Byju's Secures Majority Shareholder Backing For Expanded Capital Scope In EGM Vote
The approval of the EGM proposals paves the way for Think and Learn Private Limited, the parent company of Byju's, to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch.
The majority of shareholders of edtech firm Think and Learn, owner of Byju's brand, have approved the company's resolution to increase its authorised share capital to absorb $200 million raised through the rights issue, a statement said on Monday.
The Extraordinary General Meeting held on March 29 was opposed by a group of investors in the company.
"The EGM held on March 29, 2024, has been approved by a majority of 55% of the total votes polled. The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinised by an independent third party," the company said in a statement.
The approval of the EGM proposals paves the way for Think and Learn Private Limited, the parent company of Byju's, to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments, the statement said.
While the rights issue provides Byju's with the necessary financial resources, the company is currently unable to utilise the proceeds.
"A National Company Law Tribunal interim order, on a petition filed by four foreign shareholders, instructed the company to hold the funds received from the rights issue in an escrow account for now. The next hearing on the matter is scheduled for April 23," the statement said.
The group of four investors -- Prosus, General Atlantic, Sofina, and Peak XV -- along with support from other shareholders, including Tiger and Owl Ventures, had approached the NCLT against the EGM.
