Indian companies, which privately placed shares before their initial public offer (IPO), may get jitters as a group of private equity firms that had invested a little over Rs 600 crore in ACME Tele Power (ATPL) has decided to pull out of their investments in the Gurgaon-based firm. Sources in the investment banking industry said the private equity firms, which invested the money last financial year, have exercised the put option. As a result, the promoters or the company will have to buy back these shares. ATPL, which manufactures and supplies energy conservation solutions for telecom companies, was expected to hit the capital market before March 2008. However, the turmoil in the stock markets prevented the company from entering the market. Through the IPO, the promoters were planning to mop up around Rs 1,200 crore.   more »

Private equity (PE) funds slowed their investments in India during 2008 but say they aren’t averse to so-called buyout deals that allow them to take control of a company by buying at least 50% stake. This preference for buyout deals will accelerate in 2009, predict PE investors. Nexgen Capitals Ltd, the investment banking arm of New Delhi-based financial services house SMC Global, notes that that 13 such buyout transactions took place in 2008, up from 11 in 2007. Meanwhile, deals data from consultant Grant Thornton adds up to $17.14 billion (Rs83,129 crore today) worth of total transactions that year, at least 118% more than 2006.   more »

The Blackstone Group (NYSE: BX), announced today that the Board of Directors of NSL Group (“NSL”) have approved an investment into “NSL Seeds” the flagship company of the privately-owned NSL group, by The Blackstone Group and its affiliates (“Blackstone”) for a minority position. As part of this transaction, Blackstone will have representation on the Board of NSL Seeds. The amount of the investment was not disclosed. NSL Seeds is the largest hybrid seed company in India, engaged in R&D, production and marketing of seeds with market leadership in hybrid cotton seeds and significant presence in other field crops including corn, rice, sunflower, sorghum, pearl millet, and vegetable crops. The company has a strong research platform that in the past has produced some of the leading cotton hybrid brands. In addition, the company’s distribution network, with nearly 25 stocking depots, 1000 distributors, 20,000 sub-dealers and a 350 person strong sales and marketing team, is the largest in the Indian seeds industry.   more »