Byju's Stake in Aakash Plunges to 5% After SC Rejects Plea on Rights Issue

The Supreme Court on Monday dismissed an appeal filed by US-based GLAS Trust Company LLC against the rights issue proposed by Aakash Educational Services Ltd (AESL). As per the news reports, the decision allows Aakash to go ahead with its capital raise, which will reduce Byju’s parent company Think & Learn Pvt Ltd’s (TLPL) shareholding from 25.75% to below 5%.

Background

Think & Learn is currently undergoing insolvency proceedings and cannot participate in the rights issue. GLAS Trust, representing Byju’s US-based lenders, had approached the National Company Law Appellate Tribunal (NCLAT) after the National Company Law Tribunal (NCLT) refused to stop Aakash from holding its meeting. 

The NCLAT rejected the plea on October 28, leading to an appeal before the Supreme Court, which upheld the earlier order.

Tribunal’s Findings

The NCLAT bench, led by Justice N. Seshasayee, observed that the Insolvency and Bankruptcy Code (IBC) could not be used to halt the operations of a solvent subsidiary. The order stated that the value of Byju’s investment “cannot be preserved if the subsidiary is commercially killed.” The tribunal added that companies in which an insolvent entity holds shares should be allowed to continue their business independently.

EGM and Voting Outcome

Following the tribunal’s order, Aakash conducted an extraordinary general meeting (EGM) on October 29, 2025, to increase its authorised share capital. The meeting was attended by all 11 shareholders, including Byju’s resolution professional. 

Despite objections, the proposal was approved by the required majority. The rights issue is aimed at raising funds to support operations, as banks have been unwilling to extend further credit amid the ongoing disputes.

Company’s Position

Aakash has stated that the funds are required to manage expenses and maintain continuity for its 3.7 lakh students and 10,000 employees. The company also said that the decision was in line with protecting existing investments and sustaining day-to-day operations.

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Conclusion

The Supreme Court’s dismissal of GLAS Trust’s appeal ends months of litigation and allows Aakash Educational Services to proceed with its rights issue. The order clears the way for the company to raise funds while Byju’s stake falls below 5%.

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