The Competition Commission of India (CCI) has approved the allotment of an equity stake in Aakash Educational Services Limited (AESL) to Ranjan Pai’s Manipal Group. This move comes after a series of financial maneuvers aimed at stabilizing the test preparation firm’s operations amidst BYJU’S financial restructuring efforts.
“CCI approves acquisition by Manipal Health Systems Private Limited and MEMG Family Office LLP in Aakash Educational Services Limited,” said CCI in a statement on July 23, announcing the approval while noting that a detailed order from the Commission will follow.
In November 2023, Ranjan Pai, Chairman of Manipal Education and Medical Group, stepped in with a ₹1,400 crore debt purchase in Aakash to assist BYJU’S in settling its debt to the US-based lender Davidson Kempner Capital Management. BYJU’S had secured this debt in May 2023, using its shareholding in Aakash as collateral. Subsequently, in January 2024, the Aakash board approved the conversion of Pai’s $300 million investment into equity.
This development marks a significant shift in Aakash’s ownership structure. In 2021, BYJU’S acquired AESL for approximately $950 million, with around 70% of the transaction paid in cash and the remainder to be adjusted against Think and Learn Private Limited’s equity. Currently, Aakash is valued at about $700 million, with Ranjan Pai emerging as the largest shareholder, holding a 40% stake.
In April 2024, reports surfaced that the MEMG Family Office initiated arbitration proceedings to protect its rights based on an undertaking provided by BYJU’S when securing the loan. During the same period, Aakash appointed Deepak Mehrotra as its Managing Director and Chief Executive Officer.
Financially, Aakash has shown robust performance. The firm reported a profit of ₹79.5 crore in FY22, an 82.2% increase from ₹43.6 crore in FY21. Its operating revenue also surged 44.6% to ₹1,421.3 crore in FY22, up from ₹982.7 crore in FY21.
Aakash, headquartered in Delhi, operates over 310 centres nationwide, providing preparation services for medical and engineering entrance exams, school board exams, and competitive tests such as NTSE and Olympiad. The firm currently serves more than 400,000 enrolled students.
Meanwhile, BYJU’S is grappling with several legal disputes with its investors and lenders, reflecting the financial strain on the edtech giant.