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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. […]
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. […]
Moserbaer India Ltd today announced that its wholly-owned photo voltaic subsidiary has entered into a definitive agreement to raise Rs 411 crore from a consortium of global investors including CDC group, Morgan Stanley and IDFC among others. This agreement is to fund the subsidiary's ambitious growth plans. The current transaction values Moserbaer's photo voltaic business at Rs 6350 crore. The company, headquartered in New Delhi, is the world's second largest manufacturer of optical storage media like CDs and DVDs. […]
With rapid rise in internet penetration in urban India, which has grown from 9% last year to to over 12%, the number of netizens in the country has inched upto a sizeable 49-million. While this figure has made marketers look at internet as a viable advertising platform, venture capitalists have already started supportingh the new media growth story. According to industry estimates, around Rs 400 crore has been pumped in by various private equity/venture capital firms like IDG Ventures, Sequoia Capital India, Opus Capital and Intel Capital in online advertising sector this year. Pegged at over Rs 270 crore, the Indian online advertising is expected to touch Rs 2,500 crore in the next three years, accounting for 6.8% of the entire advertising pie. Currently, internet ad spend in India accounts for only 2.4% of the total ad market. […]
Reliance Life Sciences has said it is looking for acquisitions in the clinical research space, but high-valuations are hindering its plans. “We are looking to acquire clinical research companies,” said Reliance Life Sciences Chief Executive Officer K V Subramaniam. “We are looking at acquisition up to $50 million. But companies that are prepared to sell ask for 10 to 15 times more of EBITDA,” he said. The company had identified at least three clinical research companies in Europe, but had to back down because of high-valuations. “Valuation is a big factor while making an acquisition. Most of them did not make sense,” Subramaniam said. […]
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. […]
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 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 (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. […]
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. […]
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