Byju’s to raise ₹1,663 crore through Rights issue

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₹1,663 crore) by way of a rights issue to all its equity shareholders. The proposed rights issuance by TLPL aims to fund the ongoing capital expenditure and support general corporate purposes, the company said in a release. The fresh raising of funds after Byju's released its audited results for 2022 and reported a significant increase in losses, surging from ₹4,564 crore to ₹8,245 crore compared to the previous year.

In contrast, the consolidated income witnessed substantial growth, rising from ₹2,428.39 crore to ₹5,298.43 crore. The release from the company said that the founders of the Byju's have invested more than $1.1 billion over the past 18 months. “Over the last many months, strategic measures have been taken to optimize costs and become a lean organization focused on execution.

They stressed the importance of raising capital to create a glide path for strong shareholder value and prevent further value impairment. The letter acknowledged the shareholders' integral role in the company's journey and proposed this rights issue to offer existing shareholders an equal opportunity to participate in the capital raise," the press release said. Byju's founder Raveendran said that the funds raised will be exclusively utilized to clear immediate liabilities and meet operational requirements.

He claimed that the edtech giant is less than a quarter away from achieving operational profitability. “This rights issue is about those who care the most about BYJU'S stepping up as we continue to turn the company around. Along with being a founder, I am also the largest investor in the company.