India's ASK Pravi PE carves out Educomp test prep unit

According to a disclosure, Educomp agreed to sell the stake for an undisclosed sum.

Gateforum, which is based in Secunderabad in South India, provides educational services and test preparatory tools for graduate aptitude tests for engineering courses. It also offers classroom coaching and correspondence courses.

The sale is part of a broader debt restructuring exercise by Educomp, which has already offloaded two other assets: a 50% stake vocational training company IndiaCan to its joint venture partner Pearson; and a 50% stake in pre-school chain EuroKids international to a consortium of financial investors led-by Gaja Capital Partners.

Educomp shares rose 3.3% to INR34.40 on the Bombay Stock Exchange after the announcement, while the benchmark S&P BSE Sensex gained 0.29% to INR25,715.

ASK Pravi Capital is making the investment via its ASK Pravi Private Equity Opportunities Fund. The GP focuses on investments in lower mid-market companies that benefit from domestic consumption growth. This is the firm's third deal in 12 months.

Ask Pravi Capital previously invested $9.7 million in Hyderabad-based hospital chain Omni Hospitals and took a minority stake in kidswear brand Indian Clothing League for around $8 million. 

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• Topics
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• Buyouts
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• buyout