Key investors move NCLT against Byju’s rights issue, firm says yet to get any petition (Lead)

Edtech giant Byju’s is facing legal action in the National Company Law Tribunal as key investors have filed a petition against the company’s $200 million rights issue. The investors have raised concerns about the suppression of investor rights and mismanagement within the company.
Byju’s stated that they have not received any formal intimation of the petition being filed and cannot comment on rumors. The company emphasized the importance of following due process as per Indian regulations when dealing with such matters.
The key investors, including Prosus, General Atlantic, Sofina, and Peak XV, have reportedly filed the petition before the Bengaluru bench of the tribunal. This marks the first time Byju’s investors have taken legal action against the rights issue.
Investors have expressed concerns about the lack of transparency in financial information sharing and have sought relief by declaring the rights issue as void. The investors have also called for the founders and management to be deemed unfit to run the company.
The battle between Byju’s and its investors escalated when the company’s co-founder and CEO, Byju Raveendran, along with Board members, decided not to attend the extraordinary general meeting (EGM) called by select investors to oust the CEO. The situation remains under scrutiny as both parties navigate through the legal proceedings.