August 2008
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Tuscan Ventures Invests in Global Shipping and Logistics focused Training Provider, RSI

Tuscan Ventures has announced its strategic investment in Singapore based Rasmussen & Simonsen International Pte Ltd. RSI, founded by industry experienced professionals, is a one-of-a-kind company focused on providing global shipping and logistics industry focused training, consulting and people development solutions. Tuscan Ventures will invest an undisclosed sum to receive 40% shareholding in the company. The investment allow the RSI team to fund their rapid global expansion including setting up dedicated offices in India and other key growth areas such as China and the Middle East. Commenting on this investment, Vishal Sharma, Managing Director, Tuscan Ventures, “The Global Shipping and Logistics industry will need to recruit and train 500,000 professionals, by a conservative count, over the next decade. As the industry shifts its focus from manual i.e. low cost to technology i.e. solutions, a well-trained work force will emerge as the true competitive advantage”. […]

PE funds for movies

The movie industry dubbed them as flops. But films like Fiza, Yaadein and Ram Gopal Verma ki Aag delivered profits. Films like Om Shanti Om (OSO) and Namaste London delivered over 100 per cent returns while still under production. It is success stories like these are driving the new script being written for Bollywood. Private equity funds are now preparing to make use of this opportunity too. ICICI is backing a Cinema Capital Venture Fund (CCVF), the first of its kind, which is looking to raise Rs 500 crore from high net worth investors. As rapidly changing consumption patterns for entertainment and digital technology change the contours of the entertainment business, big funds are now getting ready to make their presence felt in the business. […]

JP Morgan arm to invest Rs 1 bilion in Core Hotels ventures

Real estate investment arm of JP Morgan Chase is likely to pick up about 18 per cent stake in Core Hotels Ventures for Rs 100 crore with the Foreign Investment Promotion Board clearing the proposal. The proposal of J P Morgan India Property Mauritius Company II will now go to Finance Minister P Chidambaram for final clearance. Core Hotels Ventures is engaged in providing project management and hotel maintenance services. It is also building two hotels in Hyderabad. According to sources, J P Morgan India Property Mauritius Company II has sought approval to subscribe to 1.42 crore share of Rs 10 each of Core Hotels Ventures at a price of Rs 70 per share for a total consideration of about Rs 100 crore. […]

Clearstone to invest Rs 225 cr in four cos

The US-based global venture capital fund Clearstone Venture is increasing its exposure to the Indian market. The firm has decided to invest at least Rs 225 crore in four Indian companies in the current fiscal. It has already initiated discussions with a handful of companies in the on-line educational, entertainment and financial services verticals for the stake purchase. Clearstone Ventures Partners managing director Sumant Mandal told ET: “We are in talks with few potential entrepreneurs and will invest around $10 million in each of these firms. VC funding is a challenge here in India due to regulatory hurdles. Moreover, Indian stock markets have not yet matured,” Mr Mandal added. […]

3i India eyes domestic buyouts, targets deals worth $1 billion

It may still be early days for buyouts in India, but 3i Group Plc., the global private equity fund that has £9.79 billion (around Rs78,614 crore) under management, has begun to look for acquisitions. In a buyout, a private equity firm acquires an entire company or a controlling stake in it. The private equity firm could encounter competition from strategic investors Saurabh Shah, who co-headed 3i India Pvt. Ltd’s growth capital division along with Mahesh Chhabria, has been chosen to head buyouts for the local unit. Growth capital involves private equity firms providing companies with funds in exchange for a minority stake in them. “We’re not expecting to do 10 buyouts (in India) a year,” says Shah, matter-of-factly. […]

Ispat to pick up 40% in overseas firms

Ispat Industries is set to pick up 40 per cent stake in iron ore and coking coal mining companies in Brazil, Columbia and Mozambique through the joint venture route. Speaking on the sidelines of the company’s annual general meeting, Pramod Mittal, chairman, said that it was too premature to comment on the iron ore reserves. The Brazilian mines have iron ore reserves of 300-500 million tonnes, while the Columbia and Mozambique mines have coking coal deposits in the range of 60-70 million tonnes. Ispat would have access to the mining output in proportion to its shareholding in the JVs. When asked whether the foreign mining assets would cater to Ispat Industries or Global Steel Holdings, which is the holding company for foreign steel operations, Mittal said, “We will try to maximize value.” […]

Tech Mahindra acquires 17.28% in UK’s Servista

Indian software firm, Tech Mahindra on Thursday said that it would acquire a stake of 17.28% in European systems integrator, Servista for an undisclosed amount and would be the latter’s delivery arm for a period of three years. Private equity firms HarbourVest Partners and Arts Alliance hold major stake of the privately held company, Servista. It is headquartered in London and provides managed IT services on an offshore basis with core offerings in operating and business systems such as CRM, billing, operational workflow, IT systems transformation and testing. […]

PE rush seen lifting valuations

The hanging uncertainty in the capital markets and the ensuing fall in company valuations have triggered an influx of private equity (PE) funds. But a likely overcrowding could stretch valuations, experts say. The 30% fall in stock markets, from January, has led to a greater appetite for PE funds, but many deals were stuck over high valuations. Now, with promoters seeing a prolonged stability in the market at the current levels, and with no immediate upswings in sight, the time is again ripe for PE. The BSE Sensex, which had touched 21,000 in early January, is now languishing over the 14,000-mark. “Valuations have cooled off in the deal space, leading to the entry of new PE players into the segment,” says Deepesh Garg, a director with O3 Capital, an investment banking and financial services firm. […]

Tata Steel Global eyes $1 bn PE deal

Tata Steel Global Holding Pte Ltd, the Singapore-based subsidiary that owns the international steel and mining assets of Tata Steel Ltd, the country’s largest steel maker, is in talks to raise at least $1 billion (about Rs4,400 crore) through private equity (PE) transactions or a private placement of shares with institutional investors, and likely use the money to fund the purchase of a coal or iron ore mine or part of one. In the wake of a sharp surge in raw material prices, Tata Steel and other Indian steel makers are looking to acquire iron ore, limestone and coal mines abroad. The private equity deal could be in exchange for an 8-10% stake in Tata Steel Global, said a senior transaction adviser at a multinational investment bank operating in India who is familiar with the development. […]

Actis in race to invest Rs 300 cr in Ind-Bharat

The Indian power sector has emerged as the new darling of global private equity players. Following in the footsteps of Farallon Capital, L N Mittal Group, Lehman Brothers and TPG Growth, Actis and New Silk Route are in the race to invest around Rs 300 crore in Hyderabad-based Ind-Bharat Power. This investment comes close on the heels of the Rs 300 crore that Ind-Bharat raised from Citigroup Ventures and UTI Ventures. According to the information available, Motilal Oswal is running the mandate to secure this round of investment. Ind-Bharat Power focuses on the development of power projects of various capacities using different kinds of fuel and technology. […]