Byju Raveendran makes a 'peace offering' to dissenting shareholders ahead of crucial EGM

Byju Raveendran has reportedly made an offer to dissenting shareholders to participate in the rights issue. 

Raveendran, according to a Moneycontrol report, said those who didn't participate in the funding round "are welcome to join in the next 72 hours".

Raveendran in a purported letter informed investors the company had secured more than 50% votes to increase the authorised share capital to account for the $200 million rights issue.

BT could not independently verify the report. 

The development comes a day after the Bengaluru bench of the National Company Law Tribunal refused to defer the extraordinary general meeting (EGM) called by the board of edtech major Byju’s to raise authorised capital for its $200-million rights issue.

A group of investors in Byju’s parent, Think & Learn, led by Prosus, had moved NCLT for a stay on the EGM set for March 29.

NCLT has listed the case for April 4, where other issues will be addressed too.

The embattled edtech is attempting to raise funds to tide over a liquidity crisis.

During the hearing, investors claimed that the EGM has been called to increase the authorised capital of the company and to also amend the memorandum of association. The investor side also argued that once new shares are issued, it cannot be reversed and thus pleaded to obtain a stay on the EGM.

The EGM, to be held on Friday by Byju’s, is essential as the company will need at least 50 per cent votes at the EGM to increase the share capital. If it obtains the majority vote, it can issue shares to new investors for the crucial rights issue.