Byju’s sees full subscription for Rs 1,658 crore rights issue amid valuation cut

"Last month, the Bengaluru-based firm declared its plan to earn more than Rs 1,658 crore through a rights offering. According to reports, a group of investors is lobbying for the removal of Raveendran, his brother Riju Ravindran, and his wife Divya Gokulnath from the edtech. In summary, certain important investors like Prosus and Peak XV have not yet joined. Their ownership interest in Byju's proposals to reform the board and hire a third-party agency to monitor fundraising could be reduced if they choose not to participate. Byju's announced that all of the subscription for their Rs 1658 crore ($200 million) rights issuance had been received. Nevertheless, TechCrunch noted that this accomplishment coincided with a disagreement between the The Bengaluru-based business revealed last month that it intended to earn about $200 million through a rights issue. The company was valued at $22 billion in its previous financing round in early 2022. The company's founder and CEO, Byju Raveendran, thanked the participating shareholders and emphasized the significance of increased shareholder involvement. ""We have a fully subscribed rights issue, and I am still incredibly grateful to our shareholders.

"However, the involvement of every shareholder in the rights issue is how I measure success,"" founder and CEO Byju Raveendran stated in a letter to shareholders that TechCrunch was able to read. Founder requests widespread involvement from shareholders He went on to discuss the teamwork that went into creating the business and encouraged every stakeholder to participate in the rights issue in order to improve the company's prospects going forward. Together, we have established this organization, and I want everyone to be a part of this new mission. Our journey began with your initial investment, and this rights issue will help protect and increase value for all shareholders,"" stated Raveendran . Byju's lowered the pre-money valuation requested in the rights sale from $25 million to roughly $20 million, as TechCrunch previously revealed. According to sources cited in the paper, despite the subscription success, a group of investors, including Prosus and Peak XV, have not yet indicated interest in taking part in the rights offer. Their stock share in Byju's could be significantly reduced as a result of their lack of participation."