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Bhupendra Kumar Modi is planning to offload 24 per cent stake in Spice Mobiles, his mobile handset business, to global handset manufacturer Sony Ericsson. According to sources close to Modi, this move is a part of a bigger association that would see Sony and Modi getting together in a range of other businesses with the Japanese multinational. “The Modi group is looking at merging its business with the Sony company at the every level. This started off with Sony's television business and now the mobile space. Sony Ericsson intends to acquire 51 per cent in Spice Mobiles. While Modi will offload 24 per cent the additional stake will be bought through the market,” said a source. Modi is in advanced stages of negotiations and the process should be completed wihin the next three months. Modi is believed to be quoting around Rs 80-100 a share. […]
Even as the market has been rife with rumours that Citi group will sell its stake in housing major HDFC, Deepak Parekh, chairman, HDFC has denied any such move. Last week, there were media reports that Citi may sell its 11.74% stake in HDFC to Oman Investment Corporation. However, when contacted , Mr Parekh said that there was no such move on Citi’s part to sell its stake. Citi had picked up a stake in HDFC in 2006. Last year, HDFC had made a preferential issue of Rs 3,114 crore to private equity major Carlyle Group and Citi to increase its stake in HDFC Bank and also help the housing major finance its insurance business and housing business. The Carlyle Group, through Carlyle Asia Partners (CAP), put in Rs 2,638 crore, while Citigroup Strategic Holdings Mauritius Ltd subscribed to the balance Rs 475 crore. Post the issue, Citigroup will maintain its holding at 12.3% and Carlyle will hold 5.6%. Currently Citi which is the largest stake holder in HDFC, holds 11.74% stake in HDFC, while Carlyle holds 5.37% stake. […]
Allied Digital Services acquired a 80.5 per cent stake in the US-based IT infrastructure management services provider, EnPointe Global Services (EGS) for $30 million. The company expects EGS to generate revenues of $40 million and EBDITA margin of 15-20 per cent in the current financial year. Allied Digital, which has about 10 per cent market share in the domestic infrastructure management services segment, derives 94 per cent of its revenues from India. (Business Standard) […]
ChrysCapital, private equity fund has acquired around 5% stake in HCL Technologies for USD 220 million and more than 1% in Infosys for USD 200 million over the past three months through secondary market transactions, reports Economic Times. The private equity major has pumped around USD 500 million in Indian companies in the last few months. It has also acquired 7-8% stake in Amtek Auto for USD 80 million.(ET) […]
Private equity (PE) funds in the real estate space are starting to don the developers’ hat. Funds such as Trikona Capital, South Asian Real Estate (SARE) and Yatra Capital have started to create in-house teams that can execute real estate projects on their own. For some, the opportunity has already arrived. For the funds, the idea is to have better control over their development partners while others are clear that they also want to make the kind of margins that construction offers (25-35%). Apart from the cost advantage, this would also mean a lower dependence on construction companies in a scenario where execution capability bottlenecks are threatening to derail projects. Trikona Capital, which has over $1-billion investments committed in India, is setting up a development group, which will be headed by the ex-chairman of HUDCO, Dr PS Rana. “There is very little scalability in India. My best development partner has at best developed 5 million sq ft of space,” says Trikona MD Aashish Kalra. Execution is the most important thing, he says. […]
Reliance Money, the financial products distribution arm of the ADAG, is acquiring a 26% stake in Ahmedabad-headquartered National Multi-Commodities Exchange (NMCE), the third largest commodities bourse in the country in terms of turnover, for an undisclosed sum of money. Reliance Money and NMCE are expected to approach Forward Markets Commission (FMC), the commodities market regulator, for approvals. “We are in talks with NMCE to buy 26% in the exchange,” Sudip Bandyopadhyay, director and CEO, Reliance Money, told TOI. “Looking at the growing opportunities in the commodities space, we are planning to enter this space in a big way,” Bandyopadhyay said. Post-deal, the ADAG company would get two board seats on NMCE. Reliance Money's decision to buy into the commodities bourse came in after the government recently announced new norms for investors intending to buy into commodities bourses. Among those rules is a minimum networth requirement of Rs 100 crore and limiting a single investor's holding at 26%. […]
World's biggest bank Citigroup is planning to sell its stake in the country's housing finance major HDFC to private equity firm Oman Investment Corporation for about USD 1.5 billion, a media report said. However, when contacted HDFC's vice chairman and managing director Keki Mistry said that the company has spoken to Citi and the banking major has said it has no plans to sell the stake. “We have spoken to Citi and Citi has no plans to sell the stake,” Mistry said. A private news channel on Friday reported that Citi may sell its stake worth USD 1.5 billion in HDFC to Oman Investment Corp. Noting that the move is part of Citi's restructuring plan, the channel said both the banking major and Oman Investment declined to comment. Earlier, UK's Sunday Times had reported that Citi is planning to offload its stake worth USD 2 billion in HDFC. […]
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. […]
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 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. […]
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