The board of embattled edtech firm Byju’s has concluded its extraordinary general meeting (EGM) to increase authorised share capital with no objections raised on the resolutions discussed, accordingh to sources.

This comes after the board of Byju’s is weighing moves to offer the renounced shares to dissenting shareholders– Peak XV Partners, General Atlantic, Chan-Zuckerberg Initiative and Prosus who did not participate in its rights issue. This move will avoid further dilution of their shareholding, the company told its shareholders. To be sure, the voting process for the resolutions discussed in the EGM will go on till April 6.

The extraordinary general meeting (EGM) which was attended by 20 investor representatives was in attendance along with Think & Learn management. The dissenting investors didn’t attend the EGM according to the sources. The company board has secured over 50 per cent of the votes needed to increase the authorised share capital, paving the way for its $200 million rights issue.

However, sources close to the dissenting investors claimed that an authorised representative on behalf them attended the EGM.

Crucial step

In an email to shareholders on Friday morning, Raveendran said the board is contemplating making the offer to disgruntled investors despite the ‘animosity’ in pursuing uncalled-for legal actions, the company continues to show ‘good faith’ towards all the shareholders and would like them to be part of the turnaround story.

“As you are aware, we closed the rights issue last month, which was a crucial step towards ensuring the sustainability and growth of our company in these challenging economic conditions. I am happy to inform you that, in response to the postal ballot which was announced on March 7, we already got more than 50 per cent votes to the increase in authorised share capital,” wrote Raveendran in the note. businessline has reviewed the letter.

“While we have received significant interest from third parties, our priority remains with our existing shareholders and hence, we are looking at how we can extend this opportunity to all of you,” Raveendran added in his note.

The hearing

While, a group of investors of Think & Learn, Byju’s parent, led by Prosus, had moved the National Company Law Tribunal (NCLT) Bengaluru to stay a scheduled extraordinary general meeting (EGM) and block the rights issue fearing a near wipe-out of their investments last month. The next hearing for the plea filed by investors in the NCLT is scheduled for April 4 when all issues in the case will be addressed.

The NCLT in its earlier order directed Byju’s to move the $200 million to an escrow account until the matters are resolved.

The $200 million rights issue which is at a 99 per cent cut from its peak valuation of $22 billion achieved in 2022 is the lifeline for the cash-trapped company which is amidst intense scrutiny and legal battles.

A section of Byju’s investors — MIH Edtech Investments BV, Peak XV Partners Investments, Sofina SA, and General Atlantic Singapore TL Pte Ltd — have also filed caveats at the Supreme Court for a hearing before the court decides on a plea that is likely to be filed against the NCLT order, reported businessline.

On Wednesday, the Karnataka High Court has extended the interim stay on the outcomes of an EGM called by investors, which included a board change at Byju’s parent firm, Think & Learn. The court will hear the matter on May 28.