October 2007
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Sequoia Capital invested Rs 25 cr in Printo

Printo Document Services Pvt. Ltd (Printo), India’s first organized retail venture which has drawn out an ambitious pan India roll out plan for its print & document services chain, with an investment of over Rs 1000 million, today announced that Sequoia Capital Partners, one of the world’s premier venture capital firms, has made a strategic investment to a tune of Rs 250 million in Printo. The Investment by Sequoia Capital would be a big boost for Printo as it validates the need for a professional provider of print solutions and reiterates the potential of the Indian print & document services industry, currently estimated to be around Rs 170,000 million. The investment by the venture capital major, marks coming of age for the Indian print & document services sector which hitherto was predominantly run as mom & pop stores in the unorganized segment. […]

Protego to raise up to $400 million for Indian office development fund

British investment management group Protego Real Estate Investors LLP said on Thursday it hoped to raise up to $400 million of equity to launch a speculative Indian office development fund. The Protego WIRE Indian Office Development Fund has been designed in joint venture with WIRE Commercial Partners, a unit of Singaporean property services company WIRE Group. The closed-ended, seven-year fund will invest primarily in office development projects in tier one and tier two cities in India. It said it hoped to raise $150 million of seed equity by the end of the fund's first closing in February. Protego is targeting net returns in the region of 25 percent. […]

BoR to raise 150 cr preferential equity from Indus Capital and Max India

Bank of Rajasthan on Thursday said it will raise Rs 150 crore through preferential issue of equity shares to US-based Indus Capital Partners and New Delhi's Max India. The board of directors approved the preferential issue at its meeting, the company informed the Bombay Stock Exchange in a communique. The board has approved allotment of 65 lakh shares to Indus Capital and 35 lakh shares to Max India at Rs 150 per share or the price calculated in accordance with SEBI guidelines, whichever is higher, it said. These decisions are subject to approval by the shareholders at the next extra-ordinary general meeting. (Economic Times) […]

Promethean Indian Fund picks 8.57 pc stake in Nitco Tiles

London-based Foreign Institutional Investor (FII) Promethean Investment has picked up a 8.57 per cent stake in leading flooring solution company Nitco Tiles through open market transactions. The investment has been made out of the $115-million Promethean India Fund, listed on the Alternative Investment Market (AIM) in London, the fund's Founder Partner Gaurav Burman told reporters here. With this acquisition, Burman will be taken on the Board of Nitco Tiles, its Managing Director Vivek Talwar said. As per estimates based on the current share price, the stake purchase could have cost around Rs 25-30 crore. Promethean has till date deployed approximately 50 per cent of the Indian fund in total three transactions. Prior to Nitco, it has invested in an auto component company and a mobile payment solution firm, Burman said. In the second quarter ended September 30, Nitco Tiles has clocked a net profit of Rs 13.41 crore, up 49 per cent while the net sales of Rs 140.90 crore, a rise of 45 per cent. […]

Future Group to pick 15% stake in Percept Holdings

Kishore Biyani promoted Future Group is picking up 15% stake in Percept Holdings, the media and communications company, for about Rs 200 crore. Percept Holdings had a capitalised billing of Rs 1,626.9 crore in 2006. Percept Holdings has interests in advertising, sports marketing and motion picture businesses, would use the funds for the group's expansion activities. And also the company is likely to raise additional funds through an IPO, sources close to the development said. “Percept is looking at listing the company after 12-14 months to raise money for further expansion,” the source said. Percept has about 23 companies under the group, which have interests in advertising, branded entertainment, events, movies, media, talent management, sports management and public relations. Its group companies include Percept H, Percept Gulf, Percept Profile India, Percept O-O-H, Media Agency ME, Percept Picture Company (PPC), PDM India, Tiger Sports Marketing, P9 Integrated and PTM. […]

KSS buys 50% in Abhishek Auto

Key Safety System (KSS), $1-billion US automotive safety component maker, has taken 50% equity in Delhi-based Abhishek Auto Industries for an undisclosed amount. KSS — maker of safety components like airbags, seat-belts, inflators, steering wheels and electronic systems — will invest $20 million in the next three years as part of the joint venture with Abhishek Auto. This will help expand its manufacturing operations in India. The company, which is a supplier to original equipment manufacturers (OEMs) like Audi, Chrylser and Toyota, is planning to extend its customer base to include German car maker Volkswagen and French car maker Renault. Both companies have recently started operations in India. […]

VCs hit a sweet spot in spin-offs

Sudhir Sethi, managing director of IDG Ventures India, has seen 551 potential investee companies since September last year. His $150 million fund has invested in 3 and hopes to complete 4 more investments by the end of this year. But, feels Sethi, as much as individual entrepreneurship is thriving, existing companies with a few out-of-the-box ideas are also not averse to spinning out new entities from the parent company, unleashing tremendous value in the process. The beneficiaries: venture capitalists (VC) like Sethi, who are inevitably invited to share in the growth, and at a later date, the spoils from these spin-offs. In June this year, Sasken Communication Technologies spun out ConnectM, with Sasken and Sethi’s IDG Ventures jointly investing $6 million in the venture. The new company offers machine-to-machine solutions in the transportation, industrials, utilities and enterprise markets. […]

Despite rise in PE buys, deal size still small

Even as private equity (PE) funds pour billions of dollars into India, the average size of a PE deal in the country stands at a meagre $18.5 million. Not only that, it has grown marginally from the average deal size of $14.96 million last year. According to data by Thomson Financial, there have been 178 deals worth $3.3 billion struck this year till mid October, with an average deal size of $18.56 million. In 2005, 73 deals worth $1.17 billion were struck with an average deal size of $16.03 million. The average deal size plunged in 2006 to $14.96 million when a total of 155 deals worth $2.3 billion were struck. “Though there have been a few large PE transactions in India and the total amount of PE funding has significantly increased in the last few years, the average size of a PE deal in India has remained more or less stagnant. This means that while there have been a few large PE deals, the bulk of the deals continue to be very small,” Bain & Co India partner Sri Rajan said. […]

India Infoline looking at a Rs 200 crore PE funding

Brokerage house India Infoline is looking at a Rs 200 crore private-equity funding for its recently started consumer finance subsidiary, a senior company official said on Tuesday. The deal is expected to be concluded this quarter. “We are talking to several private-equity players of repute, though nothing has been finalised. We expect to conclude the transaction during the current quarter,” chairman and managing director Nirmal Jain told analysts after declaring its July-September quarter results. Last quarter, from distribution of retail finance products like personal and home loans for other banks, India Infoline entered the personal finance space on its own through Moneyline brand. During the quarter, it managed a book size of Rs 25 crore and has suffered a loss of Rs 5.5 crore. It expects to break even in 2-3 quarters. Overall for the quarter, India Infoline reported revenues of Rs 195 crore, up 146% from a year ago, and 46% from sequentially. Net profit rose 157% on-year to Rs 36 crore. […]

Goldman, Macquarie to invest in PTC India arm

U.S. investment bank Goldman Sachs and Australia's Macquarie are close to buying 40 percent in the investment arm of state-run PTC India for about 1.2 billion rupees ($30 million), the Economic Times said on Friday. “We have reached an advanced stage of negotiations. But I would not like to comment on the details at this point,” the company's chairman, T.N. Thakur, told the paper. Quoting sources close the development, the paper said the deal would be signed shortly, with Goldman Sachs and Macquarie to each take a 20 percent stake in PTC Financial Services. Goldman Sachs spokesman Edward Naylor declined comment while a spokeswoman at Macquarie could not be reached. ( Reuters) […]