsuit against Byju Raveendran and his team for "oppression and mismanagement" at the National Company Law Tribunal. The investors are seeking to have the founders declared unfit to run the company, call for the appointment of a new board, annulment of a recent rights issue, and demand a forensic audit and the appointment of a new CEO. Top investors in Byju's have also called for an extraordinary general meeting (EGM) to remove Raveendran and other board members. The EGM has been deemed procedurally invalid by the company. The investors have raised concerns about financial mismanagement and have proposed changes to the board structure.
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Relief for BYJU’S As NCLT Reserves Verdict On Investors’ Plea
Inc42
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has reserved its judgement on a petition filed by investors, including Prosus and General Atlantic, against BYJU'S CEO and other promoters. The investors are seeking status quo on BYJU'S ongoing $200 million rights issue, claiming it will erode their stakes in the company. The NCLT directed BYJU'S to increase its authorized share capital and park the money raised from the rights issue in a separate bank account. BYJU'S plans to go ahead with the rights issue, stating its importance for the company's survival and employment of 12,000 staff.
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NCLT refuses to stay Byju’s EGM over $200 million rights issue
Economic Times
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has not granted a stay on Byju's planned extraordinary general meeting (EGM) on March 29, where they aimed to increase their authorised share capital for a $200 million rights issue. The investors, led by Prosus, who have invested in Byju's parent company Think & Learn, had sought a stay on the EGM and wanted to block the rights issue. The NCLT has directed Byju's to provide all relevant information to the investors regarding the company's financials, including the rights issue. The matter will be heard again on April 4.
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Byju’s challenges NCLT order restricting fund use in Karnataka High Court
Economic Times
·
1y ago
Medial
Edtech firm Byju's has filed a petition challenging the National Company Law Tribunal (NCLT) order that prevents the company from proceeding with its second rights issue. The NCLT had directed Byju's to maintain status quo and halt its second rights issue, as well as put funds from the first rights issue into an escrow account. Byju's is also requested to provide information about recipients of shares issued during the first rights issue. The $200 million rights issue has faced protests from investors, and some lenders have filed a petition in a US court for bankruptcy proceedings against Byju's subsidiaries.
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Byju’s likely to go ahead with rights issue after NCLT defers verdict
Livemint
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has delayed its verdict on the case filed by investors against Byju's, allowing the online tutoring firm to proceed with its $200 million rights issue. The NCLT has requested written submissions from both Byju's and its investors and plans to deliver its order next week. Byju's aims to use the funds from the rights issue to address its liquidity crisis, pay off debts, and settle outstanding liabilities. However, large investors are unlikely to participate in the rights issue. The bone of contention is Byju's valuation, which has been significantly lower than its peak valuation of $22 billion.
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Top Investors May Opt Out Of Byju’s $200 Mn Rights Issue
Inc42
·
1y ago
Medial
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.
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NCLT directs Byju’s to maintain status quo, halting $200 million rights issue
Economic Times
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has ordered Byju's to maintain status quo in its shareholding, pausing its controversial rights issue. Byju's $200 million rights issue is being conducted at a 99% discount, sparking protests from investors. NCLT has asked Byju's to pause its second rights issue and keep cash from the first rights issue in an escrow account. The tribunal also requested details of share allotment and escrow bank accounts within 10 days. The matter will be heard again on July 4. In addition, lenders have petitioned a US court to initiate bankruptcy proceedings against Byju's subsidiaries.
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Byju’s says $200 mn raise done, to appoint two investor directors
The Arc Web
·
1y ago
Medial
Indian edtech giant Byju's has successfully raised $200 million through a rights issue. The funding will cover existing liabilities and provide growth capital for the company. In this funding round aimed at existing investors, Byju's adjusted its pre-money valuation to $20 million. As part of the rights issue, the company will appoint two non-executive directors to its board. This move comes as a consortium of investors seeks to remove founder Byju Raveendran and reconstitute the board, expressing concerns over leadership and stability. Raveendran emphasized the importance of unity and support for the rights issue.
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NCLT adjourns hearing in Byju’s rights issue case to June 6
Economic Times
·
1y ago
Medial
The National Company Law Tribunal (NCLT) in Bengaluru has adjourned the case between Byju's and its investors until June 6. The investors, led by Dutch investor Prosus, are seeking to block a $200 million rights issue and the removal of Byju Raveendran as CEO. There are allegations of violation on Byju's part regarding an NCLT order, including the allotment of shares to investors and the use of funds from the rights issue. Byju's claims to have acted in accordance with the law. In addition to these legal issues, Byju's has been facing a severe cash crunch, delaying salary payments and laying off employees.
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BYJU’S Gets $300 Mn Commitment In Ongoing Rights Issue
Inc42
·
1y ago
Medial
Parent company Think and Learn, which owns edtech giant BYJU'S, has secured a commitment of $300 million from investors for its ongoing rights issue. The rights issue aims to raise $200 million through equity rights, valuing BYJU'S at $220-250 million. Negotiations are taking place with unhappy investors to encourage their participation in the rights issue. BYJU'S also plans to appoint two independent directors to its board after finalizing its financial results for fiscal year 2023. The troubled edtech firm has faced losses, business model challenges, and conflicts with investors in recent years.
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NCLT refuses to stay Byju’s EGM over $200-million rights issue
Business Today
·
1y ago
Medial
The National Company Law Tribunal (NCLT) in Bengaluru has denied a stay on Byju's extraordinary general meeting (EGM), which was scheduled for March 29th. This EGM aimed to increase the edtech company's share capital for a $200 million rights issue. Byju's investors, led by Prosus, had sought to block the EGM and the rights issue through the NCLT. The tribunal refused to grant the stay and ordered Byju's to share requested financial information with its investors. The next hearing is scheduled for April 4th. Byju's has faced several setbacks recently, including the resignation of its auditor and legal disputes.
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