World Bank's private sector financing arm International Finance Corporation will lend $8.5 million to Modern Dairies. The dairy company has entered into a 'Loan Agreement' with International Finance Corporation (IFC) for an External Commercial Borrowing of $8.5 million (about Rs 36 crore) subject to RBI approval, Modern Dairies said in a filing to the Bombay Stock Exchange. The dairy firm had announced that it has entered into a 'Subscription Agreement' and a 'Shareholder Agreement' with IFC, under which IFC would acquire 46.50 lakh shares of Modern Dairies for Rs 27.90 crore. Ernst & Young acted as financial advisor to Modern Dairies on the transaction.   more »

Murugappa Group company, Carborundum Universal Ltd (CUMI) has entered into an agreement with Foskor (Proprietary) Ltd, South Africa to acquire 51 per cent equity stake in Foskor Zirconia (Proprietary) Ltd, Phalaborwa, South Africa, (FZL) for an undisclosed some. With a 4200 tonnes per annum installed capacity for Zirconia (mineral), FZL is the third largest producer of Zirconia in the world. Fumed silica is also produced as a by-product of the furnace operation. This investment will be a good platform for CUMI to address the growing minerals business. The sales of FZL in 2007-08 were $ 16 million. This will be reflected in CUMI balance sheet starting from the current year. CUMI on a standalone basis has a total revenue of Rs 600 crore.   more »

Private equity firm ICICI Venture, a unit of ICICI Bank , said on Friday it had reached a deal with Tishman Speyer to sell its stake in their Indian real estate joint venture to the U.S. firm. ICICI Venture said it will sell its 50 percent stake in TSI Ventures India Pvt Ltd, a real estate joint venture company, to Tishman Speyer, which will now become the sole owner. Tishman Speyer and ICICI Venture would remain equity partners in TSI's three current projects, the Indian firm said in a statement that did not give financial details of the transaction. "Both companies remain open to investing together in Indian real estate in the future," it said. (Reuters)   more »

Indian aviation could soon witness the next round of consolidation as Kingfisher Airline's 's move to acquire a stake in low-cost carrier SpiceJet has entered its final phase. UB Group chief Vijay Mallya is holding talks with SpiceJet's main promoter Bhupendra Kansagra in Europe for buying his 12.91% stake, along with a 13.42% stake held by Dubai-based investment firm Istithmar PJSC. Mallya, who is learnt to be looking for a total of 26%, stake, may have to shell out between Rs 145 to Rs 155 crore for the deal. At current stock prices, the SpiceJet's valuation is over Rs 600 crore. Its share closed at Rs 25 on Friday. SpiceJet is learnt to be losing up to Rs 70 lakh daily on account of high oil prices and looking for fresh infusion of funds to survive.   more »

International Finance Corp (IFC), a World Bank arm, will invest $15 million in Mumbai-based pharmaceutical outsourcing company Hikal by way of equity participation. The equity will be offered on a preferential allotment basis to finance Hikal's expansion plans, the company said in a regulatory statement on Friday. Hikal specialises in crop protection products and specialty chemicals, and exports active pharmaceutical ingredients and intermediates to the US, Europe and Japan.   more »

Aviation entrepreneur G.R. Gopinath, founder of the country’s largest low-fare airline Simplifly Deccan (erstwhile Air Deccan), has mandated Mumbai-based investment banking firm Edelweiss Capital Ltd to seek out private-equity investors for his new cargo airline. Gopinath, who owns 100% of Deccan Cargo, plans to dilute up to 26% of his stake and eventually list the company to provide private equity investors an exit opportunity, said a person familiar with the development, asking not to be identified. Deccan Cargo plans to invest $200 million (about Rs863 crore) over the next three years, the person said. Infosys Technologies Ltd, India’s second largest software exporter, has won the mandate to design and implement technology that will allow Deccan Cargo to offer online “track and trace” facilities for customers, and help cut costs, this person also added.   more »

Bennett, Coleman & Company Ltd (BCCL) has picked up equity in SMC Group companies, which holds SMC Global Securities Ltd and SAM Global Securities Ltd under its banner. Founded in 1990 by Subhash Chand Aggarwal and Mahesh Chand Gupta, SMC is a full financial services firm catering to all classes of investors. SMC offers services in brokerage, arbitrage, merchant banking, wealth management and is also involved in the distribution of retail products, such as insurance, IPO and mutual funds. It also offers special advisory services to HNIs and corporates. With a 2% stake in SMC Group, BCCL would now be invested in one of the largest retail investor networks in the country, serving over 450,000 investors, having added 150,000 customers last fiscal. The SMC Group has a network of more than 1,350 offices across 350 locations in India and an overseas office in Dubai.   more »

National Aluminium Company Ltd., or Nalco, a public sector enterprise of Government of India and the second largest aluminium producer, is likely to acquire 51% stake in Tajik Aluminium Company or Talco, a primary aluminium producer owned by the Tajikistan Government, for undisclosed sum, according to media reports. Sources said in a statement that NALCO has approached the Government with the proposal and awaits its approval. Sources added that the matter is also under consideration of the Tajik Government. Once the deal materializes, it will see the combine emerging as one of the world's top-three aluminium producers with an output of 8,00,000 metric tonnes or MT, the release stated. Talco located in Tursunzoda, a city in western Tajikistan, runs the largest aluminium manufacturing plant in central Asia and is one of Tajikistan's largest enterprises. In 2006, Talco produced 416,000 MT of aluminium.   more »

New York-based Clearwater Capital Partners on Thursday said it has invested USD 50 million (nearly Rs 200 crore) in a power equipment park that would be developed by Diamond Power Infrastructure Ltd at Vadala. Clearwater has so far invested USD 500 million in 39 companies across India, which it considers a safe investment destination due to its legal framework that is absent in China, company's Managing Partner Robert Petty said here. He hoped to invest in more companies after operationalising of Indo-US nuclear deal. He said Clearwater currently manages 1.7 billion USD in assets across four funds and boasts of 86 team members across eight locations, including New York, Beijing, Hanoi, Hongkong, Mumbai, Munich, Seoul and Singapore.   more »

Kingfisher Airlines Ltd., is close to finalizing a share-swap deal with New Delhi-based low cost carrier SpiceJet Ltd., the Business Standard newspaper said, without saying where it got the information. SpiceJet's stockholders are expected to get one share of the merged entity for every three shares owned, the newspaper said today. SpiceJet, which planned to raise $100 million for fleet expansion, is yet to get investors, the newspaper said. Kingfisher Airlines, controlled by billionaire Vijay Mallya, operates India's biggest budget carrier Deccan Aviation Ltd. (Bloomberg)   more »