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After growing rapidly from around $1 billion in 2004, private equity flows into India grew to $7 billion in 2006 and will probably exceed $10 billion this year. In addition to its traditional functions of providing smart capital to fuel the entrepreneurship of non-traditional businessmen and boosting managerial efficiency, PE is slated to enter into new areas such as leveraged buy-outs, distressed assets and infrastructure. We could also witness some public offers from PE firms. At present, there are over 100 PE firms seeking to deploy $20 billion in India. The PE industry has been able to attract talented professionals from major consulting firms, investment banks and industry in India and overseas. Some of the large deals have been KKR’s investment of $900 million in Flextronics, and the recent Carlyle investment of $600 million in HDFC. […]
Reliance Communicationsmay sell 26% stake in tower unit to American Tower for Rs 9,100 crore, reports NW18.
According to Newswire 18, Reliance Communications plans to sell an additional 26% stake in its telecom tower business unit- Reliance Telecom Infrastructure.
It added that the US-based American Tower's Chairman, James Taiclet, who is currently touring India, is likely to meet Anil Ambani about the stake […]
GE India on Monday picked up 15% equity in Titagarh Wagons Ltd, marking the entry of group firm GE Equipment Services into the country. Under a strategic tie-up with Titagarh Wagons, GE Equipment Services will have preferred access to wagons manufactured by the West Bengal-based company. GE will lease the wagons to the Indian Railways and private shippers in India. GE Equipment Services will also become the preferred provider of vendor financing for Titagarh. With GE’s investment, Titagarh plans to step up the pace of manufacturing wagons. Titagarh, which manufactured 2,232 wagons during 2006-07, plans to raise its annual manufacturing capacity to 3,600-4,000 wagons after the tie-up. […]
Private equity investors Lehman Brothers , Warburg Pincus and Carlyle Group are in talks with Mumbai brokerage Angel Broking to buy a 20 percent stake, the Economic Times said on Tuesday. Angel aims to raise about 2 billion rupees ($50 million) from the stake sale, which would value the stocks brokerage at about 10 billion rupees, the newspaper said, quoting unnamed sources. Other investors are also in the fray, the paper said, and it quoted Angel Chairman and Managing Director Dinesh Thakkar as saying it had short-listed a dozen suitors and would shortly invite bids from them. […]
Power Finance Corporation’s (PFC) PE fund, which is targeted at last mile energy requirements of power projects in India, is expected to bring into its fold large cross-border funds such as Cornell Capital Partners, Babson Capital Management, Sun Life Financial, AllianceBernstein and Cigna. Sources said US Power Production had helped set up meetings between the PFC top brass and representatives of various investment companies in Houston and New York City earlier this month. PFC will thus become the first PSU to launch a PE fund in the country. Confirming that the fund is being set up, PFC chairman VK Garg told ET that the target was to scale it up to $1 billion eventually. “We are targetting $1 billion because of the huge fund requirements of the power sector in India. After all, each ultra mega power project will cost around $4 billion,” Mr Garg said. […]
Carlyle has picked up around 5% stake in Great Offshore (GOL), formed by demerging the offshore division of GE Shipping, India's largest private shipping company. The deal, struck on Friday, is believed to be valued at around Rs 165 crore. Sources said the private equity fund from Mauritius picked up shares from mutual funds — mostly from Merrill Lynch, UTI and HSBC, for Rs 860 a share. The deal was arranged by Motilal Oswal. On Friday, GOL's share price rose almost 5% on BSE to close at Rs 861. Post-deal, LIC, GIC and other mutual funds will hold around 7% stake. Vijay Sheth holds around 20% of GOL. Other promoters, including the families of Mulji and Asha Sheth, wife of late Vasant Sheth, one of the founders of GE Shipping, hold around 8% stake. […]
Apeejay Surrendra Park Hotels Ltd, owners of The Park Hotels chain, on Thursday said it has raised $55 million through a private equity deal with Credit Suisse. The money will be used to fund future expansions, a release issued said. “This infusion of capital will be a catalyst enabling us to expand our footprint throughout the region,” Apeejay Surrendra Park Hotels' Chairperson Priya Paul said. The Park Hotels is India's first collection of contemporary luxury boutique hotels with properties in Bangalore, Chennai, New Delhi, Kolkata, Navi Mumbai and Visakhapatnam. […]
Bessemer Venture Partners, a U.S. venture-capital firm, plans to invest $350 million of its new $1 billion fund in India, one of the world's fastest growing economies. The fund, Bessemer Venture Partners Global Fund VII, closed Thursday and had been significantly oversubscribed, according to the firm. BVP managing partner Rob Chandra sees India as an excellent investment destination for the long term. “India is going through profound change in its economy,” Chandra said Thursday in a phone interview from Mumbai. “It's deregulating and embracing capitalism. This deregulation is fuelling a lot of prosperity. It's fuelling jobs.” “India is still a society that's very capital starved,” Chandra said. With a population of 1.1 billion, India has a booming economy. Its GDP grew a whopping 9.2% in 2006 and is projected to grow at about 9% this year. “On the back of buoyant equity markets and fresh equity issuance, foreign institutional investment at nearly $9 billion so far in 2007 has (already) exceeded total inflows in 2006,” Eurasia Group analyst Seema Desai said in a research note Thursday. […]
PE players, including Blackstone, Warburg Pincus and Carlyle, are eyeing a 10% stake in Moser Baer Photo Voltaic (MBPV) business for a consideration of about $150 million. Moser Baer may look at options of spinning off the PV business as a separate entity and may subsequently look at an overseas listing for its PV arm. When contacted by ET, MBPV CEO Ravi Khanna said: “While there is a lot of interest from PE players in the PV business, we have not yet reached the valuation stage. PV is a fast growing business worldwide and firms with good proposition do generate a lot of interests. As far as listing is concerned, there is no decision as yet.” […]
Indian telecom services provider Reliance Communications (RCom) has sold a 5% stake in the unit that owns its telecom towers to a group of institutional investors at a price that was sharply above what the market expected. The price tag of Rs14 billion ($337.5 million) values the entire unit at $6.75 billion and sets a powerful benchmark for a planned initial public offering that, according to RCom’s chairman, will take place “in the near future”. The listing, he said yesterday, will give investors “another attractive opportunity to participate in India’s incredible telecom growth”. […]
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