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Informist, Tuesday, Feb. 17, 2026

 

NEW DELHI – The Supreme Court Tuesday refused to stop Aakash Educational Services Ltd. from proceeding with the second tranche of its rights issue to raise INR 1.40 billion, of the total planned fund-raise of INR 2.40 billion. The court noted Aakash Educational's assurance that 25.75% of shareholding held by BYJU's parent Think & Learn Pvt. Ltd.'s in Aakash will be secured until the National Company Law Appellate Tribunal decides on an application challenging the rights issue. The top court also asked Think & Learn to subscribe to the shares of Aakash Educational in the rights issue by Monday.

 

On Feb. 3, the Chennai bench of the National Company Law Appellate Tribunal allowed Aakash Educational to issue the second tranche of right issue of shares and granted Think & Learn the liberty to apply for the shares not exceeding the number proportionate to its original shareholding of 25.75%. The appellate tribunal directed Akash Educational not to take up any issue that may require special resolution till the final adjudication of the controversy surrounding the allotment of shares to Think & Learn in both tranches of the right issue. Consequently, Think & Learn's resolution officer Monday moved the Supreme Court to stop Aakash Educational from issuing the second tranche of rights issue.  

 

Think & Learn, which is currently undergoing insolvency proceedings following a petition by the Board of Control for Cricket in India, holds a 25.75% stake in Aakash Educational. Aakash Educational had withheld the actual allotment of shares due to Think & Learn as it suspected the mode of raising funds for investing in the rights issue might have involved violations of the Foreign Exchange Management Act, 1999.

 

By withholding the allotment of shares in the first tranche of the rights issue, Akash Educational has diluted the appellant's shareholding from 25.75% to 10.99%, the resolution officer said in the petition. This means that Think & Learn can apply for only up to 10.99% of the rights shares being offered, not 25.75%, and its stake would be further diluted, the resolution officer said. Apart from this, the resolution officer apprehends that Akash Educational might adopt the same method it had adopted in the issue of the first tranche of the rights issue, and that the shares might eventually be kept only in a suspense account, said the petitioner.

 

Last year, the Supreme Court rejected petitions by Think & Learn's resolution officer and GLAS Trust Co. LLC against Aakash Educational's move to conduct a rights issue to dilute Think & Learn's shareholding. GLAS Trust is a lender to Think & Learn and a member of its committee of creditors.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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