Company receives independent scrutinizer report to proceed with formalities
BYJU'S today announced that the vote for an increase in authorized share capital put forth in the form of a postal ballot and the Extraordinary General Meeting (EGM) held on March 29, 2024, has been approved by a majority 55% of the total votes polled. The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinized by an independent third party.
The approval of the EGM proposals paves the way for Think & Learn Private Limited, the parent company of BYJU'S, to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments. These delays were a result of irrational hostility from four foreign shareholders who chose frivolous litigation over constructive discussion.
“We are grateful to our investors for their support and understanding during this pivotal phase. Their invaluable support in providing essential working capital underscores their collective commitment to our renewed growth push,” said Byju Raveendran, Founder and CEO of BYJU’S. “The shareholder approval marks a significant threshold in our relentless push to turn around the business beset with multiple challenges, which we are resolving one by one, slowly but surely,” he added.
An independent scrutinizer evaluated the process strictly with applicable laws, ensuring transparency and fairness.
While the successful rights issue provides BYJU'S with the necessary financial resources, the company is currently unable to utilize the proceeds. A National Company Law Tribunal (NCLT) interim order, on a petition filed by four foreign shareholders, instructed the company to hold the funds received from the rights issue in an escrow account for now. The next hearing on the matter is scheduled for April 23.
The culmination of the rights issue will set the stage for the launch of BYJU’S 3.0, which is the world’s most advanced suite of AI-first products that are aimed at hyper-personalizing education at a global scale.