The Supreme Court on Monday dismissed the petitions filed by Think and Learn’s resolution professional and Glas Trust, representing the edtech company’s US lenders, challenging Aakash Educational Services’ decision to carry out a rights issue.
On October 29, Aakash said that its shareholders had approved a proposal to raise the company’s authorised share capital, a key step before conducting a rights issue.
This will reduce the shareholding of Byju's parent, from 25.75% to less than 5%.
The company plans to raise funds to support its operational needs.
This was earlier objected by both the petitioners in the NCLT and the appellate tribunal, however the appeals were dismissed.
Glas Trust which holds 99.41% voting share in the committee of creditors (CoC) of Think & Learn, had said that Aakash’s rights issue was not driven by genuine business necessity but was instead an orchestrated effort to drain Byju’s value and circumvent the status quo order.
Byju’s, which is currently undergoing insolvency proceedings, acquired Aakash Institute for $950 million in 2021. Currently, Ranjan Pai’s Manipal Education and Medical Group is the largest shareholder in Aakash with around 58% stake.
On October 29, Aakash said that its shareholders had approved a proposal to raise the company’s authorised share capital, a key step before conducting a rights issue.
This will reduce the shareholding of Byju's parent, from 25.75% to less than 5%.
The company plans to raise funds to support its operational needs.
This was earlier objected by both the petitioners in the NCLT and the appellate tribunal, however the appeals were dismissed.
Glas Trust which holds 99.41% voting share in the committee of creditors (CoC) of Think & Learn, had said that Aakash’s rights issue was not driven by genuine business necessity but was instead an orchestrated effort to drain Byju’s value and circumvent the status quo order.
Byju’s, which is currently undergoing insolvency proceedings, acquired Aakash Institute for $950 million in 2021. Currently, Ranjan Pai’s Manipal Education and Medical Group is the largest shareholder in Aakash with around 58% stake.
