The National Company Law Tribunal (NCLT) refused to grant the stay on Byju's extraordinary general meeting (EGM) on March 29.
As per the information, tribunal was convinced by the evidence submitted and arguments made by BYJU’S counsels, who said that the “only objective of the petitioners is to be restrictive”.
The tribunal also cited a Supreme Case judgment to conclude that since the only objective is to increase the authorised capital for the rights issue, there is no reason to pause or postpone the EGM.
During the proceedings, BYJU’S counsel said that the litigating investors were two months ago provided access to the ‘electronic data room’ which had all the required information.
BYJU’S counsels also said that the required information and the EGM notice has been duly sent to every shareholder, including even those who have been against the rights issue from the outset. The court then asked the investors’ counsel why they keep insisting there might be shareholders who have not received the notice, as per the sources.
The company said after the court's remark that the EGM will now be conducted as planned tomorrow.
The tribunal said the next hearing of the matter will be on April 4 adding that the company provides the relevant information of the rights issue to every stakeholder.
Major investors of Think and Learn which runs edtech Byju's had filed their petition in NCLT against the planned EGM and block rights issue. Investors are seeking removal of founder Byju Raveendran, his wife Divya Gokulnath, and his brother Riju Ravindran from the board of the company.
Byju's, in February, said its $200 million rights issue was fully subscribed.
"My benchmark of success is the participation of all shareholders in the rights issue. We have built this company together and I want us all to participate in the renewed mission. Your initial investment laid the foundation for our journey and this rights issue will help preserve and build greater value for all stakeholders,” Byju had said last month.
