Top investors in Think and Learn Pvt Ltd, the parent firm of Byju’s, are likely to stay away from the embattled edtech company's $200-million rights issue, which closes at midnight on February 28, a Livemint report said.
The company decided to go ahead with the issue as the National Company Law Tribunal (NCLT) on February 27 reserved judgment on the “oppression and mismanagement” plea filed by four investors against the edtech company.
Prosus, General Atlantic and Peak XV were among the investors who had sought a stay on the rights issue, alleging they were being forced to participate in the rights issue as their shareholding would be diluted if they were to give it a miss.
The investors also sought a stay on encumbering and transferring any assets of Byju’s and its subsidiary.
In a recent letter to shareholders, CEO Byju Raveendran had claimed the issue was fully subscribed.
The letter came ahead of the February 23 extraordinary general meeting (EGM) in which investors voted to oust Raveendran from company, which once towered over Indian unicorns with a $22-billion valuation.
Raveendran, his wife and brother — the only board members — decided to skip the EGM in which investors passed resolutions to overhaul the education platform's leadership, reconstitute the board and start a forensic probe into alleged governance breaches.
Also Read | Investors Vs Byju's: What has been argued in NCLT so far?
The EGM’s decision cannot be implemented until the next hearing in the case, the Karnataka High Court had said ahead of the meeting. The case is to be heard on March 13. Think and Learn Pvt Ltd, Byju’s parent, had moved the court against the EGM.
The company reported a 118 percent year-on-year jump in consolidated revenue at Rs 5,298 crore for FY22. Its losses also ballooned from Rs 4,564 crore to Rs 8,245 crore, the company, which shared its FY22 results in January, said.
In January, the company posted its FY22 financials reporting a consolidated revenue jump of 118 percent from Rs 2,428 crore in FY21 to Rs 5,298 crore in FY22. Its losses also ballooned from Rs 4,564 crore in FY21 to Rs 8,245 crore in FY22.
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