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MUMBAI: Troubled edtech startup Byju’s supplied its disgruntled buyers one other probability to take part in the corporate’s $200 million rights issue to shield their shareholding.
In a letter to shareholders on Friday, founder and group CEO Byju Raveendran claimed that the agency has already secured over 50% shareholder votes to enhance authorised share capital for the issue.The firm held a unprecedented normal assembly (EGM) through the day to search shareholder approval for a similar.
“Despite the animosity shown by some of the investors in pursuing uncalled-for legal actions, we continue to show good faith towards all our shareholders and would like all of you to be part of our turnaround story… the board is considering making an offer of renounced shares to existing shareholders to ensure there is no more dilution to their shareholding,” Raveendran stated in the letter which was reviewed by TOI. The strategy of securing votes for elevating the authorised share capital began on March 7 via postal poll and can shut on April 6.
The rights issue is essential for the money-starved firm which has delayed disbursement of full salaries for the month of Feb to a piece of its staff. Once valued at $22 billion, Byju’s has launched its rights issue at a valuation of $225-230 million – a 99% drop from its peak valuation.
Some of the startup’s buyers together with Prosus, Peak XV Partners, General Atlantic, Sofina and Chan Zuckerberg Initiative haven’t participated in the rights issue. Meanwhile, Raveendran and household are investing round $45 million in the issue, sources stated.
In a letter to shareholders on Friday, founder and group CEO Byju Raveendran claimed that the agency has already secured over 50% shareholder votes to enhance authorised share capital for the issue.The firm held a unprecedented normal assembly (EGM) through the day to search shareholder approval for a similar.
“Despite the animosity shown by some of the investors in pursuing uncalled-for legal actions, we continue to show good faith towards all our shareholders and would like all of you to be part of our turnaround story… the board is considering making an offer of renounced shares to existing shareholders to ensure there is no more dilution to their shareholding,” Raveendran stated in the letter which was reviewed by TOI. The strategy of securing votes for elevating the authorised share capital began on March 7 via postal poll and can shut on April 6.
The rights issue is essential for the money-starved firm which has delayed disbursement of full salaries for the month of Feb to a piece of its staff. Once valued at $22 billion, Byju’s has launched its rights issue at a valuation of $225-230 million – a 99% drop from its peak valuation.
Some of the startup’s buyers together with Prosus, Peak XV Partners, General Atlantic, Sofina and Chan Zuckerberg Initiative haven’t participated in the rights issue. Meanwhile, Raveendran and household are investing round $45 million in the issue, sources stated.
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