September 2008
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Trikona Makes $156M Deal with German Fund

Trikona Capital Ltd., the leading fund management firm for institutional investment in Indian infrastructure and real estate, is continuing a standing relationship with SachsenFonds Holding GmbH. The German fund will look, along with its partner, to invest $70 million into Indian infrastructure, divesting the rest of the $156 million into asset portfolios of Trikona's. The German-based fund previously partnered with the firm for two other transactions, starting in December of 2007. Sachsen purchased assets from the Trikona Trinity Capital PLC portfolio for $65 million, as well as partnering again for a $150-million-deal in June of 2008. The June 2008 deal will partially fund a co-investment with Trikona of $40 million to Mumbai, India to refurbish four acres of middle-class housing and build high-end luxury homes as part of Trikona's urban rejuvenation platform. Sachsen is contributing 55% of the investment cost. [...]

IDFC to hold 20% stake in Nepalese infrastructure bank

Nepal’s finance minister Baburam Bhattarai is expected to announce the launch of the Nepal Infrastructure Bank, or NIB, in his budget speech on Friday. The bank will be modelled on India’s Infrastructure Development Finance Co. Ltd, or IDFC. “We have got a go-ahead from the government to set up the NIB. This project is very critical for Nepal,” said Radhesh Pant, managing director of Bank of Kathmandu Ltd and president of bankers’ body Nepal Bankers Association. “We expect the finance minister to announce this in his budget speech.” FM Bhattarai is expected to announce launch of the bank today. The Bank of Kathmandu is a member of the consortium of banks that will hold a 20% stake in NIB. India’s IDFC will hold a 20% stake, while the government of Nepal will own around 11% and a Nepalese private equity firm, another 20%, Pant said. [...]

Nandan Bio in deal to get $30 m PE funding

The Rs 80-crore Nandan Biomatrix Ltd, which claims to become the largest biodiesel producer in the next five years with an annual capacity of 2.5 million tonnes, will soon be signing an agreement with an overseas private equity green fund for raising $30 million. With the biodiesel policy in place, the company is bullish on the expected increase in demand for biodiesel and hopes to increase its targets for producing the feed stock. While the company is on the verge of closing the deal, V Bhaskar Rao, MD, said that the fund infusion aims to fund its expansion pan India and overseas as well. Targeting a turnover of Rs 140 crore for this fiscal, the company is looking at a spread of 800,000 hectares in the next five years with 16,000 hectares in each state for producing 2.5 million metric tonnes. [...]

PE funds shun Street, park funds in unlisted cos

The secular decline in stock prices for a good part of this year has prompted private equity funds to shun listed companies and opt for investment in unlisted firms. Of the 206 deals struck by private equity funds in the past eight months, 182 deals were in unlisted companies. Interestingly, India has been largely a PIPE (private investment in public equity) market but the pummelling of stocks over the last few months has influenced private equity funds to change track. After seeing a high of 21,000 early this year, the BSE Sensex, the benchmark index for the Indian stock markets has slid to below the 13,000 mark. The public markets have corrected by 30-40% across sectors this year. According to industry experts, there is always a difference in correction between stock market and private equity valuations. [...]

Blackstone, Actis among PEs in race for 40% in Usher Agro

Leading private equity (PE) firms such as Blackstone, TPG, Blue River Capital, Actis and Silk Route are eyeing more than a 40% stake in agri-processing firm Usher Agro, it is learnt. The deal, if concluded, will pave the way for the PE investor to acquire management control with a majority stake. In that case, it will be third instance where a PE investor is taking control of a listed company in the recent past. Broad contours of the plan suggest that Usher will raise funds by issuing new shares to the PE investor. [...]

BTS Investment Advisors to invest Rs 320 mn in SAISUDHIR Infrastructure

BTS India Private Equity Fund Limited announced that it has concluded definitive agreement for investment of Rs. 320 million in SAISUDHIR Infrastructures Limited, fast growing infrastructure engineering / Construction Company based out of Hyderabad. The investment will focus on SAISUDHIR’s next level of growth and used for expanding engineering capacities along with providing the working capital for completing medium to large infrastructure projects. With this investment, BTS has concluded six investments from its recently launched BTS India Private Equity Fund. According to Mr. K Srinivas, Managing Partner, BTS Investment Advisors Pvt Ltd, “We are happy to announce the investment in SAISUDHIR and work with the management towards further development of the company’s project management skills, to help achieve the company’s long term objective of becoming one of the preferred EPC companies in its focus areas of Water Supply, Solid Waste Management and Power Sector.” [...]

India Infoline to launch Venture Fund

India Infoline received regulatory approval for the India Infoline sponsored venture capital fund, India infoline Ventures Capital Fund. India Infoline will act as the investment manager to the fund, which will provide seed captial to entrepreneurs and business with innovative and scalable business ideas across a variety of sectors.(Business Standard) [...]

Li & Fung, 2 other MNCs eye 15% stake in Future Logistics

Three multinational firms are in the race to pick up a 15% stake in Future Logistics Solutions Ltd (FLSL), the logistics and supply chain unit of the Future Group, said an executive with knowledge of the deal. Hong Kong-based Li and Fung Group, the world’s biggest trade sourcing company, European logistics and distribution operator Logista, and CMST, a Chinese logistics enterprises solutions provider, are competing for a slice of FLSL for about $40 million (Rs186.8 crore), which will be used to finance an expansion plan, said this executive on condition of anonymity because he is not permitted to speak publicly about the transaction. Kishore Biyani, chief executive officer of Future Group, confirmed that the firm was looking to divest a 15% stake to raise funds for investment. “We are looking to raise $40 million through private equity,” he said in a telephone interview. [...]

Lupin buys 60% in S African generic co

Lupin has acquired 60% stake in Pharma Dynamics, a South African generic marketing firm, for an undisclosed amount. This acquisition—fifth in 12 months—gives Lupin a foothold into the South African market. “We are looking at creating strong footholds in various markets to register sales of $1 billion by the year end. This year we have allocated Rs 250 crore for R&D and we expect our growth to be more than 40%,” Lupin chairman D B Gupta said. Pharma Dynamics is the sixth-largest generic player in South Africa. It recorded sales of Rand 118 million (nearly $15 million) for the year ended February 2008. It had an EBITA of over 20%. [...]

JDS Apparels to raise Rs 40 cr via placement

JDS Apparels (P) Ltd has initiated the process of raising Rs 40 crore from private equity players to fund its second phase of retail expansion in the country. The Noida-based fashion and lifestyle retailer currently operates 6 stores under the Ritu Wear brand in north India with another 10 in various stages of opening. According to sanjay Sahni, director of JDS Apparels, the expansion of another 10 stores is expected to be accomplished by second half of 2009. “In fact, two new stores are set to open in Faridabad and Indirapuram in a couple of months from now,” said Sahni. [...]