The National Company Law Tribunal (NCLT) has ordered Byju's to maintain shareholding "status quo" for existing shareholders until the resolution of the rights issue dispute.
Earlier, the troubled edtech giant had planned to raise USD 200 million through a rights issue, but some investors appealed to the NCLT to cancel it. The NCLT has restrained Byju's from proceeding with the rights issue until the main matter is resolved and has directed them to keep the funds from the second rights issue separate.
Byju's has been instructed to provide detailed information about the rights issue and share allotments within ten days. The next hearing is scheduled for 4 July, 2024. Previously, the NCLT had directed Byju's to place the funds from the rights issue in a separate account until the resolution of the investors' suit. Additionally, there are ongoing bankruptcy proceedings against Byju's subsidiaries and one of its major investors, Prosus, recently had its stake in Byju's valued at zero by HSBC.
