Byju’s $200 Million Rights Issue Fully Subscribed Despite Insolvency Plea, CEO Urges Investor Participation
Edtech giant Byju’s has successfully subscribed its $200 million rights issue, despite facing another insolvency plea, this time from US-based non-bank loan agency Glas Trust Company.
The rights issue, fully subscribed, marks an attempt by Byju’s to raise funds amid ongoing challenges, with a rift emerging between the company and some of its major investors.
Byju’s founder and CEO, Byju Raveendran, called for the participation of all shareholders in the rights issue, emphasizing the collective role in building the company.
The Prosus-led investor group, which has called for Raveendran’s removal, has yet to show interest in the rights issue, risking potential equity loss.
Byju’s, valued at $22 billion, aims to raise $200 million through the rights issue, offering a pre-money valuation of $20-25 million. While successfully completing the rights issue, the company faces continued challenges from a group of investors seeking leadership changes.
An extraordinary general meeting (EGM) is scheduled, and Byju’s has sought legal relief from resolutions aimed at removing Raveendran.
The situation highlights Byju’s recent governance and financial struggles, impacting its IPO plans and drawing public concerns from investors.
Despite challenges, Raveendran remains optimistic about the company’s enduring brand strength and potential for future growth.
Note: The situation is dynamic, and developments may occur after the knowledge cutoff date.
