December 2007
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Experts forecast $20 bn investment in 2008 : ET

The year 2007 is clearly the year that saw the rise of private equity funds. According to those tracking the industry, $13 billion (which is approximately Rs 55,000 crore) was invested in Indian markets in 2007. Simply put, a relatively new segment of investors have entered the scene and have pumped in Rs 55,000 crore into Indian companies. Ask any investment banker, and he will call the year 2007 a watershed year as all mandates for fund raising were completed and he is on track to receive a hefty bonus. […]

Austrian co to pick up 26% stake in Neolite

Automotive lighting manufacturer Neolite Industries on Sunday announced that Austria-based ZKW Zizala Lichtsysteme GmbH will pick up a 26 per cent stake in the company for an undisclosed amount. “Neolite Industries has inked a joint venture agreement with ZKW- Zizala Lichtsysteme GmbH. ZKW will be taking an initial stake of 26 per cent in existing business of Neolite group, with an option to increase its stake up to 40 per cent,” a company release said. Under the agreement, all existing automotive lights operations of Neolite would be integrated with the proposed JV company and the existing company would be rechristened 'Neolite ZKW Lightings Pvt Ltd', it added. […]

VC funds log out of IT firms

A clutch of venture capital funds (VCFs), which have invested nearly $419 million in Indian information technology (IT) and business process outsourcing (BPO) firms till date, are now looking to diversify their investments into IT and IT-enabled services (ITeS) firms that generate revenues from the local markets. The move follows a sharp decline in revenues of the Indian IT sector as a result of the rising rupee, sub-prime turmoil and a slowdown in the US economy. The country�s leading IT companies, which have seen a drop in earnings due to the near 12 per cent appreciation of the rupee, have also to counter a possible drop in contracts from their US clients due to a slowdown in the world�s largest economy. As a change in strategy, VCFs are now looking to diversify into sectors such as consumer-based internet and mobile-technology companies, where revenues come from the local market. Venture capitalists are also looking for companies that are expanding geographically � those that are targeting non-US markets. Venture capitalists have pumped in more than $777million into India up to September 2007, according to the India Venture Capital report. About 54 per cent of all venture deals in India were for IT companies, the report said. […]

International investors to invest 1bln usd in Bharti Infratel

Bharti Airtel Ltd said Temasek Holdings, The Investment Corporation of Dubai, Goldman Sachs, Macquarie, AIF Capital, Citigroup and India Equity Partners have agreed to invest 1 bln usd in Bharti Infratel, a wholly-owned unit.Temasek will be the largest investor. In a filing to the Bombay Stock Exchange, the telecom services provider said the enterprise value of Bharti Infratel has been agreed to be in the range of 10-12.5 bln usd. Bharti Infratel holds about 42 pct in Indus Towers, the recently announced joint venture between Bharti, Vodafone and Idea Cellular Ltd. ( Hemscott) […]

IDG, Erasmic invest $3.5mn in Perfint

IDG Ventures India, a $150 million early-stage technology venture capital fund, and Erasmic Venture Fund have jointly invested $3.5 million in Perfint, a Chennai-headquartered healthcare devices start-up company, with its development labs in Mysore. Of the total investment, IDG Ventures has funded $3 million, while the rest has been funded by Erasmic. Perfint’s first product PIGA is a tool positioner for image-guided minimally invasive (IG-MI) procedures. This will support applications such as fine needle aspiration (FNA), biopsy and radio frequency ablation (RFA) for diagnosing cancer tumours in the lungs and abdomen. The product which is under test deployment at five leading hospitals in India, has done about 100 clinical trials and is set for launch in January next year, according to the company. Perfint was co-founded in October 2005 by S Nandakumar, B D Vijaya and a team of healthcare devices professionals who were previously working with GE Healthcare at its design, manufacturing and sourcing hub in India, in October 2005. […]

