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Autoindia.com Online Pvt Ltd has received a round of investment from Babu Sivadasan, who was the founding Chief Technology Officer for a few start-up companies, including Stamps.com, and is currently serving as the EVP of Engg, responsible for firm-wide engineering activities at Envestnet Asset Management, the, independent wealth management platform provider for the financial advisory marketplace. The proceeds from this round will be used to continue to strengthen the company’s leadership position and offer better service to its consumers and partners. Sivadasan also joins the Board of Directors of AutoIndia.com, the fastest-growing automotive marketplace for buyers, dealers and private party sellers. This fresh infusion of capital adds to the investments already been made by Silicon Valley entrepreneurs and ensures that the company can execute its long term plans. […]
Private equity (PE) flows, which stood at $17 billion in 2007, should be treated as portfolio investment, feels the government’s key economic policy think-tank, the Prime Minister’s Economic Advisory Council (EAC). The panel has highlighted the lack of clarity on this count and called for simplification. “PE investment inflows have also been quite large. Since in most cases PE flows constitute less than 10% of the capital of the company being invested in, they should ideally be reported under portfolio capital, and not under FDI,” the EAC said in the review of economy for 2007-08. While the EAC assumes that PE funds act like portfolio investors, ground realities point to a different scenario. In such cases, the investment is more like FDI rather than a portfolio investor. There are cases of PE funds taking management control of companies in a bid to improve financial performance even in case they do not have a majority stake. Blackstone, for example, took over Gokaldas Exports, a large player in the readymade garments segment. Similarly, Actis runs Punjab Tractors and Phoenix Lamps while ICICI Ventures manages RFCL. India Value Fund, another PE, holds the reins at Shringar Cinema. […]
Mahindra Holidays & Resorts, part of $4 billion Mahindra Group, will offer 1 per cent stake in the company to Jacob Ballas India Fund through a private placement basis for a consideration of around $10.06 million (Rs 39.50 crore). The pre-IPO placement deal values the hospitality arm of automaker Mahindra & Mahindra at around Rs 4,000 crore. The equity shares to be transferred to NYLIM Jacob Ballas India Fund III, LLC, should be subject to lock-in after the Initial Public Offering as per SEBI regulations, Mahindra & Mahindra informed the Bombay Stock Exchange. New York Life Investment Management LLC (NYLIM) has a shareholding in Jacob Ballas Capital India, a non-banking finance company focused on private equity advisory services. […]
Wadias-promoted GoAir has been approached by various private equity players for acquisition of a minority stake, while valuing the low-cost private carrier at $400 million (about Rs 1,600 crore). Global consulting firm Ernst and Young, on behalf of other players, has approached the company and Wadias have held discussions with them, market sources said. When contacted, a spokesperson for the airline said: “E&Y has approached us on behalf of various buyers who are interested in buying a minority stake in GoAir.” […]
Millennium Private Equity (MPE), an entity regulated by the Dubai Financial Services Authority (DFSA), which is the private equity arm of Millennium Finance Corporation (MFC), the leading international investment bank based in the Dubai International Financial Centre (DIFC), announced that it had established an investment structure with The Investment Corporation of Dubai (ICD) as its sole investor, to invest into an Indian telecoms tower business. MPE committed $100 Million together with other highly reputable investment firms such as Temasek Holdings, Goldman Sachs, Macquarie, AIF Capital, Citigroup and India Equity Partners out of a total investment of $1 Billion into Bharti Infratel (Infratel), a subsidiary of Bharti Airtel Limited, the leading telecoms player in India. […]
NIIT has signed a share purchase agreement to acquire 47.87% stake in Noida-based Evolv Management Services (Evolv) – a provider of English language and communication training – with 100 employees and pan-India presence and delivery capability. Evolv provides training services to clients across IT and ITeS, banking, insurance and telecom. […]
ICICI Venture, the largest domestic private equity fund in the country, has roped in a foreign strategic healthcare investor in its endeavour to become a healthcare investment major in the country. The strategic partner would invest $80 million in IVEN Medicare, the fully-owned subsidiary of ICICI Ventures, to form a special purpose vehicle. “We currently have $80 million in IVEN from ICICI India Advantage Fund Series II and would raise another $90 million through debt. The new entity would have a capital base of $250 million, to start with,” said Alluri Srinivas Rao, director, Investments, ICICI Ventures. Rao said that a formal announcement regarding the tie-up would be made by the end of this month. The new company would acquire majority stakes in key regional hospitals. It will use its large balance sheet and size to buy equipment, help the hospitals raise money and hire doctors. […]
Essar Energy Overseas, a subsidiary of Essar Oil, has entered into an agreement to acquire 50 per cent stake in Kenya Petroleum Refineries (KPRL), a four million metric tonne per annum (MMTPA) refinery, in Mombasa, Kenya. The government of Kenya holds the remaining 50 per cent in KPRL. This will be Essar Oil's first international acquisition in the refining sector. Essar already has three exploration and production blocks in Madagascar and one in Nigeria. Though Essar Oil did not divulge the deal size, it is estimated that the refinery could have cost the company around Rs 3,000 crore. Said an analyst, “It is not a complex refinery and considering that the company would upgrade it by adding secondary units at a project cost of $ 400- 450 million, the cost of the acquisition is likely to be on the lower side.” The government of Kenya and Essar Energy Overseas will equally share the cost of upgrading the refinery. […]
GS Strategic Investments, an indirect wholly owned subsidiary of Goldman Sachs Group, is planning to subscribe up to 39.36 per cent of post-issue paid-up capital of M Pallonji Enterprises Pvt Ltd (formerly Sairam Multitrade Pvt Ltd) for an aggregate consideration of Rs 180 crore. M Pallonji Enterprises Pvt Ltd (MPEL) currently holds 6.07 per cent of share capital of MetLife India Insurance Company (4.62 crore equity shares of face value of Rs 10 each). MPEL plans to acquire 3 crore shares of MetLife from MPG; and following a rights issue by MetLife, it proposes to subscribe to 1.19 crore equity shares of face value of Rs 10 each of MetLife. The move would take MPEL’s holding in MetLife to 10.01 per cent on a fully diluted basis. […]
Koutons Retail, a leading manufacturer of men’s apparel, is acquiring a 51% stake in Delhi-based brand Upper Class. Upper Class has a strong foothold in the ladies’ apparel segment and is expected to compliment the existing brand portfolio of the Rs 800-crore company—Koutons and Charlie Outlaw—and its planned foray into women’s apparel. Koutons, which was listed in October 2007, has a market capitalisation of over Rs 3,000 crore today. Upper Class, promoted by Rajesh Sachdeva and his wife, Amita, specialises in casual bottom wear for women. The Rs 25-crore company has been exporting apparel to leading brands in Europe such as Armand Thiery, Class, F Ferra, Alcorpe English and is available in stores such as Splash and Lulu Center in the Middle East under its signature brand Upper Class. […]
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