Byju’s Parent Uses Great Learning Loan Repayment to Fund Aakash Rights Issue

Think & Learn Private Limited (TLPL), the bankrupt parent of edtech company Byju’s, used part of a loan repayment received from Great Learning Education Services to subscribe to Aakash Educational Services’ rights issue. The transaction, reported by The Economic Times on October 20, 2026, highlights how the financially distressed company is attempting to preserve its interest in Aakash, one of the most significant remaining assets connected to the Byju’s group.

Great Learning repaid a ₹160 crore loan that it had received from TLPL, and a portion of the money was subsequently used for the Aakash subscription, according to people familiar with the matter. The exact amount deployed toward the rights issue has not been disclosed. The development comes after a prolonged dispute over Aakash’s fundraising plan, which threatened to dilute TLPL’s shareholding while the parent company was undergoing insolvency proceedings.

Key Takeaways

• Loan repayment: Great Learning repaid a ₹160 crore loan previously extended by Byju’s parent, Think & Learn.
• Use of funds: TLPL used part of the repayment to subscribe to Aakash Educational Services’ rights issue.
• Amount unclear: The precise portion of the repayment used for the subscription has not been publicly disclosed.
• Rights issue: Aakash launched a ₹240 crore fundraising plan in two tranches of ₹100 crore and ₹140 crore.
• Shareholding dispute: TLPL held about 25.75% of Aakash before the rights issue, while its recorded holding later fell to 10.99% during the dispute.
• Settlement: TLPL, Aakash, Manipal Education and other parties reached a settlement recorded in a September 28 NCLT order.
• Main implication: The transaction shows why Aakash’s ownership remains important to Byju’s insolvency and potential creditor recoveries.

How Byju’s Parent Used Great Learning’s Loan Repayment

Great Learning Education Services, an upskilling and professional education company that was once part of the wider Byju’s ecosystem, had borrowed ₹160 crore from TLPL. According to Great Learning’s financial statements cited in reporting, the unsecured loan carried an annual interest rate of 6.25%.

The repayment schedule included ₹100 crore due by July 25, 2025, and another ₹60 crore due by November 30, 2025. TLPL had also made a further ₹90 crore lending facility available to Great Learning, but that additional facility remained undrawn.

The repayment returned money to TLPL at a time when the company was facing financial distress and insolvency proceedings. Rather than leaving the entire sum unused, the company used a portion of the recovered funds to participate in Aakash’s rights issue.

However, the available reporting does not establish exactly how much of the ₹160 crore was deployed toward the subscription. It would therefore be inaccurate to suggest that the entire loan repayment went into Aakash or to assign a precise amount to the investment.

The transaction is significant because it demonstrates how funds recovered from an earlier lending arrangement were used to support another investment within the broader corporate ecosystem. It also illustrates the importance of liquidity management for a company trying to preserve assets while navigating insolvency.

Why Aakash Is Important to Byju’s

Aakash Educational Services operates a network of coaching centres that prepare students for competitive examinations, including medical and engineering entrance tests. Unlike the predominantly digital learning model associated with Byju’s, Aakash has a substantial offline education business.

Byju’s acquired Aakash in 2021 in a transaction valued at approximately $1 billion. The acquisition was part of the group’s expansion strategy, which sought to combine digital learning products with classroom-based education and examination preparation.

Aakash subsequently became one of the most strategically important businesses in the wider Byju’s ecosystem. Its physical centres, established brand and student demand make it a distinct asset compared with businesses that rely heavily on digital subscriptions and online customer acquisition.

The ownership structure has changed over time. Manipal Education and Medical Group became Aakash’s largest shareholder, while TLPL retained a significant minority holding before the rights issue dispute.

For an insolvent company, an investment in another operating business can be important for creditor recovery. The value of the holding may influence how much money creditors could ultimately recover, although the amount that can be realised depends on the actual ownership interest, valuation, legal restrictions and potential buyers.

Preserving the Aakash stake was therefore not merely a question of maintaining influence over an education company. It was also connected to the value of assets available within TLPL’s insolvency process.

Aakash’s ₹240 Crore Rights Issue Triggered a Shareholding Dispute

Aakash proposed a ₹240 crore rights issue to raise additional capital from existing shareholders in proportion to their holdings. The fundraising was structured in two tranches: ₹100 crore in the first tranche and ₹140 crore in the second.

A rights issue gives existing shareholders an opportunity to purchase additional shares. When a shareholder does not subscribe to its entitlement, or when its subscription is not accepted and shares are not allotted, its ownership percentage can decline as new shares are issued to others.

TLPL held approximately 25.75% of Aakash before the rights issue. Because TLPL was undergoing insolvency proceedings, its participation required additional scrutiny, including questions about the source and regulatory permissibility of the funds used for the subscription.

The dispute intensified after TLPL remitted ₹25.75 crore toward its proportionate subscription in the first tranche. Aakash did not allot the corresponding shares, raising concerns about the source of the funds and whether they could legally be used for the investment.

As the fundraising proceeded, a notice for the second tranche reflected TLPL’s stake at 10.99%, down from its earlier holding of about 25.75%. TLPL challenged the position, arguing that the dilution affected its voting rights and ability to participate meaningfully in the issue.

The 10.99% figure reflected the position during the dispute. It should not be treated as confirmation of TLPL’s final ownership after the settlement, because the precise commercial terms and final treatment of the shares have not been publicly disclosed.

How the Courts Became Involved

The dispute moved through the National Company Law Tribunal, the National Company Law Appellate Tribunal and the Supreme Court.

