Byju's Second Rights Issue: Ball In NCLT's Court Again
The single-judge bench of Justice Krishna Kumar directed the NCLT to reconsider its previous orders regarding the second rights issue.
On Tuesday, the Karnataka High Court referred the issue of Byju's being restrained from launching a second rights issue back to the National Company Law Tribunal.
The single-judge bench of Justice Krishna Kumar directed the NCLT to reconsider its previous orders regarding the second rights issue. The detailed judgment is yet to be uploaded on the court's website.
On June 12, an NCLT bench comprising MSS Sundaram and Manoj Kumar Dubey had ordered Byju's to halt the issuance of shares and the use of funds from the second rights issue until further notice or resolution of the matter. The tribunal also required Byju's to disclose the shares issued and the funds received from the first rights issue.
As previously reported by NDTV Profit, Byju's initial rights issue aimed to raise $200 million but fell short as it was not fully subscribed. This shortfall led to the initiation of a second rights issue of $100 million to cover the deficit from the first.
In January, Byju's attempted a $200-million rights issue to secure emergency funding. Key investors such as Peak XV Partners, Chan Zuckerberg Initiative, Prosus, and General Atlantic did not participate.
Meanwhile, the National Company Law Tribunal in Bengaluru has designated July 3 as "Byju's Day" while adjourning insolvency proceedings initiated by Oppo Mobiles Pvt. Oppo claims Byju's defaulted on a Rs 13 crore agreement to pre-install its app on Oppo phones. Byju's had allegedly agreed to the pre-installation to expand its user base but failed to pay the agreed amount. Oppo asserts that Byju's has acknowledged the unpaid debt, providing grounds for insolvency proceedings.
In a related development, Byju's has resolved its dispute with France-based Teleperformance Business Services by agreeing to pay approximately Rs 5 crore in three installments: Rs 1.5 crore, Rs 2 crore, and Rs 2.2 crore.
Byju's is also facing additional claims, including Rs 2 crore from Surfer Technologies Pvt. and Rs 158 crore from the Board of Control for Cricket in India. Other entities such as Glas Trust Co. LLC and various lenders are also pursuing similar cases against the edtech company.
