September 2008
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Puravankara eyes $150-mn PE funding

Bangalore-based realty developer Puravankara Projects is planning to raise nearly $300 million (Rs 1,320 crore) to fund its new projects and buy land in the current financial year. The company will be raising $150 million through bank debts to fund new projects and the remaining amount from private equity investors for buying land, said Ravi Ramu, director (finance), Puravankara. The company is eyeing PE funding as commercial banks have put curbs on loans for buying land. Currently, Puravankara has a land bank of 125 million sq ft. The company’s plans come on the back of a sharp fall in the BSE Realty Index, along with a rise in lending rates, curbs on external commercial borrowings (ECBs) for developers, a fall in pre-sale deals for residential apartments, among others, leading to restricted cash flow to developers. The BSE Realty Index has fallen by 61 per cent from its peak in January. […]

Great Offshore buys 2 cos for 1.6 bln rupees

Offshore and oilfield services firm Great Offshore Ltd said on Tuesday it has acquired two companies in Hyderabad for 1.6 billion rupees, marking its foray into the port terminal and offshore logistics business. The transaction is on an all-cash basis and is expected to close within 2 months, the company said in a notice to the Bombay Stock Exchange. “The decision to acquire an existing business is with a view to broad base earning without diversifying core business risks and ensuring sustainable cash flows,” the notice quoted Vice Chairman and Managing Director Vijay Sheth as saying. […]

Nimbus Comm may sell 26 pc stake to strategic investor

Nimbus Communications, the Rs 850-crore media company with interests in entertainment, sports and broadcast, may sell 26 per cent stake to a strategic investor. The company is expecting over $140 million for this stake, which will value it at over $550 million. UBS is advising Nimbus on the transaction, which is likely through a sale of shares by existing shareholders as well as a public listing. When contacted, Nimbus executive vice- president (strategy & business development) Prasana Krishnan told ET: “UBS will advise the company after studying its growth plan in detail. But the preliminary advice is that we should evaluate all options including strategic and financial investors. Should we choose to induct a strategic investor, we intend to complete the process by March 2009. We may provide a stake to the strategic investor of up to 26 per cent which may be through a combination of primary issue and a partial sale of secondary shares by financial investors, though a final decision will be taken on this at a later stage. “ […]

Shriram EPC acquires 55% in BGT

Shriram EPC (SEPC), one of the leading engineering, procurement and construction (EPC) service provider, has acquired 55% in Blackstone Group Technologies (BGT), a Chennai-based engineering consulting firm for an undisclosed amount. Shriram EPC MD & CEO T Shivaraman said, “The acquisition will help us to consolidate our position as a leading provider of engineering services and provide synergies across business lines of biomass power plants and pipe rehabilitation.” SEPC has the option to acquire the balance equity after three years. BGT India director S Egbal will continue to head the organisation. Mumbai-based Singhi Advisors were exclusive advisors to BGT for the transaction. […]

Alok Industries in talks with PE firms to raise Rs300 crore

Mumbai-based textiles company Alok Industries Ltd that has business interests in real estate and retail, is in talks with a few private equity (PE) firms, including Delhi-based Red Fort Capital Advisors Pvt. Ltd, to raise upwards of Rs300 crore for a 20-25% stake in its real estate development project in Peninsula in mid-town Mumbai. A senior executive of the company confirmed this, but requested anonymity, as the deal is yet to be concluded. The real estate project is owned by a 100% subsidiary of Alok Industries. The company plans to raise this amount for a 20-25% stake in a real estate project in Mumbai Axis Bank Ltd’s investment banking team is adviser to Alok Industries for this PE deal. The price as well as the quantum of stake to be sold is still under negotiation. Red Fort Capital, a realty-focused PE firm, could not be immediately reached for comment. […]

Sequoia Capital eyes 10-15 deals

Private equity company Sequoia Capital India is eyeing 10-15 deals across several sectors, Sandeep Singhal, the company’s managing director, said in an interview today. “We are currently evaluating these deals. We may not invest in any of these companies or may invest in more than one depending on how attractive the opportunity is,” he sad. Sequoia Capital India, which was formed after merging WestBridge Capital Partners with Silicon Valley-based Sequoia in 2006, currently manages three venture capital, early-stage and two private equity growth funds. The private equity company recently raised $725 million under its second growth fund, Sequoia Capital India Growth Fund II. This takes the total funds under management to around $1.8 billion. […]

Saffron Advisors ties up $700-m funds

Saffron Asset Advisors, a private equity player, is planning to launch three new funds — in hospitality, logistics and infrastructure — by early 2010. Ajoy Veer Kapoor, founder and managing director, Saffron Asset Advisors told FE, “We are planning a $500 million infrastructure fund, and will introduce $200 million hospitality and logistics funds. We will source funds through foreign direct investments (FDIs).” The company plans to enter into real estate deals in cities such as Mumbai, Delhi, Tirupur and Vishakhapatnam, among others, and will hold talks with real estate majors such as Unitech, DLF, Indiabulls and the Lodha Group. With the 30% fall in the capital markets since January this year, more and more firms are looking at private equity as an alternative fund-raising source. During the first seven months of 2008, PE firms invested $7.44 billion across 248 investments in India. […]