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Key investors move NCLT against Byju’s rights issue, firm says yet to get any petition (Lead)

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Key investors move NCLT against Byju’s rights issue, firm says yet to get any petition (Lead)

New Delhi, Feb 23 (IANS) Edtech major Byju’s on Friday said that it has not received any formal intimation of any petition being filed in the National Company Law Tribunal (NCLT) by select investors over its rights issue.

Byju’s key investors — Prosus, General Atlantic, Sofina and Peak XV — have moved the tribunal against the embattling edtech major over its $200 million rights issue, according to investor sources.

The company told IANS that “it cannot comment on rumours on the same”.

“The Indian regulations stipulate due process for conducting an EGM, intimation of petitions being filed in NCLT, etc. But certain shareholders prefer to manufacture a media spectacle as opposed to following due process,” the company spokesperson said.

If such a petition has been filed, “the company shall respond to the same as per applicable law and due process,” the spokesperson added.

According to investor sources, the VC firms have cited “suppression of investor rights and mismanagement of the company”.

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The four investors filed the petition before the Bengaluru bench of the tribunal, according to sources.

This is the first time Byju’s investors have legally moved against the rights issue.

The edtech company said earlier this week that the rights issue by its parent company Think & Learn Pvt. Ltd to raise $200 million at a 99 per cent valuation cut was fully subscribed.

“Investors have sought relief on declaring the rights issue as void, and declaring the founders and the management as unfit to run the company,” according to investor sources.

The investors said the company’s management has not shared “relevant financial information with the investor group”.

The battle between Byju’s and investors intensified after the edtech major said the company’s co-founder and CEO Byju Raveendran and Board members will not attend the extraordinary general meeting (EGM) called by select investors to oust its CEO on Friday which was underway.

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–IANS

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