September 2008
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Three subsidiaries of India’s sole listed PE firm to enter market

India’s only listed domestic private equity (PE) fund, Pune-based IndiaCo Ventures Ltd (IVL), plans to list three of its subsidiaries in the next two years, a top official has said. Rahul Patwardhan, vice-chairman and managing director of IVL, said the firm intends to separately list IndiaCo Telecom Ltd, or ITL, a 100% subsidiary floated last year to hold the firm’s telecom assets, as well as two newly formed subsidiaries, IndiaCo Global OpportunitiesFund, or IGOF, and IndiaCo Clean Energy, or ICE. IVL manages around $15 million (Rs70.4 crore) worth of proprietary money and was one of the early investors in Geodesic Information Systems Ltd, a Mumbai-based instant messaging and e-business solutions provider. […]

Jet in talks with investors, plans 10% stake dilution

Leading private carrier Jet Airways (India) Ltd on Monday said it plans to dilute 10% of its equity to garner funds and strengthen its balance sheet. “We will do anything which is required to make our balance sheet strong. We plan to dilute 10% equity,” Jet Airways chairman Naresh Goyal told reporters after the company’s 16th annual general meeting held in the Capital. Jet was in talks with a few institutional investors besides some other investors for this purpose, Goyal said, without disclosing their identities. […]

BT puts India Tech Mahindra stake sale on hold

BT Group has put the sale of its stake in Indian software services firm Tech Mahindra on hold because of turbulent markets, the Economic Times newspaper said on Tuesday. “BT has temporarily put the process on hold because of bad market conditions,” the paper cited unnamed sources as saying. The Financial Times in August had said BT may sell all or a large part of its 31 percent stake in the Indian firm, citing people with knowledge of the matter. […]

TCS interested in Siemens SIS

Tata Consultancy Services, India’s top software services exporter, is interested in Siemens’ IT Solutions and Services (SIS) unit, a German newspaper said on Saturday. Talks between the two companies would begin next week in Munich, where Siemens is based, Germany’s Boersen-Zeitung said, without saying where it obtained the information from. Siemens declined to comment. A couple of days ago, sources close to the company said that Siemens Chief Executive Peter Loescher was considering the divestment of SIS’s external business, the paper said. […]

Crisis-hit US institutions plan to sell off assets in India

After the meltdown, comes the flight of capital. Large institutions such as AIG, Morgan Stanley, Wachovia and others are planning to liquidate some of the Indian assets in which they had invested their proprietary capital. Investment banking sources and PE funds have confirmed that a number of such deals have been available in the market for the last few weeks. While there are only a few income-yielding and advance stage assets, which would be easier to sell, a majority of the assets will be at an early stage which would find very few takers or see a loss. “Around 15-20% of the deals in the market today are of this kind,” says the investment banker. […]

Power Finance Corporation to pick 7% stake in PXI

State-run Power Finance Corporation has informed that the Board of Directors of the Company at its meeting has given approval to participate in the equity of Power Exchange India Ltd (PXI) up to 7% share capital of PXI not exceeding Rs 1.75 crore. PXI is a company promoted by NSE and National Commodity and Derivatives Exchange (NCDEX), for setting up power exchange to provide electronic, transparent and neutral platform for trading of electricity. […]

AGM clears way for CSB takeover by Federal Bank

The unanimous appointment of five directors on the board of the Thrissur-based Catholic Syrian Bank Ltd (CSB) at its annual general meeting (AGM) on Friday appears to have cleared the decks for its possible takeover by Federal Bank Ltd, also a Kerala-based private bank, which holds a 4.99% stake in CSB. According to S. Santhanakrishnan, a director of Federal Bank who was present at the AGM, the no-contest nomination at the AGM is an indication of “the smoother things to follow”. The two days before Friday’s AGM witnessed a flurry of activity to avoid a contest, since there were six nominations for the five board positions. One of the candidates, Johny Chandy, withdrew from the contest late on Thursday. […]

IDFC PE puts $86 mln in Suzlon parts unit

Indian wind turbine maker Suzlon Energy Ltd on Monday said IDFC Private Equity would buy 17.1 percent in subsidiary SE Forge Ltd for 4 billion rupees ($86 million). SE Forge, which specialises in large-scale foundry and forging materials, is expanding capacity at its plants in Coimbatore in south India and Vadodara in the west to cater to the growing demand in the wind energy sector, it said. Suzlon will continue to hold the remaining stake in SE Forge. […]

Deutsche Bank to pick 4.76% stake in ailing BPL

Global financial major Deutsche Bank is all set to pick 4.76% stake in the consumer electronics company BPL Ltd. On Friday, the company's board sanctioned a proposal to make preferential allotment of 24,25,500 equity shares and/ or convertible securities to Deutsche Bank AG (DB) and/ or their nominees and affiliates in terms of applicable SEBI guidelines. According to official sources, the funds will be utilized as long-term working capital requirement of the company's healthcare management solutions business and for other general corporate purposes. The BPL healthcare management solutions division has been in existence for over three decades and manufactures a range of medical equipment. […]

Tata Motors in talks with PE funds to offload up to 25 percent stake

India's third biggest car maker Tata Motors is reportedly in talks with private equity funds to offload up to 25 percent of its stake in each of six unlisted group units to raise money to fund its $2.3 billion acquisition of Jaguar and Land Rover (JLR). According to sources close to the development, these units include Tata Daewoo Commercial Vehicle Co, HV Transmissions, Tata Motors Finance, Tata Technologies and Telco Construction Equipment. The sale of stakes, which will conclude by June 2009, is a part of the auto major's plan to raise Rs.3000 crore to fund the JLR deal. […]