"Byju’s invites discontent investors to right issues"

Byju’s fundraising attempts: Think and Learn, the edtech firm behind Byju's, is trying to reconcile with discontented investors, urging them to join the company's fundraising attempts to safeguard their existing shareholding, sources revealed.

In a letter addressed to investors, Byju's founder and CEO Byju Raveendran expressed the company's commitment to inclusivity, stating, “I am aware that some of our valued existing shareholders were unable to participate earlier in the rights issue. 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.”

The company recently concluded a $200 million rights issue in February, marking a strong decline in valuation compared to its peak enterprise value of $22 billion.

Reportedly, Byju's may extend the opportunity for miffed investors to participate in the rights issue until April 4.

The rights issue, aimed at raising $200 million to meet operational requirements, including employee salaries, was approved through an extraordinary general meeting (EGM) where the authorised share capital of the company was increased.

Despite facing legal challenges from certain investors, Raveendran highlighted the overwhelming support received through a postal ballot in favor of increasing the authorised share capital. He emphasized the company's dedication to all shareholders, regardless of their shareholding size.

While Byju's sources claim the absence of miffed investors in the EGM, sources from the investors' side asserted their representation in the meeting, with the final resolution vote open through postal ballot until April 6.

(With PTI inputs)