edutech Platform Byju’s Founder and Chief Executive Officer (CEO) Byju Raveendran said on Wednesday that the company’s $200 million rights issue has been fully filled. Think and Learn Pvt Ltd, which operates under the Byju brand, issued a rights issue of $200 million at an enterprise valuation 99 per cent lower than its high valuation of $22 billion. Its enterprise value has declined significantly since the financial crisis deepened.
rights issue fully purchased
“Our rights issue has been fully subscribed and I am grateful to the shareholders,” Raveendran said in a letter to shareholders. But my criterion of success is the participation of all shareholders in the rights issue.” He said, ”We have built this company together and I want all of us to be involved in this renewed mission.” Raveendran said that the company It will appoint an external agency to monitor the use of funds raised through the rights issue.
Questions being raised on valuation are wrong
Also, Raveendran dismissed the questions being raised on valuation and said, “The ownership of the company does not change before and after the rights issue. Hence, the question of valuation itself is irrelevant as price protection has been maintained.” His comments assume significance as a group of shareholders, who together hold about 30 per cent stake in Byju, have accused Raveendran of various irregularities in his leadership. Alleging an extraordinary general meeting (EGM) has been called to remove the top management.
Nothing will be achieved by confrontation – Raveendran
In this context, the Byju founder said in a letter addressed to the shareholders, “Some vested interest elements are presenting our relationship in an adverse manner. Nothing is going to be achieved by confrontation.” Raveendran has already offered to reconstitute the company’s board of directors and appoint two non-executive directors.
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