Private equity firm Blackstone and the Chaudhary family, founders of Aakash Educational Services Limited (AESL), are reportedly looking to sell their remaining 18% stake in the renowned tutoring chain. This move comes at a pivotal moment as AESL, under new leadership, gears up for a promising new academic year with solid student enrollment figures. Currently, Think & Learn, along with investors Ranjan Pai and Byju Raveendran, holds an 82% stake in Aakash, while Blackstone and the Chaudhary family collectively own the remaining 18%. The potential sale of this stake signifies a significant opportunity for new investors to participate in the continued success and expansion of AESL.
With Deepak Mehrotra recently appointed as the CEO of AESL, the company is set to expand its strategic vision and enhance its offerings. Mehrotra’s leadership is expected to be crucial in broadening AESL’s reach and positively influencing the tutorial market, bolstering the company’s appeal to potential investors.
Sources familiar with the matter indicate that Blackstone and the Chaudhary family’s decision to exit AESL is motivated by a desire to capitalize on the company’s current growth trajectory. The tutoring chain has demonstrated substantial financial performance, with profits rising by 82% to Rs 79.5 crore and revenue increasing by 45% to Rs 1,421 crore in the 2021-22 fiscal year.
AESL, a Think & Learn Private Ltd subsidiary, has garnered attention from private equity investors eager to establish a foothold in the lucrative education sector. Reports suggest that prominent investors such as Bain Capital, Warburg Pincus, and KKR have expressed interest in the company, making it a potential target for mergers and acquisitions (M&A).
As AESL prepares to embark on a new academic year, the sale of Blackstone and the Chaudhary family’s stake could bring in fresh capital and strategic partnerships, further solidifying its position as a leader in the educational services industry. The tutoring chain’s robust performance and strategic leadership under Mehrotra are poised to attract substantial interest from the private equity sector, potentially leading to a landmark deal in the Indian education market.
