32.9 C
New York

Byju’s employees start getting salaries after delay in payments for two months: ‘Pleased to inform’

Published:

Apr 08, 2024 11:25 PM IST

Byju’s crisis: This comes as the company is barred from using proceeds of recently floated rights issue.

Byju’s crisis: Edtech firm Byju’s started salary payments after delaying them for the past two months. This comes as the company is barred from using proceeds of recently floated rights issue. In an email to employees, the company said, “We are pleased to inform you that salary disbursement has commenced today and will be completed over the next 10 days.” It also said that it has not secured approval to access the rights issue funds. 

Byju's crisis: The National Company Law Tribunal (NCLT) directed Byju's to keep funds received from the rights issue in an escrow account.(Reuters)
Byju’s crisis: The National Company Law Tribunal (NCLT) directed Byju’s to keep funds received from the rights issue in an escrow account.(Reuters)

Read more: Motilal Oswal says India having a mini goldilocks moment: ‘Embracing Amritkaal’

What is the conflict over Byju’s rights issue? 

The National Company Law Tribunal (NCLT) directed Byju’s to keep funds received from the rights issue in an escrow account till the disposal of a plea filed by four of the company’s investors- Prosus NV, Peak XV Partners, General Atlantic and Sofina SA all of whom have opposed the company’s decision to raise $200 million at a post-money valuation of $225 million.

Unlock exclusive access to the story of India’s general elections, only on the HT App. Download Now!

Read more: Elon Musk’s major update on when Tesla electric vehicles are coming to India

“However, we have arranged an alternative line of credit to ensure timely payments. We sincerely appreciate your patience and understanding throughout this period,” they said.

What we know about Byju’s holding salaries?

Read more: ‘Netflix fires employees with adequate performance’: What Reed Hastings said on platform’s success

Byju’s held off its staff salaries as the company awaited a green signal from the National Company Law Tribunal (NCLT) to use funds from the rights issue as the company faced a major financial crisis. Meanwhile, Byju’s-owned test prep firm Aakash appointed former Pearson India managing director Deepak Mehrotra as its new chief executive officer. Byju’s acquired Aakash in April 2021 in an equity and cash deal- a 70 per cent cash component and 30 percent equity component.

Discover the complete story of India’s general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs

  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.

Related articles

Recent articles

spot_img