Aakash Rights Issue Reportedly Faces Questions Over Byju's Ex-Billionaire Founder's Indirect Influence
The biggest sticking point of the Beeaar Investco investment in Aakash's fundraise is that the firm is already in a legal battle with the Qatar Investment Authority (QIA).
Byju Raveendran, the founder of India's fallen unicorn, BYJU's, has once again found himself in the thick of things, following a recent investment by one of his wholly-owned firms in Aakash Educational Services Ltd.'s recent Rs 250 crore fundraising efforts, reports Mint.
Beeaar Investco Pte. Ltd, a Singapore-based firm wholly owned by Byju Raveendran, has subscribed to Rs 16 crore worth of rights in Aakash's issue. This move has raised many eyebrows, as it comes against the backdrop of Aakash’s board freezing a separate Rs 25 crore subscription from AESL's parent company, Think & Learn Pvt. Ltd. (TLPL), due to concerns over foreign exchange compliance.
Nevertheless, it is Byju's investment that has cast a legal shadow over Aakash's fundraising plans.
The biggest sticking point of the Beeaar Investco investment in Aakash's fundraise is that the firm is already in a legal battle with the Qatar Investment Authority (QIA).
QIA's arm, Qatar Holdings, has alleged that Byju Raveendran transferred 17.89 million Aakash shares—previously pledged as collateral for a $150 million loan—to Beeaar in violation of their agreement.
As a result of the violation, Qatar Holdings orchestrated a worldwide asset freeze against Byju Raveendran and his entities of up to $235 million. Qatar Holdings is also petitioning the Karnataka High Court to enforce this arbitration award in India.
In court filings, the sovereign fund has described Beeaar as a "look-through vehicle" for Raveendran, pointing out that he owns 100% of the firm's shares. This effectively links Beeaar’s holdings to the frozen assets, the firm says.
However, legal experts cited in the report suggests that Beeaar’s participation in the rights issue does technically adhere to corporate law as it is a separate legal entity. But the firm sits in a precarious zone nonetheless.
The entire fiasco adds to the turmoil at Aakash, which is currently majority-owned by the Manipal Group following a strategic shift.
The test-prep firm has been going through a period of uncertainty as well, with CEO Deepak Mehrotra notably stepping down in August.
