In a letter addressed to shareholders this morning, Byju Raveendran, the founder and CEO of Byju's, has extended an opportunity to its existing shareholders to participate in the rights issue. The move has been taken to prevent further dilution of their shareholding, according to the Economic Times.
In the letter, Raveendran mentioned that the company has secured more than 50 per of the votes to increase the authorised share capital. This is for the $200 million right 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,” Raveendran said in a note, as reported by the Economic Times.
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He further added, "Despite the animosity shown by some of the investors in pursuing uncalled-for legal actions, we continue to show good faith towards all our shareholders and would like all of you to be part of our turnaround story.”
While talking about the importance of the existing shareholders, Raveendran added, as reported by the Mint, “I hope you will see the value in continuing with Byju's in the same spirit with which you first joined our journey. I look forward to your response and to our continued partnership to transform the global educational landscape."
On Thursday, the National Company Law Tribunal refused to grant the stay on Byju's extraordinary general meeting (EGM) scheduled for today. The meeting was intended to increase the authorised shared capital for the critical rights issue.
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A group of four investors of Byju's, including Prosus, General Atlantic, Sofina, and Peak XV, filed a mismanagement suit against the company. They also wanted the removal of Byju Raveendran and his family from the board of Byju's. The NCLT said that it will hear the case again on April 4.
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