Private equity group India Agri Business Fund will invest $10 million (about Rs 48 crore) in Gautam Thapar-promoted Avantha Group's food division Global Green Company Ltd. A shareholders agreement was signed between the Avantha Group and Rabo Equity Advisors, India Agri Business Fund and Global Green said in a joint statement. Rabo Equity Advisors is the investment adviser of IABF. "We have successfully developed into a multinational food company through acquisitions. As we have aspirations of building our brands and develop a more robust India business, Rabo Equity's knowledge pool will work to our advantage in the next phase of growth," Global Green Managing Director and CEO Vineet Chhabra said.   more »

After real estate, private equity (PE) and venture capital (VC) players are holding on to their investments in information technology (IT) companies coming up with initial public offers (IPOs). Traditionally, PE and VC firms look at IPOs as their main exit option. For instance, Pune-based Persistent Systems has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). It will soon hit the market to raise Rs 150-200 crore. Investors such as Intel Capital, Norwest Venture Partners (NVP), Gabriel Venture Partners and Hewlett-Packard (HP) together hold over 20 per cent in the company. While Intel and HP invested in 2000, Promod Haque of NVP and Gabriel Venture Partners invested in 2005. HP's and a part of Intel's investment have a one-year lock-in, but NVP and Gabriel Ventures have continued to stay with the company.   more »

Private equity (PE) players in India have offloaded stakes worth USD 757 million in the first two months of this year driven by a significant recovery in the stock markets and hopes of continuation of this trend, believe experts. According to VCCEdge, the financial research platform of VCCircle, January 2010 saw 13 exits worth USD 282 million, while February witnessed as many as 10 worth USD 475 million. "PE funds are under pressure to make some exits before they set out to raise new funds. They will continue to use every opportunity available to exit as long as they see a good return,"   more »

Private equity investments in India's logistics services sector are set to rise as it gears up to improve transportation - with costs among the most prohibitive in the world - and boost related infrastructure bottlenecks. The last four years have seen considerable growth in mergers and acquisitions (M&A) in logistics, ports, warehouses and container freight stations while Free Trade Warehousing Zones (FTWZ), freight stations, cold chains and captive spin-offs such as auto and retail logistics are seen as attractive targets now. While analysts expect logistics to be among the top five sectors for PE investments in India in the near term, deal sizes will likely be around $20-$25 million, which is where most planned PE ticket sizes converge.   more »

India is ranked among the top three investment destinations for private equity (PE) firms in the world, as per a report by consulting firm Bain & Company. The US, one of the worst affected by the global financial crisis, leads the table as the top investment location for PE funds followed by China, the report said. India recovered sharply ahead of most other economies from the slowdown that hit markets in 2008. The report pointed out that India is emerging as an attractive investment market for PE firms as an increasing number of family-owned businesses are turning to outside investors to raise funds.   more »

Corporate India's shopping spree continued unabated in the second month of this year, as deals worth over USD 1.3 billion were announced, a five-fold jump from the year-ago period, a report by global consultancy firm Grant Thornton said. Driven by the significant momentum in the merger and acquisition (M&A) space in February 2010, the total deal tally in the first two months of this year has risen to nearly USD 4 billion. "M&A and private equity deal activity has kept up with the significant momentum set from the beginning of 2010." Grant Thornton Partner Specialist Advisory Services C G Srividya said.   more »

While 2009 was a year of caution for most private equity investment firms, 2010 is looking optimistic especially for the logistics sector, which expects to seal many a deals this year.As 2009 ended with a big-ticket private equity investment of Blackstone putting $245 million in Gateway Rail Freight, Indian logistics industry left behind the cautious approach and braced 2010 with optimism. Industry expectations are high, to touch a target of 10-12 private equity deals and investments close to $400 million this year, like the buoyant year of 2008 as against only six deals of 2009. Revival in retail and manufacturing is expected to give a boost to sector specific logistics players. But the fragmented nature of the $10 billion Indian logistics industry, growing at 10 per cent and improving valuations of businesses, will make mergers and acquisitions also a game changer, especially in road and rail transportation.   more »

When the promotor family of retail chain Nilgiris dragged the private equity (PE) investor, Actis, to the Company Law Board (CLB), it was the culmination of a dispute that had been simmering for nearly two years. The differences related to many aspects of the business, starting with the pace of expansion to the kind of merchandise the stores should sell. Nilgiris, present in South India for close to 100 years, divested 65 per cent to the UK-based fund for $65 million nearly three years ago. This was after bitter differences among the family members on whether a PE investor should come on board. The story of Indian family businesses running into trouble with their PE investors is not new. Industry watchers say that while no specific reason can be given, these tensions are inherent in the difference between the way traditional families run businesses and the approach of global PE investors, who have their own systems and procedures.   more »

INDIA is investing US$1.35 billion (S$1.9 billion) in gas projects in military-ruled Myanmar, the two governments have announced, as the neighbouring nations pursue closer economic and diplomatic ties. India's Oil and Natural Gas Corp (ONGC) and Gas Authority of India Ltd (Gail) will spend US$1.1 billion on rights to develop two gas field blocks and US$250 million on a connecting pipeline, India's energy ministry said in a statement.The other US$250-million investment gives India a 12.5-per cent stake in a US$2-billion pipeline being built by China National Petroleum Corp (CNPC), China's top oil producer. The first gas is expected in early 2013. ONGC will spend US$167.8 million while Gail will invest US$83.8 million in the 771-kilometre (480-mile) pipeline which will transport gas from the two blocks off the Myanmar coast to China.   more »

The country is likely to get several more new generation private banks with the finance minister announcing that RBI is considering new bank licenses to promoters in the private sector and also NBFCs if they meet RBI eligibility criteria. A host of Indian corporates likes Tatas, Birla group, and some of the older NBFCs have been interested in a banking licenses. Among finance companies, Reliance Capital and Indiabulls have announced their interest in getting into banking. Lenders such as Exim Bank and SIDBI were also interested in a banking licence. If such a move happens this would be the first time post 2002 that RBI would look at such a move.   more »