The chairman of Manipal Education and Medical Group, Ranjan Pai, is likely to emerge as the majority shareholder in Aakash Institute, owned by Byju’s, with a 40% stake, a recent media report said.
The Aakash board has given the green light for the conversion of Ranjan Pai’s USD 300 million investment made during 2023 into equity, it said.
This will take Aakash approximately at USD 700 million and would position it as a debt-free entity.
Advertisement
Pai is expected to secure additional seats on the board of Aakash Institute after obtaining the antitrust regulator’s approval for his investment. This aligns with his recent pattern of increased investments in new-age firms.
In 2021, the Aakash Education Services Ltd (AESL), a coaching centre for medical and engineering students, was acquired by Byju’s parent company, Think & Learn, for USD 950 million.
Blackstone Group and the Chaudhry family, founders of AESL, collectively hold 30% of Aakash Institute, while Byju’s parent firm Think and Learn retains 43%, and Byju Raveendran holds a 27% stake.
Also, in November 2023, Ranjan Pai acquired Davidson Kempner’s debt exposure in AESL for Rs 1,400 crore. This provided significant relief to Byju’s, which has been grappling with legal and financial woes including a term loan B of USD 1.2 billion.
Recently it was also reported that Byju’s is looking to raise more than USD 100 million from existing stakeholders but at a steep 90% discount to its USD 22 billion valuation in its last funding round in 2022.
BlackRock had slashed Byju’s valuation by 95% to USD 1 billion, while tech investor Prosus NV chopped it to under USD 3 billion last November.
Byju’s parent company, Think & Learn, has submitted its audited financials for the fiscal year 2022 to the registrar of companies.
Aakash reported a 40% increase in revenue to Rs 1,491 crore in FY22, with a profit of close to Rs 80 crore.
Advertisement
