Byju’s EGM: dissenting investors skip meet

The extraordinary general meeting (EGM) called by Byju's board of directors to authorize a share capital increase through a rights issue concluded smoothly on Friday, with no objections raised and dissenting investors notably absent.

Despite previous legal battles initiated by certain investors aiming to remove Co-founder and CEO Byju Raveendran, the meeting proceeded without disruptions. Key investors who had opposed the rights issue were conspicuously absent.

Around 20 investor representatives attended the meeting along with Think & Learn management, Byju's parent company. The discussions, lasting about 30 minutes, included matters regarding the postal ballot and the passing of resolutions, with no objections raised.

Details on the voting outcomes and the conclusion of the rights issue, aiming to raise approximately $250-$300 million, will be disclosed by the company later.

Previously, Byju's faced a legal setback when the National Company Law Tribunal (NCLT) declined to halt the EGM. The tribunal judge, persuaded by Byju's counsels' arguments, found the petitioners' objectives overly restrictive. Though the NCLT directed Byju's to hold funds from the rights issue in an escrow account until the case's resolution, the company continues to grapple with financial challenges. As a result, Byju's has instructed its employees to work remotely and started relinquishing office spaces nationwide to address the cash crunch.