Agencies
‘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.'
Byju Raveendran, founder and CEO, Byju's, has offered its disgruntled investors the option to invest in the rights issue of the edtech company so that their shareholding is not diluted.
Cash-strapped Byju's parent company, Think & Learn, is raising $200 million through the rights issue to all its equity shareholders at a 99 per cent discount to the firm's peak valuation of $22 billion in 2022.
In a letter sent early on March 29, 2024, Raveendran informed shareholders that the company had secured more than 50 per cent of the vote through postal ballot — first announced on March 7 — to increase authorised share capital to account for the $200 million rights issue.
‘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,' Raveendran said in the letter, which Business Standard has reviewed.
‘In good faith, the board is considering making an offer of renounced shares to existing shareholders to ensure that there is no more dilution to their shareholding. We will share more details with you shortly.'
Raveendran said while the firm had received significant interest from third parties, its priorities remained with the existing shareholders.
‘Even my critics know that I have invested my everything, and even more, in this company. I hope you will see value in continuing with Byju's in the same spirit with which you first joined our journey.
‘I look forward to your response and to our continued partnership to transform the global educational landscape,' said Raveendran.
Byju's held its extraordinary general meeting to increase authorised share capital on March 29. The shareholders raised no objection to this.
The meeting started at 10 am with approximately 20 investor representatives in attendance, along with the Byju's Think & Learn management.c A company source said: “Contrary to media reports, none of the miffed investors attended the EGM personally. They sent their legal representatives.” A source on the investor side said authorised representatives of all shareholders were there.
“Nobody boycotted it (unlike the management did with the last EGM),” the person said. The results of the voting, including the postal ballot, will be announced after the formal process is over. It is expected to be closed on April 6.
