Aakash Education Halts Byju’s ₹25 Cr Allotment Over FEMA Concerns
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Updated November 28, 2025, 06:47:03 AM PST
Background: AESL’s Recent Rights Issue
Aakash Educational Services Limited (AESL) recently completed a ₹100-crore rights issue, successfully allocating shares to the Manipal Group and Beeaar Investco Pte Ltd. The Manipal Group invested ₹58 crore,reflecting their 58.8% shareholding,while Beeaar investco contributed ₹16 crore,proportionate to their 16% stake.economic Times reported on the completion of this rights issue on November 15, 2025.
However, the AESL board has deferred the allotment of shares to Think & Learn Pvt Ltd (TLPL), the parent company of Byju’s. This decision stems from concerns that the ₹25 crore remitted by TLPL does not adhere to the Foreign Exchange Management Act (FEMA), the Companies act, 2013, or the guidelines governing external commercial borrowings (ECB). These regulations govern foreign investment and lending in India.
According to sources familiar with the matter, the AESL board sought Livemint, legal opinions before making the decision, indicating a cautious approach to ensure full compliance.
regulatory Scrutiny and Pending Adjudication
TLPL is currently undergoing corporate insolvency proceedings at the National Company Law Tribunal (NCLT) in Bengaluru. The board has decided to await the NCLT’s adjudication of the pending issues before proceeding with the share allotment to TLPL. The ₹25 crore deposited by TLPL is expected to be held in a separate, interest-bearing account until a final decision is reached by the NCLT.
This delay highlights the increased scrutiny faced by Byju’s and its financial dealings, especially concerning foreign investments and debt management. The NCLT proceedings are crucial in determining the future of TLPL and its investments.
Future Fundraising: Another Rights Issue Planned
Despite the TLPL situation, AESL is proactively planning for future capital needs. The company has indicated its intention to initiate another rights issue, aiming to raise an additional ₹140 crore. This suggests confidence in AESL’s growth prospects and a need for further investment to support its expansion plans.