Edtech leader Byju’s stated on Friday that it has not received any official notification that certain investors have filed a case in the National Company Law Tribunal (NCLT) over its rights issue.
According to sources, Byju’s major investors, Prosus, General Atlantic, Sofina, and Peak XV, have petitioned the tribunal against the struggling edtech giant over its $200 million rights issue.
“It cannot comment on rumors on the same,” the corporation said in an interview with IANS.
According to Indian regulations, there must be appropriate process followed when holding an EGM, notifying the NCLT of petitions filed, etc. However, some stockholders would rather stage a media circus than adhere to the law, according to a business representative.
The representative stated that “the company shall respond to the same as per applicable law and due process” in the event that such a petition has been filed.
Investor sources claim that “suppression of investor rights and mismanagement of the company” are the reasons given by VC firms.
The four investors filed the case with the tribunal’s Bengaluru bench. Byju’s investors have never before taken legal action to address the rights issue.
The parent business Think & Learn Pvt. Ltd.’s rights issue to fund $200 million at a 99% valuation cut was fully subscribed, the edtech company announced earlier this week.
The management of the business, according to the investors, has not provided “relevant financial information with the investor group.”
The edtech giant stated that the company’s co-founder and CEO, Byju Raveendran, as well as board members, will not attend the extraordinary general meeting (EGM) that is being held on Friday to remove the CEO, which started the conflict between Byju’s and investors.
