Virtual Global Education Limited approved the sale or disposal of its subsidiary, Shikshan School Private Limited, during its board meeting held on October 21, 2026. The company disclosed that the subsidiary contributed no turnover or revenue in the last financial year.

The transaction will proceed after identifying a suitable prospective buyer, with the final price determined by a Registered Valuer. The company confirmed that the sale does not constitute a Related Party Transaction and is not part of any Scheme of Arrangement. Completion depends on the time taken for buyer identification and regulatory approvals.

Preferential Issue Details

To augment financial resources, the board also approved the issuance of up to 42,00,00,000 fully convertible warrants at ₹1 per warrant, raising up to ₹42 crore. These warrants will be allotted to promoters and non-promoter public category investors in one or more tranches. Upon allotment, 25% of the total issue size will be called upfront from the proposed allottees. The tenure of the warrants shall not exceed 18 months from the date of allotment.

The proposed allottees include Shree Assets Reconstruction Limited (promoter group) and various public category entities such as Green Open Technologies Private Limited, Saroj Goyal, Ram Gopal Goyal, Gajanand Gupta, Anita Gupta, and others.

Leadership Changes and Audit Concerns

The board accepted the resignation of Mr. Gaurav Garg as Chief Financial Officer effective October 21, 2026. Concurrently, Mr. Krishan Bansal was appointed as the new CFO and Executive Director. Mr. Bansal brings over 30 years of experience in finance, accounts, and corporate compliance across government and corporate sectors.

The statutory auditor, Asha & Associates, flagged material financial irregularities identified in a special audit for Q2FY27 results. These include ₹88.18 lakh misappropriated by the former CFO, Mr. Ankit Sharma. The auditor noted that no provision was made for this loss in the financial statements, resulting in a qualified opinion.

Financial Performance Overview

For Q2FY27, the company reported a net profit of ₹2.95 lakh on a standalone basis, compared to a loss of ₹15.65 lakh in Q2FY26. Revenue from operations stood at ₹6.89 lakh, while other income contributed ₹17.94 lakh to the total revenue of ₹24.83 lakh.

What the Numbers Show

The company’s reported profitability is entirely driven by non-operating items. In Q2FY27, other income of ₹17.94 lakh exceeded revenue from operations of ₹6.89 lakh by more than double. Furthermore, the auditor’s qualified opinion highlights significant gaps in documentation for large transactions, including advances of ₹5.32 crore for land purchase in Gurugram and loans/advances of ₹21.44 crore, where proper supporting documents were unavailable. This lack of transparency regarding major asset outflows contrasts sharply with the minimal operational revenue base.

Virtual Global Education Ltd appointed Krishan Bansal as Chief Financial Officer and Executive Director effective October 21, 2026. The appointment follows the Board of Directors' approval based on the Nomination and Remuneration Committee's recommendation.

Bansal brings over 30 years of post-qualification experience across government ministries, public sector undertakings, and listed and unlisted corporates. His expertise spans finance and accounts, human resource management, corporate compliance, business development, and administration. He holds a commerce honours degree from Delhi University.

Regulatory disclosures

The company confirmed the appointment under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board recorded that Bansal is not debarred from holding office by any order from the Securities and Exchange Board of India or other authorities. Additionally, he has no relationship with any existing directors on the board, ensuring no conflict of interest in the appointment.

Appointment details

The company stated that no director has any concern or interest in the said appointment. This disclosure aligns with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, regarding changes in directorship.