Bengaluru/New Delhi, Feb 27 (IANS) Key investors in Byju’s alleged on Tuesday that the Enforcement Directorate (ED) is investigating diversion of funds of over $500 million by the edtech company to a hedge fund in the US.
In the ongoing hearing at the National Company Law Tribunal (NCLT) in Bengaluru, the investors alleged that the address of the hedge fund was a “pancake shop” and its founder “is a 23-year-old without any training”.
“About $533 million has been siphoned off. He (Byju Raveendran) wants us to invest more money. How will we be protected?”
Byju’s key investors — Prosus, General Atlantic, Sofina and Peak XV — have moved the tribunal against the embattled edtech major over its $200 million rights issue.
During the hearing, the investors claimed that “if the amount is parked in their bank account especially when the man is sitting abroad and is not coming to India, it will become irreversible”.
Earlier in the day, the investors argued that the process adopted by Byju’s for its $200 million rights issue is “in breach of laws”.
They said that the board of directors had to call an Extraordinary General Meeting (EGM) of shareholders before the rights issue so that they could vote.
“The board of directors did not call a general body meeting before rights issues as they are aware that the general body is not in their favour,” argued the lawyer on investors’ behalf.
“Our 25.4 per cent stake will come down to 2.5 per cent if we don’t subscribe to the rights issue. If we subscribe, we don’t know what happens to our money,” the investors said.
Byju’s argued that the investors were “forum shopping” by approaching the NCLT.
“If the NCLT passes any order today, it will dilute the order of Karnataka HC,” the company’s lawyer said.
“The investors are not looking at the interest of 100 million students and the 12,000 employees but only at their value maximisation.”
“It has been 21 months since our last capital raise,” the company added.
–IANS
na/vd
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.
