The sale of a 26% stake in IFCI may be delayed till the end of the current fiscal since banks and FIs are yet to give a firm commitment on whether they would convert their debt into equity. Besides, at this stage it’s also unclear whether the Centre would want to convert its Rs 923 crore loan into equity. As a result the eight bidders in the fray do not have clarity on what exactly constitutes the 26% stake in IFCI. It appears that banks are in favour of converting a part of their debt into equity. This would, however, increase the number of shares and in turn impact valuation of the 26% stake. Last month, the IFCI board had decided to offer 30 odd banks and FIs, which had helped in restructuring its liabilities, the option to convert a part of their debt, worth Rs 1,479 crore, into equity.   more »

DTH major Tata Sky is now considering a second round of funding of $150-200 million and is in conversation with various private equity players such as Providence, Carlyle, Blackstone, Goldman Sachs and Apax Partners. Tata Sky is looking at diluting about 10% stake. The current holding structure of Tata Sky looks like this: 20% with Star (FDI), 10% with Temasek (FII) and 70% with the Tata’s. By law, a DTH operator in India has to be have a minimum holding of 51% by an Indian entity. Singapore-based PE player Temasek had bought about 10% for about $56 million. The valuation of the company in three months has risen more than two-fold. “We have been approached by several private equity players. If and when we decide to go in for a second round of funding, we will let you know,” said Tata Sky CEO Vikram Kaushik.   more »

The billion dollar private equity club is growing. Notwithstanding the presence of pure play PE majors, banks are also raising $1 billion India-focused funds through their PE arms. Hongkong and Shanghai Banking Corporation (HSBC), which has global assets running into trillions of dollars, is the latest one to come into India with an estimated $1.1 billion for growth stage companies and real estate ventures. According to company officials, HSBC India has recently raised a $500 million realty fund, which will run parallel to the growth fund investments in the range of $600 million. Naina Lal Kidwai, group general manager and country head, HSBC India, said, “At the Asia PE fund level, of which India is an arm, we have recently closed a $1.5 billion fund. According to our estimates, 40 per cent of that is expected to be committed to India.”   more »

Delhi-based auto component group Amtek is close to acquiring a UK-based automotive machinery company Triplex Ketlon Group. According to automotive industry sources, the size of the deal is pegged at an estimated Rs 600 crore ($155 million). When contacted by ET, group CMD Arvind Dham and CFO Santosh Singhi declined to comment. Triplex Ketlon was acquired by the UK-based Barr family in September 2003. According to the company’s website, Triplex, it has three manufacturing sites — at Hereford, Stratford-upon-Avon and Paddockwood. The company supplies fully-machined components and sub assemblies to passenger car makers, commercial vehicle makers and tier-I manufacturers. The auto component sector has seen some aggressive deal making in recent times with Bharat Forge, M&M and Amtek being the most active in the deal space. M&M sealed two deals this year (German forging company Jeco and Schoneweiss) and has reportedly emerged highest bidder for a third-Italian gear maker, Metalcastello. As more and more vehicle manufacturers look at sourcing from India, local auto component makers are looking to scale up through both domestic and overseas acquisitions.   more »