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Grapevine: Byju’s likely in a soup over rights issue; Dailyhunt in M&A news

VCCircle

VCCircle · 1y ago

Grapevine: Byju’s likely in a soup over rights issue; Dailyhunt in M&A news

Byju's, the parent company of the popular edtech startup Byju's, may encounter challenges with its upcoming $200 million rights issue. Shareholders Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA, who jointly own 25% of the company, have filed a petition with the National Company Law Tribunal (NCLT) claiming their preemptive rights have been violated. The dispute could potentially delay the rights issue and impact Byju's fundraising plans. In other news, Dailyhunt, an Indian news aggregator, is reportedly considering mergers and acquisitions as part of its expansion strategy.

Related News

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 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 challenges NCLT order restricting fund use in Karnataka High Court

Economic Times

Economic Times · 1y ago

Byju’s challenges NCLT order restricting fund use in Karnataka High Court

Edtech firm Byju's has filed a petition challenging the National Company Law Tribunal (NCLT) order that prevents the company from proceeding with its second rights issue. The NCLT had directed Byju's to maintain status quo and halt its second rights issue, as well as put funds from the first rights issue into an escrow account. Byju's is also requested to provide information about recipients of shares issued during the first rights issue. The $200 million rights issue has faced protests from investors, and some lenders have filed a petition in a US court for bankruptcy proceedings against Byju's subsidiaries.

Byju’s says $200 mn raise done, to appoint two investor directors

The Arc Web

The Arc Web · 1y ago

Byju’s says $200 mn raise done, to appoint two investor directors

Indian edtech giant Byju's has successfully raised $200 million through a rights issue. The funding will cover existing liabilities and provide growth capital for the company. In this funding round aimed at existing investors, Byju's adjusted its pre-money valuation to $20 million. As part of the rights issue, the company will appoint two non-executive directors to its board. This move comes as a consortium of investors seeks to remove founder Byju Raveendran and reconstitute the board, expressing concerns over leadership and stability. Raveendran emphasized the importance of unity and support for the rights issue.

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 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 Arranges Line Of Credit To Pay March Salaries

Inc42 · 1y ago

BYJU’S Arranges Line Of Credit To Pay March Salaries

Edtech startup BYJU'S has started disbursing salaries for March, after a delay caused by a cash crunch. The startup blamed "foreign investors" for hindering access to funds from its $200m rights issue. BYJU’S is currently in a legal battle with certain investors who are seeking to block the rights issue and remove founder and CEO Byju Raveendran. The National Company Law Tribunal has barred the company from accessing the rights issue proceeds. BYJU'S also mentioned in an internal email that it had arranged an alternative line of credit to ensure timely payments.

Byju’s arranges for alternative credit, begins March salary payouts

Economic Times

Economic Times · 1y ago

Byju’s arranges for alternative credit, begins March salary payouts

Edtech company Byju's has informed its employees that it has started the process of salary disbursements for March. However, the company has faced challenges in accessing funds from a rights issue due to actions taken by four foreign investors. Byju's has arranged an alternative line of credit to ensure timely payments. The company is currently defending a lawsuit filed by investors seeking to block the rights issue and the removal of founder Byju Raveendran as the CEO. Byju's has also extended an offer to invest in the rights issue to the estranged investors.

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.

Relief for BYJU’S As NCLT Reserves Verdict On Investors’ Plea

Inc42 · 1y ago

Relief for BYJU’S As NCLT Reserves Verdict On Investors’ Plea

The National Company Law Tribunal (NCLT) has reserved its judgement on a petition filed by investors, including Prosus and General Atlantic, against BYJU'S CEO and other promoters. The investors are seeking status quo on BYJU'S ongoing $200 million rights issue, claiming it will erode their stakes in the company. The NCLT directed BYJU'S to increase its authorized share capital and park the money raised from the rights issue in a separate bank account. BYJU'S plans to go ahead with the rights issue, stating its importance for the company's survival and employment of 12,000 staff.

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