Byjus Rights Issue 2024, Share Price, History, Allotment Status and More Details

News: Byju’s, the renowned edtech firm, has been making headlines with its recent Rights Issue. In this article, we’ll delve into the details of what this issue entails, its significance, and how it impacts the company and its investors.

What Is a Rights Issue?

A Rights Issue is a way for a company to raise capital by offering additional shares to its existing shareholders. It’s like an exclusive invitation for current investors to buy more shares at a discounted price. Byju’s has decided to go this route to secure funds for its future endeavors.

Key Details of Byju’s Rights Issue 2024

1. Amount Raised: Byju’s aims to raise approximately $200 million through this rights issue.

2. Valuation Cut: The company’s valuation has been adjusted significantly, with a 99% cut. This means that the shares are being offered at a much lower price than before.

3. Founder’s Commitment: Byju Raveendran, the founder and CEO, has pledged to invest around $45-$46 million in the rights issue. His commitment reflects his confidence in the company’s growth potential.

4. Purpose: Byju’s intends to use the raised capital to address its current liabilities and fuel future growth.

Investor Confidence and Transparency

Despite the valuation cut, the rights issue has been fully subscribed, indicating strong investor confidence in Byju’s. Shareholders recognize the company’s potential and are willing to participate in this capital-raising exercise.

To ensure transparency, Byju’s plans to appoint a third-party agency to monitor the usage of the raised funds. This agency will provide regular reports to shareholders, keeping them informed about the company’s financial decisions.

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Upcoming General Meeting

Byju’s extraordinary general meeting is scheduled for February 23, 2024. During this meeting, some of the company’s major investors will vote on leadership changes and board reconstitution. The company aims to restructure its board and appoint non-executive directors after the FY23 audit.

About Byjus :

Byju’s, stylized as BYJU’S, is an Indian multinational educational technology company headquartered in Bangalore. It was founded in 2011 by Byju Raveendran and Divya Gokulnath. Let’s explore its journey and impact:

The Beginnings

1. Byju Raveendran, an engineer, started coaching students in mathematics as early as 2006.

2. In 2011, Think and Learn Pvt. Ltd., the company behind Byju’s, was established by Byju Raveendran, Divya Gokulnath, and a group of students.

3. Initially, the company focused on offering online video-based learning programs for the K-12 segment and competitive exams.

Growth and Milestones

• In 2012, Byju’s entered the Deloitte Technology Fast 50 India and Deloitte Technology Fast 500 Asia Pacific ratings, where it has maintained a presence ever since.
• August 2015 marked the launch of Byju’s: The Learning App.
• By 2018, it had 15 million users, out of which 900,000 were paid users.
• In the same year, Byju’s became India’s first edtech unicorn.
• 2019 saw 60% of Byju’s students coming from non-metro and rural cities.
• In January 2022, Byju’s joined other edtech companies to become a founding member of IAMAI’s India EdTech Consortium.
• By March 2022, Byju’s signed a contract with the Qatar Investment Authority to establish a new edtech company and an R&D center in Doha.
• Despite challenges, including a delay in filing audited financials, Byju’s received a clean audit from Deloitte.
• In November 2022, some employees raised concerns about unfair treatment, with reports of over 5,000 layoffs.
• In April 2023, the Enforcement Directorate conducted searches at Byju’s offices under the Foreign Exchange Management Act, seizing “incriminating” documents.

Current Status

• As of January 2024, Byju’s valuation stands at $200 million, a significant drop from its peak of $22 billion in 2022.
• The company claims to have over 150 million registered students as of April 2023.

Byju’s Rights Issue 2024 is a strategic move to secure capital and propel the company forward. Despite the valuation adjustment, the response from investors has been positive. As the edtech giant continues to evolve, transparency and prudent financial management remain at the forefront of its agenda.

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Frequently Asked Questions (FAQs)

Q: What is BYJU’S?

A: BYJU’S is a big name in the education technology field, offering online learning solutions for students in classes K-12 and for various competitive exams.

Q: Why is BYJU’S going for a rights issue?

A: BYJU’S is opting for a rights issue to gather $200 million, which will be used to support the day-to-day running and expansion of BYJU’S.

Q: How is BYJU’S planning to deal with concerns about being transparent?

A: BYJU’S plans to add two independent directors to the team, aiming to make things more transparent and accountable within the company.