Byju’s Holds Extraordinary General Meeting to Raise USD 200 Million – Here’s What Happened Inside (image source: Getty Images)
Extraordinary General Meeting: In a recent extraordinary general meeting (EGM) held by Byju’s, shareholders voiced no objection to the resolution aimed at increasing the authorized share capital of the company, as per sources familiar with the matter. However, certain disgruntled investors, who had previously proposed the removal of Byju’s founder and family from managerial roles, opted out of attending the meeting, news agency PTI reported.
Resolution Passes Unchallenged
The meeting, which commenced at 10 am, saw the participation of approximately 20 investor representatives alongside Think & Learn management. The necessary quorum for the EGM was met. Queries regarding the postal ballot were addressed by the chairman and company secretary, following which resolutions were put forth, met with no objections from attendees.
Purpose Of Extraordinary General Meeting (EGM)
Byju’s convened the EGM to finalize the process for raising USD 200 million through a rights issue by increasing its authorized share capital.
Challenges Faced
A group of investors, including Prosus, General Atlantic, Sofina, and Peak XV, had raised concerns and approached the National Company Law Tribunal (NCLT) against Byju’s EGM. Despite their opposition, the meeting concluded without their personal attendance.
Response from Byju’s
Contrary to media speculation, Byju’s sources affirmed that none of the aggrieved investors physically attended the EGM to voice their grievances. Further details on voting outcomes and the culmination of the rights issue will be shared following the scrutiny of reports, with the voting option available via postal ballot until April 6.
Offer to Dissenting Investors
Byju Raveendran, founder and CEO of Byju’s, extended an olive branch to estranged investors, offering them an opportunity to invest in the rights issue at a substantial discount to the company’s peak valuation. Raveendran emphasized the importance of shareholders’ continued participation in Byju’s growth story, despite ongoing disagreements.
The offer to dissenting investors holds significance, as the rights issue presents a discounted opportunity for existing shareholders to maintain their stake in the company. The resolution passed at the EGM marks a pivotal step in Byju’s efforts to secure additional funding and drive future growth initiatives,PTI reported.
