June 2011
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Sequoia capital buys shares worth Rs 50 crore in Manappuram General Finance

The market is abuzz with talk that private equity fund Sequoia Capital has turned active in the counter of nonbanking finance company Manappuram General Finance, with triggers being attractive valuation and high growth potential of the gold loan sector. The fund is learnt to have bought shares worth Rs 50 crore in the past one week, thereby re-entring the company after exiting its previous investments last year. Sequoia Capital India Growth Investments had invested $14 million to acquire a 14% stake in Manappuram. […]

Returns dwindle for PE funds as valuations soar

High valuations are making it tough for private equity (PE) fund managers to deliver expected returns to investors. “We are not seeing fund level returns, even though PE in India is today a decade-old industry,” said Anubha Shrivastava, managing director-Asia of CDC Group, the development finance institution of the UK government that has so far invested at least $1 billion across 17 funds. “LPs (limited partners that invest in PE funds) expected net return of 20-25%, but today deals are being done at high valuations, bringing in the net returns to mid teens.” The pace of PE exits in India has shot up; in 2010, there were exits to the tune of $5.3 billion, a fivefold jump over 2009, according to Venture Intelligence, a research service focused on private equity, mergers and acquisitions. This appears to be due to heightened competition among PEfunds, with close to 300 of them jostling for deals. […]

Dubai jobs website sold for $9m to India-based investor

Online recruitment firm Jobs in Dubai has been sold to an India-based investor for $9 million (Dh33 million). The firm, which claims to be one of the largest online recruiting portals in the Middle East, announced Tuesday that the deal was inked on June 7. The company is now moving to finalise the sale of the eight-year-old company that claims to have the largest database in GCC and UAE of both jobseekers and companies. Nofel Izz, Jobs in Dubai CEO, told Gulf News in an earlier interview that the aim of the sale was to find a larger entity that could take the success of the company to a larger audience. […]

PE firms route funds to India’s road sector

Many large private equity (PE) firms that have raised millions of dollars to invest in India’s infrastructure have struck at least one deal in the road sector this year—a rarity four years ago when the PE market was at its peak. In the first five months of this year, PE firms pumped in $407 million (Rs.1,823 crore) in road projects, double the $200 million they invested in the sector in all of 2007, show data from Venture Intelligence, a research service focused on PEs and mergers and acquisitions. Last year, the sector attracted $274 million in investments. The largest deals in road projects were done through joint ventures (JVs). […]

Foreign PE firms bet big on mid-sized Companies in Gujarat

Gujarat-based mid-sized private enterprises with a turnover of around Rs 200 crore seems is becoming favourite for the foreign private equity (PE) investors. Some of the leading global private equity funds have initiated talks with the private companies in Gujarat having operations in the automobiles, auto ancillary manufacturing and real estate. Around seven to ten mid-sized companies from Gujarat are likely to get foreign funds via PE route. “The talks are underway and we are at different stages of talks with foreign PE funds. The investments are believed to be in the range of Rs 100 crore to Rs 200 crore with PE funds staying invested for a long term period of about four to seven years,” said Ashesh Shah, managing director, Trans-Continental Capital Advisors (TCCA) – a Mumbai-based financial advisory firm. However, he declined to reveal names of the companies or the PE funds interested to invest in them. […]

IL&FS Investment to raise $300 million for Tara India-IV

IL&FS Investment Managers, the private equity arm of Infrastructure Leasing & Financial Services , has hit the fund-raising road to raise $300 million (around Rs 1,350 crore) to capitalise its 'growth pool' Tara India Fund IV. The fund will provide capital to companies across sectors, with core sector targets being manufacturing, retail and logistics. “Funds under Tara India III have been deployed completely… We're now raising money for the fourth generation of Tara India Fund. This fund will have the same mandate as that of other (previously-raised) Tara India Funds ,” said Archana Hingorani, CEO, IL&FS Investment Managers (IIML). IIML is a subsidiary of Infrastructure Leasing & Financial Services, one of India's largest infrastructure development and finance companies. […]

SEBI decision on Takeover Code likely on June 30

The Securities and Exchange Board of India is likely to raise the trigger limit for open offer to 25 per cent when it takes a decision on the new Takeover Code for mergers and acquisitions at its board meeting scheduled later this month. “SEBI is likely to clear the Takeover Code in its board meeting scheduled on June 30,” an official said. An agreement seems to have emerged between the Finance Ministry and the capital market regulator for raising the trigger limit from 15 per cent to 25 per cent, as recommended by a SEBI panel but the government is not in favour of 100 per cent open offer, sources said. “Certainly not 100 per cent,” the official said when asked if the open offer would be for the entire stake. […]

Vaatsalya raised $10 million of PE funding from Aquarius India

Bangalore-based Vaatsalya Healthcare Solutions has raised $10 million in its third round of PE funding from Singapore-based Aquarius India Fund and its existing investor Seedfund. Narasappa, Doraswamy & Raja advised Aquarius with a team led by Partner Siddharth Raja along with Senior Associate Ashwini Vittalachar and Associate Yamuna Kumaraswamy. The Bangalore office of ALMT Legal advised both Vaatsalya and Seedfund. Vaatsalya was advised by Partner Dhanya Menon and Seedfund was advised by Senior Associate Mini Raman. […]

Max India to acquire Warburg Pincus’s stake in Max Healthcare

The Analjit Singh-promoted Max India Friday said that it has got approval for acquisition of private equity firm Warburg Pincus group’s entire shareholding of 16.37 percent in Max Healthcare Institute for Rs.140 crore. ‘The board of directors of the company accorded its approval for acquisition of 47,617,924 equity shares of Rs.10 each of Max Healthcare Institute Limited (MHC), constituting the entire shareholding of 16.37 percent held by entities forming part of Warburg Pincus group,’ the company said in a regulatory filing. The acquisition is expected to be completed by Dec 15, 2011, after receipt of all regulatory approvals. […]