Byju’s Rights Issue: NCLT bans Byju’s rights issue, seeks details of shareholders

The National Company Law Tribunal (NCLT) has barred edtech firm and Byju’s brand parent Think & Learn from proceeding with the rights issue. Which started on 11th May. Due to which the process of maintaining the status quo has effectively stopped. While giving instructions, NCLT has asked to maintain the status quo.

The Bengaluru bench of NCLT, while ordering Byju on June 12, has said that Byju should submit complete details of its shareholders before and after the allotment of equity on March 2 as per the first tranche of the rights issue.

Rights issue was opened on 13 May

According to investors who complained to the tribunal, Byju’s had proposed a second rights issue through a letter dated May 11, which opened on May 13 and was to close on June 13. The tribunal said in its order, “The company is directed to keep the funds collected so far since the opening of the second rights issue in connection with this offer in a separate account, the funds cannot be used till Until the hearing of the main petition in the case is completed.

Group of four investors complained to NCLT

A group of four investors – Prosus, General Atlantic, Sofina and Peak XV – with the support of other shareholders including Tiger and Owl Ventures, had approached the NCLT against the company management and the rights issue.