The central questions involved TLPL’s right to participate in the rights issue, the treatment of its shareholding and the regulatory status of the funds it proposed to use. The proceedings also raised concerns about whether the fundraising could reduce the value available to Byju’s creditors.

In October 2025, the NCLAT allowed Aakash to proceed with the fundraising while directing that TLPL should be able to subscribe proportionately to maintain its shareholding. The dispute continued as Aakash moved ahead with the second tranche.

In February 2026, the Supreme Court recorded Aakash’s undertaking that TLPL’s 25.75% shareholding as of January 3, 2025, would remain secured pending further consideration by the NCLAT. The Court also allowed TLPL additional time to participate in the second tranche.

These proceedings show that the dispute was not simply about whether Aakash needed more capital. It concerned the interaction between corporate fundraising, shareholder rights, insolvency restrictions and the interests of creditors.

The parties subsequently reached a settlement. On September 28, 2026, an NCLT order approved a settlement involving TLPL, Aakash, Manipal Education and other parties, with the order recording the use of part of the funds received from Great Learning.

Although the settlement resolved a major point of litigation, the final commercial terms relating to TLPL’s Aakash shares have not been publicly disclosed in the reporting available as of October 20.

What the Transaction Means for Byju’s Creditors

Byju’s financial distress has created a complicated process for identifying, preserving and realising assets that could be used to repay creditors.

TLPL’s Aakash holding is relevant because the investment may represent an important source of value within the insolvency estate. A larger and more valuable shareholding could potentially provide greater scope for recovery than a smaller minority interest, although the eventual amount depends on valuation, ownership rights and the ability to sell or otherwise monetise the stake.

The Great Learning repayment adds another layer to that process. Money recovered from a loan can improve liquidity, but its use remains subject to the company’s financial position and applicable insolvency rules.

The transaction does not, by itself, establish how much creditors will recover or whether the Aakash investment can be sold. It also does not mean that the rights issue or the settlement has resolved all of Byju’s outstanding financial disputes.

Creditors will continue to focus on the assets available to TLPL, their legal status and the practical steps required to convert those assets into recoverable value.

Why Great Learning’s Repayment Matters

Great Learning was once part of Byju’s expansion into professional education and upskilling. Its repayment of the ₹160 crore loan illustrates the financial links that can persist between businesses after a corporate group changes ownership or enters distress.

The loan was unsecured, meaning it was not backed by specified collateral in the same way as a secured loan. The repayment therefore returned funds to TLPL without relying on a particular pledged asset, based on the terms reported in Great Learning’s financial statements.

The repayment schedule also shows that the money was associated with obligations that fell due in 2025. Its eventual recovery provided liquidity that TLPL could use in connection with the Aakash rights issue.

However, the transaction should not be interpreted as proof that Great Learning’s wider business or financial position has been fully resolved. It relates to a particular loan repayment and the subsequent use of a portion of the funds.

The broader lesson is that the financial consequences of Byju’s expansion phase continue to influence the company’s remaining businesses, investments and creditors, even as the group undergoes insolvency-related restructuring.

The Bigger Picture

The use of Great Learning’s loan repayment to support Aakash’s rights issue highlights the importance of the coaching business within Byju’s remaining asset base. Aakash’s offline operations and established position in competitive-exam preparation make its ownership particularly relevant as TLPL seeks to preserve value during insolvency.

At the same time, the episode demonstrates how fundraising decisions can become complex when a shareholder is insolvent. The rights issue raised questions about funding sources, allotment of shares and creditor interests, requiring intervention through multiple legal proceedings. Although the settlement marks progress, the final ownership structure and recoverable value remain important unanswered questions.

Looking Ahead

The next important development will be clarity on how the September settlement is implemented and what stake TLPL ultimately retains in Aakash. The amount of Great Learning’s repayment used for the rights issue has not been disclosed, and the available reporting does not establish the final treatment of the disputed shares. Those details will help determine how the transaction affects the value of TLPL’s remaining assets.

For creditors, the focus will remain on the assets available for recovery and the extent to which those assets can be converted into cash under the insolvency process. For Aakash, the rights issue provides a route to raise capital for its business, but the wider implications for ownership and governance will depend on the settlement’s final terms and any further legal or regulatory steps.

Frequently Asked Questions

1. How much did Great Learning repay to Byju’s parent?

Great Learning Education Services repaid a ₹160 crore loan previously extended by Think & Learn Private Limited, the parent of Byju’s.

2. How much of the repayment went into Aakash’s rights issue?

The exact amount has not been publicly disclosed. Reporting says TLPL used part of the repayment to subscribe to Aakash Educational Services’ rights issue.

3. What was Aakash’s rights issue size?

Aakash proposed a ₹240 crore rights issue, structured in two tranches: ₹100 crore and ₹140 crore.

4. Why did Byju’s parent dispute the rights issue?

TLPL held about 25.75% of Aakash before the issue and sought to participate proportionately. The dispute involved the non-allotment of shares, concerns about the source of subscription funds and the effect of dilution on TLPL’s ownership and creditor recovery.

5. What is the status of the Aakash shareholding dispute?

The parties reached a settlement recorded in an NCLT order dated September 28, 2026. The precise commercial terms and final treatment of TLPL’s Aakash shares have not been publicly disclosed.

6. Why is Aakash important to Byju’s creditors?

Aakash is a significant operating business linked to Byju’s. The value of TLPL’s shareholding could affect the assets available for creditor recovery, although the final amount depends on ownership, valuation and the insolvency process.