Edtech giant Think and Learn, operating as BYJU'S, is reportedly engaged in discussions with disgruntled investors as it seeks their participation in its ongoing rights issue. Sources familiar with the matter revealed that the company anticipates investments from these investors to prevent a reduction in their shareholding.
In January, BYJU'S initiated a rights issue aiming to raise $200 million through equity rights at a valuation ranging from $220 million to $250 million. This valuation marks a significant decrease of 99 percent from its peak valuation of $22 billion.
The company's rights issue is set to conclude by the end of February, with investors pledging a total of $300 million towards the initiative, according to PTI sources.
Additionally, BYJU'S is slated to convene an extraordinary general meeting (EGM) on February 22, separate from its annual general meeting (AGM). Reports suggest that shareholders may vote to remove the current board, headed by founder Byju Raveendran, during the EGM.
To replace the existing three-member board, comprising Raveendran, his wife Divya Gokulnath, and his brother Riju Ravindran, a majority vote in favor of the resolution is required, as outlined in a report by the Times of India.
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