The Bengaluru bench of the National Company Law Tribunal (NCLT) on Thursday declined to stay a March 29 extraordinary general meeting (EGM) called by the Byju's board of directors to raise the authorised capital.
A group of four investors with the backing of other shareholders had earlier opposed the EGM, which is expected to witness a voting on raising the company's authorised share capital to give effect to a $200 million rights issue. The move will help the cash-strapped company raise funds amid ongoing liquidity crisis.
The tribunal said the matter will be heard next on April 4, directing the edtech giant to share information regarding the firm's financials and the rights issue as sought by the petitioners.
The investors -- Prosus, Sofina, General Atlantic and Peak XV -- had filed an oppression and mismanagement suit against the edtech major and sought to replace the founder and CEO Byju Raveedran and his family members with a new board. Raveendran's wife Divya Gokulnath and his brother Riju Raveendran are the other members of the board. The investors also argued that the illegal call for the rights issue should be stayed.
On February 27, the bench had issued an interim order said the funds obtained by the embattled company through the rights issue should be kept in a separate escrow account and should not be withdrawn until the matter is disposed.
