Aakash Educational Services (AESL) on Wednesday said its shareholders have approved a proposal to increase the company’s authorised share capital, a move that paves the way for a planned rights issue.
The approval was passed at an Extraordinary General Meeting (EGM) and follows a recent “green signal” from the National Company Law Appellate Tribunal (NCLAT), the company said in a statement.
At the EGM, the resolution professional (RP) representing Think & Learn, parent entity to Byju’s, which holds a 25.54% stake in AESL, raised objections to the resolution. The RP cited ongoing legal proceedings before the NCLAT and NCLT which challenge certain board decisions, including the rights issue, the statement added.
Responding to the concerns, AESL Chairman Shailesh Vishnubhai Haribhakti stated that the capital increase and the rights issue are “critical for ensuring the continuity and stability of Aakash’s operations.” He added that the move “ultimately serve the best interests of TLPL by preserving the value of its equity holding in Aakash.”
“The situation of Aakash is such that, in the interest of Think & Learn, the rights issue is the only way that Aakash can continue its ongoing operations,” Haribhakti said, urging the RP to place the matter before TLPL’s Committee of Creditors (CoC).
Despite the objections, the resolution was approved by the requisite majority of shareholders present and voting, the statement added.