Business Standard

Byju’s CEO says committed to restructur­ing the board

Raveendran informs shareholde­rs that rights issue is fully subscribed

- PEERZADA ABRAR

Ahead of Friday’s extraordin­ary general meeting (EGM), Byju Raveendran, chief executive officer (CEO) of Byju’s, told shareholde­rs that he is committed to restructur­ing the board of the embattled educationa­l technology (edtech) firm. He also committed to appointing two non-executive directors to the board by the mutual consent of the founder and shareholde­rs.

The developmen­t comes at a time when a consortium of key shareholde­rs issued a notice to the edtech firm this month, calling for an EGM to address “persistent issues”, including a proposed change of management at the firm.

These shareholde­rs will vote to alter the firm’s existing board, which includes asking Byju to step down as CEO and relinquish his operationa­l role, sources said.

“My duty to my shareholde­rs is still steadfast,” said Byju in a letter addressed to shareholde­rs, a copy of which Business Standard has seen. “In order to increase shareholde­r representa­tion, I commit to restructur­ing the board and appointing two non-executive directors to the board by the mutual consent of the founder and shareholde­rs.”

Byju’s recently made a move to raise $200 million by way of a rights issue.

Byju told shareholde­rs that the rights issue is fully subscribed.

“But my benchmark of success is the participat­ion of all shareholde­rs in the rights issue,” said Byju. “We have built this company together, and I want us all to participat­e in this renewed mission.”

I UNDERSTAND THAT PARTICIPAT­ING IN THIS RIGHTS ISSUE MAY SEEM LIKE A HOBSON’S CHOICE. HOWEVER, THIS IS THE ONLY VIABLE OPTION IN FRONT OF US TODAY TO PREVENT PERMANENT VALUE EROSION

BYJU RAVEENDRAN

Chief Executive Officer, Byju’s

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