Prosus stake in Byju’s worth zero: HSBC
investment firm Prosus' nearly 10% stake in Byju's has no value, HSBC said, alluding to a deepening cash crunch and legal battles at the troubled Indian edtech firm.
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«We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,» HSBC said in a note on May 21. “Previously, we valued around 10% stake in Byju’s by applying (an) 80% discount to the latest publicly disclosed valuation.”
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Offering CollegeCourseWebsiteIndian School of BusinessProfessional Certificate in Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisitIIT DelhiCertificate Programme in Data Science & Machine LearningVisitProsus has over the years invested $500 million in Byju's in one of its largest edtech bets in India that has since gone sour.
The HSBC report comes at a time Byju's controversial $200 million right issue is taking place at 99% discount to its peak valuation of $22 billion, meaning any investor not investing in the rights issue will see its holding wiped off. While Byju’s founder Byju Raveendran has claimed the rights issue is fully subscribed, an ongoing battle with investors, including Prosus, in National Company Law Tribunal (NCLT) Bengaluru directed the company to keep majority of the capital from the rights issue in an escrow account.
Prosus is also fighting a legal battle
