Trikona Trinity Capital PLC said it has received an offer for the acquisition of Dynamix Balwas Hospitality Pvt Ltd by Trikona Hospitality Vertical, a wholly owned subsidiary of Trikona Capital Ltd, for 18.26 mln stg cash. Trikona Trinity, a fund created for investing in real estate across India, has a 9.5 pct holding in Dynamix Balwas Hospitality, which comprises a private development company, owning an operational 5-star hotel in Mumbai and land to develop further hotels in Mumbai, Pune and Goa. Trikona Trinity said the proposed transaction will yield an internal rate of return (IRR) of 74 pct on the invested capital, and added it plans to use the proceeds to invest in further projects in line with its investment strategy.   more »

Trikona Capital Ltd., the leading fund management firm for institutional investment in Indian real estate and infrastructure, today announced it received Special Economic Zone (SEZ) status approval from the Indian government for a new development in the rapidly growing city of Greater Nodia near the nation’s capital. Trikona Capital invested $56 million in the 76-acre mixed-use Tech Oasis project, a planned development of 10 million square feet of IT, residential and commercial space located in a specially designated area, known as Tech Zone, which promotes the development of the IT services industry. Tech Oasis is situated along the Taj Expressway, which will connect the site to a new proposed international airport and provide direct access to Agra, Faridabad and Gurgaon. Since acquiring the project in March 2007, Trikona Capital has actively managed the investment from developing the project’s master plan to working closely with the Ministry of Commerce and the Government of Uttar Pradesh to receive formal SEZ status. Final project plans will now be submitted for approval. The SEZ approval gives Trikona Capital control of two of the four multi-product SEZs in the National Capital Region of Delhi, a popular location for multinational IT services firms. SEZs were created in India as export hubs to entice investment and spur economic develop outside India’s congested major metros. Both developers and tenants of SEZs receive significant tax benefits for more than a decade.   more »

Gujarat Venture Finance Ltd (GVFL) has decided to invest in VMukti Solutions, a company incubated at the Centre for Innovation, Incubation and Entrepreneurship at IIM-Ahmedabad, and Vadodara-based Century Pharmaceuticals. “We will be making these investments from the Rs 20-crore Gujarat IT Fund and the Rs 50-crore Gujarat Biotech Venture Fund, respectively,” says GVFL chief executive officer Vishnu Varshney. The GVFL funding will also help the two companies in brand building. VMukti Solutions, which is listed on Nasscom’s Top-100 Innovative Companies of 2006 and 2007, is in the development and marketing of products based on unified collaborative communication platform. Its product line of web convergence, peer-to-peer architechture and telecom applications caters to global telecom services players such as Bluesky, T-Mobile and Stercom.   more »

Private equity firm Red Fort Capital plans to invest about Rs 2,700 crore in real estate by 2009, including acquisition of 2,500 acres of land in over 20 cities across the country. "By 2009 we will have invested about Rs 2,700 crore in development projects in Indian real estate. Of which, about 70 per cent will go toward acquiring 2,000-2,500 acres of land in suburbs of metros and Tier II cities," Red Fort India Real Estate Fund's Managing Director Parry Singh said. The company will develop properties worth Rs 12,000 crore, he said, adding "... the respective developers will also invest their share of the remaining equity amount on a project-by-project basis." (The Hindu)   more »

Power trader PTC India Ltd, which plans to diversify into the coal business and supply fuel to companies from which it will buy power, will create a $1 billion fund for the acquisition of overseas coal blocks. The fund will be part of the overseas arm PTC is setting up to acquire these blocks. PTC is also looking to divest 70% stake in this overseas arm. “The offshore firm will be registered in Singapore and we will own a 30% stake in the firm. To start with, PTC India will put Rs300 crore in the fund. The rest of the money will be brought in by the firms that will take the balance 70%,” said a senior PTC official who did not wish to be identified. He declined to name the overseas firms that PTC is in talks with. The company is also looking to divest 70% stake in its overseas arm, which ‘will be registered in Singapore’ After looking for coal supplies from Australia, South Africa and Indonesia in an international market that is becoming increasingly competitive, PTC has decided to focus on Indonesia, prompted by the proximity of the South Asian country to India, which will mean lower freight costs.   more »

