Aakash shareholders approve share capital increase ahead of rights issue

Aakash Educational Services on Wednesday said its shareholders have approved a proposal to raise the company’s authorised share capital, a key step before conducting a rights issue.

The company plans to raise funds to support its operational needs.

The proposal was recommended by its board of directors on October 4.


The company conducted an extraordinary general meeting (EGM) after the National Company Law Appellate Tribunal (NCLAT) on Tuesday dismissed a petition seeking a stay on the EGM filed by Byju’s parent firm Think and Learn’s resolution professional (RP), along with its US lenders.

Glas Trust, which represents Byju’s US lenders, argued that the proposed rights issue would reduce Think and Learn’s stake in the coaching centre operator from 25.75% to around 5%, since the company, currently facing insolvency proceedings, cannot participate in the issuance of new shares.

The appellate tribunal, however, noted that the bankruptcy law (IBC) does not allow interference in a company’s business just because it is a subsidiary of another firm going through insolvency.

According to Aakash, the EGM was attended by all eleven shareholders including the RP of Think and Learn.

During the meeting, Shailesh Vishnubhai Haribhakti, chairman of Aakash, said the proposed increase in authorised share capital and the rights issue are critical for ensuring the continuity and stability of Aakash’s operations, the company said.

Byju’s 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.