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Hexaware Technologies fell, the biggest decliner on the BSE-500 Index, on speculation that General Atlantic will sell its stake in the Indian computer services provider. Reports of a delay in General Atlantic’s plans to sell its stake in Indian software-maker Patni Computer Systems Ltd. prompted some investors to speculate that the private equity firm may sell its stake in Hexaware, Sushil Sharma, an analyst at Batlivala & Karani Securities, said in a phone interview in Mumbai today. Sharma rates the stock as a “hold.’’ Hexaware shares fell Rs 4.95, or 3.7 per cent, to Rs 127.35 at the close of trading on the Bombay Stock Exchange, its biggest decline in more than six weeks. “We do not have any information about GA planning to sell its stake in Hexaware,’’ Hexaware Chief Financial Officer Rajesh Ghonasgi said in an e-mail. General Atlantic’s decision to swap 1.06 million preferential shares for US securities on September 11 “marks the confidence shown by the investor in the company’s management and business,’’ he said. General Atlantic, based in Greenwich, Connecticut, owns 14.7 percent of Hexaware, Ghonasgi said today. Abhay Havaldar, General Atlantic’s managing director in India, didn’t immediately return a call seeking comment. ( Business Standard) […]
Global financial powerhouses like Credit Suisse, Deutsche Bank and ABN AMRO are in the race for picking around 20-30% stake in the Bangalore-headquartered real estate firm, Golden Gate Properties (GGPL), for an estimated $100 million. Sources said the investment will happen at the holding company level and a decision on the suitor could be unveiled shortly. GGPL has been in the market for raising funds at the holding company level as well as through special purpose vehicles (SPVs). Earlier, media reports discussed names like Blackstone and JP Morgan showing interest in the entity. However, it is believed that ABN Amro along with the two European banks, Credit Suisse and Deutsche Bank, are in advanced talks for a stake buy. This proposed investment into GGPL values the company around $350-500 million. […]
Global private equity player Citigroup Venture Capital (CVC) on Tuesday announced that it has invested $37 million (Rs 150 crore) in Delhi-based marble company SVIL Mines for a 20% stake in the company. This puts the valuation of the two-year old SVIL Mines at $185 million (Rs 750 crore). CVC will also be represented on the company’s board. With this investment, CVC’s total India exposure stands at $800 mil-lion. The fund is planning to invest $1.5 billion of its current $4.5-billion emerging markets fund in India over the next two years. “We will invest $1.5 billion in the next two to three years. Since the $4.5-billion global fund allows 40% of the total fund size to be invested in a single geography, the investment can be as high as $1.8 billion across sectors,” said CVC India and Middle East managing director Ajay Re-lan. With bigger deals in India on its agenda, CVC is also looking to make its future investments out of the fund and not out of Citigroup’s bal-ance sheet. CVC recently invested Rs 90 crore in edible oil company KS Oils. It has equity stakes in textiles company Spentex, polyester producer JBF Industries and International Tractors Ltd as well. […]
107 private equity funds focused on investing in the emerging markets of Asia, Europe, Latin America, the Middle East and Africa raised US$21.5 billion in capital commitments in the first half of 2007, compared to US$33.2 billion raised by 162 funds in all of 2006, reports the Emerging Markets Private Equity Association (EMPEA). “The pace of fundraising in the first six months of this year is evidence that investor interest in these markets is still growing,” said Sarah Alexander, EMPEA’s president. “These half-year figures are impressive, and we expect 2007 to be another record-breaking year for EM PE fundraising. A number of funds held significant closes later in the summer, and several large funds are expected to close by year’s end.” EMPEA estimates at least an additional US$7.7 billion was raised for EM PE funds in July and August, bringing the total raised year-to-date to over US$28 billion. Funds raised for emerging markets private equity investments increased over nine-fold between 2003 and 2006, according to EMPEA estimates. […]
Shriram Properties on Tuesday said it would partner with U.S. real estate private-equity firms Walton Street Capital and Starwood Capital Group to develop a $1.25 billion township in eastern India. The project in the city of Kolkata in West Bengal will cover about 20 million square feet of land and include residential, retail, office and civic infrastructure, the companies said in a release. Hindustan Motors previously owned the land. International architecture firm HOK has been signed on for the project. “Starwood Capital is committed to playing a strategic role in this alliance and creating a world-class integrated township. The group is focused on expanding its footprint in India both in real estate and the hospitality sectors, across asset classes and geographical regions,” said Balaji Rao, managing director of Starwood Capital India. Last year, it reportedly committed $500 million to investments here. Shriram Properties is the real estate arm of the $6 billion Channai-based Shriram Group that has interests ranging from insurance to technology. It has built over 4.5 million square feet of residential and commercial space in the cities of Bangalore, Chennai and Hyderabad. The company is developing 70 million more square feet of space across the country, including retail, hotels and civic infrastructure. […]
