NCLAT Greenlights Aakash's Rights Issue Amidst Byju's Insolvency Dispute

The National Company Law Appellate Tribunal (NCLAT) has allowed Aakash Educational Services Ltd to proceed with its Extraordinary General Meeting (EGM) for a rights issue, despite objections from Glas Trust, which is related to the insolvency case of Byju's parent company. Glas Trust's application was dismissed.

The National Company Law Appellate Tribunal (NCLAT) has paved the way for Aakash Educational Services Ltd (AESL) to conduct its Extraordinary General Meeting (EGM) concerning a rights issue. This decision was made despite pushback from Glas Trust, a leading creditor in the insolvency proceedings involving Think & Learn Pvt Ltd, the parent company of the edtech giant Byju's.

A two-member bench of the tribunal dismissed the interim application put forth by Glas Trust, citing insufficient grounds. This allows AESL's EGM, slated for October 29, 2025, to proceed as planned. Shareholders during this meeting will have the task of voting on the rights issue, aimed at raising capital for the company.

The legal tussle highlights the complexities of corporate insolvency resolution processes, with Glas Trust, which holds a significant 90% of voting power in Byju's Committee of Creditors, seeking to contest changes that might dilute its stake through AESL's financial maneuvers. The broader implications for Byju's will be keenly monitored as the situation develops.

(With inputs from agencies.)