The board of the leading edtech startup, Byju’s, has greenlit the initial public offering (IPO) for its tutoring division, Aakash Educational Services. They’ve shifted the IPO from its initial 2023 schedule to target a mid-next-year launch.
What Happened? Per a MoneyControl report, the board officially approved this significant move and will soon announce the appointment of the merchant bankers for the IPO to assure a well-organised and successful listing next year.
This decision aligns with an upcoming deadline that Byju’s has to pay a quarterly interest of $40 million (₹330.5 crore) on a loan it secured in November 2021.
See also: Byju’s Scrambles To Make Crucial $40M Interest Payment Amid Financial Crunch
Previous reports from Moneycontrol indicated that Byju’s was preparing for a $1 billion (₹8,264 crore) public listing for Aakash, projecting a valuation of the tutoring services branch between $3-4 billion (₹24,792 – 33,056 crore).
Byju’s confirms that Aakash is set to generate ₹4,000 crore in revenue in FY24 (2023-24), with an EBITDA (profit before considering interest rate, depreciation, and amortisation costs) of ₹900 crore. Byju’s became the owner of Aakash in April 2021 following a $900 million transaction.
Read next: Lenders Accuse Byju's Of Hiding $500M, Seek Control Over Edtech Giant
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