BENGALURU (Reuters) -An Indian court said on Wednesday that any resolution passed by shareholders in Byju’s will not apply until the next hearing, giving the once valuable education firm breathing space as some investors seek to oust its former billionaire CEO.
India’s Karnataka state high court did not stop the Extraordinary General Meeting (EGM) planned for Feb. 23, but said any decisions it takes will not be applicable until the next hearing on March 13, according to a court order seen by Reuters.
Byju’s has suffered setbacks since early 2023, including its auditor resigning, lenders beginning bankruptcy proceedings against a Byju’s holding company and a U.S. lawsuit disputing the terms and repayment of a loan.
Its shareholders include top global investors such as General Atlantic, Peak XV Partners – formerly known as Sequoia Capital India – and Chan Zuckerberg Initiative. They did not immediately respond to a request for comment.
Shareholders, including tech investor Prosus have called for the removal of the company’s founder and CEO Byju Raveendran and a reconstitution of the board.
Byju’s, controlled by Raveendran, was valued at $22 billion in 2022. It is now considering a rights issue at a valuation of $200 million, a 99% discount to that valuation.
Members representing Peak XV, Prosus and Chan Zuckerberg Initiative stepped down from the Byju’s board last year.
(Reporting by Varun Vyas, M. Sriram and Arpan Chaturvedi; Editing by Pooja Desai and Barbara Lewis)
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