New Delhi, June 24 (SocialNews.XYZ) Global investment giant Prosus on Monday said it has written off the value of its shareholding in embattled edtech company Byju's, recording a loss of $493 million.
In its annual report for FY24, the investment firm said that in the financial year, "the group wrote off the fair value of its 9.6 per cent effective interest in Byju’s, due to the decrease in value for equity investors".
"A fair value loss of $493 million was recognised in other comprehensive income in the current year," Prosus informed.
In September 2022, the group lost significant influence in Byju's as it no longer exerts significant influence over the financial and operating policies of the entity.
"The group accounts for its 9.6 per cent effective interest in Byju's at fair value through other comprehensive income. The fair value of Byju's investment subsequent to the loss of significant influence is $578 million," Prosus wrote in its annual report.
The edtech company is trying to raise $200 million in a rights issue, at a nearly 99 per cent cut to its last valuation of $22 billion.
However, the National Company Law Tribunal (NCLT) has ordered Bujy's not to use the cash from the rights issue until the matter in the court is resolved.
Earlier this month, financial firm HSBC also assigned zero value to investment company Prosus' nearly 10 per cent stake (or about $500 million) in Byju's.
"We assign zero value to Byju's stake amid multiple legal cases and funding crunch," according to the HSBC note.
Source: IANS
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