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BYJU’S Settles Rights Issue Dispute With Aakash

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BYJU’S Settles Rights Issue Dispute With Aakash

BYJU’S has reportedly reached a settlement with Aakash Educational Services Limited (AESL) over the dispute over the latter’s rights issue.

As per a report by LiveLaw Biz, BYJU’S senior advocate Abhinav Vasisht and senior advocate C K Nandakumar on Aakash’s behalf, informed the NCLT’s Bengaluru about the settlement today. 

The proceedings relate to Aakash’s rights issue, which BYJU’S had challenged before the NCLT, alleging oppression and mismanagement. Amid a financial strain, Aakash had proposed to undertake a ₹500 Cr rights issue. The proposed rights issue could have diluted BYJU’S stake in Akash from 26% to less than 5%, which prompted BYJU’S to contest the rights issue before the NCLT, the NCLAT, and the Supreme Court. 

The development comes months after BYJU’S creditors approved a proposal to settle the long-running dispute over AESL’s shareholding before the Bengaluru bench of the NCLT.

Earlier this month, BYJU’S founder Byju Raveendran proposed relinquishing his shareholding in Aakash to settle Qatar Holding’s arbitration claim of more than $235 Mn against him. The latest proposal further places Aakash at the centre of overlapping disputes over ownership, creditor recoveries, and the future of BYJU’S, which once commanded a valuation of $22 Bn.

Creditors have been separately exploring a broader settlement centred around Aakash as it remains the most valuable surviving asset of the edtech startup. 2 Bn term loan B, represented by GLAS Trust, are said to be in advanced talks to acquire a 30% stake in Aakash, valuing the coaching chain at around $2 Bn.



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