Mint Explainer: Aakash’s AoA feud—Manipal vs Blackstone and the fight for control
Subscribe to enjoy similar stories. Aakash Educational Services, once a prized acquisition for Byju's, now finds itself mirroring its parent company’s turmoil. At the heart of the crisis is a fierce legal standoff between shareholders, Ranjan Pai’s Manipal Group, and minority stakeholders, including private equity giant Blackstone and the Chaudhary family, Aakash’s original promoters.
The conflict centres on proposed amendments to Aakash’s Articles of Association (AoA), introduced during an extraordinary general meeting (EGM) last year. Minority shareholders have taken the matter to the National Company Law Tribunal (NCLT), alleging these changes are aimed at diluting their stake and eroding governance rights. As tensions mount, Blackstone and other minority investors have rejected Manipal Group’s claim that the AoA restrictions hinder operations, arguing instead that the proposed amendments unfairly undermine their rights and influence.
The outcome of this legal battle will shape Aakash’s governance, liquidity, and ability to raise future funds, with the company grappling with mounting financial pressures, it claims. While Aakash argues that amending the AoA is crucial for securing fresh capital, minority stakeholders fear it will diminish their control and ability to exit. For Blackstone, the stakes are equally high: any amendments could significantly reduce the value of its investment and limit its influence over Aakash’s strategic direction. Mint breaks down the development.
The dispute traces its origins to Byju’s 2021 acquisition of Aakash in a $950 million deal, structured as 70% cash and 30% equity. As part of the agreement, Byju’s was to issue shares of its parent company, Think & Learn Pvt. Ltd, to the
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