July 2007
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Mcleod Russel to invest Rs50 crore in bio-fuel JV

Mcleod Russel India Ltd plans to invest up to Rs50 crore in the next two years in D1 Williamson Magor Bio Fuel Ltd, a joint venture company promoted by D1 Oils of the UK and Williamson Magor & Co. Ltd for production of bio-diesel in the east and north-east parts of India. D1 Williamson Magor Bio-fuel Ltd has been promoting jatropha plantation farmers on their privately owned waste land under contract farming arrangements for use of jatropha oil seeds for manufacture of bio diesel. The company has undertaken plantation on about 8,000 hectares of land during 2006 and plans to undertake 50,000 hectares each year from 2007 onwards. The plantation has already been completed on 29,000 hectares during 2007. The company plans to undertake plantation of total 200,000 hectors by 2011-12. The investment by the company involves creation of manufacturing facilities of crude oil and refinery, working capital arrangements and initial support towards the plantation by the farmers. The total investment required for development of production facilities of up to 2009-10, year of commencement of commercial production, is approximately Rs300 crore. […]

3 PE firms buy 14% in Catholic Syrian Bank

Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore. The private equity funds made an investment of Rs 190 per share including a premium of Rs 180 per share. With this investment, the net worth of the bank will go up considerably, according to a release issued by the bank. The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital. The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore. The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development. However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%. The bank has also been grappling with the central bank’s refusal to transfer the shares acquired by Singapore-based Chawla group, which had purchased about 36% stake in 1997 for Rs 85 a share. […]

Leveraged buyouts get tougher

India Inc may have to wait a while before concluding a cross-border acquisition as big as the Tata-Corus deal. Leveraged buyouts, which helped Indian companies to raise finances for global takeovers, are heading for a slowdown, triggering sale of equities in global markets. In a leveraged buyout the acquisition of a company is financed significantly by money borrowed against its assets. Leveraged buyouts thus allow companies to make large acquisitions without having to commit a lot of capital. The Tatas managed to raise debt worth $6 billion–six times the earnings before tax, interest and depreciation (EBIDTA) of Corus–to finance the acquisition. But they may have to take another fund-raising route if they chose to acquire Land Rover and Jaguar from Ford. A liquidity crunch has forced global lenders to significantly scale down loans to 3-4 times the EBIDTA of the acquired company. […]

Bharti to Spend $1 Billion on Towers, May Sell Stake

Bharti Airtel Ltd., India's largest mobile-phone operator, will spend $1 billion to expand transmission towers before joining rival Reliance Communications Ltd. in selling shares in the unit to investors. Bharti Airtel plans to sell a stake in the wholly owned tower subsidiary, Chief Executive Officer Manoj Kohli said in an interview today, without giving a timeframe. The unit will grow to be the world's biggest by the end of the year, he said. “A separate tower company gets a much better valuation than a single entity,'' said Mahesh Patil, who helps manage the equivalent of $1.5 billion in equity assets at Birla Sun Life Asset Management Co. in Mumbai. The incremental value creation in Bharti's case could be as much as $12 billion, said Patil, who has Bharti as his largest holding. Reliance Communications, India's second-largest wireless operator, valued its tower assets at 270 billion rupees ($6.7 billion) when it sold a 5 percent stake, more than the entire company's market value when it went public last year. […]

Investors bought stake in Bag Glamour

Bollywood star Shah Rukh Khan and wife Gauri Khan will buy 10 per cent stake in BAG Glamour, the new entity promoted by Anuradha Prasad. BAG Glamour, which will soon launch channels in the entertainment and lifestyle space, is part of the the parent company BAG Films & Media Ltd. Sources confirmed the development adding that the actor and his spouse will hold the stake in their personal capacity. The other investors in BAG Glamour will be India Bulls’ promoter Sameer Gehlaut, who will buy 15 per cent, Kolkata-based private investor High Growth will have 15 per cent, and the remaining 60 per cent will be held by the parent company and promoters such as Anuradha Prasad, Rajiv Shukla among others. When contacted, Chairman and Managing Director, BAG Films & Media, Anuradha Prasad declined to comment. […]

Baring India to acquire 45 pc stake in JRG Securities

Baring India will acquire 44.8 per cent stake in brokerage house JRG Securities for 35 million dollar through a preferential issue. The deal is subject to approvals from the Securities and Exchange Board of India (SEBI), shareholders and other regulatory authorities. The Board of Directors today approved the investment proposal for further consent of shareholders, JRG Securities said in communique to the Bombay Stock Exchange (BSE). […]

Elder Pharmaceuticals finalizes 20% Strategic Investment in AIM listed Neutrahealth PLC, U.K.

Elder Pharmaceuticals Ltd has announced that the Company has finalized a 20% strategic stake in Neutra Health PLC, an AIM listed company in the United Kingdom. This entails an investment of Sterling Pounds 5.63 million (approximately Rs 46 – 47 crores) in respect of 35197026 equity shares having a face value of 10 pence at 16 pence per share. Neutra Health PLC has three subsidiaries which market and distribute a range of neutraceutical products such as vitamins, specialized health supplements, over the counter medicines and 'detox in a box' health treatments, as well as TravelGuard range of travel related health products. Neutra Health has a turnover of 23 Million Sterling Pounds and a market capitalization of close to 16.8 Million Sterling Pounds. […]

Telecom returns attract PE players

With return on investments (ROI) ranging between 25-30 per cent, Indian telecom has become one of the most attractive destinations for the private equity players worldwide. And this action is now shifting to the telecom infrastructure and VAS players too. From initial funding to minority stakes and now even acquiring control, from the start-ups to mid-size companies and even mature listed companies, it is all happening in Indian telecom. The soaring Indian telecom industry has in the last one year witnessed frenetic activity as PE investors hope to repeat Warburg Pincus' success with Bharti Airtel. In 2006, the telecom sector accounted for about 44 per cent of the total value of all private equity deals in India, spread over 19 deals, according to a study by Delhi-based KPO firm SmartCube. The zooming equity markets and robust GDP growth have added to create an increased appetite among private equity firms. Even though it is ranked sixth in the telco sweepstakes, Idea Cellular, for instance, saw multiple investments from various private equity groups prior to its IPO. UK based GLG Partners picked up an 8 per cent stake in the company for $213 million. ChrysCapital invested $116 million for a 5 per cent stake. Providence Equity Partners invested $400 million for a 16 per cent stake, while TA Associates acquired a minority stake. In fact, acquisition of the stake in Idea marked the entry into India for funds like Providence and TA Associates. The other Indian telco that has seen high PE interest was Tata Teleservices. Singapore's Temasek Holdings and Sterling Infotech invested approximately $397 million in the company. […]

Infy acquires Philips' captive BPO arm

Infosys has bought the captive BPO division of Philips, sources said.

Philips BPO has centres in Chennai, Warsaw and Thailand, sources said, adding that it has 1,500 employees.  700 employees will be based in Poland.

The deal is likely to be between USD 200 and USD 300 million, sources said. With the acquisition, Infy can look forward to assured revenues of USD 300 million, sources added.

The acquisition will add to finance and […]

General Atlantic puts $60 mln in India software co

Private equity firm General Atlantic has paid $60 million for a minority stake in India's IBS Software Services, the Indian firm said on Wednesday. IBS, which provides services for the travel, transport and logistics industries, has two development centres in India. Edelweiss Capital was the financial adviser to IBS. In a separate deal, venture capital firm Canaan Partners said it had led The Entrepreneurs Funds and Miven Venture Partners in buying a minority stake in Indian career networking portal techTribe. It did not disclose the value of the deal. […]