October 2011
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PE deals touch $1.9 b in July-Sept quarter

Private equity investment in India touched $1.91 billion in July-September this year, which was 18 per cent higher than that in the same period last year. For the third quarter of 2011, PE deal values amounted to $1.91 billion against $1.71 billion in the same period last year, according to Grant Thornton’s ‘Dealtracker’ report. In terms of number, the July-September quarter saw 94 deals compared with 58 deals in the same period last year. “Private equity investments during Q3 2011 have shown a marginal growth in value and a high growth in volume over the same period for the previous year,” Grant Thornton India Partner and Practice Leader, Valuations, Ms Srividya C.G., said. […]

GAIL offers to buy ADB's 5.2% stake in Petronet

GAIL has once again set the cat among the pigeons by offering to buy the Asian Development Bank's entire 5.2% stake in Petronet LNG Ltd, a private company promoted by state-run oil companies for importing gas in ships. It has written to petroleum secretary G C Chaturvedi, who is the company's ex-officio chairman, that the stake can be equally split among the three other state-run promoters of Petronet if they too wanted a share of the pie. GAIL, ONGC, BPCL and IOC have 12.5% stake each in Petronet . French major Gaz de France holds 10%. The shareholders agreement gives all five of them the first right of refusal in case the ADB sells its stake. […]

Pantaloon Retail to dilute 15% equity to raise Rs. 1,500 crore

Future Group firm Pantaloon Retail India Ltd (PRIL) today said it plans to raise up to Rs. 1,500 crore by issuing equity-linked securities amounting to stake dilution of not more than 15 per cent. In a filing to the BSE, PRIL said its Board of Directors which met today approved the raising of additional long-term funds. The securities could be either convertible instruments, convertible into shares, debt instruments with attached warrants giving right to the holder of such warrants to subscribe for Equity/Class B Shares, issue of Equity/Class B shares, it added. […]

Rane enters defence with 26% stake buy in SasMos

Auto component maker Rane Group today said it had forayed into the defence and aerospace sectors by acquiring 26% stake in parts manufacturer SasMos HET Technologies for an undisclosed amount. “Rane Holdings acquired 26% equity stake in SasMos HET Technologies, a company engaged in manufacturing interconnection systems [cable harnesses] for various applications in the defence and aerospace industries,” the company said in a statement. The auto parts maker had been scouting for opportunities to grow and identified the defence and aerospace industries as a possible area after the government's decision to allow private participation in these sectors, it added. Commenting on the development, Rane Group Chairman L Ganesh said: “Today is a momentous step forward as Rane ventures into this new area. We feel there are significant growth opportunities both in India and as an exporter.” […]

Vivimed Labs gets Rs 127-cr PE funding

West Asia-based Kitara Capital invested Rs 60 crore to subscribe to equity shares at Rs 327 a share, for a 11.4 per cent shareholding in Vivimed. The proceeds of the investment would finance Vivimed’s ongoing expansion plans for specialty chemicals at its existing locations in Bidar (Karnataka), Hyderabad and Visakhapatnam. In addition, the funds would also be used in setting up of a greenfield project at PydiBhimvaram near Viskakhapatnam and a plant at Choutuppal near here, among others. […]

Goldman Sachs invests $200m in India’s ReNew Wind Power

India's burgeoning renewable energy market was underlined this week after investment bank Goldman Sachs announced that it is to shell out $200m to acquire a majority stake in ReNew Wind Power Pvt. The companies confirmed a deal worth 10bn rupees that will give Goldman Sachs a controlling stake in the Mumbai-based wind farm developer. Sumant Sinha, chairman and chief executive of ReNew, told news agency Bloomberg that the company will invest the money from the sale “on an opportunistic basis” in a wide range of projects. […]

Jhunjhunwala, RK Damani pick up 14% stake in Sterling Holiday Resorts

Rakesh Jhunjhunwala and RK Damani have picked up 14% stake in Sterling Holidays in last 2 months; both invested Rs 40 crore each. Management has confirmed the same in its AGM, reports Business Standard. […]

PE firm Xander picks 14.5% in HCC arm for Rs 240 cr

HCC Concessions has concluded its transaction involving a 14.5 per cent stake dilution to global investment firm, the Xander Group, for Rs 240 crore. The company was valued at Rs 1,650 crore. HCC Concessions is a 100 per cent subsidiary of HCC Infrastructure, a wholly-owned subsidiary of Hindustan Construction Company. HCC Concessions designs, finances, builds and operates transport infrastructure. Its portfolio comprises six NHAI projects with expected internal rate of return of 17-25 per cent over the concession period ranging from 18-30 years. […]

Banks acquire 60% stake in Trident microfin

Various banks have taken control of Hyderabad-based microfinance firm Trident Microfin by acquiring a majority stake in the firm, leaving promoter and chief executive Kishore Kumar Puli with a stake of only 4.2 per cent. As many as 20 banks, including ICICI Bank, HDFC Bank, Axis Bank, Indian Overseas Bank, Bank of India and Union Bank of India, have together acquired over 60 per cent stake in the microfinance company by converting a part of its debts into equity shares. The remaining stake in the company is held by institutional investors Bellwether Microfinance Fund and India Financial Inclusion Fund. Among the five microfinance firms that opted for a debt recast, Trident is the only micro-lender in which banks have acquired equity stake. The banks converted around Rs 32-crore debts into equity shares, at a price of Rs 10 per share, even though the book value of the company is estimated at around Rs 18.60 per share. The move is part of Trident's plan to restructure Rs 125.5-crore bank debts. […]

Blackstone India can invest $500-800 mn a year: Gupta

With a little over 15 investments and $2.8 billion deployed in the country, it is one of the most aggressive private equity (PE) investors in India. At a time when many have been speculating about Blackstone’s India strategy, ever since it decided to divest its India-focused close-ended mutual fund scheme to Aberdeen, chairman and managing director Akhil Gupta has made it very clear the PE major is in India for the long haul. “The Indian economy is expected to continue to outpace global growth under all probable scenarios by a wide margin for the next 10 years at least,” said Gupta, in an exclusive interview with Business Standard. Gupta, 59, has been driving the India operations of Blackstone, the New York headquartered financial services powerhouse, from its inception six years ago, after a stint with Reliance Industries. […]