Byju's holds out a $300 million olive branch for miffed investors

Edtech major Think and Learn, which operates under BYJU'S brand name, is learnt to have received a commitment of USD 300 million from investors for its ongoing rights issue which will close by the end of February. 

BYJU'S floated a rights issue in January to raise $200 million through equity rights issue at an enterprise valuation in the range of $220-250 million which is a 99 per cent reduction in its peak valuation of $22 billion. 

BYJU'S reportedly has offered miffed investors to appoint two independent directors to enhance transparency but only after the rights issue and declaring its financial result for the 2023 fiscal. 

"BYJU'S has received a total commitment of around USD 300 million for the rights as on date. Some investors have also suggested increasing the rights issue size but the priority for the company is to close the existing issue successfully," a source quoting a PTI report said. 

The source said that negotiation is also on with miffed investors for their participation in the rights issue. "BYJU'S is in discussion with miffed investors also. The company expects that they will also invest, otherwise their shareholding will reduce by almost 50 per cent," the source added. 

A consortium of BYJU'S shareholders had in July and December requested the board of directors for the meeting but it was disregarded. BYJU'S investors have no voting rights on the CEO or management change as per the shareholder's agreement.