Byju's proposed a rights issue in January to raise $200 million at an enterprise valuation between $220 and $250 million, representing a sharp decline from its $22 billion peak valuation.
Byju's, an edtech company, has asked investors who didn't join the funding round to reconsider within 72 hours. This gesture is a demonstration of goodwill toward shareholders such as Peak XV Partners, General Atlantic, Chan-Zuckerberg Initiative, and Prosus. They have all made efforts to block the company's rights issue and remove founder Byju Raveendran.
Byju's board wanted to hold a meeting to increase the company's authorized capital, but the NCLT refused to delay the meeting on March 28.
The tribunal has now scheduled a hearing for April 4 to discuss the case and other matters as well.
Byju's was ordered by the NCLT on February 27 to hold the money it had received from the rights issue in an escrow account until the four investors' oppression and mismanagement plea was resolved.
The tribunal ordered Byju's to extend the deadline for submitting share applications to protect the rights of the petitioners. Byju's proposed a rights issue in January to raise $200 million at an enterprise valuation between $220 and $250 million, which represents a 99 percent decrease from the company's $22 billion peak valuation.
In a letter to shareholders in February, founder Raveendran stated that the issue had been fully subscribed. The business founder plans to raise $45 to $46 million by issuing rights to maintain ownership.
The educational technology company is dealing with two challenges: a lack of funds and investors wanting to change the board's leadership.
