NCLAT denies Byju’s plea for equity fund raise by Aakash Educational Services

In a setback for Byju’s, the National Company Law Appellate Tribunal (NCLAT) has dismissed the edtech firm’s appeal seeking permission for an equity fund raise by its subsidiary Aakash Educational Services.

The tribunal upheld an earlier National Company Law Tribunal (NCLT) order directing that the shareholding structure of Aakash be maintained as status quo.

The order comes amid a legal tussle with Blackstone, which holds a 6.8% stake in Aakash through its entity Topco. Blackstone had opposed the proposed equity raise, alleging it would erode the rights of minority shareholders.

Byju’s and Aakash had argued that the equity infusion was vital for the company’s continued growth and survival. However, the NCLAT ruled against granting permission, effectively halting any fresh equity transactions in Aakash for now.

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Both Byju’s and Aakash had earlier challenged the NCLT’s interim order, hoping for urgent relief to proceed with fundraising plans, which now remain on hold pending further legal developments.