February 2008
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Prozone Liberty Cap eyes PE placement above Rs 450cr

Prozone Liberty Capital is the retail real estate arm of Provogue in India. It is a joint venture between Prozone and Liberty International listed REITs on the London Stock Exchange Prozone now plans to dilute a further 25% stake through an SPV, which will hold four major shopping malls. These shopping malls are planned in Aurangabad, Jaipur, Nagpur, and Indore. The company has received a valuation of Rs 1,800 crore. Jones Lang LaSalle Meghraj Property Consultants Pvt Ltd was the major valuator. They are now looking to raise Rs 450 crore. According to sources, large PE players who are interested include South Africa-based Old Mutual Property Investments; GIC, which is the fund raising arm of Government of Singapore; and Qatar Investment Authority. Most of these malls will be over a million sq ft. The Aurangabad mall itself is over two million sq ft and is already pre-leased to retailers like Shoppers’ Stop, Westside, Croma, and Reliance Home. The Indore mall is spread over four million sq ft and the deal is likely to be sealed by mid-March. Prozone also plans to develop 12 malls over the next 3-4 years. While they have received a valuation of Rs 1,800 crore for four malls, they have received a valuation of over USD 1 billion for the remaining eight malls, primarily in two tier cities like Mysore, Surat, and Raipur. […]

Saravana Global gets $25mn investment from Mauritius firm

Saravana Global Energy Limited (SGEL) today announced that the company has received equity investment from NYLIM Jacob Ballas India Fund III, LLC (“NYLIM JB India Fund”), a Mauritius based Private Equity investor. The USD 25 Mn funding was syndicated by MAPE Advisory Group. Commenting on the deal, Mr. Ajeeth P Challani, Managing Director, SGEL, said, “”We are pleased to be associated with investors of such a high pedigree. The investment is a significant milestone, and validates the strength of our company and potential of our business. Our relation with the investors will further enable us to achieve our vision of being a fully integrated, world class power equipment player” He further added that the investment would be utilized to finance the setting up of a new state of the art high voltage insulator manufacturing facility with a capacity of 24,000 tons per annum. The facility would help it to enter the hollow insulator segment. […]

ADB may sell its Petronet stake to L N Mittal

Asian Development Bank (ADB) is likely to exit Petronet LNG Ltd by selling its 5.2 per cent holding in the country’s biggest liquefied natural gas importer possibly to promoters or billionaire Lakshmi Mittal. ADB and German Development Bank KfW had recently approved a loan of $169 million to Petronet for its expansion projects at Dahej and a new terminal at Kochi. However, ADB’s internal norms prohibit it from having both debt and equity exposure in a company. “In 2004, ADB had sanctioned a loan of $75 million to Petronet. But once it took a 5.2 per cent stake for less than $8 million, ADB could not disburse the balance of the loan due to its internal regulations,” Petronet CEO and Managing Director Prosad Dasgupta told the Press Trust of India. ADB norms also stipulate that it must divest its equity holding in a company three years from the date of the company going public. Petronet had an initial public share sale in 2004 and ADB was to exit Petronet in 2007, but it was persuaded to stay on for a year. […]

Market meltdown hits PE flow

ICICI Venture’s cancellation of plans to invest $800 million (Rs 3,200 crore) in Jaypee Infratech and Kishore Biyani’s Indivision India Partners’ reluctance to go ahead with its $62.5 million (Rs 250 crore) investment in Dish TV are just two instances of a rather horrid picture for private equity deal flow in India. Industry sources say that there are a number of such deals where brakes have been slammed in the last minute due to the recent stock market meltdown. As a result, there’s a widening gap between what a private equity firm is willing to pay and what the promoters of the company are willing to accept. Blackstone and the private equity arm of Goldman Sachs are two firms that are said to have pulled deals, but DNA Money could not ascertain this. “I know of 8-10 other deals worth about $300 million that have fallen through,” said Gaurav Mathur, managing director, India Equity Partners, a $350 million India-dedicated fund that has made six investments so far. He was not comfortable disclosing names. […]