Private Equity

PE Fund Investments

Ranjan Pai converts $300-M debt investment in Aakash Education into 40% stake

Economic Times  

Ranjan Pai, chairman of Manipal Education and Medical Group, has converted his USD 300 million debt investment into equity resulting in a 40% ownership in Aakash Educational Services, Byju's Group’s brick-and-mortar coaching chain.Byju’s parent Think & Learn had acquired Aakash for USD 950 million in 2021. Pai invested close to USD 200 million in Aakash in November last year to help Byju’s clear its debt and interest to US’ Davidson Kempner. Byju Raveendran, the edtech major’s founder, had also borrowed capital from the investor to run daily operations at Think & Learn by pledging his personal stake in Aakash.Pai, Raveendran and Think & Learn will now cumulatively hold 80-82% of Aakash. (Think & Learn owns 26% and Raveendran owne 16%.) Private Equity firm Blackstone and Aakash’s promoters, the Chaudhrys, will own the remaining 18%.Aakash reported a 40% jump in revenue to INR 1,491 crore in FY22, along with a profit of close to INR 80 crore.