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Alliance to sell 10% stake to PE Fund

Alliance Group, a Bangalore-based real estate developer, is planning to raise money via the private equity (PE) route to develop its land bank spread across five cities in south India. Declining to reveal the PE entity and amount being raised, Manoj Namburu, chairman and managing director of Alliance Group, said, “The group last week signed the term-sheet with a PE player and presently we are observing a 90-day gag order.” “The 10 per cent dilution will help us raise funds for our ongoing projects and develop new ones. The group currently has a land bank of 650 acres spread across Bangalore, Hyderabad, Chennai, Coimbatore and Mysore,” he added. The group last year raised Rs 600 crore in foreign direct investment from US-based Westport Capital for its special purpose vehicle (SPV) — Alliance Infrastructure Projects Private Limited — floated to develop its Hyderabad project. “The group, which is in the fourth year of its operations, has 13 projects in five cities valued around Rs 5,000 crore,” said Namburu. […]

Ruia buys U.K. component maker

The Kolkata-based Pawan Ruia Group, which has a controlling interest in Dunlop India and in Falcon Tyres, has acquired British auto component manufacturer Schlegel Automotive Europe, according to group chairman Pawan Kumar Ruia. The deal was made through a special purpose vehicle Global Finvest Ltd based in the U.K. “Keeping in mind the growing demand in the automotive sector, we are planning to set up a Schlegel manufacturing unit in India.” Mr. Ruia said here on Wednesday. The acquired company, founded in 1952, makes rubber sealing products used in automobile doors, windows, hoods and trunks and most of the global auto sector customers whom it serves in Europe have already set up plants here. There were indications that Schlegel might set up a plant in India soon. However, the location has not been finalised as yet. The Ruia Group was little known till it acquired Dunlop and Falcon from Chhabria in 2005. […]

Axis PE invests in Vishawa Infra & Services

Axis Private Equity today said it has invested Rs 60 crore in Hyderabad-headquartered Vishawa Infrastructure and Services (VIS). “We liked the entrepreneurial drive of the promoters who have built a successful and profitable business. Axis PE funds will enable them to scale up to become one of the top players in the water/sewage segment in the next few years,” Axis PE's Managing Director Alok Gupta said in a release here. VIS has a manufacturing facility near Hyderabad for production of pre-stressed concrete, reinforced concrete and mild steel pipes. Axis PE, an arm of Axis bank, is mandated to manage the private equity funds for the private-sector bank. It announced the first closure of Axis Infrastructure Fund at Rs 600 crore. The fund targets to raise Rs 2,000 crore. […]

Sidbi plans Rs 1,000-cr venture fund

Sidbi Venture Capital is planning to launch a Rs 1,000 crore fund focussed on small and medium enterprises. Small Industries Development Bank of India (Sidbi) chairman and managing director R M Malla told Business Standard that the sponsors were in talks with other players to set up the fund. “We are trying for 60 per cent domestic participation,” he said. Sidbi Venture Capital Chief Executive Officer Ajay Kumar Kapur said the proposed fund — likely to be called India Opportunities Fund and operational over the next few months — will focus on auto components, food processing and agri products. He, however, refused to disclose details about potential partners, saying discussions were still underway. Kapur said the fund will announce an investment in a clean technology company by the end of July and may also put money into two manufacturing companies. The India Opportunities Fund will invest in medium scale enterprises and those that graduate beyond this stage, besides small scale units, Malla said. […]

AB Group arm picks up 25% in V Mart Retail

The private equity arm of the diversified Aditya Birla group has acquired a 25% stake in V Mart Retail, a value-retailer owned by the New Delhi-based Lalit Agarwal. The investment is estimated to be in the range of Rs 60-70 crore. V Mart Retail chairman Lalit Agarwal confirmed the development to ET but did not disclose the size of the investment. He said: “We needed the business expertise of the Aditya Birla group. We wish to extend our value for money retailing business in a truly Indian way across the country. We are planning to open 100 stores over next two years. We would implement the Birla group’s strategies on merchandising, logistics and store planning.” The company had reported a turnover of Rs 100 crore last year and targets to achieve a 50% growth in topline this year. The four-year old company has been growing at 40% annually and is expected to continue this trend in next four-five years, said sources close to the company. The format of V Mart can be compared with Big Bazaar, Vishal Mega Mart and Truemart. […]

ICICI eyes right fit for global buy

The buzz over a possible overseas acquisition by India’s largest private sector banking major ICICI Bank is growing, with senior bank officials stating that the bank is being presented with several opportunities across the globe. The move comes at a time when most of the bigger global players have been hit by massive write-downs and losses of over $400 billion, which have led to sharp erosion of market cap of most players. Bankers feel that the situation is likely to continue in the near future too. Indian banks like ICICI Bank and State Bank of India have till date done only small acquisitions compared with large-scale acquisitions by Indian corporates, especially the Tata Group. Speaking to ET, ICICI Bank joint MD Chanda Kochhar said, “At this point of time, there are opportunities coming our way. We are not actively going out to look at these opportunities. However, at this point, there is nothing specific that we are looking at. To most of the opportunities, we are saying ‘no’.” She added, “We are getting these opportunities from everywhere.” ICICI Bank currently has operations in 18 countries across the globe. The bank has a total asset of Rs 3,99,795 crore as on March 31, 2008 while its profit after tax was Rs 4,158 crore. “We are only looking at something which fits with our plans. It has to be something with a large-deposit base. […]