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CCI Clears Manipal Group’s Proposal To Buy Stake In Aakash
- The Competition Commission of India (CCI) has approved Manipal Group’s proposal to acquire a stake in Aakash Educational Services from its founder JC Chaudhry.
- Manipal Group, led by Ranjan Pai, already holds about 40% stake in Aakash.
- Ranjan Pai invested $300 Mn to make Aakash debt-free and now has a controlling interest in the coaching chain.
- Aakash is currently seeking to raise INR 500 Cr for its operations, but faces opposition in making changes to its articles of association.
- The National Company Law Tribunal (NCLT) has temporarily halted changes to Aakash's shareholding or AoA.
- BYJU’S, which previously owned Aakash and is undergoing insolvency proceedings, has raised concerns over further reduction in its ownership.
- BYJU’S counsel argued that changes in Aakash's shareholding would dilute its stake and questioned alterations to AoA.
- The National Company Law Appellate Tribunal (NCLAT) recently rejected BYJU’S appeal against NCLT’s consent order.
- Aakash, post the Manipal Group's investment, is in a strong position with no debt and seeking fresh funds for operations.
- CCI’s approval for Manipal Group’s acquisition of stake comes amidst Aakash's fundraising efforts and regulatory challenges.
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