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A slew of cash-rich private equity funds in the Arab world are looking at various investment options in India. If one goes by numbers, there are about 15 GCC (Gulf Co-operation Council) institutions, with a fund size of $10,464 million (about Rs 42,000 crore), willing to allocate a considerable portion of the funds in Indian equities and other private equity opportunities. Shifting political scenario in America and Europe, post 9/11 and concerns of a probable slowdown in developed economies are encouraging Gulf-based investors to turn their focus to growth economies like India and China. “Robust GDP growth, requirement for huge investment in key spaces like infrastructure and real estate, high returns on equity are some of the reasons why Gulf investors are flocking into India. India’s legal framework which protects foreign investors is one of the best in emerging countries,” said Gulf-based Global Investment House’s senior vice-president and international investment head Shailesh Dash. Arab investors (from GCC countries) are interested in sectors like infrastructure, real estate , financial services, and logistics. […]
Japan's Itoh Oil Chemicals (ITOH) is picking up a 4.8% stake in Mumbai-based Jayant Agro Organics (JAOL), a leader in castor oil and castor derivatives. India produces nearly 70% of the world consumption of castor oil. Jayant Agro, an Udeshi group company, produces castor oil worth Rs 450 crore a year. Castor oil is used in industrial manufacturing the world-over as a value addition material. The board of Jayant Agro last week approved the issue of 6 lakh shares (4.76%) to the Japanese company for Rs 105 each. The total investment by ITOH, a leading manufacturer of castor oil derivatives in Japan, would amount to over Rs 6.3 crore. JAOL also plans to allot 1.3 million warrants to promoters at Rs 105. The board has also approved the issue of overseas convertible bonds for up to $20 million. The infusion of funds will be used for further expansion and setting up of new projects for higher value added derivatives. The company has already undertaken expansion of its crushing unit by 100% and its derivative unit by 25%. […]
There’s a new pecking order for private equity investors in India. Temasek, the Singapore government’s investment arm, has emerged as the largest PE investor in terms of investments announced this year, followed by the US-based Blackstone group. There’s a close race for the other top slots among Goldman Sachs, Carlyle, Citigroup and DE Shaw. Last year buyout major KKR and Providence were the top two PE firms investing in India. The total value of PE deals announced this year grew more than 100% to cross $17.14 billion. This includes three big deals announced by Temasek worth $2 billion, which would materialise only next year and it is possible that the final figure may be different. The list includes the 4.99% stake deal in telecom major Bharti Airtel worth around $1.9 billion (based on the market value on the date of announcement), the $55-million investment for 10% in Tata Sky and $26.5 million for a 27.7% stake in courier firm First Flight. According to data compiled by advisory firm Grant Thornton, the other big PE investor in India was Blackstone, which struck eight deals, some in quick succession, pumping in around $1 billion. Blackstone was involved in a couple of buyouts — Intelenet Global Services and Gokaldas Exports — apart from acquiring minority stakes in Eenadu Group and Nagarjuna Construction. […]
State Bank of Mauritius, the second largest bank in Mauritius, has approached the Mumbai-based Centrum group to buy into the equity of its flagship firm Centrum Capital. The move is in keeping with the bank’s new focus on expanding its reach and network in the Indian retail and financial services segment. Centrum Capital is active in the investment banking services and distribution of financial products sector. The firm had forayed into the local stock broking business almost four years ago. SBM had signalled its intention early this year when it acquired a minority stake in the Kolhapur-based private bank Ratnakar Bank. Sources close to the deal said the foreign bank was in talks with Centrum Capital to pick up a stake of less than 15% in the company. State Bank of Mauritius is believed to have valued this at close to Rs 1,800 crore which has been communicated to Centrum Capital, the sources said. The valuation may not be acceptable to the company. A senior Centrum official said: “State Bank of Mauritius approached us to acquire an equity stake in the company. However, we cannot agree with the valuation which they have given to us. We expect a much higher valuation because all our business are growing, Currently, we are in the process of restructuring our business operations and we will actively look for a stake sale after few months.” […]
