India, Nov. 3 -- In another major setback to BYJU'S, the Supreme Court (SC) has now dismissed petitions filed by the company and its lender Glas Trust to block Aakash from proceeding with a rights issue.

The verdict clears the way for Aakash to undertake its rights issue, a move that will dilute BYJU'S stake in Akash from 25.75% to less than 5%. To safeguard its stake in Aakash, BYJU'S and Glas Trust had unsuccessfully moved the NCLT and NCLAT to halt the rights issue.

Last month, Aakash's shareholders approved an increase in the company's authorised share capital, a prerequisite to the rights issue. It will be eyeing the raise of INR 200 Cr from the issue. The company has maintained that the fresh funds are crucial for its sustenance....