Ranjan Pai Becomes Largest Stakeholder In Byju's Aakash Education Services

Ranjan Pai, the billionaire chairman of Manipal Education and Medical Group, has become the largest shareholder in Byju's Aakash Education Services Ltd.

Pai has acquired a roughly 40% stake for about Rs 2,495 crore, or $300 million, pegging Aakash's valuation in the range of $750-800 million, a notch below its near $1 billion sale to Byju's, according to people familiar with the matter.

The board of Byju's parent, Think & Learn Pvt., approved the conversion of the debt to equity that Pai's family office took on from Davidson Kempner, the above-quoted person told NDTV Profit on the condition of anonymity.

In November, NDTV Profit reported that Pai had taken on the roughly $250 million debt on Aakash and that the 'white knight' was in close talks to invest more in Aakash, eventually giving him a 25–30% stake in the entity.

Pai will now hold 40%, with Byju Raveendran's stake at 15% and Think & Learn owning 26%, the above-quoted person said. The remaining 18% stake remains with promoters Blackstone and founder family Chaudhrys.

Byju's had acquired Aakash in a cash-and-stock deal worth about Rs 8,000 crore in 2021. About 70% of the deal was to be executed in cash, with Aakash shareholders and Blackstone getting payouts, while the rest 30% was an equity-swap deal.

Aakash is also one of the few bright spots left in Byju's acquisition kitty, with the offline coaching giant consistently posting profits. For FY22, it posted a 44% increase in top line to Rs 1,421.2 crore, with an uptick in profit after tax at Rs 79.5 crore from Rs 43.6 crore in FY21.

Manipal chief Pai has also recently expanded his startup portfolio, having picked up stakes in IPO-bound FirstCry, PharmEasy and online jewellery retailer Bluestone.