India, Oct. 25 -- In another setback for troubled edtech firm BYJU'S, the NCLT Bengaluru bench has reportedly rejected its plea for an interim stay on Aakash Educational Services Ltd (AESL)'s extraordinary general meeting (EGM).

AESL's board plans to approve a INR 500 Cr rights issue on October 29, which could potentially reduce BYJU'S stake in the company from 25.75% to under 5%, Bar and Bench reported.

BYJU'S, currently undergoing insolvency proceedings, will be unable to participate in the rights issue. To protect its interest in AESL, the edtech giant opposed the EGM, citing violations of its shareholder and veto rights under Part B of the Articles of Association (AoA).

The NCLT bench, comprising Judicial Member Sunil Kumar Aggarwa...