Summary – Byju’s Petition to Overturn NCLT Judgment
• Byju’s, an edtech startup, has filed a petition with the Karnataka High Court to overturn a judgment from the National Company Law Tribunal (NCLT) that forbids the company from pursuing its second rights issue.
• The NCLT’s ruling in Bengaluru earlier this month ordered Byju’s to stop pursuing the second tranche and prevent using funds raised since the issue’s opening on May 13.
• The ruling also instructed Byju’s to hold collected funds in a separate account until the disposal of the main petition.
Financially struggling edtech startup Byju’s has petitioned the Karnataka High Court to overturn a judgment from the National Company Law Tribunal (NCLT) that forbids the company from pursuing its second rights issue. On Monday, the subject is scheduled for hearing.
The Bengaluru bench of the NCLT had instructed the startup not to move further with the second tranche in a new order earlier this month, in addition to preventing it from using any funds that have been raised since the issue’s opening on May 13.
“This tribunal hereby prohibits the respondents (Byju’s) from pursuing the ongoing rights dispute until the primary plea is resolved. The ruling dated June 12 further instructed the respondents to hold the money they had so far collected since the opening of the second rights issue “in a separate account which should not be used till the disposal of the main petition.”
Byju’s refused to offer a statement on the subject.
The $200 million rights sale by the corporation, which was carried out at a 99% reduction from its $22 billion peak valuation, has caused investors like Prosus and Peak XV Partners to voice their disapproval.
The cash-starved corporation tried to raise $200 million through this offering, of which the second tranche is a component. The offering was not fully subscribed in the first round due to some investors’ non-participation, hence it was divided into two tranches. The remaining amount of the second round, which was not fully subscribed, was made available to current investors for super pro rata investments, which enable investors to purchase a higher proportion of the business.
On June 5, ET published a story stating that several lenders in a group that gave Byju’s a $1.2 billion loan claimed to have filed a petition in a US court to start the bankruptcy process against the company’s subsidiaries, Epic, Tynker, and Osmo.
Arjun Mohan, who had been Byju’s India chief executive, departed the company a little more than six months after assuming the position, according to a report published by ET on April 15. Byju Raveendran, the founder, oversaw daily operations.
West Bengal, Madhya Pradesh, and Chhattisgarh coal mines are included in the tenth round of the commercial coal auction in Hyderabad. Through the reduction of import dependency and the achievement of a coal production objective, the auction seeks to enhance energy security and economic growth.
Infosys, the second-largest IT business in India, said on the occasion of its opening bell on the New York Exchange.
Infosys CEO Salil Parekh and CFO Jayesh Sanghrajka ring the opening bell to commemorate the company’s 25 years of being listed on the New York Stock Exchange. Thanking stakeholders, the corporation outlined its track record of executing digital transformation initiatives.
Last year, Mohan succeeded Mrinal Mohit as the company’s India CEO. When Raveendran first started instructing for the Common Admission Test, they were both his past students.
Prior to this, Raveendran had stated that the company would focus on its core competencies through three specialized business divisions and look for new development opportunities while keeping a close eye on profitability.
CONCLUSION : Byju’s, an edtech startup, has filed a petition with the Karnataka High Court to overturn a judgment from the National Company Law Tribunal (NCLT) that forbids the company from pursuing its second rights issue. The NCLT had instructed Byju’s not to proceed with the second tranche and to hold collected funds in a separate account.