Byju's says any resolutions passed at upcoming shareholder meet deemed invalid by court

BENGALURU (Reuters) - Indian education firm Byju's said on Wednesday that any resolutions passed in a meeting of its shareholders scheduled for later this week have been declared invalid by a court until the final hearing of their petition.

The firm has suffered a string of 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.

Byju's said certain investors, including General Atlantic, Peak XV - formerly known as Sequoia Capital India - and Chan Zuckerberg Initiative had violated their shareholders' agreement by calling for an extraordinary general meeting on Feb. 23.

It said its case before the Karnataka High Court sought to "prevent these investors from disrupting the company's operations by depriving it of urgently needed capital".

A group of shareholders, including tech investor Prosus, requested a meeting earlier this month to resolve "financial mismanagement and compliance issues".

They also called for the removal of the company's founder and CEO Byju Raveendran and a reconstitution of the board.

Byju's, controlled by billionaire Raveendran, was valued at $22 billion in 2022. It is now eyeing a rights issue at $200 million, a 99% discount over that valuation.

Members representing Peak XV, Prosus and Chan Zuckerberg Initiative stepped down from the Byju's board last year.

(Reporting by Varun Vyas in Bengaluru; Editing by Pooja Desai)