New Delhi, Feb 23 (IANS) Edtech major Byju’s on Friday said that it has not received any formal intimation of any petition being filed in the National Company Law Tribunal (NCLT) by select investors over its rights issue.
Byju’s key investors — Prosus, General Atlantic, Sofina and Peak XV — have moved the tribunal against the embattling edtech major over its $200 million rights issue, according to investor sources.
The company told IANS that “it cannot comment on rumours on the same”.
“The Indian regulations stipulate due process for conducting an EGM, intimation of petitions being filed in NCLT, etc. But certain shareholders prefer to manufacture a media spectacle as opposed to following due process,” the company spokesperson said.
If such a petition has been filed, “the company shall respond to the same as per applicable law and due process,” the spokesperson added.
According to investor sources, the VC firms have cited “suppression of investor rights and mismanagement of the company”.
The four investors filed the petition before the Bengaluru bench of the tribunal, according to sources.
This is the first time Byju’s investors have legally moved against the rights issue.
The edtech company said earlier this week that the rights issue by its parent company Think & Learn Pvt. Ltd to raise $200 million at a 99 per cent valuation cut was fully subscribed.
“Investors have sought relief on declaring the rights issue as void, and declaring the founders and the management as unfit to run the company,” according to investor sources.
The investors said the company’s management has not shared “relevant financial information with the investor group”.
The battle between Byju’s and investors intensified after the edtech major said the company’s co-founder and CEO Byju Raveendran and Board members will not attend the extraordinary general meeting (EGM) called by select investors to oust its CEO on Friday which was underway.
–IANS
na/prw
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.