Byju's, the world's most valuable ed-tech startup, has made a significant decision to approve the initial public offering (IPO) of its tutoring services division, Aakash Educational Services. The IPO, which was originally planned for 2023, has now been postponed, with the aim of taking Aakash public by the middle of next year. Byju's board has given its official approval for this crucial step, and the appointment of merchant bankers for the IPO will be announced shortly. Byju's aims to ensure a well-planned and successful listing in the coming year, as stated in a company statement released on June 5. Earlier reports from Moneycontrol suggested that Byju's was preparing for a $1 billion public listing of Aakash, valuing the tutoring services unit at $3-4 billion.
This announcement comes at a time when Byju's is facing a deadline to make a quarterly interest payment of $40 million on a loan raised in November 2021.Byju's has been engaged in a dispute with its creditors since December 2022, when discussions were initiated to renegotiate the terms of its debt. However, last week, the creditors ended these talks and filed a lawsuit against Byju's US entity in Delaware, alleging that approximately $500 million had been concealed from them. Byju's has strongly denied these allegations. Byju's decision to postpone the IPO of Aakash to the following year coincides with a period of increased activity in the IPO market. According to a report from EY, India has emerged as the global leader in terms of the number of IPOs during the first quarter of 2023.
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