The Supreme Court of India has finalized a critical ruling on Tuesday, February 17, 2026, allowing Aakash Educational Services (AESL) to proceed with its second tranche of a 240 crore INR rights issue. The court has granted Byju’s parent company, Think & Learn (TLPL), exactly one week to subscribe to the shares, setting a final deadline for next Monday, February 24, 2026. This move follows a protracted legal battle where TLPL challenged the fundraising, alleging that it would lead to a significant dilution of its holding. Currently, Aakash is raising 140 crore INR in this second phase to meet operational expenses for its 350,000 students and 10,000 employees. To balance the interests of the bankrupt parent company, the court recorded an assurance from Aakash that 25.75% of Byju's stake will remain secured until the National Company Law Appellate Tribunal (NCLAT) makes a final decision. This legal protection is vital as TLPL’s shareholding in Aakash had already been reflected as dropping to 10.99% in earlier notices, down from its original 25.75%. The dispute intensified after Aakash previously withheld share allotments to Byju's, citing concerns over the foreign source of funds and potential violations of exchange laws. The broader Indian edtech market continues to show resilience despite these corporate disputes. The sector is projected to reach a valuation of 10.4 billion USD by the end of 2025 and 33.3 billion USD by 2034. Aakash remains a top performer in the test preparation segment, which is growing at a compound annual rate of nearly 28%. The Manipal Group, led by Ranjan Pai, now holds a dominant position in Aakash with an estimated 58% stake. This shift in power occurs as Think & Learn remains under insolvency proceedings, triggered by unpaid dues of 158 crore INR originally owed to the BCCI. Investors are closely monitoring whether Byju’s can arrange the necessary capital from overseas before the Monday deadline to prevent further dilution. The court's ruling ensures that while Aakash gains the liquidity it needs to operate, the underlying asset value for Byju’s creditors remains protected during the insolvency process. [Aakash Rights Issue Dispute](https://www.youtube.com/watch?v=nX_ey6eADEk) This video provides an in-depth analysis of the high-stakes insolvency battle involving Byju's and Aakash, explaining the roles of key players like the Manipal Group and the impact of the rights issue on the company's valuation. http://googleusercontent.com/youtube_content/0