Neha International Ltd, a Hyderabad-based floriculture company that exports cut-flowers, plans to acquire three floriculture companies based in Ethiopia. Neha will acquire a 100% stake in the Mauritius-based Globeagro Holdings, which holds a 99% stake in Alliance Flowers Plc., and 50% stake each in Holetta Roses Plc. and Oromia Wonders Plc. “The acquisition has been valued at Rs41.32 crore by the Mumbai-based merchant banker Keynote Corporate Services Ltd and we are planning to fund the acquisition partly by equity swap and partly by cash,” says Neha managing director G. Vinod Reddy. Shares of Neha rose 5%, or Rs2.50 a share, to Rs52.75 at close of Tuesday trading on the Bombay Stock Exchange, reaching a 52-week high. The shares were trading as low as Rs4.93 a share in October. […]
US-Based private equity firm Ripplewood Holdings, currently pitted against Tata Motors in the race to buy Land Rover and Jaguar, is planning to enter India through a large-ticket fund. Ripplewood, which hasn’t ventured anywhere in Asia outside Japan, could be considering a $1-billion fund to invest in Indian securities, sources said. The New York-headquartered private equity is famous for its acquisition, quick turnaround and sale of Japan Telecom and also for the high-profile $2.4-billion buyout of Reader’s Digest in 2006. It was also involved in the turnaround of Shinsei Bank, a bank that has expressed interest in bidding for IFCI. Ripplewood’s move signals the continued interest of large private equity players in India, even as those currently active in the country have started taking equity stakes in large companies, opposed to the earlier norm of investing in mid-cap firms. US-based Blackstone is reported to be in talks to buy a minority stake in Bombay Dyeing. Ripplewood’s proposed $1-billion fund comes close on the heels of last week’s reported move by Actis to market a $1.25-billion global fund.Formed by its current CEO Tim Collins, Ripplewood is now talking to a number of capital market professionals with adequate India experience to head the proposed fund, it is learnt. A number of senior people in various Indian brokerages and financial services companies, have been sounded out for the chief post and for other appointments in the Indian team. […]
Corporate venture investing seems to be taking wings in India. After the $200 million healthcare fund by Piramal Enterprises recently, it’s now the turn of auto major TVS group to foray into private equity/venture capital. It’s not known whether TVS will invest only in ventures that have a direct bearing on the group’s businesses – auto and auto components, and electronics – or whether it will look at opportunities without any sector-bias. But what’s for sure is that the group is looking at hiring and operations are set to start soon. The website of IIM Calcutta hosts the company’s recruitment requirements. Gopal Srinivasan, whole-time director of TVS Electronics Limited, joint managing director of Sundaram-Clayton Limited and TVS Motor, and also director of various other TVS Group companies, is said to be spearheading the initiative. Srinivasan also serves on the board of ICICI Venture. The group’s foray into the venture capital/private equity space comes at a time when many Indian corporates have started getting into this space. […]
Venture capital investors globally, especially those in the technology space, like to invest in product companies. The risks are higher compared with services companies, but a successful product offers greater opportunities to scale up and, therefore, much higher returns. In India, investor play in product companies has been muted so far. However, several venture capitalists (VC) now believe that the market will gain momentum over the next four to five years, and are re-examining investment opportunities in the space. “Product innovation is in its infancy, but will accelerate over the next few years. It is a new area of interest for us, after consumer Internet and services sectors,” says Promod Haque, managing partner, Norwest Venture Partners. The firm recently set up office in India, after investing out of the US for the last three years. Firms such as Helion Venture Partners, Nexus India Capital, Intel Capital, Sierra Ventures, NEA-IndoUS Ventures and Peepul Capital Llc. are all looking to invest in technology product companies. […]
Indian Hotels Co. Ltd. said on Monday that it has acquired a 10% stake in Orient Express Hotels for Rs8.5bn (US$211.28mn). The Tata Group company made the acquisition through its wholly owned subsidiary called Samsara Properties, with a view to expand its brand internationally. According to reports, Indian Hotels has also written a letter to James B Hurlock, Chairman of the Orient Express Board, seeking an appointment to discuss a possible alliance with the company. “As part of this strategy, we have been pursuing alliances and relationships with leading hotel groups that have not yet up a presence in India, but have secured leadership positions in various geographies,” said R.K. Krishna Kumar, Vice Chairman of Indian Hotels. […]
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