BYJU’S parent company, Think & Learn Pvt Ltd, has contested the National Company Law Appellate Tribunal’s (NCLAT) approval of Aakash Educational Services Limited’s (AESL) ₹240 Cr rights issue. The NCLAT’s decision allows Aakash to proceed with the second tranche of its fundraising, despite objections from BYJU’S. AESL shareholders had previously approved a plan to raise ₹240 Cr through a rights issue, with ₹100 Cr in the first tranche and ₹140 Cr in the subsequent tranche. This move could potentially reduce BYJU’S stake in Aakash from 26% to less than 5%, affecting the control BYJU’S acquired in AESL back in 2021 for nearly $950 Mn-$1 Bn.
Ranjan Pai’s family office, a major stakeholder in AESL, was also set to invest an additional ₹250 Cr in the coaching chain through the rights issue. Despite attempts by BYJU’S and Glas Trust to halt the rights issue, the resolution professional of BYJU’S parent company contested Aakash’s capital raise in multiple legal venues, including the NCLT, NCLAT, and the Supreme Court. TLPL even deposited INR 25 Cr to subscribe to the shares under the rights issue, indicating a complex legal and financial battle unfolding in the education sector.
Source: Inc42 Media