National The Company Law Tribunal (NCLT) has stopped Think and Learn, the company operating the edutech platform Byju’s, from going ahead with the rights issue that began on May 11. NCLT has directed to maintain status quo in this matter. In an order issued on June 12, the Bengaluru bench of NCLT has asked Byju to provide full details of its shareholders before and after the allotment of shares on March 2 under the first installment of the rights issue.
The rights issue was to close on June 13
Investors who approached the tribunal against the rights issue said that Byju’s had proposed to bring a second rights issue through the offer letter dated May 11. The issue opened on May 13 and was to close on June 13. The NCLT has stopped the company from proceeding with the current rights issue till the disposal of the main petition filed by the investors. Four investor firms – Prosus, General Atlantic, Sofina and Peak XV – had approached the NCLT with the support of other shareholders.
Company facing financial crisis
Byju’s is facing a financial crisis. Byju’s has also laid off its employees several times. There has also been a delay in paying salaries to the employees. In October and November last year, Byju’s laid off around 2,500-3,000 people. Even after about 3,000-3,500 people have been affected by the layoffs so far, there is still a possibility of layoffs of 1,000-1,500 more people.
Latest Business News