Byju’s can breathe a sigh of relief as the majority of shareholders in the edtech firm have given their nod to the resolution, allowing the company to boost its authorized share capital by absorbing $200 million raised through a rights issue. However, it’s worth noting that a faction of investors opposed the Extraordinary General Meeting (EGM) held on March 29.
In a statement, the company announced that the Extraordinary General Meeting (EGM) held on March 29, 2024, has received approval from a majority, securing 55% of the total votes polled. The voting process, comprising both the EGM and a postal ballot that concluded on April 6, 2024, underwent thorough scrutiny by an independent third party, as affirmed by the company.
Despite this development, the National Company Law Tribunal (NCLT) has upheld its directive, prohibiting Byju from utilizing the proceeds generated from the rights issue. Consequently, the funds raised through the rights issue are currently restricted from being allocated towards salary disbursements or any other purposes until further instructions are provided.
A coalition comprising four investors — Prosus, General Atlantic, Sofina, and Peak XV — with backing from other shareholders such as Tiger and Owl Ventures, complained to the NCLT regarding the Extraordinary General Meeting (EGM).
These investors are believed to collectively hold approximately 30% of Byju’s shares.
We extend our heartfelt gratitude to our investors for their unwavering support and comprehension during this critical juncture. Their invaluable backing in furnishing essential working capital exemplifies their unified dedication to our revitalized growth strategy, remarked Byju Raveendran, founder and CEO of Byju’s.
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“The shareholder approval represents a significant milestone in our persistent efforts to navigate through the various challenges confronting our business. We are steadily addressing these issues one by one, ensuring steady progress,” he continued. “Meanwhile, the upcoming hearing on the investors’ plea is slated for April 23rd.”
