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Netmagic Solutions, a leading carrier-neutral managed IT services provider based in India, today announced that it has received Rs 80 crore in private equity funding. The funding was led by the Indian proprietary venture and growth capital arm of Fidelity International (FIL) and Nexus India Capital, a leading Indian venture capital firm. Netmagic said it will use the proceeds of the financing to accelerate business growth and expand footprint in the domestic and international markets and build a nationwide network of data centres. “Over the last few years, we have built a bluechip client base in the financial, telecom and online trading and travel sectors,” Sharad Sanghi, CEO and managing director, Netmagic, said. “This is the right time to invest more aggressively and scale our business to the next level and roll out new locations and services in 2008.” […]
Citi Venture Capital International and Hudson Equity Holdings, a part of India Equity Fund, have invested in Jai Balaji Industries by subscribing to 61,18,000 & 22,41,000 compulsorily convertible debentures (CCDs), respectively, at Rs.326.90 per CCD. According to a release issued by Jai Balaji today, the company has raised Rs 273.25 crore by the issue of CCDs. Each CCD is to be converted into one equity share, and the holding of Citi Venture Capital and Hudson will be 11% and 4%, respectively, after the conversions. “The company has simultaneously issued 9.6 million warrants at Rs 326.90 each to be converted into one equity share within 18 months to promoters and other investors,” the release added.(Business Standard) […]
Reliance Technology Ventures Limited (RTVL), the corporate venture capital arm of the Reliance ADA Group, has directed the investment of an undisclosed amount in Sequans Communications (Sequans). RTVL is a wholly-owned subsidiary of Reliance Capital Ltd. Sequans Communications, a leading WiMAX semiconductor company, provides innovative system-on-chip (SoC) solutions for both fixed and Mobile WiMAX systems. The company offers chip solution for building wide range of WiMAX network components like femto, micro, and macro base stations, outdoor and indoor subscriber terminals, home gateways and all types of mobile devices. […]
California-based IT firm Digital Liberty Group (DLG) has taken over 55 per cent stake in Comprehensive Software Solutions and Services (CS3). Both DLG and CS3 are working towards consolidating the merger process and once it is through, CS3 will go in for a re-branding exercise targeted towards positing it as a DLG group company. CS3 will also undergo a HR revamp by adding another 150 IT professionals capable of serving the global clients. DLG is also planning to enhance CS3 presence in the Indian IT space, by extending solutions and services across India. The new entity will be working towards achieving CMM certification at the earliest. […]
Delek Group's financial arm Delek Capital Ltd. has signed an memorandum of understanding (MOU) to acquire 20% of a publicly traded Indian financial services company for $25 million. Delek did not disclose the name of the company. Delek Capital has a 30-day exclusivity period and is already conducting due diligence on the company. Delek Capital added that it may be required to make an additional investment in the target company as part of an offer to buy as mandated by Indian law. […]
Bangalore-based drugmaker Biocon will acquire a 70% stake in German pharmaceutical company AxiCorp GmbH for a consideration of euro 30 million. According to a release issued by Biocon to the BSE today, this will enable the marketing and distribution of a range of pharmaceuticals including generics, biosimilars, biologics and innovative pharmaceutical products in Germany and Europe. Allegro Capital was the financial advisor to Biocon for the transaction, the release added. AxiCorp is a specialised marketing and distribution company established in 2002 by a group of industry experts to address the lucrative generics and parallel distribution market in Germany and Europe. AxiCorp is ISO-9001 certified with a differentiated distribution model that is aligned with the functions of the German pharmaceutical market. […]
Apar Industries entered into an agreement to acquire 42% %in the listed Uniflex Cables to become the single largest shareholder in the company. Apar Industries will make a public offer for acquiring another 20% stake in the company. In addition Apar will subscribe to 4 million warrants at the SEBI formula price to increase its stake to 49% making the deal size about Rs 700 million plus the open offer. Uniflex Cables has been valued at an enterprise value of over Rs 1,600 million. The key members of the Baid family, Ajay Kumar Baid and Jay Kumar Baid will assume leadership positions of managing director and joint managing director of the company. Vijay Kumar Baid, will continue as the non executive chairman of the company. The family continues to hold about 15% shareholding on a fully diluted basis. The Rs 70 billion cable industry has been growing at over 25% on a per annum basis and holds promise to continue this growth for the next decade. […]
CITI Venture Capital International, a part of Citigroup, has invested Rs 164 crore in the New Delhi-based brokerage Globe Capital Market. Citi’s shareholding in the company will be in the range of 10-15%, depending on the size of the warrant issue the promoters plan to subscribe. The deal puts the valuation of the company at Rs 1,100-1,640 crore. When contacted Globe Capital chairman Ashok Agrawal told ET that the fund will be utilised to expand the company’s retail network and arbitrage business. So far, Globe’s retail network is confined to northern India. Mr Agarwal said Citi will send a representative on the board. Globe does not have any immediate plans of listing itself, but it will eventually do so, he added. City-based Singhi Advisors were the sole advisors to the transaction. “The arbitrage opportunities attach lower risk but gives return better than debts. I would like to utilise a major chunk of the fund to expand our arbitrage business to help benefit the small investors,” he said. Globe has a large presence in F&O segment. It is clearing an average of 10% of F&O segment of NSE. It is a trading-cum-clearing member of NSE and BSE, depository participant in NSDL and CDSL and also approved DP from the commodity exchanges such as NCDEX and MCX. […]
Signs of weakness in the primary market issuance can bring private equity (PE) deals to the fore, experts believe, as higher cost of debt may not prompt issuers to borrow significantly. Expansion and future projects of these companies cannot be delayed, however, and weak response from the equity market is likely to push them towards PE. “Certainly, the environment is positive and has improved on the backdrop of this (primary market weakness), we can see better traction and momentum in PE deals,” said Pankaj Karna, partner and head mergers and acquisitions, lead advisory, Grant Thornton Corporate Finance. In the last two days, two major public issues – Emaar MGF Land and Wockhardt Hospitals – have been withdrawn on account of weak response from investors. In 2007, India witnessed over 150 per cent rise in deals worth $70 billion, according to Grant Thornton’s Deal Tracker. Out of the total, $51.11 billion was the value of strategic mergers and acquisitions involving Indian companies, and the remaining $19.03 billion was the result of PE deals having average size of $47 million. […]
Private equity investors are showing a greater interest in special economic zones in the country, according to ICICI Venture, one of the major PE players. In a write-up, which forms part of a report titled ‘Private Equity Impact 2008´ released by Venture Intelligence, which tracks private equity and venture capital investments in India, ICICI Venture said: “PE investors are finding SEZ story interesting and are increasingly making larger and more investments in SEZs in the country.” The report has listed recent PE investments in SEZs such as the one by ICICI Venture, which has invested $40 million in an IT/ITES zone in Hyderabad and DLF’s receiving $400 million from US hedge fund DE Shaw. Besides, it noted, that Trinity capital has invested about $75 million in Luxor Cyber City and Mundra Port and SEZ receiving an unspecified private equity investment before its IPO. According to ICICI Venture, while private equity would be willing to come into large SEZs, they are also talking to some of the developers of smaller SEZs for pharma, gems and jewellery, and textiles. […]
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