Manipal Education and Medical Group chairman Ranjan Pai is considering to invest as much as $250-300 million in Byju's owned Aakash Institute.
While the initial plan was to invest around $70 million, Pai is now close to infusing $170 million in the first stage, with more to come later, people aware of the matter told ET.
The investment is said to be used by Byju’s to clear its outstanding debt to US-based Davidson Kempner (DK).
In May, Byju’s entered into a structured deal worth Rs 2,000 crore with DK against the cash flows of Aakash Institute.
The edtech firm had only received about Rs 800 crore when an alleged covenant breach was triggered by the lender. Both parties had to initiate talks to settle the dispute.
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According to “the final framework… Byju’s would have to repay Rs 800 crore of the loan and about Rs 600 crore in interest,” a person aware of the matter said.
Pai now plans for a bigger stake in the firm and may also bring in other private equity firms to invest, said the people. He aims to acquire a larger stake in Aakash even when it is engulfed in a shareholder tussle between the Chaudhrys and Think and Learn.
“A final proposal is being prepared for the shareholders of Aakash, but the broad contours have been discussed for Pai’s investment,” another person aware of the discussions told ET.
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Byju’s and the Chaudhry family have been in talks to close the pending stock swap for the Aakash deal originally announced two years ago. The deal was among the largest M&As in the sector, pegged at around $950 million.
