NCLT asks edtech Byju’s to maintain status quo on existing shareholders, stopping it from going ahead with second rights issue
The National Company Law Tribunal (NCLT) has recently directed edtech major Byju’s to maintain a status quo on existing shareholders and their shareholding. This would mean that the embattled edtech cannot go ahead with the $200 mn rights issue.
“Status quo with regard to existing shareholders and their shareholding shall be maintained till the disposal of the main petition,” the order that was made available on June 13 said.
The second rights issued commenced on May 13 and was to end on June 13. With that, Byju’s won’t be allowed to utilise any funds that it has so far collected from the second rights issue. The collected amount from the second rights issue will be deposited in a separate account.
“This Tribunal hereby restrains the Respondents (Byju’s) from going ahead with the present rights issue which is in progress, till the disposal of the main plea. The Respondents are further directed to keep the amounts collected so far since opening of the second rights issue…in a separate account which should not be utilised till the disposal of the main petition,” the order said.
The NCLT also told Byju’s to file the complete details of the concerned escrow bank accounts from the opening of the right issue on January 29 till date in 10 days from June 12.
