The National Company Law Tribunal (NCLT) on February 27 reserved judgement on interim orders in the oppression and mismanagement plea filed by four investors against edtech company Byju’s.
The investors had sought for a stay of a $200 million rights issue that is expected to close on February 29. They alleged that they were being forced to participate in the rights issue as their shareholding would be reduced if they don’t.
The tribunal has directed the parties to file written submissions of their contentions in three day and has also issued notice to Ministry of Corporate Affairs (MCA) and Registrar of Companies (ROC).
This plea was heard two days ahead of the deadline to subscribe to the rights issue floated by the embattled edtech company to raise $200 million, with a valuation cut of 99 percent. Shareholders stand to have their stake massively diluted, if they don’t subscribe to the issue by February 29, Moneycontrol previously reported.
The investors moved the NCLT and sought for an interim relief with a stay on the rights issues, maintain status of quo of shareholding, and stay encumbering and transferring any assets of Byju’s and its subsidiary. They also requested a complete disclosure of information regarding the company.
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