October 2007
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IFC to pick stake in Karnataka Bank

International Finance Corporation (IFC), the private sector lending arm of World Bank, will pick up stake worth Rs 143.39 crore in Mangalore-based Karnataka Bank through preferential issue of shares. Karnataka Bank will issue 63.73 lakh shares to IFC on preferential basis at Rs 225 apeice after obtaining the approval of Reserve Bank of India, the private sector said in a communique to the Bombay Stock Exchange. On October 5, the bank had issued bonds worth 10 million dollar to Washington-based IFC on private placement basis. (The Hindu) […]

Private equity firms innovate in challenging India

A predominance of family-owned companies and a booming Indian stock market are posing challenges for private equity firms, who are finding new ways to invest in the fast-growing economy, top private equity managers said. Private equity investment in India is expected to grow by a third to $10 billion this year, but most deals involve publicly traded firms because families are reluctant to cede management control, they said. “Culturally, there's been resistance to give up management control, as entrepreneurs just pass on their business to their children,” Manisha Girotra, managing director, UBS Securities India, said at a Fortune Global Forum conference. “So PE (private equity) firms are taking minority positions instead of doing buyouts, and do late-stage investments.” Most top global private equity firms have set up offices in India and have stepped up the pace of deal-making recently. Blackstone Group has said it has a huge pipeline of deals and was targeting deals in the $50-$500 million range, even as U.S. and European credit markets remained frozen because of a global credit crunch. […]

Goldstone buys 51% stake in 4G Informatics

Hyderabad-based software solutions and IPTV provider Goldstone Technologies has acquired 51% stake in 4G Informatics for an undisclosed amount. 4G Informatics is a privately-held firm in Hyderabad specialising in biometric identity solutions, With the acquisition, Goldstone will be getting a foothold in the emerging identity solutions market in India. The company will use a combination of cash and stock as per the guidelines of the Securities and Exchange Board of India (Sebi) to fund the acquisition, according to a release issued by the company today. The cash component would be used to pay part of the consideration to the promoters of 4G Informatics. Sreeni Tripuraneni, founder and chief executive officer of 4G Informatics, would continue to manage the company along with its team. Goldstone Technologies will appoint two directors to the board of 4G Informatics.(Business Standard) […]

Walton Street bought stake in Shriram Properties

Shriram Properties, a Bangalore-based property developer, has raised $100 million by selling a minority stake to Walton Street Capital, a US- based real estate private equity fund having assets worth $14 billion, to develop real estate projects in India. Shriram Properties is part of the diversified Rs 25,000 crore Shriram Group, and plans to utilise the funds to build land bank in north and west of the country. The company, which began operations in 1995, has so far completed five million square feet of properties in Bangalore, Chennai, Hyderabad and Coimbatore. According to M Murali, managing director, Shriram Properties, “the money raised will be utilised to buy land in Gurgaon and Pune. The funds are to be invested in less than one year.” “The investment of Walton Street Capital is an extension of our relationship we had in taking up the development of the Hindustan Motors factory land in Kolkata through a special purpose vehicle (SPV),” he added. […]

Infosys looking at 15 $100mn deals overseas in 10 months

Infosys, the country’s second-largest software and services firm, expects to close 15 overseas deals, each worth over $100 million, in the next 10 months, company managing director and CEO S Gopalakrishnan said on Tuesday. It has also identified three to five acquisition targets overseas, including a consulting firm. “We are in the race for 15 deals of over $100 million outside India,” Mr Gopalakrishnan, or Kris as he is known in the industry, said. The company is also looking at closing smaller deals worth $10-15 million in the same time period. For acquisitions, Infosys has set aside about $500 million. In July this year, Infosys BPO had signed a $250-million outsourcing contract with Royal Philips Electronics, which included the $28-million acquisition of its three shared service centres in India, Poland and Thailand. […]

IFCI Venture launching PE fund for auto sector

Focused entirely on domestic automotive components industry, IFCI Venture Capital Funds Ltd is launching a private equity fund in association with German consultancy UBF-B worth €100 million (about Rs 550 crore). The fund managers plan to invest the initial corpus of €100 million in about 30 companies which are at the bottom of the growth curve. “Strong corporate governance is a pre-requisite for the firm to attract investment from outside,” said Mr Rajeev Mukhija, Deputy General Manager, IFCI Venture Capital Funds. The fund, which will have a life of 10 years, is anticipated to have its first closing on March 31, 2008. It will be constituted as two-tier hybrid fund structure with Indian investors contributing in India Domiciled Trust Fund and international investors contributing to Overseas Domiciled Limited Liability Company. “We will base the Overseas Domiciled Limited Liability Company in either Cyprus or Mauritius where foreign investors can enjoy tax benefits. We are targeting €40 million from the overseas investment, while the rest would be from Indian investors,” said Mr Mukhija. […]

Sintex buys 100% stake in France-based Nief

Sintex France SAS, a downstream subsidiary of Sintex Holdings BV, Netherlands (Sintex Offshore Holdings) has acquired 100% shareholding of Nief Plastics SA, France (Nief). Sintex Offshore Holdings is a wholly-owned subsidiary of Sintex Industries. The deal has been finalised as a cash transaction of euro 30.70 million (equity value). According to a release issued by Sintex to the BSE today, Nief Plastics manufactures a wide range of exterior and interior plastic component systems and thermosets. The products are widely used not only in the electrical, automotive, and aerospace sectors, but also in household appliances, building industry, sports / leisure as well as the finished products market. […]

Cisco extends venture investment in India by another 100 mln usd

Cisco Systems Inc said it is extending another 100 mln usd to its venture investment in India and, as a initial step, is collaborating with Satyam Computer Services to explore a new operation in healthcare management. The network equipment maker also expects 60-70 pct of its growth to come from emerging countries, including India, the company said today at the inauguration of its globalisation centre in India's software hub Bangalore. (CNN) […]

JPMorgan Starts $2 Billion India Infrastructure Fund

JPMorgan & Chase Co., the third- largest U.S. bank, set up a $2 billion fund focusing on infrastructure investments in India, where spending on roads, ports and power may double over the next five years. The fund will be ready to invest in companies and projects by the end of this year, Anil Bhalla, managing director of the Asian Clients Group at J.P. Morgan Securities Inc., said in an interview in Mumbai yesterday. JPMorgan joins Blackstone Group, Citigroup Inc. and ICICI Bank Ltd. in starting infrastructure funds in India, the world's fastest growing major economy after China. The nation may ease borrowing restrictions to help finance an estimated $500 billion required in public works by 2012, according to Finance Minister Palaniappan Chidambaram. […]

Google India boosts VC investments

The Internet search giant Google has invested in the early stage venture capital fund Ventureast TeNet Fund II – a seed-stage fund run by the Tenet Group of IIT, Madras and Ventureast Fund Advisors. The company has also joined the Indian Angel Network, an organization of professionals and companies dedicated to supporting entrepreneurship in India. The Ventureast TeNet II fund invests in technology that enables early stage entrepreneurs to get their businesses off the ground. Emphasis is placed on technologies and solutions focused on small and medium-sized enterprises and bridging the digital divide in India and global markets. The Indian Angel Network brings together entrepreneurs, companies and CEOs from India and around the world to provide money, mentoring and strategic inputs to early stage ventures in multiple sectors. […]