July 2010
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Logistics firm AFL likely to get Rs 100 Crs from U.S. PE firm

Logistics firm AFL is likely to get at least Rs.100 crore from a U.S. private equity (PE) firm for a minority stake. The money will be used by firm, promoted by Cyrus Guzder to build warehouses and distribution infrastructure, reports P.R. Sanjai and Shraddha Nair of Mint. According to industry analysts, with inflow of cash and management expertise from a PE firm, AFL could elevate its third-party logistics (3PL) infrastructure, including warehouses, fleet and IT systems. The logistics industry, which is estimated to contribute around 13 percent of gross domestic product, is divided into ocean freight, air freight, rail freight, trucking and 3PL services. According to Sunil Devrani, Managing Director of Direct Logistics India, logistics is a business that has a high working-capital and low-margin with no huge reserves for further expansion in most of the cases. […]

IL&FS PE plans about 1,400 crore urban infra investments

IL&FS Investment Managers (IIML), one of the country’s oldest private equity funds, plans to invest $300 million, or around Rs 1,400 crore, in real estate and urban infrastructure projects by the end of 2010. The PE arm of Infrastructure Leasing and Financial Services (IL&FS), with $2.8 billion assets under management, has already invested an equal amount in the last six months and evaluating some of the big-ticket projects for investment in the country, said a senior official. “We are in the advance stages of finalising 3-4 deals in residential real estate and urban infrastructure space like roads and hospitality,” said IIML vice-chairman & MD Shahzaad Dalal. According to industry sources, IIML has recently made commitments for an equity investment of Rs 110 crore in Palais Royale, a 75-storey luxury residential tower being built by Vikas Kasliwal-owned Sree Ram Urban Infrastructure. The project may entail investments of around Rs 1,800 crore, which is scheduled to be completed in the next two years. […]

BCCL acquires stake in Noble Hygiene

Bennett, Coleman & Co Ltd (BCCL) has picked up a stake in Noble Hygiene Pvt Ltd, a Mumbai-based enterprise manufacturing and marketing diapers and personal hygiene products. The company manufactures a range of diapers for both babies under the brand Teddy and for adults branded as Friends. In fact, Nobel Hygiene pioneered the concept of adult diapers in India. Both these brands are available across India through retail, modern trade and hospitals. Noble Hygiene has recently set up a plant in Nashik, Maharashtra. Kamal Johari, MD Nobel Hygiene, said the deal with BCCL will help Nobel further strengthen its market presence. […]

PE activity may soar; buyouts to dwindle

Private equity (PE) deals in listed companies are set to rise if the Securities and Exchange Board of India (Sebi) approves the Achutan Committee’s recommendations on the takeover code. However, buyouts are likely to dwindle, say major PE players in the country. According to estimates, lack of good opportunities has kept around $30 billion PE money waiting to be deployed. “The 25 per cent mark is positive, as PEs want to take their stake beyond 15 per cent in companies they invest in,” said Shahzaad Dalal, vice-chairman and managing director, IL&FS Investment Managers. Among the BSE 500 companies, 98 have single public shareholders with 10-14.99 per cent holding, according to a study by SMC Capital. For such investors, the upward revision of the takeover threshold limit can be a huge opportunity to increase their holding to 25 per cent without an open offer, say analysts. […]

BCCI spoils Kings XI Punjab's plan

Kings XI’s proposal to transfer 93% of its share to a private equity firm was rejected by the Board of Control for Cricket in India (BCCI). It said that the takeover must wait until investigations against suspended IPL chairman Lalit Modi have been concluded. The decision further delays the Punjab outfit owners’ plan to sell the team. A team willing to sell stake cannot go ahead without the BCCI’s permission, say rules laid out by the IPL governing council. Team owners also have to pay BCCI a transfer fee on a pro-rata value of the franchise. […]

Gvk to sell stake in airport business

GVK Power & Infra (GVKPIL) is in talks with PE players to dilute stake in its airport subsidiary. GVK Airport Development Private Ltd which is the holding company for all GVK investments in the aviation space is looking at diluting up to 26% stake. GVK Airport development private limited is a hundred per cent subsidiary of GVK Power & Infra. According sources from the company, GVKPIL is in talks with Temasek holdings, Blackstone group & SBI-Macquarie. ‘The company is looking at raising up to $400 mn through the stake sale’ said a company source who did not want to be named. The deal is expected to be finalised by September. GVK Power and Infrastructure holds about 37 per cent in Mumbai International Airport Ltd (MIAL) and around 29 per cent in Bangalore International Airport Ltd (BIAL). It is in talks with its South African partner Bidvest to buy 13.5% stake which will take hike its stake to 51% in MIAL. […]