Private Equity

PE Fund Investments

Ranjan Pai family office invests Rs.1,400-Cr in Byju's unit Aakash Education

Business Today  

The family office of Manipal Education and Medical Group's chairman Ranjan Pai has acquired Davidson Kempner's debt exposure in Byju's-owned Aakash Education Services Ltd (AESL) for INR 1,400 crore. Pai has been in talks to invest up to USD 300 million (about INR 2,500 crore at current exchange rates) in Byju's group companies. When the full investment is completed, Pai is set to own a 20-25% stake in Aakash. In August, Davidson Kempner had issued a legal notice to Aakash, asserting its claim to Aakash shares pledged as collateral for the loan. Byju's has also been embroiled in a disagreement with the Chaudhry family, the promoters of Aakash and its private equity investor Blackstone Group, over a previously arranged share swap agreement. Blackstone and the Chaudhrys refused to trade their stakes in Aakash for shares in Byju's, citing clauses in the original share purchase agreement. Byju's had acquired Aakash, which offers students test preparatory coaching services for competitive exams, for about USD 1 Billion in April 2021. The Blackstone Group and the Chaudhry family together hold 30% of Aakash. Think and Learn Pvt Ltd, the parent firm of Byju's, owns 43% and Byju's CEO Raveendran holds 27%. Back in 2013, one of Pai's investment arms, Aarin Capital, had become the first institutional investor in Byju's (which position was subsequently exited).