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KSK Energy Ventures raises Rs 415 cr via pre-IPO placements

KSK Power said its subsidiary KSK Energy Ventures, has successfully completed a pre-IPO placement of 1.73 crore equity shares at a price of Rs 240 per share, a company statement said. The company has issued shares to six financial institutions including Macquarie Bank (UK), Tree Line Asia Master Fund, Infrastructure Development Finance Company, Axis Bank, Universities Superannuation Scheme, UK and GE Capital (Mauritius). The two Indian entities IDFC and Axis Bank have invested Rs 75 crore and Rs 62.97 crore, respectively in the power projects firm. […]

ING looking to buy out private equity firm in India

Dutch financial services conglomerate ING Groep NV, among the top 20 companies in the world based on market capital, is looking to buy an established private equity, or PE, fund house in India, according to a company executive familiar with the development. New Delhi-based Avigo Capital Partners, a PE fund manger with a focus on small and medium enterprises (SMEs), is a potential candidate, this person said, asking not to be named as the target is not finalized yet. “We are looking to buy out a PE fund house or acquire strategic equity stake in one of them,” the ING executive said. The deal is being explored from ING’s Hong Kong office at One International Finance Centre on Harbour View Street, he added. But, Vivek Subramanian, a founding partner at Avigo, said the firm is not in talks tosellout the business. Small funds will not survive long in the PE business, which is “essentially a large capital play”, said Jon Schahinger, who heads ING’s PE business in Asia from its office in Australia. “As the market grows, small funds perish if they aren’t taken over by larger funds.” […]

Pfizer may go all out for Ranbaxy

A rumoured counter-bid by Pfizer for Ranbaxy is eerily similar to the US firm’s actions in November 1999 when it launched an aggressive bid to stop Warner-Lambert from being bought by American Home Products. To acquire Warner-Lambert, Pfizer ended up paying $20 billion more than what American Home Products offered. The jewel in Warner-Lambert’s crown was Lipitor — the cholesterol-fighting drug, in which Ranbaxy is the generic leader. The speculation now is Pfizer will go all out to outbid Daiichi. On November 4, 1999, hours after executives of the American Home Products and Warner-Lambert announced a $70-billion merger agreement, Pfizer scuppered the deal with a $82.4-billion hostile bid for Warner-Lambert. Though the Warner-Lambert board rejected the bid initially, Pfizer managed to acquire the company for $90 billion. The anti-cholesterol drug’s patent is on the verge of expiry in the US and European markets. Ranbaxy has entered into a legal battle with Pfizer to launch the drug in the US and European markets. Though Ranbaxy has not been greatly successful in its legal strategy, industry analysts feel that by acquiring Ranbaxy, Pfizer can control the generic market of Lipitor and the market for other blockbuster generic drugs. […]

RBI opens doors to six VC funds after long gap

After a long lull, the Reserve Bank of India (RBI) has allowed a string of foreign venture capital (VC) funds to invest in the country. While this decision could be driven partly by fears of a slowdown and drying capital inflows, the shift in mood may also have a lot to do with these funds changing their charter of investments and making upfront commitments to convince RBI. In the last two months, the central bank has cleared applications from as many as six foreign VC funds. Though many funds are still waiting in the wings, the industry perceives it as a positive development. Advisors to some of the funds say that among other reasons, this could have been achieved only after they changed their charters to insert a specific clause that there will be no investment in the real estate sector. Till now, the funds were only giving an undertaking, which is just a letter to RBI, stating that they will stay away from real estate – a simple declaration which the regulator thought was inadequate. There are other changes that foreign VCs are making to push their case. Significantly, they are refraining from making any mention of sectors which have certain sensitivity in terms of foreign direct investment. For instance, as funds spell out the segments they would be interested to invest in, there is no reference to industries like retail, non-banking finance companies and banking. […]

Lehman Brothers Real Estate Partners to invest $175 million in Unitech's project

India's real estate developer Unitech Ltd. said Lehman Brothers Real Estate Partners has agreed to acquire a 50 percent stake in the initial phase of the company's project on the Western expressway in the city of Mumbai for around $175 million. The project is being jointly developed by Unitech and its local Mumbai partners, the company said in a filing with the BSE. Lehman Brothers Real Estate Partners will contribute 50 percent of the construction costs with a collective similar contribution from Unitech and its local Mumbai partners. The initial phase entails development of one million square feet of office space out of the total developable area of around 18 million square feet. (Forbes) […]

Gemini Comm buys Chennai firm for 70 mln rupees

Gemini Communication Ltd said on Monday it has acquired 51 percent stake in Chennai-based Veeras Infotek Pvt Ltd for 70 million rupees. The acquisition, funded through internal accruals, would start contributing to revenues from the current quarter, Executive Director R.Ramkumar told Reuters. The acquisition will extend Gemini's network security capabilities and increase its client base, he added. “They have a solid skill base, which is a big value addition. Their customer-base will also be added to ours,' he said over the telephone. Veeras has about 400 clients across the country while Gemini has more than 1000 clients. “We will be able to extend our services across the globe,” Ramkumar said. […]