Byju’s aims to launch Aakash IPO by mid next year

NEW DELH: Byju’s on Monday said that it aims to launch the initial public offering (IPO) of its test prep subsidiary Aakash Educational Services (AESL) by mid next year. The Bengaluru-based edtech major said that the IPO, discussions on which have been going on for quite sometime now, will provide significant capital infusion to bolster Aakash's infrastructure and broaden its reach.

“The Board of Byju’s has granted its official sanction for this pivotal undertaking. The appointment of the merchant bankers for the IPO will be announced soon to ensure a planned and successful listing next year,” the company said in a statement.

Byju’s which had acquired AESL in a near $1 billion deal in 2021 to gain a foothold in the test prep market claimed that AESL’s revenue is on track to reach Rs 4,000 crore with an EBITDA of Rs 900 crore in FY24. “.. Aakash now looks forward to leveraging the opportunities presented by its public listing to empower even more students to achieve their aspirations and excel in their chosen fields,” the firm said.

Interestingly, the announcement comes on a day when Byju’s is reportedly supposed to make a $40 million quarterly interest payment on its $1.2 billion, failing which the loan will default. Valued at $22 billion, Byju’s which has of late faced a series of valuation markdowns by its investors like BlackRock is grappling with a spate of challenges including the ire of its lenders who are understood to have pulled out of negotiations to restructure its term loan B and the scrutiny of the Enforcement Directorate (ED) back home.

Last month, Byju’s strongly refuted allegations by its lenders of hiding $500 million through its US-based subsidiary Byju’s Alpha. The startup recently managed to raise $250 million in debt funding from US-based investment firm Davidson Kempner. The funding is part of a larger $1 billion investment round that the firm is in the process of closing.

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