Aakash Institute to take IPO route to raise Rs. 1000 crore for expansion

The New Delhi based coaching company, Aakash Educational Services Pvt. Ltd. (AESPL), known for training medical and engineering aspirants for national entrance exams is planning an initial public offer. This stock market launch, popularly known as Initial Public Offering, is where the shares of the company are sold to institutional investors who take the responsibility of selling it to the general public. For this purpose, the selling is usually done on a securities exchange. Similarly, Aakash Institute has gone public to raise capital in hopes of expanding; a way of getting out of their investment in a company.

Aakash Institute is currently valued at about Rs 4,000 crores and the company is making attempts at raising Rs 1,000 crore from this initial public offering. To help the company in carrying out the public offering plan, the promoters have appointed Citi Group Capital Markets and Kotak Mahindra Capital. The recent developments were confirmed by a source who said, “The test prep company has expansion plans for which it is planning to raise money through a public share sale.”

The New Delhi based institute started with training medical aspirants for national entrance exams. The foundation of the institute was laid down by J C Chaudhary in 1988. Almost two decades later, the training aspect was expanded and the engineering aspirants were coached for IIT-JEE entrance. Aakash has been particularly conducting national talent hunt exams where students are selected and mentored for IIT entrance tests across the country. The already known institute comprises 135 classroom centers, 78 corporate branches, 57 franchise centers, and 3,500 employees.

The growth of the magnanimity of this company was underway when it launched a Rs. 250 crore super speciality hospital in Dwarka, New Delhi. If reports are to be believed, the company is planning to open four more hospitals and further start a medical college. This unique concept of offering an education cum healthcare drew investors which is why it is regarded as an interesting proposition to sell. “Initial work has begun and both the banks will streamline and prepare the company for listing,” a source said. It is a known fact that education sector does not provide an easy canter for public market investors yet the AESPL has already planned to go public and the plan is expected to materialize at the end of the year.

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