{"id":15391,"date":"2024-04-01T20:14:31","date_gmt":"2024-04-01T20:14:31","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/01\/byjus-delays-salary-again-amid-rights-issue-battle-with-investors\/"},"modified":"2024-04-01T20:14:31","modified_gmt":"2024-04-01T20:14:31","slug":"byjus-delays-salary-again-amid-rights-issue-battle-with-investors","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/01\/byjus-delays-salary-again-amid-rights-issue-battle-with-investors\/","title":{"rendered":"Byju’s delays salary again amid rights issue battle with investors"},"content":{"rendered":"
\"Byju’s<\/div>


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Troubled edtech Byju’s<\/a> has had to delay salaries for employees yet again as it battles a severe cash-crunch. Employees were informed on Monday that their salaries will be delayed due to actions by warring investors<\/a> that have restricted usage of funds through a rights issue<\/a>. <\/p>\n

“We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries. A few misguided foreign investors in Byju’s have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue. This irresponsible action by the 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted,” the company said in a note. <\/p>\n

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Last week, the National Company Law Tribunal (NCLT), Bengaluru, refused to stay Byju\u2019s extraordinary general meeting (EGM)<\/a> scheduled for March 29 to increase its authorised share capital to account for a $200 million rights issue.<\/p>\n

The Karnataka High Court last Thursday also extended the interim stay on outcomes of an EGM called by investors to remove company founder Byju Raveendran as chief executive in February. Raveendran also told shareholders he is offering the estranged investors a chance to invest in the rights issue, but it is unlikely they will invest in the firm.<\/p>\n

“We understand the feelings of helplessness that may arise due to these circumstances, and we share your frustration. However, we urge you to hold onto hope and remain resilient. Byju’s has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle. We are confident that justice will prevail and the financial constraints will be resolved soon,” the company added in its note. <\/p>\n

Byju’s rights issue is happening at a 99% discount<\/a> to the company\u2019s peak valuation of $22 billion. This means any investor not participating in the funding will see their shareholding wiped out post the completion of the rights issue.<\/p>\n

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Discover the stories of your interest<\/h3>\n<\/div>\n
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Troubled edtech Byju’s has had to delay salaries for employees yet again as it battles a severe cash-crunch. Employees were informed on Monday that their salaries will be delayed due to actions by warring investors that have restricted usage of funds through a rights issue. “We are writing to you today with a heavy heart […]<\/p>\n","protected":false},"author":2,"featured_media":15392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[3601,17235,8076,94,6089,11081,307,2898],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/15391"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=15391"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/15391\/revisions"}],"predecessor-version":[{"id":15393,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/15391\/revisions\/15393"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/15392"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=15391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=15391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=15391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}