DLF plans to raise $400 mn via PE route

India's largest real estate firm DLF is now all set to raise another $400 million through private equity route to fund its long-term investment plans. As per the deal, financial services major Merrill Lynch will get 20 per cent assured return and the debt will later get converted into equity. Merrill Lynch could pick up 49 per cent in 3-5 townships. The decision on the deal will be taken in mid-January after DLF’s real estate investment trust (REIT) listing is complete. Though the management continues to remain very tight lipped about the deal they are not denying it either. “DLF has a large number of residential, integrated townships and commercial projects in the pipeline. While the company is looking to list its commercial properties in a REIT these PE deals in residential projects are not only about raising funds,” said Ramesh Sanka, CFO, DLF. […]

VSNL sells 10% in Lankan arm

VSNL has sold a 10 per cent stake in VSNL Lanka Ltd, its wholly owned subsidiary in Sri Lanka. The Tata group company has sold the stake to Sunshine Holdings, a Sri Lankan conglomerate, for about Rs 2.72 crore. Sunshine Holdings has interests in pharmaceuticals, travel & tourism, tea and rubber cultivation. It also manages portfolio investments. The Sri Lankan firm has bought 5.17 lakh shares, which accounts for 10 per cent of the paid-up capital of VSNL Lanka. It has an option to acquire an additional 5 per cent of VSNL Lanka’s share capital in the next 12 months at fair market value. “The partnership with Sunshine Holdings will enable VSNL Lanka to capitalise on the partner's knowledge of the Sri Lankan market. This is also our attempt to unlock value for our shareholders in an appropriate manner,” said Rajiv Dhar, CFO of VSNL. […]

PE investors may acquire 15% in Nahar Retail for Rs 120 cr

Citibank, Deutsche Bank and Sequoia Capital are learnt to be negotiating with Ludhiana-based Nahar Industrial Enterprises (NIEL) to pick up 15-20% in its wholly-owned arm Nahar Retail for Rs 120 crore. Nahar Retail owns Cotton County retail chain, which has 400 stores all over. A deal with one of these three PE players is likely to be closed in a month’s time, a source said, adding that the company will go in for an IPO in 2009. The exact stake to be sold will depend on the company’s valuation, but it should be in the 15-20% region, he said. Nahar Retail, which started the Cotton County apparel retail chain three years ago, today has 400 stores in 300 cities. It plans to take it to 500 by this fiscal-end at an investment of Rs 30 crore. Nahar Retail, which clocked a revenue of about Rs 100 crore last fiscal, is targeting a figure of Rs 250 crore this fiscal. Meanwhile, NIEL, which is an integrated textile company present across the value chain from yarn to fabric and garments, has seen its share price move up rapidly, of late. […]

Foreign funds acquire 7.5% in India Cements for Rs 592 cr

Leading foreign funds like Fidelity, ABN Amro, HSBC, Nomura Asset Management Fund and Emerging Market Fund have together bought around 7.5% in India’s third-largest cement firm India Cements (ICL) for Rs 592 crore. These funds have bought the shares in a placement done by the company to qualified institutional buyers (QIBs). ICL issued 20.78 million shares at Rs 285 per share, including premium, to these QIBs. ABN Amro Securities (India) and Deutsche Equities India were the joint global coordinators for ICL QIB issue. After allotment, the paid-up capital of ICL has increased to Rs 281.16 crore from Rs 260.37 crore. The promoter holding in ICL has been reduced by 2% to 28.42%. […]

IDFC IDFC PE invested Rs. 260 Cr in Goodearth Maritime

Chennai-based bulk shipping company Goodearth Maritime (GML) has raised Rs 260 crore from IDFC Private Equity (IDFC PE). o3 Capital was the sole adviser to GML for this transaction. The shipping carrier intends to use the money to fund a greenfield ship-building yard in Tamil Nadu and to make foray into the onshore and off-shore oil drilling sectors. “We are in the process of making Goodearth Maritime a global shipping company with a strong ship-building base in India,” said GML Chairman P B Anandam. […]