NCLT orders Byju’s rights issue proceeds to be kept in escrow

The National Company Law Tribunal’s Bengaluru bench has directed Byju’s to keep funds raised from its ongoing rights issue untouched in a separate escrow account till a plea filed by a group of four investors is disposed of.The order was made public by the NCLT, after hearing a petition a day earlier. It was filed by investors Prosus, General Atlantic, Sofina, and Peak XV alleging oppression and mismanagement by the edtech company.Byju’s is raising USD 200 million through a rights issue from existing shareholders, which the investors have objected to, as it would force them to pump in more money or the value of their existing shares would depreciate.