Supreme Court Allows Aakash Educational Services to Proceed with ₹240 Crore Rights Issue Amid Byju’s Disputes
Court directs Byju’s parent Think & Learn to subscribe to shares, assures stake protection
Judgment underscores balance between insolvency proceedings and solvent company rights
By Legal Reporter
New Delhi: February 19, 2026:
In a crucial development for India’s education sector, the Supreme Court of India has permitted Aakash Educational Services Ltd (AESL) to go ahead with its ₹240 crore rights issue, despite objections raised by Think & Learn Pvt Ltd, the parent company of edtech giant Byju’s. The apex court’s ruling provides clarity on the fundraising process while ensuring that Byju’s stake in Aakash remains protected until the National Company Law Appellate Tribunal (NCLAT) delivers its final verdict.
Background of the Dispute
- Aakash Educational Services, acquired by Byju’s in 2021 for nearly $1 billion, has been at the center of financial and legal disputes following Byju’s insolvency proceedings.
- Think & Learn, which holds about 25.75% stake in Aakash, challenged the NCLAT’s order allowing Aakash to proceed with the rights issue.
- The rights issue is aimed at raising ₹240 crore to strengthen Aakash’s financial position and support its expansion in the competitive coaching industry.
- Byju’s creditors, including Glas Trust, had earlier opposed the move, citing concerns over dilution of stake and violation of insolvency norms.
[Suggested Resource]
Legal professionals and students alike will benefit from Will Writing Simplified, which covers procedure and case law in detail. Amazon 📘 Buy "Will Writing Simplified" online: 🔹 Flipkart
Also Read: Credit Score as Social Currency: Why Financial Discipline Matters More Than Ever
Supreme Court’s Observations
- A bench of Justices P.S. Narasimha and Alok Aradhe recorded Aakash’s undertaking that Byju’s stake will remain protected until NCLAT decides the pending plea.
- The court directed Think & Learn to subscribe to the rights issue shares by the stipulated deadline, ensuring its participation in the fundraising.
- The judgment emphasized that insolvency proceedings of the parent company should not obstruct the internal financial decisions of a solvent subsidiary.
Why This Matters
- Investor Confidence – The ruling reassures stakeholders that solvent companies can continue fundraising despite parent company insolvency.
- Education Sector Stability – Aakash, one of India’s largest coaching institutes, can now secure funds to maintain operations and growth.
- Legal Precedent – The case sets an important precedent on how courts balance insolvency laws with corporate governance rights.
Broader Implications
- For Byju’s: The ruling provides temporary relief but highlights the ongoing financial stress faced by the edtech giant.
- For Aakash: The rights issue will help the company sustain its competitive edge in medical and engineering entrance coaching.
- For Investors: The assurance of stake protection reduces fears of dilution and strengthens trust in judicial oversight.
Expert Views
Corporate law experts say the Supreme Court’s decision reflects a pragmatic approach, ensuring that solvent subsidiaries are not dragged into insolvency disputes unnecessarily. Financial analysts believe the rights issue will provide Aakash with much-needed liquidity to withstand market pressures.
Also Read: Rajasthan High Court Surprise Inspection Finds 8 Judges Absent in Jodhpur District Court
Conclusion
The Supreme Court’s approval of Aakash Educational Services’ ₹240 crore rights issue marks a significant milestone in the ongoing Byju’s-Aakash saga. By balancing investor protection with corporate autonomy, the court has reinforced the principle that solvent companies must be allowed to pursue legitimate fundraising, even when their parent firms face insolvency challenges.
Keywords for SEO & Faster Searches
- Supreme Court Aakash rights issue
- Byju’s insolvency dispute India
- Aakash Educational Services ₹240 crore fundraising
- NCLAT order Aakash rights issue
- Think & Learn stake protection Aakash
- Corporate governance insolvency India
- Education sector rights issue Supreme Court
Also Read: Madras High Court Declares Consideration for Promotion a Fundamental Right