In a significant development for Byju’s, the educational technology firm announced on April 15 that the resolution to increase its authorized share capital has been endorsed by a majority of shareholders, as confirmed by an independent scrutinizer's report.
Despite ongoing legal challenges, including a directive from the National Company Law Tribunal (NCLT) prohibiting the utilization of proceeds from the rights issue, Byju’s secured the necessary shareholder mandate. The NCLT's order mandates the company to retain funds garnered from the rights issue in an escrow account until the resolution of an oppression and mismanagement plea lodged by four of the firm's investors.
In an official statement, Byju’s expressed gratitude to its investors for their unwavering support throughout this critical juncture. Byju Raveendran, the founder and CEO of Byju’s, acknowledged the pivotal role played by investors in providing essential working capital, affirming their collective dedication to the company's renewed growth trajectory. Raveendran emphasized the shareholder endorsement as a significant milestone in Byju’s ongoing efforts to navigate through a series of challenges. Despite facing multifaceted obstacles, the company remains steadfast in its resolve to address and overcome each hurdle, thereby charting a path towards sustained progress and success.
Amidst these developments, the company also witnessed a leadership transition, with Arjun Mohan stepping down to pursue alternative opportunities. Byju Raveendran, who previously served as the CEO, will resume leadership responsibilities after a hiatus of four years, signaling continuity and strategic stability amidst a period of transition. Looking ahead, Byju’s anticipates the next hearing on the investors' plea, scheduled for April 23, as it continues to navigate through both operational and legal complexities. The firm remains committed to upholding transparency and governance standards while pursuing its overarching goal of delivering innovative educational solutions to learners worldwide.
