Keep Proceeds From Rights Issues In Escrow Account, Consider Extension Of Issue: NCLT To BYJU’S

SUMMARY

The NCLT, in an interim order, asked BYJU’S to consider the extension of the closure date of the right issue so that the rights of the petitioners do not get prejudiced

BYJU’S ongoing $200 Mn rights issue, at a valuation cut of 99%, ends today

The order came in response to a petition filed by a group of four investors of BYJU’S against the edtech giant and other promoters

The Bengaluru bench of the National Company Law Tribunal (NCLT) has asked embattled BYJU’S to keep the proceeds from its rights issue in a separate escrow account and consider extension of the closure of the rights issue.

BYJU’S ongoing $200 Mn rights issue, at a valuation cut of 99%, ends today (February 28).

In its interim order, the Tribunal asked BYJU’S to consider the extension of the closure date of the right issue “so that the rights of the Petitioners with regard to the making of application for shares under their rights entitlement does not get prejudiced”.

The order came in response to a petition filed by a group of four investors of BYJU’S, including Prosus, Peak XV Partners, General Atlantic and Sofina, against the edtech giant and other promoters.

The NCLT also asked the Ministry of Corporate Affairs, SEBI, RBI to submit their replies in the matter in two weeks. The next hearing in the case is scheduled on April 4.

(The story will be updated soon.)