bengaluru/mumbai, Nov. 14 -- Ranjan Pai's family office, the largest shareholder in Aakash Educational Services Ltd (AESL), plans to invest about Rs.250 crore in the ongoing Rs.450-500 crore rights offer in tranches, depending on the response of other shareholders and the achievement of certain targets set for the company, three people familiar with the matter said. The first tranche of about Rs.100 crore has been approved and is expected to be disbursed shortly, while the remainder could follow in about three months, subject to certain performance metrics and the participation of other existing investors, the three people said. Separately, Pai's Manipal Education and Medical Group on Thursday submitted a bid to acquire Byju's, its second such attempt to acquire the bankrupt edtech through an insolvency process. If that bid succeeds, Pai's business will own an additional 25% stake in Aakash, apart from current 58% stake. A Manipal Group statement said that a successful resolution with Think & Learn will "help in business consolidation of Aakash, in which Manipal has a majority shareholding." The fresh infusion in Aakash from the family office of the founder of Manipal Group follows a months-long legal tussle over Aakash's plan to raise capital via a rights issue. The fundraising effort was challenged by edtech firm Byju's, which acquired Aakash in a cash-and-stock deal valued at about $950 million in April 2021, and one of its creditors. "Pai's office will infuse its portion of the rights issue. around Rs.250 crore is the total. and Rs.100 crore is the first tranche. The second tranche will be released depending on whether investors come in," said one person aware of the funding plans. The person added that subscribing to the rights issue will lift Pai's stake in the company. His family office acquired a 39.6% stake after converting a $300 million debt investment into equity in early 2024. In June this year, Pai won the competition regulator's approval to acquire founder J.C. Chaudhry's 11% stake. Pai currently holds a 58% stake in Aakash, according to the second person. The other major shareholders in Aakash are said to include Byju's (Think & Learn Pvt Ltd) with about 26% and Blackstone with a reported 7-8%. The rights issue could dilute Byju's stake, according to recent reports, which suggested that it may not be able to participate due to its insolvency proceedings. It was not immediately clear if Aakash's other existing investors would subscribe to the rights issue. Pai and the management plan to float a larger funding round sometime between early and mid-2026 and may look at tapping private equity investors, two of the people said. "However, the larger round next year will be contingent on business metrics improving as the company is currently focused on strengthening its financials," said the first person cited earlier. Calls and emails to Pai's family office and an Aakash spokesperson remained unanswered. The infusion of fresh funds into Aakash comes as the engineering and medical college entrance examination preparation company deals with a leadership churn and uncertainty linked to Byju's insolvency proceedings....