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Tag: AESL

  • Glas Trust’s Bid in the Minority Rights Lawsuit Opposed by the Aakash & Manipal Group

    According to reports, Aakash Education Services Limited (AESL) and its majority investors have requested the National Company Law Tribunal (NCLT) to deny Glas Trust’s request to join a lawsuit that aims to prevent the coaching chain from taking away the minority owners’ reserved rights. The coaching division of struggling edtech BYJU’S, private equity (PE) firm Blackstone, and Ranjan Pai’s Manipal Education & Medical Group presented the argument to the tribunal on February 12, according to a media report.

    This occurred during the NCLT’s consideration of a petition from Aakash’s minority shareholders, who assert that the coaching chain is attempting to “remove their rights” and grant special rights to Manipal Education & Medical Group (which holds a 40% stake in AESL). However, since the insolvency-plagued edtech firm is a minority shareholder in Aakash, Glas Trust, which represents BYJU’S’s US-based creditors, wishes to be a party to the case. As both parties (AESL and minority shareholders) had made their cases during the hearing, AESL’s attorney reportedly asked the tribunal to postpone making a decision.

    Argument Presented in Front of NCLT

    The motion was denied by NCLT, which stated that Glas Trust had not yet presented its case. According to reports, Aakash’s attorney, CK Nandakumar, contended that they waited until the session was almost over before saying, “No, no, we have something to say.” They ought to have spoken sooner if they had anything to say. “They have nothing to do with me,” he added. Why are they delaying the hearing on my vacate application if that is the case? Regarding this case, this individual is an absolute stranger.

    According to reports, senior counsel Srinivasa Raghavan, speaking on behalf of Glas Trust, contended that BYJU’s insolvency process would be impacted by the withdrawal of minority shareholder rights because the edtech firm would “lose control” of its lucrative affiliate (AESL). “The representative of Think & Learn (BYJU’S parent) must give their explicit assent to every board resolution.

    Only with the presence of a Think & Learn representative can a quorum be created for each shareholders’ meeting. According to reports, Raghavan stated before the NCLT, “Now, the entire set of articles that control Think & Learn over Aakash is being sought to be removed.”

    Further Argument on EGM

    The extraordinary general meeting (EGM) held by Aakash in November 2024 was also questioned by Glas Trust’s attorney at the hearing, who claimed that the resolution adopted there was void. Citing his justification, Raghavan argued that because the edtech was already in the insolvency process, the promoters of BYJU’S attended the EGM on behalf of Think & Learn rather than the resolution specialist. In response, the NCLT asked Aakash to describe how the resolution was approved despite an unauthorised individual attending the meeting.

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  • Aakash Supposedly Discontinues its Digital School Initiative Following Layoffs

    According to reports, Aakash Digital Classroom Program (AD-CRP), a digital classroom initiative, has been discontinued by Aakash Educational Services Limited (AESL). This occurs in the middle of the company’s recent layoffs.

    The AD-CRP team, which was formerly a part of Byju’s—which acquired Aakash in April 2021—has now been merged into Aakash’s sales system, according to a report published by a media outlet. This action implies a change in Aakash’s approach, with the company giving priority to its offline presence and growing its network of physical branches.

    Previous reports from August and September detailed layoffs at Aakash that affected middle and senior management as well as a few long-term workers. The remaining AD-CRP team members were given the option to work for Aakash in their offline outlets or were integrated into their call centre model. Individuals who turned down these offers were let go or resigned.

    This reorganisation suggests that Aakash may be changing how it prepares for tests. Although the corporation still maintains its online resources, the recent programme shutdown and layoffs indicate that they are putting more of an emphasis on fortifying its sales network and physical infrastructure.

    Students May Face Challenges

    Due to the abrupt termination, students who had registered in the AD-CRP program might encounter difficulties. Regarding the termination of the AD-CRP initiative and the justification for this tactical change, Aakash has not yet made an official statement.

    According to sources, layoffs have not ceased for the previous two weeks. Since associates made up the majority of the AD-CRP team, associate layoffs have occurred most frequently. A few also came from the ranks of manager and senior manager.

    January marks the start of the new season. For the last six and a half months of revenue, they have been spending on AD-CRP team. All of them have now been let go, regardless of their performance. They stated that they were done with this function in Aakash. Byju’s paid $940 million to acquire Aakash in April 2021. During a hearing before the National Company Law Tribunal in March of this year, Think and Learn, the parent company of Byju, and Aakash withdrew their merger motion.

    Why Merger With Byju’s Was Withdrawn?

    Aakash Educational Services Ltd (AESL) and Byju’s have opted to withdraw their merger application, citing it as a pre-planned procedural move. When Byju’s first purchased Aakash in April 2021, the plan was to combine the two businesses in a $940 million cash and equity transaction. The Chaudhry family, who founded AESL, opposed completing the share swap, citing issues about governance, which put obstacles in the way of the merger. Byju’s has to contend with a parallel ‘oppression and mismanagement case’ brought by investors, which affects its operational and financial choices.

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