On June 12, the NCLT in Bengaluru gave Byju's the order to keep things as they are in terms of the current shareholders and their holdings.
Byju's was ordered by the NCLT on February 27 to refrain from assigning shares to investors taking part in the rights offering until its authorized share capital had been increased.
The troubled Ed tech business Byju's has filed a petition with the Karnataka High Court to overturn the National business Law Tribunal's (NCLT) ruling prohibiting it from pursuing the second rights issue.
The plea is probably going to be heard on June 24.
Although the National business Law Appellate Tribunal (NCLAT) is typically the forum for challenges to NCLT rulings, the Ed Tech business has filed a writ appeal in the Karnataka High Court. Writ petitions are often brought against the government for violating basic rights.
The petition was briefly heard on June 18 and 21, according the HC website. On these days, no actual order was passed, according to the website.
On June 12, the NCLT in Bengaluru gave Byju's the order to keep things as they are in terms of the current shareholders and their holdings.
"Status quo with regard to existing shareholders as well as their shareholding shall be protected till the disposal of the main petition," the ruling said.
The investors said that the second rights offering had started on May 13 and was scheduled to conclude on June 13. The ruling prevented Byju's from proceeding with the issue. Any money that Byju's has already received from the second rights offering has to be placed into a different account; it is not permitted to use this money.
Additionally, the tribunal ordered Byju's to provide all relevant escrow bank account records, dating back to the right issue's beginning on January 29 and ending on June 12, within ten days of that date.
Moreover, before the authorized share capital is increased, Byju's has to submit all of the information on the allocation made on March 2.This has to include details such the shareholder's name, the equity shares owned on January 27, the entitlement to equity shares under the rights offer, the equity shares distributed on March 23, and the equity shares distributed after an increase in the authorized share capital, according to the order mentioned.
In response to an application submitted by the company's investors, including Chan-Zuckerberg Initiative, Peak XV Partners, General Atlantic, and Prosus, the order was approved. Due to the fact that Byjus' second rights offering would further reduce their stake in the firm, the investors had petitioned the NCLT to stop it.
Byju's was ordered by the NCLT on February 27 to refrain from assigning shares to investors taking part in the rights offering until its authorized share capital had been increased. In order to safeguard investors' interests, the business was also requested to hold the rights issue funds in an escrow account.
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