Bayuj Raveendran
The differences between the investors and founders of edtech startup Byju’s are well known. At the same time, the company is also facing a terrible liquidity crisis. To address this, the company closed many of its verticals. Founder Byju Raveendran even mortgaged his house and then took a big decision, which has now been banned by the National Company Law Tribunal (NCLT).
Byju’s had come up with a rights issue to address its liquidity crisis, which has now been banned by the National Company Law Tribunal (NCLT). This rights issue was brought by Think and Learn, the company that operates the brand ‘Byju’s’.
The court said: leave it as it is.
NCLT has asked to maintain the status quo in the case of Byju’s rights issue. The BYUJAS rights issue started on May 11, but now NCLT has stopped it from going ahead. The Bengaluru NCLT bench, in a June 12 order, asked Byju’s to provide complete details of shareholders before and after the shares were allotted on March 2 in the first tranche of the rights issue.
Investors had knocked on the door of NCLT
Some investors of the company had approached NCLT against Byju’s rights issue. Byju’s had proposed to file a second rights issue through an offer letter on May 11. It opened on May 13 and was due to close on June 13.
NCLT has restrained the company from proceeding with the ongoing rights issue till the main petition of the investors is available. Byju’s four investment companies, Prosus, General Atlantic, Sofina and Peak XV, had approached NCLT with the support of other shareholders.
