NCLT Denies Byju's Plea Amidst AESL Rights Issue Conflict

In a significant development, the National Company Law Tribunal (NCLT) has declined to grant Byju's interim relief, which sought to block Aakash Educational Services Ltd (AESL) from proceeding with its extraordinary general meeting (EGM) on October 29, 2025. The meeting aims to address a rights issue that could dilute Byju's ownership stake in AESL.

The Tribunal concluded that Byju's request lacked merit, noting that the appeal could negatively impact AESL's independent rights. Byju's ownership in AESL could drop from 25% to under 5% following the rights issue, affecting its position as a major shareholder.

The two-member NCLT bench, which included Radhakrishna Sreepada and Sunil Kumar Aggarwal, pointed out that a similar petition is still under consideration. During a forthcoming hearing scheduled for November, all pending issues will be addressed. Meanwhile, AESL plans to proceed with the EGM as banks hesitate to extend loans amidst existing shareholder disputes.