Byju’s offers warring investors to participate in funding, secures 50% votes on rights issue

Byju Raveendran, founder and CEO of Byju’s has offered its estranged investors a chance to invest in the rights issue so their shareholding is not diluted, according to a letter by him to shareholders this morning. He also informed investors the company has secured more than 50% votes to increase the authorised share capital to account for the $200 million rights issue.

“In good faith the board is considering making an offer of renounced shares to existing shareholders to ensure that there is no more dilution to their shareholding. We will share more details with you shortly,” Raveendran said in the note. ET has seen the letter to shareholders.

He said despite the “animosity shown by some of the investors in pursuing uncalled for legal actions”, the company continues to show ‘good faith’ towards all the shareholders and would like them to be part of the turnaround story.

“While we have received significant interest from third parties, our priority remains with our existing shareholders and hence we are looking at how we can extend this opportunity to all of you,” Raveendran added in his note.

On Thursday, the National Company Law Tribunal (NCLT), Bengaluru, refused to stay Byju’s extraordinary general meeting (EGM) scheduled for Friday to increase its authorised share capital for the critical rights issues. Simultaneously, the Karnataka High Court also extended the interim stay on outcomes of an EGM called by investors to remove company founder Byju Raveendran as chief executive in February.