26 Mar 2024 , 03:16 PM
Byju’s rights issue to raise $200 million at a valuation cut of 99% has been fully subscribed, as confirmed by founder and CEO Byju Raveendran in a shareholder letter.
Founder Byju Raveendran plans to invest $45-$46 million in the rights issue to protect his shareholding, with late-stage investors expressing interest in participating as well.
Ahead of an extraordinary general meeting on February 23, certain major investors are pushing for leadership changes and board restructuring at Byju’s. Dissenting shareholders have until February 29 to participate in the rights issue or risk significant dilution of their stakes.
Raveendran emphasizes the importance of all shareholders participating in the rights issue to preserve and enhance company value, citing Abraham Lincoln’s quote on unity. Byju’s is addressing financial challenges and internal governance issues simultaneously.
Raveendran commits to board restructuring and the appointment of two non-executive directors after the FY23 Audit, aiming for transparency in fund usage through third-party monitoring.
Despite being the largest shareholder, Raveendran prioritizes the company’s interests over personal gain, opting for a fair rights issue price despite personal investments totaling $1.1 billion over two years.
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