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BYJU’S Closes $200 Mn Rights Issue, But Employee Salaries Delayed Again

Inc42 · 1y ago

BYJU’S Closes $200 Mn Rights Issue, But Employee Salaries Delayed Again

BYJU's, the edtech major, has closed its $200 million rights issue but is facing further delays in salary payments to its employees. In an email to staff, CEO Byju Raveendran blamed a small number of investors who had locked the funds raised in a separate account, preventing the company from making the payments. The Bengaluru bench of the National Company Law Tribunal had ordered BYJU's to keep the proceeds from the rights issue in a separate escrow account. Raveendran said the company was aiming to ensure salaries were credited by 10 March.

Related News

Byju’s to delay salaries amid dispute with investors, says Raveendran

Thehindubusinessline

Thehindubusinessline · 1y ago

Byju’s to delay salaries amid dispute with investors, says Raveendran

Edtech firm Byju's has closed a $200m rights issue but has told its employees it will be unable to pay their salaries for February. In a letter, CEO Byju Raveendran blamed a small number of investors who have reportedly prevented funds raised in the rights issue from being used. The company is striving to pay salaries by 10 March. Separately, Byju's has been asked by India's National Company Law Tribunal to consider extending the rights issue and place the proceeds in a separate account, following a suit brought by four investors.

Hostile investors likely to skip Byju’s $200-mn rights issue

Livemint

Livemint · 1y ago

Hostile investors likely to skip Byju’s $200-mn rights issue

Investors in Think and Learn Pvt. Ltd, the parent company of Byju’s, are likely to skip participating in the $200-million rights issue, as they have filed a petition against it, citing oppression and mismanagement. The National Company Law Tribunal has deferred its verdict on the case until next week, allowing Byju's to proceed with the rights issue, which is set to conclude on Wednesday night. Byju's has already secured commitments for the rights issue, but the investors are hoping for a court instruction that the company's founders must seek approval from the existing investor base to expand the share capital.

BYJU’S Delays Employee Salaries Yet Again Amid Battle With Investors

Inc42 · 1y ago

BYJU’S Delays Employee Salaries Yet Again Amid Battle With Investors

Embattled edtech giant BYJU’S has delayed salary payments for its employees for the second consecutive month, citing restrictions on the usage of funds raised through a recent rights issue. The company's CEO, Byju Raveendran, sent an email blaming foreign investors for obtaining an interim order that has led to the delay. BYJU’S is now seeking a line of credit to ensure that salaries are credited by April 8. The National Company Law Tribunal (NCLT) has instructed BYJU’S to keep the proceeds from the rights issue in a separate escrow account. The company's board is considering an offer for disgruntled investors to participate in the rights issue.

NCLT directs Byju’s to maintain status quo, halting $200 million rights issue

Economic Times

Economic Times · 1y ago

NCLT directs Byju’s to maintain status quo, halting $200 million rights issue

The National Company Law Tribunal (NCLT) has ordered Byju's to maintain status quo in its shareholding, pausing its controversial rights issue. Byju's $200 million rights issue is being conducted at a 99% discount, sparking protests from investors. NCLT has asked Byju's to pause its second rights issue and keep cash from the first rights issue in an escrow account. The tribunal also requested details of share allotment and escrow bank accounts within 10 days. The matter will be heard again on July 4. In addition, lenders have petitioned a US court to initiate bankruptcy proceedings against Byju's subsidiaries.

Byju’s lays off about 500 staffers, nearly half from tuition centre business

Economic Times

Economic Times · 1y ago

Byju’s lays off about 500 staffers, nearly half from tuition centre business

Byju's, the troubled edtech company, has reportedly laid off around 500 employees, mainly in sales and marketing roles. The layoffs come as the company faces difficulties in securing capital and managing day-to-day operations. Around 240 of the affected employees worked in Byju's Tuition Centre operations, with the rest employed in other areas like K-10 and examination preparation. The company has attributed the layoffs to a cash crunch and a business restructuring exercise. Additionally, employees were informed that their salaries would be delayed due to actions by investors. Byju's is currently attempting a $200 million rights issue to raise funds.

BYJU’S Gets $300 Mn Commitment In Ongoing Rights Issue

Inc42 · 1y ago

BYJU’S Gets $300 Mn Commitment In Ongoing Rights Issue

Parent company Think and Learn, which owns edtech giant BYJU'S, has secured a commitment of $300 million from investors for its ongoing rights issue. The rights issue aims to raise $200 million through equity rights, valuing BYJU'S at $220-250 million. Negotiations are taking place with unhappy investors to encourage their participation in the rights issue. BYJU'S also plans to appoint two independent directors to its board after finalizing its financial results for fiscal year 2023. The troubled edtech firm has faced losses, business model challenges, and conflicts with investors in recent years.

NCLT refuses to stay Byju’s EGM over $200 million rights issue

Economic Times

Economic Times · 1y ago

NCLT refuses to stay Byju’s EGM over $200 million rights issue

The National Company Law Tribunal (NCLT) has not granted a stay on Byju's planned extraordinary general meeting (EGM) on March 29, where they aimed to increase their authorised share capital for a $200 million rights issue. The investors, led by Prosus, who have invested in Byju's parent company Think & Learn, had sought a stay on the EGM and wanted to block the rights issue. The NCLT has directed Byju's to provide all relevant information to the investors regarding the company's financials, including the rights issue. The matter will be heard again on April 4.

Byju’s disburses part of pending salaries, to pay balance soon: Report

Business Today

Business Today · 1y ago

Byju’s disburses part of pending salaries, to pay balance soon: Report

Edtech firm Byju's has partially disbursed the pending February salaries for all employees but assures the remaining balance will be paid once the funds from the recently closed rights issue become accessible. The company has made alternate funding arrangements to ensure employees' daily lives are not impacted. Byju's had been unable to pay salaries due to funds raised through a rights issue being locked in a separate account due to an ongoing dispute with investors. The company has faced several challenges including layoffs and a slowdown in demand for online learning services.

Byju’s rights issue gets $300 million commitment

Economic Times

Economic Times · 1y ago

Byju’s rights issue gets $300 million commitment

Byju's, the edtech giant, has reportedly secured a commitment of $300 million from investors for its ongoing rights issue. The company had floated a rights issue in January to raise $200 million at a reduced valuation of $220-250 million. Byju's has offered to appoint two independent directors to increase transparency, but only after the rights issue and the declaration of its 2023 fiscal results. Miffed investors are in discussions with Byju's, and if they don't participate in the rights issue, their shareholding will decrease by 50%.

Byju’s likely to go ahead with rights issue after NCLT defers verdict

Livemint

Livemint · 1y ago

Byju’s likely to go ahead with rights issue after NCLT defers verdict

The National Company Law Tribunal (NCLT) has delayed its verdict on the case filed by investors against Byju's, allowing the online tutoring firm to proceed with its $200 million rights issue. The NCLT has requested written submissions from both Byju's and its investors and plans to deliver its order next week. Byju's aims to use the funds from the rights issue to address its liquidity crisis, pay off debts, and settle outstanding liabilities. However, large investors are unlikely to participate in the rights issue. The bone of contention is Byju's valuation, which has been significantly lower than its peak valuation of $22 billion.

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