Byju's planning IPO of tutoring business, Aakash Educational Services

4 Nov 2022 , 07:37 AM

Byju’s, the largest online education provider in India, is completing plans for a $1 billion initial public offering of its tutoring division, Aakash Educational Services.

At least four foreign banks, including JPMorgan Chase & Co., Citigroup Inc., Goldman Sachs Group Inc., and Morgan Stanley, as well as Indian banks Kotak Mahindra Bank Ltd. and Axis Bank Ltd., are in discussions with the company. One of the people, who asked not to be identified because they were discussing private conversations, stated that they were looking for arrangers for the listing. According to the source, the asset might be worth between $3.5 billion and $4 billion.

A draft red herring prospectus, which is required to start the IPO process in India, is expected to be submitted in January or February, according to the individuals, and Byju’s might choose the lead bank within two weeks. According to them, Byju hoped the IPO would happen in late August or early September.

The three-decade-old Aakash, which Byju’s purchased for roughly $950 million last year, operates physical centers to assist teens in getting ready for the demanding exams that rank them for admission to prestigious colleges like the Indian Institute of Technology. The leader in traditional test preparation has more than 200 locations around the nation and has expanded its digital test preparation options.