The National Company Law Tribunal (NCLT) in Bengaluru has rejected Byju’s plea to stop Aakash Educational Services Ltd (AESL) from holding its upcoming extraordinary general meeting (EGM) to approve a ₹500 crore rights issue.
Byju’s, which owns about 25.75% stake in Aakash, argued that the rights issue would drastically dilute its ownership to less than 5%, as the company is currently unable to invest additional funds due to ongoing financial and insolvency troubles.
Aakash’s management, however, maintained that the fundraising is essential for its operations, citing tight cash flow and limited access to fresh credit from banks amid shareholder disputes.
After hearing both sides, the NCLT ruled that the rights issue cannot be called unfair or illegal just because one shareholder (Byju’s) cannot participate. The tribunal emphasised that halting the process would interfere with Aakash’s ability to raise funds and operate independently.
The order effectively gives Aakash the green light to proceed with its scheduled EGM on October 29, 2025. However, the tribunal clarified that the main case — regarding whether the rights issue is oppressive or in violation of shareholder agreements — will continue.
The matter has been listed for the next hearing on November 12, 2025.
Why It Matters
- For Byju’s: The decision is a major setback, as its stake in Aakash — one of its few profitable subsidiaries — may shrink significantly.
- For Aakash: The ruling allows the company to move ahead with fundraising, which could stabilise its financial position.
- For Investors: The case highlights how shareholder disputes can influence corporate fundraising decisions and valuations in India’s edtech sector.
Summary Table
| Item | Details |
|---|---|
| Tribunal | NCLT Bengaluru Bench |
| Petitioner | Byju’s (Think & Learn Pvt Ltd) |
| Respondent | Aakash Educational Services Ltd (AESL) |
| Issue | Byju’s sought to stop Aakash’s EGM for rights issue |
| Rights Issue Size | Around ₹500 crore |
| Byju’s Stake in Aakash | Around 25.75% |
| Possible Stake After Issue | Could fall below 5% |
| NCLT Decision | Plea rejected — rights issue allowed to proceed |
| Next Hearing Date | November 12, 2025 |
| Impact | Byju’s sought to stop Aakash’s EGM for the rights issue |
