July 2007
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Mcleod Russel to invest Rs50 crore in bio-fuel JV

Mcleod Russel India Ltd plans to invest up to Rs50 crore in the next two years in D1 Williamson Magor Bio Fuel Ltd, a joint venture company promoted by D1 Oils of the UK and Williamson Magor & Co. Ltd for production of bio-diesel in the east and north-east parts of India. D1 Williamson Magor Bio-fuel Ltd has been promoting jatropha plantation farmers on their privately owned waste land under contract farming arrangements for use of jatropha oil seeds for manufacture of bio diesel. The company has undertaken plantation on about 8,000 hectares of land during 2006 and plans to undertake 50,000 hectares each year from 2007 onwards. The plantation has already been completed on 29,000 hectares during 2007. The company plans to undertake plantation of total 200,000 hectors by 2011-12. The investment by the company involves creation of manufacturing facilities of crude oil and refinery, working capital arrangements and initial support towards the plantation by the farmers. The total investment required for development of production facilities of up to 2009-10, year of commencement of commercial production, is approximately Rs300 crore. […]

3 PE firms buy 14% in Catholic Syrian Bank

Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore. The private equity funds made an investment of Rs 190 per share including a premium of Rs 180 per share. With this investment, the net worth of the bank will go up considerably, according to a release issued by the bank. The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital. The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore. The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development. However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%. The bank has also been grappling with the central bank’s refusal to transfer the shares acquired by Singapore-based Chawla group, which had purchased about 36% stake in 1997 for Rs 85 a share. […]