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News · Education & Skilling

Byju's parent faces legal dispute over ₹240 Cr rights issue with Aakash

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Date
Company
Byju's
What it does
edtech company
Kind
News
Amount
₹240 Cr
Based in
Bengaluru
Sector
Education & Skilling

What they do

Byju's parent company, Think & Learn, is involved in a legal dispute with Aakash Educational Services over a ₹240 crore rights issue

What happened

The dispute centers on the allotment of shares to Think & Learn, which held 25.75% of Aakash before the issue

Why it matters

The two parties have reached a settlement, but the final treatment of Think & Learn's stake in Aakash remains undisclosed

The details

  • Byju's parent company, Think & Learn, is involved in a legal dispute with Aakash Educational Services over a ₹240 crore rights issue.
  • The dispute centers on the allotment of shares to Think & Learn, which held 25.75% of Aakash before the issue.
  • Aakash proposed a rights issue for its existing shareholders in proportion to their holdings.
  • The issue was structured in two tranches, with the first tranche involving ₹100 crore and the second ₹140 crore.
  • Think & Learn was undergoing insolvency proceedings after the Bengaluru NCLT admitted the company into the corporate insolvency resolution process in July 2024.
  • Think & Learn participated in the first tranche by entering into a Debenture Subscription Agreement with Byju’s Alpha Inc., a foreign entity.
  • Think & Learn remitted ₹25.75 crore to Aakash towards its proportionate subscription.
  • Aakash did not allot the corresponding shares to Think & Learn, raising concerns over the source of the funds and their regulatory permissibility.
  • The non-allotment had a direct impact on Think & Learn’s recorded shareholding, which dropped to 10.99% from 25.75%.
  • Think & Learn challenged the position, arguing that the dilution affected its voting rights and ability to participate meaningfully in the rights issue.
  • The dispute moved through the NCLT, NCLAT, and Supreme Court.
  • In October 2025, the NCLAT allowed Aakash to proceed with the fundraising and directed that Think & Learn should be able to subscribe proportionately to maintain its shareholding.
  • In February 2026, the NCLAT allowed Think & Learn to apply for shares up to its original 25.75% entitlement.
  • The Supreme Court gave Think & Learn additional time to participate in the second tranche.
  • In September 2026, the two parties reached a settlement before the NCLT, although the precise treatment of Think & Learn’s Aakash stake has not been publicly disclosed.

The bigger picture

  • The dispute over the rights issue highlights the complexity of corporate governance and regulatory compliance in insolvency proceedings.
  • The rights issue turned a routine capital-raising exercise into a dispute over shareholder rights, regulatory questions, and the value of Aakash within the broader insolvency process.
  • The settlement changes the immediate legal trajectory of the dispute, but the final treatment of Think & Learn’s Aakash shares remains undisclosed.

About the business

  • Byju's is an edtech company that provides online learning platforms for students.
  • Aakash Educational Services is a leading edtech company in India, known for its online learning platforms and test preparation services.
  • Think & Learn is the parent company of Byju's and holds a significant stake in Aakash.
  • Aakash is one of the significant assets within Byju's corporate structure.
  • Think & Learn is undergoing insolvency proceedings after the Bengaluru NCLT admitted the company into the corporate insolvency resolution process in July 2024.

The deal

Type
rights issue

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