NCLT adjourns hearing in BYJU'S rights issue case to June 6
While investors have alleged that BYJU'S has misused the funds and levelled charges against it over non-compliance with the court's past order, the embattled edtech firm on Tuesday stated it has completely followed the NCLT directions.
The injunction on the use of rights issue funds by will continue as a company law court in Bengaluru adjourned the matter to June 6 after hearing from investors as well as the management.
In its order earlier this year, the National Company Law Tribunal (NCLT), Bengaluru Bench, said the funds received by the company concerning the rights issue should be kept in a separate escrow account and not be withdrawn till the disposal of the matter.
While investors have alleged that BYJU'S has misused the funds and levelled charges against it over non-compliance with the court's past order, the embattled edtech firm on Tuesday stated it has completely followed the NCLT directions.
The matter has now been listed for the next hearing on June 6.
BYJU'S has been accused by four investors of violating the tribunal order and utilising some of the funds raised during the rights issue. The edtech company, however, firmly refuted these charges during the proceedings.
In the NCLT hearing, BYJU'S counsel assured the tribunal that the company had fully complied with the court's February 27 order.
A group of four investors—Prosus, General Atlantic, Sofina, and Peak XV—along with support from other shareholders, including Tiger and Owl Ventures, had approached the NCLT against the company management and the rights issue.
The company had closed the $200 million rights issue in February at a 99% lower valuation compared to its peak enterprise value of $22 billion.
The once-storied edtech startup, BYJU'S rose to dizzying heights before facing a slew of challenges.
While the return of students to physical classes post-pandemic and the acquisition of Aakash put BYJU'S under a financial strain, the edtech firm in the last year suffered other setbacks too, including its auditor resigning, lenders beginning bankruptcy proceedings against a holding company and a US lawsuit disputing the terms and repayment of a loan.
Edited by Kanishk Singh