September 2008
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PCCPL acquired stake in Parul Chemicals

Vadodara-based pesticides formulations company Parul Chemicals Ltd has sold 70% stake to Punjab Chemicals & Crop Protection (PCCPL) at an enterprise value of Rs 9 crore. Commenting on the acquisition, Shalil Shroff, managing director of PCCPL, said, “This acquisition will strengthen our position in agro-formulation business in India through leveraging Parul's product portfolio, distribution network, sales team and manufacturing facility.” This acquisition will provide backward integration to the company. Until now, PCCPLs was outsourcing its agro formulation, which had limited its supplies, quality and margins. After acquiring stakes in Parul, the firm would use Parul's plant to manufacture its products for improving margins. […]

BAE Systems awaits govt nod to pick 49% stake in Mahindras

UK's largest military systems manufacturer BAE Systems today said it is awaiting the government's approval for picking up a 49 per cent stake in a defence joint venture with Mahindra group. India has restricted foreign participation in domestic defence production in the private sector to about 26 per cent and the government is already debating the possibility of allowing foreign companies to pick up 49 per cent stake. “We are picking up a 49 per cent shareholding in M&M's defence venture, for which we have sought clearance from the Indian government,” BAE Systems India's newly-appointed president Julian Scopes said here today. BAE Systems' proposal needs to be cleared by the government's Foreign Investment Promotion Board (FIPB). […]

India-focused PE funds set to raise $5 bn by Dec

Emerging Indian companies, which are on the growth mode, need not necessarily be wary of the rise in interest rates to fund their expansion plans. The private equity (PE) brigade is waiting with pretty deep pockets and is expected to add further weight during the second half of the current calendar year. According to PE industry experts, India-focused funds are expected to raise close to $5 billion in the six months from June to December, more than double in the same period last year. What’s more interesting is that these funds are able to raise amounts ranging from $700 to $1 billion hardly within three months. IDFC Private Equity, for example, raised its third fund of $700 million in just a month’s time. Sequoia India Capital, in late August, closed its growth equity fund at $725 million taking its total corpus to $1.8 billion. […]

Pressmart Gets $6 Million VC Infusion for Expansion

Print-to-digital delivery service Pressmart Media Ltd. in Hyderabad, India, has received $6 million in funding from two San Francisco Bay Area venture capital funds, Draper Fisher Jurvetson and NEA IndoUS Ventures. The investment will aid in expanding Pressmart's global sales, marketing, and customer-support presence across 35 countries, where it serves over 350 print media customers with a package of electronic publishing, delivery, hosting, subscription management, online payment, ad serving, and user intelligence. Pressmart also announced that Sateesh Andra, venture partner of Draper Fisher Jurvetson, and Vinod Dham, founding managing director of NEA-IndoUS Ventures, have joined it board of directors. […]

Warburg Pincus buys 30% stake in new port in Andhra Pradesh

Private equity firm Warburg Pincus Llc. has invested around Rs150 crore for a 30% stake in India’s deepest port located at Gangavaram in Andhra Pradesh on the country’s eastern coast. The Rs1,700 crore first phase of the new private port, located just 15km away from the Union government-owned Visakhapatnam port, started so-called trial operations in August. It will be formally inaugurated in the first week of October and have the capacity to handle 35 million tonnes (mt) of coal, iron ore, other bulk and general cargo a year. The port has a water depth of up to 20m, deeper than any other port in the country, that will help it handle large bulk carriers with a cargo carrying capacity of up to 200,000 tonnes. Besides, the cargo handling facilities at Gangavaram are fully mechanized unlike many ports where loading and unloading is done manually. […]

