New Delhi, Dec. 1 -- Crisis-hit Aakash Educational Services Ltd (AESL) thought a Rs.250-crore rights issue would be its big reset after senior exits and a swing to losses in FY23. The test-prep chain, once a profit engine for Byju's, needs fresh capital to steady operations and fund growth.

The board opened the first Rs.100-crore tranche to existing investors, including all major shareholders, such as Think & Learn Pvt. Ltd (TLPL), wiring their proportional amounts. However, AESL has now put TLPL's Rs.25-crore allotment on hold, stating that the funds do not comply with Foreign Exchange Management Act (Fema), the Companies Act, and External Commercial Borrowings (ECB) rules.

Mint explains what that dispute means for the rights issue its...