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Inventus launched US-India Venture Fund

The already crowded venture capital industry in India got a new member with a team of investors led by Kanwal Rekhi, a Silicon Valley based entrepreneur and mentor, launching a US-India venture fund Inventus Capital Partners on Tuesday. With a corpus of $125 million, mainly raised from global institutional investors and the founding members, the venture fund aims at investing in at least 15-20 early-growth companies over the next three years. The VC firm intends to invest $1-10 million in companies in software product, services, Internet, mobile and other high growth technology sectors, in syndication with another venture firm. To start with, Inventus Capital has participated in a $3.5 million institutional round raised by a Silicon Valley based IT firm with its development centre in Bangalore. Inventus is leading the round with $2 million investment, an announcement to which will be made in few days, Rekhi told reporters in Bangalore. Besides, the company is in advance stage of talks with a Bangalore based firm for funding, which is expected to be in the range of $2-3 million. […]

GIC to invest Rs 900 crore Reid & Taylor

GIC Special Investments will invest Rs 900 crore in S Kumars unit Reid & Taylor through a fresh issue of shares and warrants. GIC Special Investment (GIC SI), is the private equity investment arm of Government of Singapore Investment Corporation (GIC). Post-conversion, GIC SI would own 25.4% of Reid & Taylor, valuing it at Rs 3,540 crore. S Kumars Nationwide will own 74.6% of Reid & Taylor (India) post the investment from GIC SI. GIC SI's investment in Reid & Taylor will help to substantially strengthen Reid & Taylor and SKNL's businesses and their ability to grow in the luxury fabric and apparel and other textile segments of the textile industry, where it is already a market leader. […]

ONGC sells 46 pct stake in Kakinada refinery to GMR Group

India's biggest oil and gas explorer Oil and Natural Gas Corporation Ltd. (ONGC) said it will sell its 46 percent stake in its refinery and petrochemical plant in Kakinada, citing lack of tax sops. Sources also told Thomson Financial News that the stake in the refinery and petrochemical plant, which will come up in Kakinada in the southern Indian state of Andhra Pradesh, will be sold to GMR Group. ONGC will sell the stake in Kakinada Refinery and Petrochemicals (KRPL) through its unit Mangalore Refinery and Petrochemicals Ltd. IL&FS holds a 51 percent stake in Kakinada Refinery and Petrochemicals, while Kakinada Seaports holds the remaining stake. (Forbes) […]

Tata Group acquired 50% stake in China's CEC

Tata Group has announced that its subsidiary Tata International has signed an equity joint venture agreement (EJV) with the shareholders of China Enterprise Communications Limited (CEC) for acquiring a 50 percent stake in CEC. Beijing-based CEC, according to Tata’s statement, is a value-added telecoms services provider and had recently been awarded a nationwide IP-VPN service license by the Chinese government. Chinese state financial conglomerate CITIC Group along with State-owned Assets Supervision and Administration Commission (SASAC) and CE-SCM are the majority shareholders of CEC. The deal requires approvals from regulatory and government in communist China. Tata also claims the joint venture is the first-of-its-kind in the Chinese telecom sector after China became a member of World Trade Organization (WTO). […]

PE firms betting big on energy

An increasing number of private equity (PE) firms are making a beeline for investing in the booming energy sector. These firms have made a total investment of $990 million (Rs 4,158 crore) during the first five months of 2008 in this sector compared to just two deals worth $45 (Rs 189 crore) million during the same period of 2007. The energy sector, especially power, has been witnessing a lot of interest from PE investors, said Arun Natarajan, chief executive officer (CEO), Venture Intelligence, a Chennai-based research service company focused on PE and venture capital activities. Some of the big deals between January and May 2008 include Farallon Capital, L N Mittal India and Internet Ventures' investment of $395 million in Indiabulls Power Services in February 2008. In the Konaseema Gas deal in May this year, IDFC Private Equity and Lehman Brothers invested $125 million and in the KLG Power deal, TPG Growth put in about $50 million in April. […]

Actis buys Vaishnavi project stake

Bangalore-based real estate developer Vaishnavi Infrastructures has received an investment of $25 million from private equity investor Actis for its Rs 350 crore Bangalore project, an investment bank official said. The proceeds of the investment will fund the construction and development of approximately 925,000 square feet of high-end residential and retail space at Yeshwantpur, a Bangalore suburb. This is the first investment by Actis India Real Estate Fund, a $300 million fund sponsored by Actis. “Actis has taken a significant minority stake in Vaishnavi’s Bangalore project as it is situated at the perfect location. With current realty market conditions … private equity players prefer to invest in projects as they can get the right valuations,” T R Srinivas, director at o3 Capital told DNA Money from his Bangalore office. […]

JK Tyre acquires 100% shares of Tornel

JK Tyre & Industries has acquired 100 percent shares of Mexican tyre company, Tornel, along with its subsidiaries for Rs 270 crore, making it the largest four-wheeler tyre company in the country. The acquisition has been made through the Special Purpose Vehicle (SPV) route, which has been financed through a combination of equity and debt, a press release issued in Mumbai on Monday stated. The company`s board had approved this acquisition in its meeting held on April 11 and all formalities and compliances with regard to the acquisition have been made and closing of the transaction took place on June 13, the release said. The acquisition would help JK Tyre substantially increase its global footprint. […]