Karnataka High Court asks Byju’s to maintain status quo

The NCLT has been directed to decide the application filed by investors by July 31.
For representational purpose.
For representational purpose. (Photo | BYJUS YouTube Screengrab)

BENGALURU: The Karnataka High Court on Friday restrained ed-tech firm Byju’s from proceeding with the second rights issue till the NCLT decides on the plea by a group of investors.

Four investors had objected to Byju’s second rights issue saying this would dilute their holding. A Few days ago, a single judge of the Karnataka High Court had set aside the interim NCLT order that had restrained Byju’s from launching a second rights issue.

The NCLT has been directed to decide the application filed by investors by July 31.

Earlier, Think and Learn Pvt Limited (Byju’s) and Byju Raveendran had filed writ petitions against the order of NCLT dated 12 June 2024. The High Court has remanded the matter to the NCLT for fresh consideration within 2 weeks from 4 July 2024.

“During the proceedings of remand and till the decision which may be taken by the NCLT, the parties shall maintain status quo about the subject matter dispute as obtained on today,” the order stated.

The respondents shall not make allotment of shares in the interregnum, to be subject to the final order which may be passed by the NCLT, it added.

Also, if any transactions took place from July 2-4, 2024, they will remain subject to a final order that may be passed by the NCLT and the rights in that regard will be governed accordingly.

For representational purpose.
NCLT puts on hold Byju’s rights issue, asks it to park funds in escrow account

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The New Indian Express