October 2009
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Fitness One to raise Rs 25-crore

Fitness One is looking at a PE infusion of around Rs 25 crore to fund its expansion. The Chennai-based company has been actively scouting for private equity in the last few months. The 75-outlet strong fitness chain is open to diluting 15-20% equity to fund growth, Fitness One promoter and MD Vivek Anand confirmed to ET. The chain hopes to add 30-40 outlets in the next 18 months, “three-fourths of which would be company-owned, with the rest being franchisee-run,” he said. It is learnt from sources that it was close to signing a deal with TVS Capital, but talks fell through over valuation issues. The company has now mandated one of the big four consulting firms to look for the right partner. […]

Many PE firms may shut shops in India

Several private equity (PE) firms are reviewing whether to continue operations in India even as the domestic economy is showing clear signs of recovery. Around half a dozen PE firms are said to be in the process of shutting shop including Candover, a UK-based buyout specialist, which has recently closed shop in India and Strategic Value Partners (SVP) which is close to winding up operations in the country. Although there has been some improvement in PE dealmaking over the last few months, the transactions are well below the level which was reported prior to September 2008 when investment bank Lehman Brothers declared bankruptcy. Analysts tracking the sector said that investments in the near future are unlikely to witness a big boom. […]

PEs take refuge in repeat funding

Private equity (PE) funds are shying away from making a wrong call on fresh investments. Instead, they are ramping up investments in their portfolio companies in order to help them weather the downturn. With the slowdown affecting economies across the world, PE deal flow has came down substantially from its peak in 2007. As a result, PE funds are now looking at incremental funding in their portfolio companies as one of the ways to deploy cash and report better returns to their limited partners (LPs). Market players said that one of the reasons behind incremental funding having picked up in recent weeks was that valuation continues to be an issue for deal closures. “The risk appetite has certainly gone down. Capital has become expensive and LPs are far more liquidity conscious now,” said the managing director of a large domestic institution-backed PE fund. […]

Eka gets $10 mn from Nexus Venture

Eka Software Solutions, a multi-commodity trade and risk management solutions provider, has received a funding commitment of US $10 mn from Nexus Venture Partners. The startup had earlier been seed funded by the GP Group, a conglomerate with interests across shipping, manufacturing, real estate development and hospitality. “Eka is very well positioned to take advantage of the growing need for commodity trade and risk management software. Our products, technology and team are highly regarded in the market, and the rapid expansion in our customer base is testimony to this. The new funding will allow us to further enhance our technical, support and sales capabilities, and help capitalize on current opportunities to accelerate our growth,“ said Manav Garg, founder & CEO, Eka Solutions. […]

SUUTI to sell stake in in Asset Reconstruction Company

Specified Undertaking of Unit Trust of India (SUUTI) has offered its entire 39.3 per cent stake in Mumbai-based Asset Reconstruction Company (ASREC) to its existing shareholders, including Bank of India (BoI). The valuation was still being discussed and the stake for each shareholder would depend on their plans and approvals, sources said. SUTTI has offered a 10-11 per cent stake to BoI, which is the second largest shareholder of ASREC. Indian Bank, Allahabad Bank and Andhra Bank have 11.22 per cent stake each in the entity. […]

StanChart-ILFS Infra Fund raises USD640mn

Private equity fund manager, IL&FS Investment Managers, has raised USD640mn for its infrastructure fund floated in a joint venture with Standard Chartered Bank, a top official said today. The Standard Chartered IL&FS Asia Infrastructure Growth Fund, plans to mop up a total of USD800mn by December, IL&FS Investment Managers managing partner Krishna Kumar said. “We have a handful of investors to contribute to this fund. It would invest in 15-18 projects in Asian markets,” Kumar told reporters at a private equity summit here. […]

PE firms invest $763 million in Indian companies in Q3 '09 news

Private equity firms invested about $763 million across 47 deals during the quarter ended September 2009, according to a study by Venture Intelligence, a research service focused on private equity and M&A transaction activity in India. While the amount invested during the latest quarter was during the quarter was significantly lower than that during the same period last year (which witnessed $2,581 million invested across 132 deals) and also lower compared to the immediate previous quarter ($964 million across 47 deals). […]