ICICI Venture, the largest homegrown private equity firm, is launching a separate $3-billion infrastructure fund to invest in road, port and power projects across the country, CEO and MD Renuka Ramnath said. ICICI Venture will raise the money from domestic and institutional investors some time this year. The infrastructure fund will be the firm’s third-biggest fund launch and will help it achieve a target of $10 billion assets under management by 2010. A $2-billion real estate fund and a private equity fund of similar size are also being planned. “We are looking at multiple pools of capital to satisfy the different needs of the economy. Through this, we hope to identify the best investment opportunities for capable entrepreneurs,” Ms Ramnath said. She added that a separate fund for infrastructure was necessary as the profile and needs of investors were different. The infrastructure fund has come to I-Venture after ICICI Bank, the parent, decided not to proceed with its own plans. Credit Suisse First Boston is advising I-Venture on the fund raising plan   more »

The Aditya Birla group is set to enter the private equity (PE) business in order to provide growth capital for the emerging enterprises in the country. The first investment is expected to be announced within a fortnight. The entry into the emerging PE space — the country witnessed PE deals worth $19 billion in 2007 — is in line with the group’s plans to consolidate its position in the financial services industry. The group already has presence in mutual fund and insurance businesses through joint ventures with its Canadian partner Sun Life. However, the PE venture will be entirely owned by the Birla group. Although the exact size of the group’s initial contribution to the PE business could not be ascertained, it is estimated that a sizeable portion of the $1 billion being raised by Aditya Birla Nuvo, the holding firm of the financial services activities, will be injected into it. Later on, the PE venture will raise funds onshore as well as offshore.   more »

ICICI Venture, the private equity arm of ICICI Bank, is planning three fund offerings as part of its plans to raise its assets under management to $10 billion by 2010 from $2 billion now. It plans to come out with a $2-billion real estate fund, a diversified equity fund valued at around $1 billion and another $500-million mezzanine fund. Among these, the real estate fund will be one of the largest in the country. Besides these plans, an entry into new asset classes such as hedge funds is also on the cards. ICICI Venture, which has built its portfolio across segments such as pharmaceuticals, media, information technology and logistics, wants to take a greater exposure in infrastructure in this fiscal. It is also looking at the prospect of setting up a hedge fund. Sources said that at a recent presentation before analysts, such a possibility was hinted upon.   more »

Pragnya, an India-focused private equity firm, is planning to raise $150 million to invest in Indian and Sri Lankan realty projects. It has already invested $40 million in realty projects in India and Sri Lanka. "We will be investing an additional $110 million in Indian realty projects in this calendar year," said Mr Subba R Dukkipati, managing partner of Pragnya. This will take the company’s total investment to $150 million by this year. He said the company had already invested in L&T Tech Park coming up in Kochi, Kerala. The first phase of the Rs 1,200 crore-project will be inaugurated soon, he added. Pragnya is also participating in a recently announced project announced by L&T South City Projects Ltd (L&T SCPL) in Chennai. The company will have 24.5 per cent stake in the project. The project is spread over 100 acres and will be developed in four phases. It will be completed over the next five years.   more »

ICICI Ventures, one of the largest private-equity funds in the country, is going big in healthcare by investing $250 million through I-Ven Medicare, a special vehicle focusing on healthcare business. I-Ven is close to tying up with a strategic US-based healthcare financial investor, where the latter will bring in $80million, all to invest in the booming healthcare sector in the country. I-Ven Medicare, which is the lead vehicle for all ICICI Venture’s investments in the healthcare sector, has already lined up investments of Rs 450 crore for upcoming hospitals and healthcare facilities in Delhi, Maharashtra and West Bengal. It will also invest in two other healthcare facilities in Karnataka and Tamil Nadu shortly. Next in line will be another Rs 550 crore, which will be invested for building up facilities in seven other healthcare platforms in other parts of India.   more »