Beleaguered BYJU’S Gets Shareholders’ Approval For $200 Mn Rights Issue

SUMMARY

BYJU’S said that 55% of the shareholders voted in favour of increasing the share capital during the postal ballot and its EGM

The approval of the EGM proposals paves the way for BYJU’S parent Think & Learn to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch

Earlier, the startup said that its $200 Mn rights issue, at a valuation cut of 99%, was fully subscribed

Over a month after it closed its $200 Mn rights issue, troubled edtech major BYJU’S said that a majority of its shareholders voted in favour of increasing the company’s authorised share capital.

In a statement, the edtech giant said that 55% of the shareholders voted in favour of increasing the share capital during the postal ballot which concluded on April 6 and  extraordinary general meeting (EGM) held on March 29.

“The approval of the EGM proposals paves the way for Think & Learn Private Limited, the parent company of BYJU’S, to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments,” the startup said.