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CCI approves equity stake allotment in Aakash to Ranjan Pai’s Manipal Group


The Competition Commission of India (CCI) has given the green light for an allotment of equity stake in the test preparation firm Aakash Educational Services Limited to Ranjan Pai’s Manipal Group.

“CCI approves acquisition by Manipal Health Systems Private Limited and MEMG Family Office LLP in Aakash Educational Services Limited,” it said in a statement on July 23, announcing the approval while noting that a detailed order from the Commission will follow.

Last November, Pai—the Chairman of Manipal Education and Medical Group—bought Rs 1,400 crore of debt in Aakash to help BYJU’S settle a debt owed to the US-based lender Davidson Kempner Capital Management. This debt was secured in May 2023, with BYJU’S using its Aakash shareholding as collateral.

In January, the Aakash board reportedly approved the conversion of the $300 million investment made by Pai in 2023 into equity.

In 2021, BYJU’S acquired AESL for approximately $950 million, with around 70% of the deal paid in cash and the remaining portion meant to be adjusted against its parent Think and Learn Private Limited’s equity.

The Delhi-based test preparation firm is now valued at approximately $700 million, with Ranjan Pai becoming the largest shareholder, holding a 40% stake.

In April, reports emerged that the MEMG Family Office initiated arbitration proceedings to protect its rights, based on an undertaking given by BYJU’S when securing the loan.

That same month, Aakash appointed Deepak Mehrotra as its Managing Director and Chief Executive Officer.

The test-prep firm reported a profit of Rs 79.5 crore in FY22, up 82.2% from Rs 43.6 crore in the earlier fiscal year. Meanwhile, its operating revenue surged 44.6% to Rs 1,421.3 crore in FY22, compared to Rs 982.7 crore in FY21.

Aakash’s network of centres provides preparation services for students gearing up for medical and engineering entrance examinations, school board exams, and competitive tests such as NTSE and Olympiad. With a nationwide presence, it has over 310 centres and currently serves more than 400,000 enrolled students.

Meanwhile, cash-strapped BYJU’S is engaged in multiple legal battles with its investors and lenders.





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