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According to sources, UTI AMC will sell 20% of its stake to private players ahead of IPO. UTI AMC promoters are LIC, State Bank of India, Bank of Baroda and Punjab National Bank will hold 49% post IPO. UTI AMC will file DRHP with SEBI by December 2007. India's third largest fund house will issue fresh shares of 20% of its equity to strategic investors. Global players such as UBS, StanChart and few other global investment banks have envinced interest for the strategic partnership with UTI AMC. The AMC also has international tie-ups for its offshore funds, but does not have a strategic partner. The company Chairman and MD, UK Sinha, said that the business is looking for a strategic partner for expertise in their expansion plans. In September, UTI received board approval to go public after which, the four stake holders will dilute about 49% stake, which will give them about 51% stake from their present holding. ( Money Control) […]
Wealth management company Merrill Lynch today said it has made a private equity investment of $55 million (about Rs 218 crore) in wind electric generators producer Vestas RRB. “It is our first and largest investment in the renewable energy sector in India,” Merrill Lynch Asia Pacific Managing Director and Head (Corporate Principal Investment) David Noh said in a statement. Vestas RRB would use the investment to meet capital expenditure being incurred in the setting up of the company's wind energy generator (WEG) blade manufacturing facility in Chennai. […]
US-based Caterpillar, the world’s largest manufacturer of construction & mining equipment amongst others, has just picked up a significant minority stake — well over 30% — in Polyhose India (Rubber), a Chennai-based privately held company, for an undisclosed valuation. Polyhose India (Rubber) manufactures rubber hydraulic hoses at its manufacturing plant in Sriperumbudur near Chennai. Almost 90% of the production is exported to the US, Europe and other developed markets. With brand Caterpillar backing it, Polyhose now plans to aggressively make its presence felt in the domestic market. Incidentally, Caterpillar happens to be the only equipment manufacturer to make their own hoses and couplings. Polyhose’ other arm, Polyhose (India) is the only manufacturer of high pressure thermoplastic hoses in south east Asia and has its manufacturing facility at Kelambakkam, also near Chennai. The decade-old Polyhose group expects a combined turnover of around Rs 105 crore from both the units this financial year, even as Polyhose (India) continues to remain a wholly-owned unit of the group. […]
The IFCI board on Monday decided to give an option to 30 financial institutions (FIs), including Life Insurance Corporation (LIC), to covert their zero-coupon convertible debentures issued in 2002-03 into equity to the extent of 50%. The debentures payable in 2022 were part of a revival package worked out by the government to rescue the financial institution that had accumulated high level of non-performing assets. IFCI chief executive officer and managing director Atul Kumar Rai said: “We have firmed up certain options that include the right to convert part of the optionally convertible bonds …. Outer limit for the conversion is 50%.” IFCI, which has recently been given the status of a non-banking financial institution, had issued Rs 1,479 crore zero-coupon optionally convertible debentures (OCDs) to 30 FIs. […]
IDFC Private Equity, a wholly owned subsidiary of Infrastructure and Development Finance Corporation (IDFC), plans to launch its third private equity fund by December 2007. It hopes to raise Rs 7,000-8,000 crore by the end of this financial year for this fund. The infrastructure company had raised Rs 7,000 crore for its first and second funds. “If the growth continues to be as strong as it is now, we will have to raise more capital,” said Rajiv Lall, managing director and CEO of IDFC, said in a conference call with analysts after announcing the financial institution’s second-quarter results. IDFC’s second quarter profit, including that of its units, rose 26%, to Rs 194 crore from Rs 154 crore a year earlier. Revenue rose 63% to Rs 657 crore. Net interest income (NII) has increased by 55% from Rs 213 crore during the first half of 2007 to Rs 329 crore 2008. […]
3i, the world leader in private equity and venture capital, is believed to have bought a 5% stake in steel pipe maker Welspun Gujarat Stahl Rohren for Rs 350 crore. Sources said, the fund acquired shares from secondary market. 3i got into India in 2005 by making an investment in Nimbus Communications. It later invested in Navayuga Infratructure Construction, Vijai Electronics, Mundra Port, International Cars & Motors, International Tractors and UFO Moviez among others. The promoters – BK Goenka and RR Mandawewala hold 43% stakes, while institutional investors hold 24%. On why did 3i choose market route and not bought from promoters, sources said, Welspun group's textile company, Welspun India, had alloted shares on a preferential basis to Temasek Holdings and ICICI Ventures. […]
Pharma major Wockhardt Ltd is in the final stages of acquiring US drug maker Morton Grove Pharmaceuticals Inc, a company that makes prescription liquid pharmaceutical products, sources close to the development said. Wockhardt is likely to announce the deal soon, say merchant banking sources. But the Mumbai-based pharma company declined to comment on the development. “We do not respond to any speculations or rumours,” a company spokesperson replied to an ET query. Morton Grove could not be contacted for comments. Informed sources said the deal is in the range of $50 million to $70 million. Wockhardt has ambitious plans for boosting its revenue from the US, the largest pharmaceutical market in the world. At present, the US contributes just about 9% of the company’s revenue (about Rs 200 crore) while Europe contributes 52%, Wockhardt chairman Habil Khorakiwala had recently told ET. “As per our growth strategy in the US, we would increase the revenue from there three to four times by 2009 through the organic route alone. We are also looking at acquisitions to expedite our growth there,” he had said. […]
With the Sensex touching stratospheric levels private equity (PE) investors are adopting a cautious approach towards investment in listed companies. With valuations of listed companies becoming steeper, deals in the unlisted space are likely to find favour with PE investors in the next few months, say PE majors. “At these valuations, some funds are likely to become cautious and may take a stand to be more circumspect. PE funds may reduce investments in public companies,” said the India head of a European PE fund. Though this year has witnessed record PE inflows in Indian companies, PE funds say the next few months are likely to see a slowdown in the number of deals. In the first seven months of 2007, India received more PE funding than both Singapore and Hong Kong markets put together. […]
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