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Byju's plans to launch Aakash Education IPO in 2024

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Summary

The proceeds from the IPO will bolster Aakash's infrastructure, Byju's said

MUMBAI : Edtech giant Think and Learn Pvt. Ltd.-owned online tutorial business company Byju's, on Monday, said that it plans to launch an initial public offering (IPO) of its subsidiary, Aakash Education Services Limited (AESL), by the middle of next year. 

The proceeds from the IPO will bolster Aakash's infrastructure, the firm said in a press release.  

"The appointment of the merchant bankers for the IPO will be announced soon to ensure a planned and successful listing next year. The upcoming IPO will provide a significant capital infusion to bolster Aakash's infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation," the press release said.   

Aakash Education Services Limited (AESL) is set to reach revenues of 4,000 crore in the fiscal year 2023-24. The company's operational profit, measured by EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), is expected to reach 900 crore during the same period, Byju's said.    

The company did not reveal Aakash's FY22 or FY23 numbers.  

Byju's has separately been in trouble for not yet filing its FY22 financial statement, which were due in September 2022. It also filed its FY21 financial statement only in September 2022.  

Separately, Byju's was needed to make a coupon payment of $40 million on its unrated Term Loan B  of $1.2 billion on Monday, a Bloomberg report said on Monday. The company did not immediately respond on Monday if the payment had been in made.   

Byju's TLB investors and the edtech company have been in litigation over the past month over the terms of the $1.2 billion loan.   

The lenders filed a suit in the US last month accusing the edtech giant of draining all the funds -- amounting to $500 million --  from its US subsidiary, Byju's Alpha.  

At the time, Byju's defended its actions, saying that it had not violated any credit agreements.   

One of the covenants of the loan agreement required Byju's to file its FY22 financial statements by September 2022. The lenders have taken the delay as a breach and have sought to force Byju's to renegotiate terms.

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