October 2010
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L & T to buy entire 14% stake in L&T Infrastructure Development Projects

Larsen & Turbo Ltd is mulling a purchase of a 14 per cent stake in L&T Infrastructure Development Projects. The stake will be acquired from IDFC Private Equity and JPMorgan Chase for an estimated Rs 740 crore. That would subsequently transform L&T Infrastructure Development Projects into a wholly owned subsidiary of Larsen & Turbo Ltd. The investment values L&T IDPL at about Rs 5,300 crore. Back in April, IDFC Private Equity and JPMorgan Chase bought a 21.6 per cent shareholding in L&T Infrastructure for an estimated Rs 550 crore. Back then, the deal had pegged the value of L&T IDPL at about Rs 2,448 crore. In the 2006 stake acquisition, JPMorgan Chase undertook the investment via its subsidiary, Silver Pak Investments, based in Mauritius; while IDFC Private Equity purchased its stake via its infrastructure fund India Development Fund. […]

Shriram Properties seeks $100 mn from PEs

Shriram Properties, the real estate arm of Shriram Group, plans to raise $100 million (Rs 452 crore) this year from private equity (PE) investors as it seeks to deepen its penetration in Southern India, senior company officials told Business Standard. The company, which was planning an initial public offering (IPO) in 2010, has deferred its plans for a share sale for at least the next 12 months, said Chairman Arun Duggal. The developer is raising this money as part of its plans to invest around Rs 3,000 crore in various residential and commercial projects over the next three years. Shriram Properties currently has 9 million square feet under construction and presence in Bangalore, Chennai, Vishakhapatnam, Kolkata and Coimbatore. “We will deploy the money in new projects,” said Managing Director M Murali. “We want to expand our presence in Southern India.” […]

Mastercard buys 12.5% stake in ElectraCard

Mastercard on Thursday said it has acquired 12.5 per cent stake in Pune-based third-party paymet services provider ElectraCard Services (ECS). However, financial terms of the transaction were not disclosed. “The investment in ECS bolsters Mastercard’s overarching global processing strategy by further extending Mastercard’s product offerings and enhancing services across the full spectrum of the processing value chain,” the company said in a statement. Mastercard expects to increase global revenues by 13-14 per cent each year for the next few years, higher than the 9-10 per cent growth forecast for the payments industry, said Ajay Banga, president and CEO, Mastercard Worldwide. “India is one of our fastest growing markets although it is not the fastest,” said Banga, during a press conference in Mumbai. “Europe is another region where we see good potential for growth.” […]

Asia PE funds flush with cash, desperate for talent

Asia's private equity (PE) industry is sitting on a cash pile, estimated at $50 billion, but a shortage of experienced fund managers is a big worry for the sector. A snap poll of about 250 PE experts at Super Return Asia 2010 conference showed that about 44 percent considered too much cash as the biggest risk to the industry, followed by absence of experienced fund managers. Asia is set to deliver strong returns for PE funds, with more than half the respondents expecting China to deliver the highest returns over the next three years. About half of the $50 billion investable capital available in Asia targeted for China. “The number of funds have proliferated dramatically in the last 5 to 10 years,” Nicholas Bloy, managing partner of Navis Capital told Reuters. […]