BENGALURU: In a huge relief for Byju's, 55% of its shareholders have approved the vote for an increase in authorized share capital put forth in the form of a postal ballot and the Extraordinary General Meeting (EGM) held on March 29, 2024. The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinised by an independent third party, the edtech firm on Monday said.
The approval of the EGM proposals paves the way for Think & Learn Private Limited, the parent company of Byju's, to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments, the company said.
These delays were a result of irrational hostility from four foreign shareholders who chose frivolous litigation over constructive discussion, it added in a statement.
Though the company successfully concluded its $200 million rights issue, it is unable to utilise the proceeds as it is in an escrow account for now. A National Company Law Tribunal (NCLT) interim order, on a petition filed by four foreign shareholders, instructed the company to hold the funds received from the rights issue in an escrow account. The next hearing on the matter is scheduled for April 23.
“We are grateful to our investors for their support and understanding during this pivotal phase. Their invaluable support in providing essential working capital underscores their collective commitment to our renewed growth push,” said Byju Raveendran, Founder and CEO of Byju's.
An independent scrutinizer evaluated the process strictly with applicable laws, ensuring transparency and fairness, the firm added.
