NCLT directs Byju to keep funds received from rights issue in a separate escrow account
Mumbai: The National Company Law Tribunal (NCLT) in an interim order has directed Byju’s management to retain the amount received. rights issue in a different escrow account, The court specified that the funds should not be withdrawn until the harassment and mismanagement suit is settled. investors Against the company management. NCLT It has also asked the company’s leadership to consider extending the closing date of the rights issue so that “the rights of the petitioners (investors) are not adversely affected in respect of applying for shares under the rights issue.” TOI has reviewed a copy of the order.
Byju’s rights issue is scheduled to close on Wednesday. Sources close to the company said that there is no plan to extend the date of closing the issue. Byju declined to comment. The company’s investors, including Prosus, Peak An ongoing investigation was claimed. Corporate Affairs (MCA). Lawyers representing investors argued that if they did not subscribe to the rights issue, their shareholding would reduce from 24.5% to 2.5%. The investors declined to comment.
Byju’s has pledged that no new shares will be allotted without increasing the authorized share capital of the company as per law. The next hearing of the case will be on April 4. The cash-strapped company was betting on a $200 million rights issue to raise capital and meet its existing financial liabilities. Byju will have to call an EGM (Extraordinary General Meeting) to seek shareholder approval and increase the authorized capital.
The court has also asked regulatory authorities like MCA, Reserve Bank of India (RBI) and SEBI to file their response to the petition within two weeks. Through the NCLT petition, the investors are also demanding a declaration that the founders are unfit to run the company and a forensic audit of the firm.
Separately, the NCLT on Wednesday also asked Byju’s to respond within three weeks to the insolvency petition filed by its foreign lenders. The case will be heard in April.
Byju’s is locked in a bitter battle with its investors, most of whom voted to remove the CEO and reconstitute the company’s family-run board. The company claims that out of 170 shareholders representing about 45% shareholding, only 35 voted in favor of the resolution passed at the EGM last week. In a letter to employees, Raveendran said he would remain CEO of the company and would challenge the ‘illegal and prejudicial actions’ taken against him.
Byju’s rights issue is scheduled to close on Wednesday. Sources close to the company said that there is no plan to extend the date of closing the issue. Byju declined to comment. The company’s investors, including Prosus, Peak An ongoing investigation was claimed. Corporate Affairs (MCA). Lawyers representing investors argued that if they did not subscribe to the rights issue, their shareholding would reduce from 24.5% to 2.5%. The investors declined to comment.
Byju’s has pledged that no new shares will be allotted without increasing the authorized share capital of the company as per law. The next hearing of the case will be on April 4. The cash-strapped company was betting on a $200 million rights issue to raise capital and meet its existing financial liabilities. Byju will have to call an EGM (Extraordinary General Meeting) to seek shareholder approval and increase the authorized capital.
The court has also asked regulatory authorities like MCA, Reserve Bank of India (RBI) and SEBI to file their response to the petition within two weeks. Through the NCLT petition, the investors are also demanding a declaration that the founders are unfit to run the company and a forensic audit of the firm.
Separately, the NCLT on Wednesday also asked Byju’s to respond within three weeks to the insolvency petition filed by its foreign lenders. The case will be heard in April.
Byju’s is locked in a bitter battle with its investors, most of whom voted to remove the CEO and reconstitute the company’s family-run board. The company claims that out of 170 shareholders representing about 45% shareholding, only 35 voted in favor of the resolution passed at the EGM last week. In a letter to employees, Raveendran said he would remain CEO of the company and would challenge the ‘illegal and prejudicial actions’ taken against him.
