In a setback, Byju’s, a leading edtech firm, has been halted by the NCLT from proceeding with its ongoing second rights issue. The tribunal instructed Byju’s to segregate funds raised so far until a decision is made on the main petition, CP No. 18/BB/2024. Investors alleged fund mismanagement and sought NCLT intervention to freeze the issue temporarily. Byju’s launched the second rights issue after failing to meet its $200 million target in an earlier attempt. Investigations by the ED and MCA into fund utilization further complicate the situation for the company.
Byju’s Faces Legal Hurdle Over $200 Million Rights Issue
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