Investment company Prosus has written off $578 million (about Rs 4,800 crore) invested in Think and Learn, the company that operates education-technology platform Byju’s. The Netherlands-based company gave this information in its annual report released on Monday. Prosus’ stake in Think and Learn was reduced to 9.6 percent in September 2022, reducing its significant influence. Prosus said in its report released for the financial year ending 2024, “It holds a 9.60 percent effective interest in Byju’s at fair value through the group’s other overall income.
Case is pending in NCLT
The fair value of our investment in Byju’s after losing significant leverage is $578 million.” Prosus is one of the four investor firms that have approached the NCLT against Byju’s management and its $200 million rights issue. Byju Raveendran, founder of Byju’s Platform, had decided to issue a rights issue at a very low valuation with the intention of raising funds after getting into financial crisis. The matter is pending with the National Company Law Tribunal (NCLT).
Byju’s rights issue was banned
The National Company Law Tribunal (NCLT) had stopped Think and Learn, the company operating the education technology platform Byju’s, from going ahead with the rights issue that began on May 11. The NCLT has directed to maintain status quo in this matter. In an order issued on June 12, the Bengaluru bench of NCLT had said that Byju’s will have to give full details of its shareholders before and after the allotment of shares on March 2 under the first installment of the rights issue. Investors who approached the tribunal against the rights issue said that Byju’s had proposed to bring a second rights issue through the offer letter dated May 11.
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