Business Standard

Byju’s rights issue gets $300 mn commitment

- PRESS TRUST OF INDIA New Delhi, 19 February

Edtech major Think and Learn, which operates under Byju’s brand name, is learnt to have received a commitment of $300 million from investors for its ongoing rights issue which will close by the end of February, sources aware of the developmen­t said.

Byju’s floated a rights issue in January to raise $200 million 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.

Sources also shared that Byju’s has offered miffed investors to appoint two independen­t directors to enhance transparen­cy but only after the rights issue and declaring its financial results for the 2023 fiscal.

“Byju’s has received a total commitment of around $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,” said a source.

The source said that the 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 said. Another source said that Byju’s has offered to appoint two independen­t directors on the board to enhance transparen­cy but the appointmen­t can happen only after results for financial year 2023 are declared. “Byju’s expects to close the FY23 financial result in this quarter which will make the company completely compliant with the rules,” the source said.

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