The National Company Law Appellate Tribunal (NCLAT) on Tuesday rejected a plea by US-based Glas Trust challenging Aakash Educational Services Ltd’s 29 October extraordinary general meeting (EGM) to approve a rights issue.
Aakash’s board has proposed the rights issue to raise its authorized share capital.
On Monday, the trustee for lenders to which Byju’s owes $1.2 billion moved the appellate tribunal, alleging that the proposed capital increase would reduce the shareholding of the edtech giant’s parent, Think & Learn Pvt. Ltd (TLPL), from around 25% to 5%, significantly diluting its value in the subsidiary.
To be sure, Byju’s is undergoing insolvency proceedings. Glas Trust is the principal member of the committee of creditors (CoC),…