September 2008
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QAI India buys out US parent

In a transaction representative of the aspirations of emerging Indian companies, Quality Assurance Institute (QAI) India, an operational excellence company enabling companies in the IT and ITeS sectors to deliver high performances, has bought out its US-based parent, QAI Worldwide. The 100% acquistion gives the Indian subsidiary established in 1994 an access to the large US market and also the rights over large intellectual property which rests with the parent company founded in 1980 by William Perry. The US-based parent was a minority stakeholder in the Indian subsidiary, which registered a turnover of around Rs 70 crore last year, when it was established while the other stake holders were some venture capital firms, employees, board of advisors and the CEO Navyug Mohont. […]

Roots to offload 20% equity to private equity funds

Roots Corporation, the wholly-owned subsidiary of Indian Hotels, is looking to offload around 20% of promoters equity to private equity players. Carlyle, 3i, Warburg are said to be in the race for the funding, which would be used to fund its growth options, according to sources. Roots is planning to raise $75-100 million through the private equity route to part finance expansion plans of its budget ‘smart basics’ hotel chain, the Ginger, while parent Indian Hotels is busy raising funds for its own requirements. “We are in discussions with PE players and will make the announcement at an appropriate time,” company sources said. Recently, unviable real estate prices forced Ginger to rework its business strategy for the Indian market. Ginger Hotels which started 4 years ago, is now looking at mall-based hotels, entering into management/lease contracts, sprucing up existing hotel properties and talking to public utility services as against earlier strategy of greenfield units. […]

INX to mop up Rs 600 cr by selling stake

INX Network, owned by Indrani Mukherjea, wife of ex-Star Group CEO Peter Mukherjea, plans to raise around Rs 600 crore by selling stake in its entertainment subsidiary INX Media, to fund the company’s expansion plan. INX operates Hindi entertainment channel 9X and Hindi music channel 9XM. “We may consider roping in either a strategic or financial partner and are in talks with both domestic and international companies,” said Mukherjea, founder & CEO, INX Media. The promoters – Indrani and Peter Mukherjea – together hold 50 per cent while the balance is held by private equity firms Temasek Holdings, New Silk Route, New Vernon Private Equity Fund, Kotak Mahindra Capital and Srei. It is believed that all the stakeholders will offload their stakes in equal proportion. […]

SAP Ventures buys minority stake in Newgen Tech for Rs 10cr

Delhi-based document management software firm Newgen Technologies on Thursday announced sale of a minority stake to SAP Ventures, the venture capital arm of SAP, for Rs 10 crore. The stake sold is under 10 per cent, Newgen MD Diwakar Nigam said without giving the exact stake. The Delhi-based company said that SAP Ventures will take advisory position without board-level representation in it. “The investment by SAP will go towards our marketing requirements in the various emerging markets globally that we are entering,” Nigam said. Newgen provides business process management solutions and services and has development centres in Delhi and Chennai. The company is entering markets like Egypt, Ukraine, West Asia and Africa among others, he said. […]

Bharti Airtel launches $44 mn venture fund

Bharti Airtel Ltd has launched a venture fund on Thursday with an initial Rs2 billion ($44 million) to promote content and technology development. India, with nearly 300 million mobile users, is the second-largest wireless market in the world after China, and still has the potential for further huge growth as only just over a quarter of its billion-plus population use cellphones now. Operators are signing up 8-9 million users every month, and consultancy Gartner expects 737 million connections by 2012. The growth potential has encouraged mobile operators to step up investment on technology and content as they look to tap underdeveloped rural areas.(Livemint) […]

Raj Television eyes print, plans stake sale to PE

Media and broadcast company Raj Television Network Ltd plans to enter the print business and is “open to acquiring an existing (Tamil) newspaper” even as it is looking to raise Rs50-100 crore from private equity firms. Raj Television would look to offer 5-10% stake for the fund infusion. According to the Bombay Stock Exchange (BSE) website, the company’s promoters hold 72.48% as of June. “The idea is to be seen as a complete media house in the long term,” said B. Sukumaran, adviser, corporate planning and strategy. “The promoters are willing to go down to 51%.” Raj Television, which raised Rs52.81 crore in an initial public offering in February 2007, wants funds for the construction of a studio and office complex, its movie production business and other plans. […]

Dewan Housing arm lines up $250 million real estate fund

DHFL Venture Capital, the asset management arm of Dewan Housing Finance Corporation (DHFL), is raising $250 million for its second international realty fund. The fund will close in two tranches, with the first tranche of $100 million expected to close in two months. However, the company has not set any time-frame for raising the entire corpus of the fund. Dewan Housing Finance Chief Financial Officer Prashant Chaturvedi said that the money will be raised from offshore investors. “DHFL will have some share in the fund depending on the what the National Housing Bank permits.” The company had launched its first local fund of Rs 100 crore two years ago with DHFL investing Rs 35 crore while the remaining Rs 65 crore was raised from banks and financial institutions. […]