Byju's, the prominent edtech firm finds itself at the intersection of financial development and legal scrutiny as its founder and CEO, Raveendran, encourages shareholder engagement in the fully subscribed $200 million rights issue. Meanwhile, the Enforcement Directorate (ED) seeks to tighten its grip on Raveendran's movements amidst ongoing investigations.
Byju's recent announcement reveals that its $200 million rights issue, initiated in January, has garnered full subscription. Expressing gratitude towards shareholders, Raveendran emphasized the collective journey of building the company and urged all stakeholders to participate in the rights issue.
Raveendran highlighted the pivotal role of shareholders in preserving and enhancing value, affirming his commitment to transparency by appointing a third-party agency to monitor fund utilization.
The Founder reiterated importance of shareholder involvement in the rights issue, underscoring their initial investments as foundational to Byju's growth. The company aims to restructure its board, introducing two non-executive directors, alongside ensuring timely financial audits to ensure governance.
Simultaneously, the ED has approached the Bureau of Immigration (BOI) to revise the look-out circular against Raveendran, seeking to restrict his overseas movements. This move follows allegations of significant FEMA violations amounting to Rs 9,362.35 crore against Byju's and Raveendran.
The issuance of a revised Look-out circular (LOC) aims to safeguard investor interests and facilitate ongoing investigations into the company's foreign investments and business practices.
Byju's decision to set the rights issue valuation at a significant discount aims to enhance investor appeal and encourage widespread participation.
With Byju's scheduled Extraordinary General Meeting on February 23, stakeholders anticipate pivotal discussions surrounding corporate governance reforms and strategic direction.
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