BYJU's parent Think & Learn is set to hold around 32% in Aakash Educational Services after a settlement of its shareholding dispute with the coaching company
The settlement could reshape Aakash’s ownership structure amid ongoing insolvency proceedings and Qatar Holding’s efforts to recover over $235 Mn from Byju Raveendran
The development follows litigation over Aakash’s ₹240 Cr rights issue, an NCLT order on disputed assets auctioned by Think & Learn, and Raveendran’s proposal to relinquish his beneficial interest in Aakash
Think & Learn Pvt Ltd (TLPL), the insolvent parent of BYJU’S
, is set to hold around 32% in Aakash Educational Services once a settlement resolving its long-running shareholding dispute with the coaching company is fully implemented.
According to an ET report, the stake will be higher than the roughly 25.75% TLPL held before Aakash’s ₹240 Cr rights issue became the subject of litigation last year. TLPL’s recorded shareholding fell sharply after Aakash withheld a portion of the shares it had subscribed for.
The settlement will include allotment of rights issue shares as well as transfer of existing shares to TLPL, the report said, adding that there would be no cash consideration for the deal between TLPL, Aakash, and the coaching institute’s investor Manipal Group.
Aakash and Manipal Group declined to comment on Inc42’s queries regarding the development.
This comes a month after the Bengaluru bench of the National Company Law Tribunal (NCLT) directed TLPL’s resolution professional (RP) and successful bidder Comprint Tech Solutions (India) to maintain status quo on assets auctioned by TLPL amid a dispute over their ownership.
The Tribunal’s order followed claims by the RP of another BYJU’s group entity, BYJU’s K3 Education, that goods worth around ₹150 Cr had been auctioned for about ₹16 Cr. K3’s RP argued that the company had a substantial stake in the assets and that their further disposal could leave it without assets to continue its corporate insolvency resolution process (CIRP).
TLPL’s RP disputed the claim, arguing that TLPL had procured the hardware and owned the educational content stored on the devices. The NCLT observed that neither side had produced sufficient documentary evidence to conclusively establish ownership.
The Tribunal directed Comprint to submit an inventory of the purchased assets, photographs and their storage address. TLPL’s RP was also asked to provide details of the assets, their valuation and the auction process. The NCLT has not cancelled the auction or made a final determination on ownership.
The dispute stems from separate insolvency proceedings against TLPL and K3 Education. TLPL entered insolvency proceedings in July 2024 after the Board of Control for Cricket in India (BCCI) approached the tribunal over unpaid sponsorship dues of around ₹159 Cr.
K3 Education is facing a separate insolvency process following a Section 9 petition filed by operational creditor Kritikal Solutions.
Last month, Byju Raveendran reportedly proposed relinquishing his claimed beneficial interest in 17.89 Mn Aakash shares to settle Qatar Holding’s arbitration claim of over $235 Mn against him.
The shares, held through Singapore-based Beeaar Investco Pte, represent about 5.7% of Aakash’s equity. They were acquired in 2022 using $150 Mn in financing extended by Qatar Holding, owned by the Qatar Investment Authority (QIA), to Raveendran’s Singapore-based investment vehicle, BYJU’s Investments Pte Ltd (BIPL). Raveendran personally guaranteed the financing.
Qatar Holding terminated the financing agreement after alleging defaults by BIPL and demanded more than $235 Mn, including early termination fees and penalties. It also alleged that the Aakash shares had been transferred to Beeaar, which it claims is beneficially owned by Raveendran, in violation of the agreement.
The proposed settlement involving Aakash shares could affect the coaching company’s ownership structure and Qatar Holding’s recovery efforts. However, the settlement terms and the extent to which they would address the fund’s claims remain unclear.
Source: Inc42
