> I don’t know how this is going to end but I do know that the end date of the rights issue is in two days and no court is this fast. It’s unlikely either court decides in time. So probably the rights issue will happen and the investors who don’t invest get booted out automatically?
Can NCLT decide the rights issue is invalid, so the ownership is as it was before the rights issue (and presumably the company is required to give all the money back)?
I look forward to all your posts! Btw if the existing investors don’t participate in the rights issue, they will typically be eligible for downround protection, isn’t it? i.e. they’d be eligible to get an additional number of shares to make up for the down round.
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?
I have seen Byjus and the current management to literally Lie like anything. And the first principle to respond to any rumor in media was to clearly say “NO thats not true” or just lie “we are looking at it”.
If there is one thing that i know about Byju is - If he is saying 47% investors want him out then its a Lie, if he says 47% it’s definitely 67% or more, the remaining equity is with his family and ranjan.
> I don’t know how this is going to end but I do know that the end date of the rights issue is in two days and no court is this fast. It’s unlikely either court decides in time. So probably the rights issue will happen and the investors who don’t invest get booted out automatically?
Can NCLT decide the rights issue is invalid, so the ownership is as it was before the rights issue (and presumably the company is required to give all the money back)?
I look forward to all your posts! Btw if the existing investors don’t participate in the rights issue, they will typically be eligible for downround protection, isn’t it? i.e. they’d be eligible to get an additional number of shares to make up for the down round.
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?
I have seen Byjus and the current management to literally Lie like anything. And the first principle to respond to any rumor in media was to clearly say “NO thats not true” or just lie “we are looking at it”.
If there is one thing that i know about Byju is - If he is saying 47% investors want him out then its a Lie, if he says 47% it’s definitely 67% or more, the remaining equity is with his family and ranjan.
The scammer had really pulled the wool over everyone's eyes!