Byju s floated a rights issue in January to raise $200 million at an enterprise valuation in the range of $220-250 million which is a 99 percent reduction in its peak valuation of $22 billion
Byjus held an extraordinary general meeting (EGM) this morning to increase its authorised share capital. None of the participating investors objected to the proposal.
The EGM scheduled for March 29 will include a vote on increasing Byju s authorised share capital which will give effect to the rights issue floated by the company to raise funds to tide over its massive liquidity crisis
Four investors — led by Prosus — moved the NCLT, seeking a stay on the planned EGM to effectively block the rights issue. The matter will now be heard on April 4.
Byju s parent entity Think and Learn had approached the Karnataka High Court for a stay on the decision of the EGM, which was spearheaded by a group of investors. The edtech claimed that the EGM was invalid as none of the founders attended the meeting.