Manipal Group's Ranjan Pai Takes Over Debt Exposure In Byju's-Owned Aakash

The family office of Ranjan Pai has taken over the debt exposure of Davidson Kempner in Byju's-owned Aakash Education Services Ltd., according to people familiar with the matter.

Pai, the billionaire chairman of Manipal Education and Medical Group, paid out Davidson Kempner in a bilateral debt transaction. An entity belonging to the MEMG Family Office purchased all the non-convertible debentures of Davidson Kempner on the NSE Cbrics platform on Friday, the people mentioned above told BQ Prime on the condition of anonymity.

The $250 million loan dispute with Davidson Kempner was a hangover on Aakash, and the settlement will pave the way for the coaching giant's growth in the country, the people said.

Pai is also in close talks for further equity-led investments in Aakash, which will eventually give him a 25–30% stake in the entity, while Byju's will continue to be the primary shareholder. Pai's investments will be limited to Aakash and not in Think & Learn Pvt., the parent company for Byju's.

Hedge fund Davidson Kempner Capital Management had been in the middle of a battle with Byju's after the edtech giant allegedly didn't meet certain loan agreement covenants. The full amount of $250 million hadn't been extended because of that.

BQ Prime had earlier reported that Pai was in "early talks" to invest in Aakash. The deal could also mark a full circle for Pai, who was a part of the first round of investors in Byju's.