Eyes Rs 2,000 cr business from Nashik by March 2011. As part of its expansion plan to strengthen its base in north Maharashtra, Saraswat Co-operative Bank Ltd (SCBL), the largest multi-state co-operative bank in the country with a business turnover of Rs 17,000 crore, has acquired the financially troubled city-based Nashik People’s Co-operative Bank (NPCB) with 14 branches. The bank had already got the approval of the Reserve Bank of India (RBI). With the acquisition of NPCB, the total number of branches of the Saraswat Bank has gone up to 141. Saraswat’s plans of increasing business in Nashik got a boost on the very first day of the NPCB’s acquisition as it got the largest deposit of Rs 14 crore from a local businessman. NPCB, which was founded in 1923, had deposits of Rs 124 crore, with 1,30,478 deposit accounts. It was in the red and its loss stood at Rs 31 crore. […]
Dunlop India, a Ruia group company, has raised $90 million (around Rs 360 crore) from a consortium of offshore hedge funds to restructure loan and to meet other corporate needs. The structured deal offers the funds an option to pick up to 15 per cent stake in the tyre maker. “We have recently signed a deal with a clutch of offshore hedge funds headed by Spinnakar Capital Group to raise a loan of $90 million. We have also raised Rs 121 crore from Deutsche Bank,” Dunlop Chairman Pawan Kumar Ruia told PTI. The loan was raised by Dil Rim and Wheel (DRW), the Mauritius-based holding company of Dunlop India and Falcon Tyres, which bought the companies from the Chabbrias for Rs 200 crore. To facilitate the loan, DRW has undertaken structural changes with the assets of the company. […]
Orient Global, the Singapore – based investment group has pumped in Rs 5,550 million (approximately USD 191 million) in India Infoline on a preferential basis, subject to shareholder and other approvals, if any. Orient Global will acquire 32 million shares in India Infoline representing 6.48% of the current equity capital. The company has been witnessing robust growth in its retail and institutional equities businesses. The capital provided by Orient Global provides resources for the company`s continued development. The board of India Infoline also noted a further proposed investment by Orient Global of USD 50 million (Rs 1,970 million) for a 10% stake (post-money, fully diluted) in India Infoline`s insurance subsidiary, India Infoline Marketing Service (IIMSL). […]
Although cross-border mergers and acquisition (M&A) deals touched a new high during 2007, the value of domestic M&A deals was on the decline during the year, according to a study done by consultancy firm, Grant Thornton. The value of domestic deals has declined from $6.9 billion in 2005 to $4.99 billion in 2006 and $2.83 billion in 2007, even though the volume of domestic deals has increased from 151 deals in 2005 to 214 deals in 2006 and 313 deals in 2007, the study said. The number of domestic deals ~ where both acquirer and the target company are Indian ~ has gone up but they were of small value. According to Grant Thornton, total number of M&A deals during the year (up to 15 December) were 661 with an announced value of $51 billion. But 348 cross-border deals ~ Indian companies acquiring foreign companies and the reverse ~ accounted for bulk of the share at $48 billion. […]
Future Capital, the financial arm of Future Group, has picked up an estimated 28% stake in Sankalp Retail Value Stores, a franchisee of the US-based discount format, My Dollarstore. The discount format will now be a part of Pantaloon Retail’s larger strategy to set up imported bazaar concessions as a shop-in-shop concept in its hypermarket, Big Bazaar. Sources said a team of Big Bazaar is working on setting up the new format which will offer a huge array of imported products at reasonable rates. Anil Biyani, Kishore Biyani’s younger brother, is likely to be in charge of imported bazaar, sources said. The format is also expected to help scale up the profit margins in Big Bazaar. Sameer Sain, CEO of Future Capital, was unavailable for comment. Rakesh Biyani, CEO of Pantaloon Retail, said, “We are working closely with My Dollarstore to create a concept for imported products in Big Bazaar outlets. This is an area where we see a huge consumption opportunity.” […]
Anil Ambani-promoted Reliance Entertainment is planning to sell around 5% stake to raise money for its large plans in movie production, social networking and the movie rental business. People close to the development said that Reliance Entertainment is in talks with some global funds and that a deal is likely to be agreed upon soon. The firm is insisting upon a valuation of close to Rs 6,000 crore, justifying the number on the scale, the business model and the potential in each segments. A Reliance Entertainment spokesperson was not available for comment. The move comes as a booming economy and rising affluence drive demand for entertainment. Movie companies have found it far more easier to sell their films, thanks to the insatiable appetite of NRI population across the world and the growth of multiplexes in the country. The popularity of Bollywood and the recent spate of hits combined with a drastic fall in prices of DVDs and VCDs have given a boost to the rental business. […]
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