Byju's investors want Byju Raveendran out. But Byju's investors also committed to investing $200m in Byju's new rights issue. What gives? A fun read

@lilly159 Great post. Subscribed to your blog.

One quick question, what happens if every shareholder decides to participate in the issue and buys those shares at discount? How can a company create value in this case?

It isn't possible unless some shareholder sells stake in a rights issue, isn't it?
 
@tubz If every shareholder decides to buy then the final ownership will be the same as it is now. Every shareholder would only be able to buy more shares proportionate to their current holding.
 
@lilly159 The Great Byju's Showdown: Investors vs. Byju Raveendran

In the fast-paced world of edtech, where every venture aims to revolutionize education, there's one name that stands out: Byju's. Led by the visionary Byju Raveendran, the company has become synonymous with innovative learning solutions and exponential growth. But behind the glossy facade lies a brewing storm: investors are clamoring for Raveendran's exit.

Picture this: a boardroom filled with tense faces, where high-stakes discussions unfold like scenes from a corporate thriller. Byju's investors, armed with power suits and hefty checkbooks, are ready to make a move. Their target? None other than the man who built the empire they've poured millions into – Byju Raveendran himself.

"Why would investors want to oust the very founder they've entrusted with their millions?" you might wonder. Well, it's a tale as old as the business world itself – clashes of vision, power struggles, and the insatiable hunger for control.

At the heart of the matter lies a fundamental difference in perspectives. While Raveendran dreams of pushing the boundaries of education, his investors have their eyes firmly set on the bottom line. They see potential roadblocks in Raveendran's relentless pursuit of innovation – perhaps fearing it could lead to risky ventures or uncharted territories.

But here's the twist: even as these investors plot Raveendran's exit, they find themselves facing a paradox. Despite their reservations about the man at the helm, they're still willing to put their money where their mouth is – quite literally. In a curious turn of events, they commit a whopping $200 million to Byju's new rights issue.

So, what gives?

It's a classic case of hedging bets. While investors may have concerns about Raveendran's leadership style or the direction of the company, they're not blind to Byju's undeniable potential. They see the brand's value, its reach, and its impact on the education landscape. Investing in the rights issue is their way of hedging their bets – ensuring they have a say in the company's future, regardless of who's at the helm.

Meanwhile, Raveendran finds himself navigating stormy waters, caught between the pressure to appease his investors and the drive to realize his vision. Will he succumb to their demands and step down from his throne? Or will he stand his ground, determined to steer Byju's towards even greater heights?
 

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