Manipal Group Secures CCI Nod to Acquire Aakash Stake
CCI Approves Manipal Groups Acquisition of Stake in Aakash Educational Services 
The Competition Commission of India (CCI) has granted its approval to Manipal Health Systems Private Limited and MEMG Family Office LLP for acquiring a substantial ownership interest in Aakash Educational Services Limited. This acquisition is being facilitated through a debt-to-equity conversion mechanism.
A Strategic Intervention to Support Edtech Giant
The roots of this deal trace back to November of the previous year when Ranjan Pai, the head of Manipal Education and Medical Group, extended a lifeline to troubled edtech pioneer, Byju’s. Pai injected a substantial sum of Rs 1,400 crore into Aakash Educational Services in the form of debt to assist Byju’s in fulfilling its financial obligations to the US-based investment firm, Davidson Kempner Capital Management. Notably, Byju’s pledged its stake in Aakash as collateral for this debt.
Fast forward to January of this year, the Aakash board endorsed the transformation of Pai’s $300 million investment into equity shares, propelling him to the position of the company’s largest shareholder with a commanding 40% stake.
Transaction Details and Corporate Profiles
The CCI’s green light encompasses the allocation of specified equity shares in Aakash Educational Services Limited to both Manipal Health Systems and MEMG Family Office LLP. While Manipal Health Systems is a prominent player in the healthcare sector, operating hospitals and providing comprehensive healthcare services, MEMG Family Office specializes in consultancy services. Furthermore, the regulatory approval extends to the potential transfer of specific equity shares belonging to Aakash Educational Services Limited.
Aakash Educational Services: A Financial Powerhouse
Acquired by Byju’s in a landmark deal valued at $950 million in 2021, Aakash Educational Services has exhibited remarkable financial performance. The company’s fiscal year ending in March 2022 was marked by a substantial 82.2% surge in profit, culminating at Rs 79.5 crore. Concurrently, its operating revenue experienced a robust 44.6% growth, settling at Rs 1,421.3 crore.
Aakash Educational Services has established itself as a leading provider of coaching services, catering to over 400,000 students through a diverse network of more than 310 centers spread across the nation. The company offers a comprehensive suite of learning options, including classroom-based instruction, online programs, distance learning, and hybrid formats.