India-focused Baer Capital Partners expects to raise around USD 300 million for a second private equity fund and plans its first exit by floating a power distribution company, its chief executive told Reuters. The Dubai-headquartered investment firm, which also operates a hedge fund in India, said one of its portfolio companies, A2Z Group, has sought Indian regulatory approval for an initial public offering that it expects to launch by December. Watch CNBC-TV18 live only on MYTV >> "Here's a company that has grown phenomenally since its inception. It's one of those stories which tells you why India is such a great investment story," said Brij Singh, Baer's co-founder and chief executive. A2Z Group's other investors include high-profile Indian businessman Rakesh Jhunjhunwala and private equity firm Lexington Partners.   more »

Tata group firm Trent Ltd today said Anil Ambani-promoted Reliance Capital has bought 8.68 per cent stake in it for Rs 21.2 crore, marking ADA Group's entry into the retail sector. In a filing to the Bombay stock Exchange (BSE) today, Trent Ltd said Reliance Capital purchased 3,86,582 shares through a rights subscription on August 31. Click here to visit SME Buzz Also Read Related Stories News Now - Reliance Capital fund buys 8.7% in retailer Trent - Group not pushing me out, my desire to quit: Tata - Tata Chemicals to spend Rs 50 cr on new plant - Tata Motors to invest $641 mn a year for 3 years - Indra Nooyi rules herself out of race to succeed Ratan Tata - Tata Global Beverages plans restructuring Also Read Related Stories News Now - Markets off day's low - Chana futures recover on firm spot market demand - India defers power project bid date - FIIs pump in $2.5 bn in Indian stock market in August - Reliance Cap buys 8.68% in Trent for Rs 21.2 cr More Trent's shares shot up to a new high to touch Rs 1,126 per share in morning trade on BSE, up by 5.03 per cent from the last closing.   more »

Domestic private equity (PE) firms are turning to the equity market after about a decade, hoping to raise money from the public as funds go scarce both in India and abroad. Milestone Capital Advisors Ltd, which manages around `3,152 crore of assets in its portfolio, and Future Ventures India Ltd, the investment arm of retailer Kishore Biyani’s Future Group, have filed draft prospectuses with the Securities and Exchange Board of India, or Sebi, for a public listing of shares. Milestone says in its draft red herring prospectus (DRHP) that it will primarily use the money raised from its initial public offering (IPO) as seed capital for a new infrastructure fund (expected to be around `800 crore) and for a small and medium enterprises fund (`250-300 crore). Future Ventures expects to raise `750 crore from its IPO to “create, build, invest in or acquire, and operate businesses in consumption-led sectors,” it says in its DRHP, filed late August.   more »

Cipla India is to acquire a 25 percent stake in the manufacturing division (CMM) of South Africa's third largest pharmaceutical group Cipla Medpro South Africa, it was announced on Tuesday. Ciplo Medpro SA said it was cognisant of the need to increase volume in CMM and so was inthe process of finalising an agreement with Cipla India regarding the acquisition the consideration of which will be a "nominal value". "Pursuant to this, Cipla India will provide additional volume and assist us in achieving World Health Organisation (WHO) and Food and Drug Administration (FDA) manufacturing approvals in the near future, resulting in increased orders and business for our factory." "This will ensure better continuity, increased capacity utilisation and further entrench the relationship with Cipla India," the pharmaceutical group said.   more »

Everstone Capital, the India-focused private equity and real estate investor founded by two former Goldman Sachs executives, is seeking to raise up to $350m to invest in warehouses in India, according to Bloomberg. The firm has already invested a quarter of its $240m Indospace Logistics Parks fund, and may seek to begin fundraising at the end of 2011, after 75 per cent of the logistics parks fund has been allocated. The firm is shoring up its reserves for industrial real estate and warehousing infrastructure investment because of a shift in India from a regional tax structure to a goods and services tax regime, expected to result in companies consolidating from regional warehouses to larger, centralised distribution centres.   more »

TPC may offer upto 49 per cent equity stake to Qatar Petroleum in its gas-based project at Kerala, to secure fuel supply for its power plant. "We have offered Qatar Petroleum less than 50 per cent stake in our Kayamkulam gas-based power station in Kerala," NTPC CMD R S Sharma told reporters here. The current capacity of the Kayamkulam plant is 350 MW, which the company is planning to expand to 1,050 MW in the next two years and further expand it to 1,800 MW later. The company may form a special purpose vehicle (SPV) for the last stage (1,800 MW) expansion of the power project, in which it would offer stake to Qatar Petroleum. NTPC is keen to get Qatar in Kayamkulum project, as the Gulf-nation would help in return by bringing gas for the plant. With uncertainty over gas from Reliance Industries' KG Basin, the deal with Qatar Petroleum would give some stability to India's largest power producer.   more »

Reliance Industries on Monday said it has acquired 14.12 per cent stake in hospitality major East India Hotels (EIH), which runs the Oberoi group of hotels. "Reliance Industries has acquired from Oberoi Hotels Private Limited and certain other promoters shares in EIH Limited representing 14.12 per cent of EIH at a total cost of Rs.1,021 crore approximately," the oil-to-retail conglomerate led by Mukesh Ambani said in a statement. The company made the acquisition through its wholly owned subsidiary, Reliance Industries Investment and Holding Private Limited. The announcement came after the closing of stock markets.   more »

Real estate firm DB Realty Ltd on Monday denied a newspaper report that it is selling a stake in a project in Mumbai. DNA had reported earlier that DB is in talks with private equity players to sell 20 percent stake in a redevelopment project in Bandra in western Mumbai, sending its shares up more than 6%. "The reports published in the media are not attributable to the company and are incorrect and cannot be relied upon," it said in a statement to the National Stock Exchange.   more »

Mahindra & Mahindra is focusing on inorganic growth opportunities in the farm equipment space by endorsing clean and green technology. The automaker picked up a 20 per cent stake in the Indian-arm of US-based Vayugrid Marketplace Services last week for Rs 1 crore essentially to create a business model whereby farmers can ensure better productivity and offtake, Pawan Goenka, president of automotive and farm equipment business at M&M, told FC. Vayugrid’s core area of business is contract farming and promoting alternative energies to the rural community — helping farmers to get access to energy to drive productivity and thereby create wealth. In India, Vayugrid is headquartered in Bangalore while in Pune, it has 1,000 acres of farm and agricultural land under cultivation for farmers. “Vayugrid has a business model that ties in very closely to what we want to do in the longer term in our farm equipment business –create opportunities and give knowledge to farmers to make them able to manage their crops much better, get better productivity, thereby guaranteeing a better offtake,” Goenka said.   more »

The regulator may allow insurance companies to invest in private equity funds across sectors, a move that may boost returns for policy holders and help capital starved firms to access funds. Insurance companies have sought a relaxation in rules governing their investments in private or venture funds, which now permits them to invest only in the infrastructure sector where companies build roads, ports and power utilities. The Insurance Regulatory & Development Authority, or Irda, is now vetting the proposal, said an executive at the regulator who did not want to be identified. He did not disclose by when a decision would be taken. “It helps bring in more domestic capital to venture capital funds,” said Luis Miranda, president, IDFC Private Equity and chairman IVCA. “It is important for private equity to have a larger domestic base and insurance companies bring in long-term capital.”   more »