> I don’t know how this is going to end but I do know that the end date of the rights issue is in two days and no court is this fast. It’s unlikely either court decides in time. So probably the rights issue will happen and the investors who don’t invest get booted out automatically?
Can NCLT decide the rights issue is invalid, so the owne…
> I don’t know how this is going to end but I do know that the end date of the rights issue is in two days and no court is this fast. It’s unlikely either court decides in time. So probably the rights issue will happen and the investors who don’t invest get booted out automatically?
Can NCLT decide the rights issue is invalid, so the ownership is as it was before the rights issue (and presumably the company is required to give all the money back)?
> I don’t know how this is going to end but I do know that the end date of the rights issue is in two days and no court is this fast. It’s unlikely either court decides in time. So probably the rights issue will happen and the investors who don’t invest get booted out automatically?
Can NCLT decide the rights issue is invalid, so the ownership is as it was before the rights issue (and presumably the company is required to give all the money back)?
Once Byju's gets the money and can spend it the way it likes, it's tough.
But the NCLT found a midway, it let the rights issue happen but asked Byju's to store the money in escrow: https://www.business-standard.com/companies/news/nclt-asks-byju-s-to-keep-funds-via-rights-issue-in-escrow-account-124022801163_1.html
So now we're in this place of limbo where the right issue is done but the money isn't with Byju's yet. As one might've predicted, Byju's is going to argue that not having this money is going to be existential for it: https://indianexpress.com/article/business/companies/byjus-salaries-rights-issue-funds-locked-investors-9192154/
Let's see where this goes.