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Trump Jr plans $1b fund to invest in Indian realty

Donald Trump Jr, whose father built a multibillion dollar fortune in real estate, plans to set up a fund of as much as $1 billion to buy property in India, betting on the nation's growing wealth. “Trump may create the privately held fund with investors including an Indian family,” he said. He didn't give specifics on how he'll raise the money, or when the first investment will be made. Trump would join Deutsche Bank AG and Lehman Brothers Holdings Inc in amassing funds to invest in a market that recorded the world's highest growth in millionaires last year, fueling demand for luxury homes. The highest borrowing costs since 2002 have ended India's five-year property boom, curbing valuations of projects and developers. “The real estate market is in a downturn now,” said Ritesh Vohra, director of investments at Mumbai-based Saffron Asset Advisors, which manages more than $400 million in two property funds. “There's some more pain left over the next two years or so, and that could be an opportunity to invest.” […]

LIC Housing to enter venture funding

LIC Housing Finance, the mortgage arm of Life Insurance Corporation of India (LIC), is set to foray into the venture capital arena and intends to start a Rs 500 crore real estate fund by the end of this financial year. LIC Housing Finance is reportedly scouting for a banking partner for raising capital and will soon approach the Securities and Exchange Board of India (Sebi) to set up an asset management company. To invest in listed companies, companies usually register with Sebi. “This is an opportune time to enter, considering the demand. We will form a separate asset management company to manage this fund,” a senior LIC Housing Finance executive told Business Standard. Based on the response to the real estate fund, the company will decide on whether it will expand its presence in the venture capital space. […]

RJ Corp takes 100% in ice-cream venture Cream Bell

RJ Corp-owned Devyani Food Industries has acquired 100% stake in ice-cream venture Cream Bell, having acquired part-owner CK Jaipuria’s share in the entity. The share transfer, in tranches, was completed last week. Sources said the Cream Bell business is valued at around Rs 450-550 crore. The historical valuation of Cream Bell, carried out by private investment firm International Finance Corporation (IFC) a year ago, was about Rs 120 crore. It has subsequently multiplied about four-five times with capacity expansion and increase in Cream Bell’s market share. The Ravi Jaipuria-promoted RJ Corp is now in the process of setting up a greenfield facility in Goa for the ice-cream venture on an investment of Rs 40 crore to double installed capacity. The new plant is expected to go onstream in about four months’ time, and is being set up to cover a pan-India footprint for the ice-cream business. […]

Info Edge to buy 40% in Applect

Info Edge India, which owns, and, will buy 40% stake in New Delhi-based education content developer Applect Learning Systems for Rs 6.5 crore. The company has already paid Rs 1 crore for the stake and will disburse the rest over the next 18-24 months, after Applect achieves some pre-determined milestones. Info Edge has tapped into its reserves, which stand at about Rs 300 crore, for the stake buy. Applect Learning is a subsidiary of IMS Learning Resources, which provides coaching for higher education entrance exams. It provides content development services with a focus on education in the K-12 segment. […]

JP Morgan Chase buys 33% in Alok Infra’s SPV

Global financial giant JP Morgan Chase is investing Rs 130 crore for 33% stake in an SPV of realty firm Alok Infrastructure, a wholly-owned subsidiary of Mumbai-based textile maker and retailer Alok Industries, according to banking sources. Alok Infrastructure’s SPV, which is receiving the JP Morgan funding, will develop a realty project at a prime location in Mumbai. Alok Infra owns land at several prime locations in Mumbai, some of which it bought in high-profile transactions in the past one year. Alok Infrastructure had been in negotiations with some private equity players to offload equity in the main company. A falling stock market and a sluggish realty sector of late has, however, brought down the valuation of realty firms forcing Alok Infra, as many other realty companies, to go for investment at the project or SPV level. Alok Infra may be looking at raising more funds through private equity route for its different projects. […]

Andrew Yule to divest 26.2% stake in Tide Water

Andrew Yule may soon invite expression of interest (EoI) for divesting its 26.2% stake in Tide Water Oil — the company which owns the automobile lubricant Veedol. “The divestment process will be initiated after receiving the valuation from appointed consultants. We will prefer a company which not only offers better value but also aligns with the company’s future plans,” a senior official in the ministry of heavy industries said. The government has simultaneously initiated the process of appointing a consulting firm to undertake valuation exercise. The process is expected to be completed in two-three months. Sources said major oil companies like RIL, Total and Chevron were interested in buying the stake. […]

IIM-A students set up PE, VC interest club

Five post-graduate programme (PGP) students of the Indian Institute of Management, Ahmedabad (IIM-A) have set up a Private Equity (PE) and Venture Capital (VC) club to help students get hands-on experience by involving PE/VC players from India and abroad. Unlike finance clubs run by most B-schools in the country, this club exclusively focuses on PE and VC funding. The lack of opportunities and experience in the PE and VC space led five students to set up the club called 'Leverage'. With around 50 students interested in being members, the club will be a forum for students interested in all aspects of private equity and venture capital. […]