HSBC to the Dutch technology company that invested 0 million in Byju’s: We assign zero value … – Times of India

Financial firm HSBC has cast serious doubt on the future of Indian edtech giant Byju’s, assigning zero value to Prosus’ nearly 10% stake in the company. This harsh assessment comes amidst Byju’s ongoing legal battles and deepening financial woes. Prosus is a Dutch-listed technology investment company.
In a note to investors, HSBC highlighted multiple factors contributing to their bleak outlook.Previously, they valued the stake at a significant discount, reflecting concerns. Now, legal entanglements and a cash crunch paint a much grimmer picture.
Prosus, a major Byju’s investor with a $500 million stake, is locked in legal battles on multiple fronts. Byju’s recent $200 million rights issue, offered at a massive 99% discount from its peak valuation, further fueled investor anxieties. While Byju’s claims full subscription, a National Company Law Tribunal (NCLT) battle forced them to escrow a majority of the raised capital.
Adding fuel to the fire, Byju’s initiated legal action against Prosus and other investors, seeking CEO Raveendran’s removal. This Karnataka High Court case adds another layer of complexity.
Financial struggles and exodus
Byju’s financial situation appears precarious. The company faces a cash crunch, leading to the departure of its India CEO. Founder Byju Raveendran is now personally overseeing daily operations.
Furthermore, Byju’s faces legal challenges in the US from term loan B lenders over a $1.2 billion loan. A group of lenders reportedly petitioned a US court to initiate bankruptcy proceedings against Byju’s subsidiaries that guaranteed the loan.

Source link

By Exabyte News

Your ultimate source for trending news! Stay up-to-date with the latest viral stories, hottest topics, and breaking news from Exabyte News. Stay ahead with our in-depth coverage.

Leave a Reply

Your email address will not be published. Required fields are marked *