NCLT Halts Byju's Ongoing Rights Issue Amid Investor Concerns

The National Company Law Tribunal (NCLT) has restrained Think and Learn, Byju's parent company, from progressing with its current rights issue. The tribunal asked Byju's to provide detailed shareholder information and maintain collected funds in a separate account until the main petition's disposition.

The National Company Law Tribunal (NCLT) has effectively halted the ongoing rights issue initiated by edtech firm Byju's parent, Think and Learn, starting on May 11. The tribunal has mandated the status quo to be maintained.

The NCLT's Bengaluru bench, in its June 12 order, requested Byju's to submit comprehensive shareholder details prior to and following the equity allotments on March 2, as part of the first rights issue tranche. Investors claim that the company had proposed a second rights issue opening on May 13 and scheduled to end on June 13.

Additionally, the tribunal directed the respondents to segregate the funds gathered since the commencement of the second rights issue in a separate account, prohibiting its use until the primary petition is resolved. The investors involved include Prosus, General Atlantic, Sofina, Peak XV, Tiger, and Owl Ventures. The matter is slated for a hearing on July 4.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)