Byju’s: Byju’s shareholder group calls for EGM, to vote for ouster of Byju Raveendran, board

A group of key shareholders holding more than 30% stake in Byju’s has issued a notice to the cash-strapped edtech firm calling for an extraordinary general meeting (EGM) to address ‘persistent issues’ including a change of management at the firm.
These shareholders will vote to oust founder and CEO Byju Raveendran and the existing board in an attempt to remove them from running the operation of the once storied edtech startup.

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The current board of Bjyu’s parent Think & Learn comprises Raveendran, his wife and cofounder of Byju’s Divya Gokulnath and his brother Riju Ravindran.
While the investors have been asking Raveendran to step aside from an operating role, this is the first instance of shareholders banding together to issue a statement seeking a change of guard at the company.

“The issuance of this EGM notice follows many months of continued efforts by shareholders to engage with the company to address persistent issues relating to corporate governance, mismanagement and compliance. These efforts have been ongoing following the resignation from the board in June 2023 of directors nominated by Prosus and other shareholders,” the investor group said in a statement on Thursday.

While the investor group was grateful for the efforts of the independent advisory council in addressing some of the looming challenges facing Think & Learn, it was also “…deeply concerned about the future stability of the company under its current leadership and with the current constitution of the Board,” the note added.

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Former SBI chairman Rajnish Kumar and ex-Infosys CFO Mohandas Pai are part of Byju’s board advisory council. They joined the council in July following the resignation of investors Prosus, Peak XV Partners (formerly Sequoia Capital India) and Chan Zuckerberg Initiative. On January 29, Byju’s issued a notice to investors for a rights issue, likely to be priced at a 99% discount to the company’s previous peak valuation of $22 billion from 2021. If successful, the issue will value the firm at $225 million–post-money.

Sources said certain investors also expressed concerns about being informed at the last minute about the rights issue with such a steep cut in valuation. ET reported on January 31 saying a rights issue such a low price will lead to a reset of the cap table if any investor decides not to subscribe to the share sale.


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