BENGALURU: With no objections raised on the resolutions, edtech firm Byju’s can now increase its authorised share capital. Byju’s on Friday conducted its extraordinary general meeting (EGM) with 20 investors representatives attending the 30-minute meeting and the board secured more than 50% of the votes to increase the share capital.
According to sources, queries regarding the postal ballot were asked and answered at the EGM. The results of the rights issue will be out only after April 6. Though sources from Byju’s said none of the four dissenting investors including Peak XV Partners and General Atlantic joined the EGM, a source from the investors side said authorised representatives of all investors were there and that nobody boycotted the EGM.
Earlier before conducting the EGM, Byju Raveendran in an email to shareholders said the last two years were tough, but that “our comeback will be stronger than our setback.”
“As you are aware, we closed the rights issue last month, which was a crucial step towards ensuring the sustainability and growth of our company in these challenging economic conditions,”
He added that in response to the postal ballot which was announced on March 7, the company had already got more than 50% votes to the increase in authorised share capital.
“I have always built Byju’s with a spirit of equality and equity, and it has never been my intention to leave any investor behind, regardless of their shareholding size,” he said.
Raveendran has also said that since some of its shareholders were unable to participate earlier in the rights issue, the board is considering making an offer of renounced shares to existing shareholders to ensure that there is no more dilution to their shareholding. The company had managed to raise $200 million in its rights issue but right now it is locked in a separate account.
“Despite the animosity shown by some of the investors in pursuing uncalled for legal actions, we continue to show good faith towards all our shareholders and would like all of you to be part of our turnaround story,” he added in the letter.