SUMMARY
Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA filed a petition last week with the NCLT against the rights issue, seeking relief citing oppression and mismanagement of the company
In a recent letter to shareholders, CEO Byju Raveendran affirmed that the issue had been fully subscribed
BYJU’S investors have called for EGM demanding to change the company’s leadership and change its board
Top investors in BYJU’S parent, Think and Learn Pvt Ltd, may skip taking part in the edtech major’s $200 Mn rights issue, which will conclude on Wednesday (February 28), Mint reported.
Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA filed a petition last week with the National Company Law Tribunal against the rights issue, seeking relief citing oppression and mismanagement of the company. These four investors collectively hold about a 25% stake in the company.
The NCLT bench, on February 27, reserved its judgment on the petition, allowing BYJU’S to proceed with its rights issue.
BYJU’S is likely to go ahead with the rights issue on Wednesday, a person close to the matter told Mint.
In a recent letter to shareholders, CEO Byju Raveendran affirmed that the issue had been fully subscribed.
BYJU’S investors have called for EGM demanding to change the company’s leadership and change its board.
Currently, BYJU’S board comprises Byju Raveendran and his family members Divya Gokulnath and Riju Raveendran. Last year, three of its board members – Russell Dreisenstock of Prosus, Chan Zuckerberg Initiative’s Vivian Wu, and Peak XV Partners’ GV Ravishankar resigned.
In a letter assessed by Inc42, Raveendran mentioned that the $200 Mn raise would provide the company with the necessary capital to address current liabilities and ensure ample growth capital to restore it to its previous stature.
The beleaguered company has been fighting on multiple fronts over the last year or so. It continues to be plagued by a host of troubles, including the exit of board members, layoffs, delay in filing financial statements, growing losses, scrutiny of the Enforcement Directorate (ED), and a legal battle with the Board of Control For Cricket in India (BCCI).
Amid the ongoing battle with investors, BYJU’S also moved the Karnataka High Court against the decision of its investors to hold an EGM. In a temporary relief, the court said in an interim order that any decisions taken at the company’s EGM would not come into effect till the next hearing on March 13.
BYJU’S filed its financial statements for FY22 almost 22 months after the end of the year. Its consolidated net loss surged 81% to INR 8,245.2 Cr in FY22 from INR 4,564.3 Cr in FY21. Operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review, mostly on the back of improvement in the financial performance of Aakash.
