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MUMBAI : A consortium of four investors in Byju’s has moved the National Company Law Tribunal against the troubled edtech firm’s rights issue citing suppression of investor rights and mismanagement of the company, a person with knowledge of the development told Mint

Prosus, General Atlantic, Sofina, Peak XV Partners have filed the petition before the Bengaluru bench of the tribunal, this person said, declining to be identified.

Earlier this month, Byju’s launched a rights issue at a pre-money valuation of $20 million, which stands to dilute the shareholding of non-participating investors by 99%. On Wednesday, Byju’s said investors had fully subscribed to the rights issue by its parent company Think & Learn Pvt. Ltd.

This is the first time that the investors have legally moved against the rights issue. 

So far, they have sought to force founder and chief executive Byju Raveendran off the company’s board and take control. On Friday, investors ran an extraordinary general meeting to reconstitute the board. The Byju’s founder group did not attend the meeting. 

“Investors have sought relief on declaring the rights issue as void, and declaring the founders and the management as unfit to run the company,” the person cited above said, adding that the case was filed on Thursday.

On the rights issue, the investor consortium has argued that the management has not shared relevant financial information with the investor group.

Byju’s has not yet been served a notice, said a second person with knowledge of the development. 

Byju’s didn’t immediately respond to queries on the development.

Earlier this week, a court ruled that conditions for convening the EGM had not been complied with and that decisions taken at the EGM shall not come into effect till the case was heard.

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Published: 23 Feb 2024, 01:38 PM IST

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