Private equity firm Blackstone is exiting test prep major Aakash Educational Services Limited (AESL), selling its remaining stake to Ranjan Pai, chairman of Manipal Education and Medical Group (MEMG), according to people familiar with the matter.
While financial terms of the deal were not disclosed, the move marks a broader consolidation of control under Pai, who is steadily increasing his stake in the Delhi-based company. “Blackstone’s exit is part of a broader consolidation strategy,” said a person briefed on the matter.
Pai, who already owns approximately 40 per cent stake in AESL, will raise his holding to around 47 per cent following the acquisition of Blackstone’s 6.97 per cent equity stake. He remains the largest shareholder in the test prep major.
Emails sent to Aakash Institute and Ranjan Pai did not elicit a response at the time of publication.
Aakash Saga: A strategic asset
The transaction comes at a time when hybrid models combining offline and online learning are regaining favour, especially as regulatory scrutiny and investor fatigue dampen enthusiasm for pure-play online edtech firms.
“Investors may see Pai’s continued backing as a vote of confidence in the resilience of the offline test prep segment,” said another person with knowledge of the matter.
AESL is currently engaged in a legal dispute with minority shareholders over changes to its Articles of Association (AoA). In February, Blackstone-backed Singapore Topco withdrew its petition against Aakash before the National Company Law Tribunal (NCLT), challenging proposed amendments to the AoA.
At the time, the tribunal had directed AESL not to enforce resolutions passed at its November 20 Extraordinary General Meeting regarding the removal of Part-B from the AoA.
The AoA outlines the governance framework of a company, defining the rights and responsibilities of its shareholders.
In 2021, BYJU’S acquired AESL for about $950 million, paying nearly 70 per cent in cash, while the rest was to be adjusted against the equity of its parent company, Think & Learn Private Ltd.
In January 2024, Ranjan Pai’s Manipal Education and Medical Group (MEMG) invested $300 million in Aakash, acquiring a 40 per cent stake by converting debt into equity
Published on April 22, 2025