PE Funds infuse Rs 108 crore in Manappuram Group

Kerala-based NBFC Manappuram Group has infused fresh capital to the tune of Rs 108 crore from PE players, company sources said. The investments in the form of compulsorily convertible preference shares will boost the short term credit rating of the company to the highest level of A1+, VP Nandakumar, chairman of the group, told reporters. Manappuram is targeting a credit line of Rs 1,000 crore for the current fiscal, he added. The group will also merge the listed group company Manappuram General Finance and Leasing Limited (MAGFIL) with Manappuram Finance Tamil Nadu Limited (MAFIT). Post merger and post PE fund infusion, the promoters will hold 44% of the total shares. UK-based Alchemy Ashmore is expected to invest nearly Rs 40 crore while US-based Granite Hill joins with nearly Rs 6 crore. Existing PE investors Sequoia Capital Growth Investments and Hudson Equity Holding will bring in additional investments. Currently Sequoia and Hudson hold approximately 11.5% in both companies. […]

Tata Power to buy 11% in Aussie company

Tata Power, the country’s largest private sector power generator by market value, has picked up 11% stake in Australia-based geothermal resource development company Geodynamics Ltd. The acquisition not only ensures Tata Power’s entry into the renewable energy market of Australia but also imparts it the expertise to exploit several thousand megawatts of untapped geothermal energy embedded under India’s crust. A Tata Power release said the company acquired 29.4 million ordinary shares of Geodynamics, representing 11.4% of the current issued share capital (equivalent to 10% of the increased share capital after allotment by Geodynamics). The shares will be acquired at $1.50 per share (Australian dollar), entailing a total investment of approximately Rs 165 crore. […]

PE Funds to acquire BT's stake in Tech Mahindra

A clutch of private equity players are interested in acquiring UK telecom major British Telecom’s stake in Tech Mahindra, according to industry and banking sources. British Telecom currently holds over 31% in the venture and is learnt to be keen on retaining 10% in the venture, post-transaction, given that it has committed $2 billion in business to Tech Mahindra, company sources told ET. A part sale of 21% in the company would value the transaction at over Rs 1,850 crore at Thursday’s closing price of Rs 771.40 on BSE. “BT is not looking at a total exit from Tech Mahindra. While Tech Mahindra is no more a strategic investment for British Telecom, it has substantial and long-term business interest in the Indian company,” said a source. The sale will help it at a time when its profitability is on the slide while also helping it earn a good return on the residual stake when there are limited attractive investment options in the market. […]

Premji buys 10% Subhiksha stake

Wipro chairman Azim Premji has picked up 10 per cent stake in Chennai-based supermarket chain Subhiksha Trading for Rs 230 crore. The software magnate’s interest in scooping up a small pie of India’s trillion dollar retail market will surely give a leg up to India’s retail industry, which, of late, has been buffeted by a blizzard of bad news. Sources in the know told ET on Thursday that Premji, in his personal capacity, has cut the deal through his private investment arm, snapping up 10 per cent of ICICI Venture’s stake in the closely held retail chain. Subhiksha Trading has an equity capital of Rs 32 crore and 10 per cent of equity works out to a meager Rs 3.2 crore. […]

Jai Corp raised Rs 5,686 cr through two VC funds

Anand Jain-controlled Jai Corporation, an infrastructure company, has raised commitments worth Rs 5,686 crore through its venture capital management company’s two funds. Urban Infrastructure Venture Capital (UIVCL), the company’s venture capital company, is the Indian Advisor to UIREF, a Mauritius-based offshore fund that invests in Indian real estate. Urban Infrastructure Real Estate Fund, the offshore fund that was launched in May last year, has raised commitments of $555 million (around Rs 2,400 crore) so far. With an additional commitment of Rs 1,065 crore in May, the second fund – the Urban Infrastructure Opportunities Fund (UIOF) – has raised its corpus fund to Rs 3,286 crore, the company said in its annual report recently. Both funds invest in special purpose vehicles (SPVs) that are floated for real estate projects in India. Jai Corp plans to grow the SPVs into large real estate development companies by providing funding for multiple projects. The investment focus, according to the report, is on developing large integrated townships and multi-use developments. […]