Byju’s EGM concludes rights issue without objections, dissenting investors absent from meeting

New Delhi, March 29 (IANS) Embattled edtech company Byju’s conducted an extraordinary general meeting (EGM) on Friday to raise capital through a rights issue. The meeting proceeded smoothly without any opposition from key investors seeking to oust CEO Byju Raveendran.

Sources revealed that the EGM aimed to increase Byju’s authorised share capital and saw about 20 investor representatives in attendance. The meeting, lasting 30 minutes, witnessed no objections raised during the discussion of resolutions related to the rights issue.

Despite previous legal challenges, the National Company Law Tribunal (NCLT) refused to halt the EGM, allowing Byju’s to proceed with its capital-raising plans. The tribunal judge was persuaded by the arguments presented by the company’s counsels regarding the petitioners’ intent to create obstacles.

Following NCLT’s directive to deposit funds from the rights issue into an escrow account, Byju’s finds itself in a cash crunch, leading to the decision to have employees work remotely and relinquish office spaces nationwide. Further details on voting and outcomes of the rights issue, estimated at $250-$300 million, will be disclosed by the company later.