Edtech major BYJU'S top official said the company's $200 million rights issue has been fully subscribed and asked all shareholders to participate in the "renewed mission".
Think and Learn Private Limited, which operates under BYJU'S brand name, has floated $200 million rights issue at less than 99% enterprise valuation compared to its peak valuation of $22 billion.
"Our rights issue is fully subscribed and my gratitude to my shareholders remains strong. But my benchmark of success is the participation of all shareholders in the rights issue. We have built this company together and I want us all to participate in this renewed mission," BYJU'S Founder and CEO Byju Raveendran said in a letter to shareholders.
Mr. Raveendran said that the company will appoint a third-party agency to monitor the usage of funds raised through the rights issue. "The ownership of the company does not change pre and post a rights issue, so the question of valuation itself is irrelevant as value preservation is maintained," he said.
The comment assumes significance as a group of shareholders, who jointly hold around 30% stake in BYJU'S, have called for an extraordinary general meeting (EGM) to oust top management alleging several anomalies under their leadership.
"A few vested interests are misrepresenting our relationship as adversarial. Let me be unequivocal in stating that such narratives could not be further from the truth. There is nothing to be gained from conflict, especially with those who share our commitment and conviction towards our common cause," he said.
He said that he will not allow "self-serving actions of a few individuals" cloud his judgment and pollute the relationship among shareholders.
BYJU'S CEO has offered to restructure the Board and appoint two non-executive directors to the Board by the mutual consent of the founder and shareholders after the audit of financial year 2023 is complete by March-end.
