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An equity fund focused on the Indian real estate market, Red Fort Capital Advisors Pvt Ltd, plans to launch a Rs1,000 crore domestic fund which will buy land in key cities across India, joining the race to build land banks as also invest in redevelopment in Mumbai and other cities. Red Fort is looking to raise the corpus from high net-worth individuals, corporates, trusts and institutions in India. “It is an open-ended fund which means investors have an option to exit whenever they want to,” Subhash Bedi, director and partner, Red Fort Capital said. “The fund will give investors an opportunity to invest in real estate. We expect to return money to investors in 3-5 years.” Red Fort is a Cayman Islands-based fund that has about 10 investors, including government institutions, insurance companies and pension funds. It has raised Rs2,000 crore from these investors and invested Rs1,000 crore in India in the three years it has been around. […]
The Gitanjali Group has bought ‘Nakshatra’, the premium brand of jewellery promoted by Diamond Trading Company (DTC), for approximately Rs 100 crore through its Dubai-based subsidiary, Gitanjali Ventures. This also includes the purchase of the former exclusive licensee of the brand in India, Brightest Circle. Gitanjali Group had owned 33% stake in the company, while the remaining stake was owned by Kirtilal Kalidas and Mahendra Brothers. The group acquired the remaining stake of the company from these two players. Brightest Circle also had the option to purchase the brand. However, it has terminated its licence and ‘irrevocably waived and surrendered’ all the rights and interests in the Nakshatra brand. The company now plans to extensively broaden the Nakshatra brand portfolio hitherto restricted only as a diamond jewellery brand. […]
HSBC Private Equity Asia, a subsidiary of HSBC Asian Ventures Fund, on Monday said it pumped $7.5 million into New Delhi, India-based Newgen Software Technologies, a company that focuses on document imaging and work flow management systems. Imaging technology can help companies collate, retrieve, and present documents. Such business processes occupy a global market valued at roughly $10 billion to $12 billion and expected to climb steadily, according to analysts. […]
Healthcare has become a major private equity play and with a few select large players in the industry like Fortis, the investor line is long. NDTV has learnt that none other than private equity (PE) major Temasek Holdings is the front runner for a stake in the company. No wonder the stock is at its all time high and the key trigger could be Temasek buying into the company. Temasek is in talks with Fortis to pick up a 10 per cent stake. The deal value is not yet known but going by the current market price it is likely to be at least Rs 250 crore. The Fortis management is tightlipped about such a development but admits that it is open to partnerships to grow. […]
Ahead of its initial public offer, Mahindra Holidays and Resorts India Ltd (MHRIL), a subsidiary of Mahindra Holdings and Finance Ltd, has finalised a private placement with a bank which values the company at $1 billion. Sources said that the deal, likely to be announced on Tuesday, will see the Indian bank acquire a 2% stake in MHRIL for a consideration of around Rs 80 crore. When contacted, chairman Arun Nanda refused comment. MHRIL, which filed a draft red herring prospectus with Securities and Exchange Board of India (Sebi) last month, is targeting an IPO in the first quarter of the year. It plans to issue 42 lakh fresh shares through the IPO. Mahindra Holdings and Finance is a wholly-owned subsidiary of Mahindra & Mahindra. […]
Dish TV India announced that it sold 4.9% stake in the company to a Mauritius-based private equity firm, Indivision India Partners, promoted by Kishore Biyani`s Future Capital Holdings, for Rs 2.5 billion, reports Business Standard. Dish TV will make a preferntial allotment of 12.5 million equity shares of Rs 1 each at a price of Rs 100 each aggregating Rs 1.25 billion. Indivision will also subscribe to 9,615,385 warrants, which will be converted into equity at Rs 130 a share, 18 months later. The sale proceed will be used to expand Dish TVs operations. The company is planning to raise over Rs 10 billion in the next two years for expansion. […]
Foreign investors such as Franklin Templeton, HSBC, ABN Amro have picked up around 10% stake in the Ashok Piramal group’s real estate arm, Peninsula Land (PLL) for Rs 525 crore. The new equity holders purchased PLL stake through a qualified institutional placement (QIP) route. The deal values the Ashok Piramal group company at just over Rs 5,000 crore. The transaction is expected to cut the promoter holding in Peninsula to 52.54% from 62.3%. UBS Capital and Enam Capital advised the company on the transaction. PLL executives said that the money will be used for land acquisition and construction of new projects. PLL was among the first companies to use old Mumbai textile mill land to enter the property development business, a move which has triggered a frenzy of mall building and corporate high-rises in that part of Mumbai. […]
The year 2008 is slated to be an interesting year for entrepreneurs and venture capitalists alike. With a mobile subscriber population of over 200 million and a growing internet penetration base, growing middle class and over 70 million TV and satellite homes, entrepreneurs are coming up with innovative ideas and VCs are not stopping short of funding them. In 2007, VC funding in start-ups in India just stopped short of $900 million. In 2008, the VC industry is slated to become worth over $1 billion. And interestingly, it will not be run-of-the-mill IT services. In fact, in a distinct shift, VCs will shy away from investing in IT outsourcing and BPO start-ups due to the rise in value of the rupee. However, consumer businesses revolving around online education, personal gaming, mobile advertising and payments businesses will gain momentum, thanks to the great Indian middle class. Tax breaks to IT and BPO companies are ending in 2009. Unless that gets revived in the Budget this year, VC investments in the tech outsourcing start-ups will decline. […]
Advanta India Ltd has acquired the business of Unicom Seeds Ltd (“Unicom”) by acquiring 100% shares in the company for a consideration that includes deferred payment based on achievement of performance related milestones. Unicom has a strong presence in the domestic and export markets of vegetable seeds. Unicom also undertakes the custom production of vegetable seeds for the customers all around the globe. The revenue size of the business of Unicom for the last FY was about Rs250mn. The business has the EBITDA earning capacity of about 30%. With this acquisition, Company's platform in vegetable seeds will become stronger with added crops to its current vegetable product portfolio (Golden). With the added products like Melons and Cucumber from Unicom the combined vegetable portfolio (Golden and Unicom) will make Company a significant player in the Vegetable seed Market. […]
Venture capital is a fledgling industry today and I do not expect that to change materially in 2008. It is an industry which contributed less than $1 billion in the year gone by. Given the fact that it is coming off such a small base, it will not be surprising if it grows by 50%. Venture capital-backed companies, however, would still be a small proportion of country’s GDP. This industry has seen a large influx of capital from one of the world’s most sophisticated investors, the ivy league universities. They will continue to increase their allocation to venture capital, especially in emerging markets like India. The Indian venture capital industry that has so far been largely funded by the US will see an influx of funds from Europe and Asia in this year. As companies globalise to look for new markets and build efficient supply chains, venture capital will continue to globalise even further. Venture firms originating from mature economies like the US will set up or strengthen their operations in India. […]
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