Co may look at using the proceeds to set up more hospitals and a medical college
Engineering and medical entrance test preparation company Aakash Education Services is planning an initial public offer. Valued at about ` 4,000 crore, the company will try to raise ` 1,000 crore from the IPO.
The promoters have appointed Citigroup Capital Markets and Kotak Mahindra Capital to help them with the IPO plans.
“The test-prep company has expansion plans for which it is planning to raise money through a public share sale,“ a banker in the know of the development said.
Launched in 1988 by JC Chaudhry, the New Delhi-based coaching company started with training medical aspirants for national entrance exams. In 2007, the group entered into coaching students for the IIT-JEE entrance and conducts national talent hunt exams to pick pupils and groom them for IIT entrance tests across the country. Aakash has 135 classroom centres, 78 corporate branches and 57 franchise centres and has 3,500 employees.
Early this year, the company launched a `250-cr, 230-bed super-speciality hospital in Dwarka, New Delhi. Media reports said it has plans for four more hospitals before starting a medical college.
“This company offers an education-cum-healthcare exposure to investors and hence it will be an attractive proposition to sell,“ said another investment banker with knowledge of the development. “Initial work has begun and both the banks will streamline and prepare the company for listing,“ the source said.
“AESPL has interest in going public with an IPO. The amount of raise, timing of IPO, bankers choice, etc. will be finalised in a year's time as the plan for IPO crystallises,“ Chaudhry, the managing director of Aakash Educational Services, said in an emailed response to ET's queries.
It has not been a smooth ride for public market investors in the education sector. Most listed education companies such as Educomp Solutions, Everonn Education, MT Educare, TreeHouse Education and Accessories Career Point Infosystems have been on a losing streak since their peak a few years ago.
“Investors like for-profit education companies, but some of their past investments were in companies that got highly ambitious in terms of expansion and managed huge debt piles that were not serviceable.That is why most of the companies have gone belly up,“ said the banker quoted above.
The business for preparation of entrance exams of esteemed insitutions in India has been growing steadily . Research agency CRISIL estimated Indian test-prep market to be worth `37,800 crore in FY16, having grown at robust 14% CAGR between 2009 and 2016.
The market is in a demographic sweet spot with growth further accelerated via digital space. CRISIL expects the growth to sustain at 13% CAGR creating an `70,200 crore industry in next five years.
Co may look at using the proceeds to set up more hospitals and a medical college
Engineering and medical entrance test preparation company Aakash Education Services is planning an initial public offer. Valued at about ` 4,000 crore, the company will try to raise ` 1,000 crore from the IPO.
The promoters have appointed Citigroup Capital Markets and Kotak Mahindra Capital to help them with the IPO plans.
“The test-prep company has expansion plans for which it is planning to raise money through a public share sale,“ a banker in the know of the development said.
Launched in 1988 by JC Chaudhry, the New Delhi-based coaching company started with training medical aspirants for national entrance exams. In 2007, the group entered into coaching students for the IIT-JEE entrance and conducts national talent hunt exams to pick pupils and groom them for IIT entrance tests across the country. Aakash has 135 classroom centres, 78 corporate branches and 57 franchise centres and has 3,500 employees.
Early this year, the company launched a `250-cr, 230-bed super-speciality hospital in Dwarka, New Delhi. Media reports said it has plans for four more hospitals before starting a medical college.
“This company offers an education-cum-healthcare exposure to investors and hence it will be an attractive proposition to sell,“ said another investment banker with knowledge of the development. “Initial work has begun and both the banks will streamline and prepare the company for listing,“ the source said.
“AESPL has interest in going public with an IPO. The amount of raise, timing of IPO, bankers choice, etc. will be finalised in a year's time as the plan for IPO crystallises,“ Chaudhry, the managing director of Aakash Educational Services, said in an emailed response to ET's queries.
It has not been a smooth ride for public market investors in the education sector. Most listed education companies such as Educomp Solutions, Everonn Education, MT Educare, TreeHouse Education and Accessories Career Point Infosystems have been on a losing streak since their peak a few years ago.
“Investors like for-profit education companies, but some of their past investments were in companies that got highly ambitious in terms of expansion and managed huge debt piles that were not serviceable.That is why most of the companies have gone belly up,“ said the banker quoted above.
The business for preparation of entrance exams of esteemed insitutions in India has been growing steadily . Research agency CRISIL estimated Indian test-prep market to be worth `37,800 crore in FY16, having grown at robust 14% CAGR between 2009 and 2016.
The market is in a demographic sweet spot with growth further accelerated via digital space. CRISIL expects the growth to sustain at 13% CAGR creating an `70,200 crore industry in next five years.
The JEE Main 2019 answer key by Aakash Institute will be released on the day of the exam. Joint Entrance Examination main will be conducted by National Test Agency twice in a year.
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