February 2009
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Gammon India denies report on Maytas acquisition

The report was earlier stated that the logicGammon India denies report on Maytas acquisition of the takeover bid is that Maytas-a virtual damsel in distress now-has lots of projects, both inside and outside the state. Gammon India has clarified that company is not in process to acquire Maytas Infra, the infrastructure company promoted by the erstwhile Satyam family. Earlier, the report stated that company was keen for acquiring Maytas Infra. The logic of the takeover bid was that Maytas-a virtual damsel in distress has lots of projects, both inside and outside the state. (India Infoline) […]

Private-Equity Firms Form Syndicates for India Acquisitions

Set back by the economic downturn, foreign and domestic private-equity firms in India are spreading the risk of investing in assets by banding together. Firms are resorting to clubbing together to form a syndicate when acquiring stakes to limit both funding requirements and risk. “Over the next 12 months, there will be much more syndication of deals and the insistence (by the lead investor) of having other co-investors to bring additional risk bearing capacity,” said Jasmin Patel, Managing Director, FIL Capital Advisors (India), Fidelity's India-focused private equity and growth capital fund. “The capital required to get a funded firm to a certain maturity point has gone up, so the presence of another investor from a growth perspective and the amount of capital required is becoming a prerequisite,” Mr. Patel said. Syndication is where two or more private equity firms participate in investing in a company, each putting in part of the total equity package for proportionate amounts of equity — usually with one private equity firm acting as lead investor. […]

MapmyIndia raises venture funds, led by Qualcomm Ventures

MapmyIndia, India's leading digital maps and navigation services provider, today announcedthat Qualcomm Ventures has led a round of strategic investment in the companywith participation from existing investors Kleiner Perkins Caufield Byers, Sherpalo Ventures and Nexus India Capital. The investment will leverage Qualcomm’s worldwide leadership in wirelesstechnologies and MapmyIndia’s leadership in India’s digital maps,location-based services and GPS navigation, to empower the entire telecom,automotive and internet ecosystems. With the recent launch of 3G in India, andgrowing demand for rich data services, device manufacturers and mobileoperators can go-to-market quickly today with GPS navigation and advancedlocation-based services on handsets and Personal Navigation Devices (PND)powered by India’s most comprehensive digital map, data and solutions fromMapmyIndia. The automotive sector can look to enhanced in-car safety andinfotainment through next-generation GPS navigation and telematics productsfrom MapmyIndia and Qualcomm. Converged devices, which marry the internet withmobility, can benefit from MapmyIndia’s server platform to deliver maps andnavigation information across internet, mobile, in-car and digital TV. […]

PE firms turn to FCCBs as stocks crash

As stock markets around the world continue to tumble, private equity (PE) players are sensing an opportunity in the foreign currency convertible bonds (FCCBs) issued by Indian companies. Most of the FCCBs are trading at a discount of 30 to 70 per cent now. And given the tight financial situation internationally, many investors could be desperate to raise cash by selling them. Some PE firms are looking at companies whose FCCBs are maturing in the near future. Vedika Bhandarkar, managing director and head of investment banking, JP Morgan India said, “If it is a fundamentally good company and the bond is available at a huge discount, it makes sense to go for it.” […]