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The liquidity crisis has so far not hurt venture capital (VC) investments, which are typically early stage and growth stage. The investment figures for the second quarter ending September 2008 indicate VCs invested $290 million across 49 transactions, representing a healthy 36% growth in volumes and 15% in terms of value over the corresponding quarter of the previous year. The figures for the immediately preceding quarter, ending 30 June 2008 were $ 165 million across 28 deals, according to Venture Intelligence, a firm which collates information on VC investments and exits in India. A majority of these deals in 2008 were early stage investments, while about 39% were growth stage investments, according to VI CEO Arun Natarajan. […]
Japan's DoCoMo is reportedly the front runner in a bid to buy 26 per cent of India’s sixth largest mobile operator, Tata Teleservices (TTLS). The deal, worth US$2.5 billion, would value Tata Teleservices and its 29 million subscriber base at US$9.61 billion, or roughly $331 per subscriber, according to the livemint website. Other foreign players who had previously expressed an interest in TTLS include France Telecom, UAE’s Etisalat, Mexican operator, TelCel and Russia’s Altimo. TTLS operates a pan-India CDMA network and was recently granted a pan-India GSM license by the regulator. TTLS is the smallest of the country’s major operators, behind Bharti, Reliance, Vodafone Essar, BSNL and Idea. It posted a fiscal year loss of US$1.87 billion for the period ended March 2008, including US$1.5 billion in losses carried forward from 2007. […]
Business Standard is reporting that the Cabinet Committee on Economic Affairs (CCEA) has approved Idea Cellular’s subsidiary Aditya Birla Telecom’s (ABTL’s) proposal to sell a 20% stake to P5 Asia Holdings Investments (Mauritius), a member of private equity firm Providence Equity Partners. The purchase will cost INR27.04 billion (USD545 million), and will bring the total foreign direct investment (FDI) in the company to 74%. The CCEA has also approved plans that will see Idea transfer its 16% stake in Indus Towers to ABTL; Indus is a joint venture mobile tower company with Bharti Airtel and Vodafone Essar which owns 70,000 base transceiver stations. […]
Norway-headquartered global telecom major Telenor is close to buying a substantial stake in Unitech Wireless, the telecom arm of the realty major Unitech, for about $1.5 billion. In case the deal goes through, for Unitech it would be Telenor over Telecom Italia. On the other hand, for Telenor, this deal would mean preferring Unitech Wireless over Datacom Solutions, the telecom company jointly owned by Videocon and Vinay Maloo (formerly of HFCL group) which is fast losing its early-mover advantages because of disputes between the two shareholders, sources said. […]
Geojit Financial Services Ltd said on Monday its board has approved forming a joint venture in the Sultanate of Oman in which it would invest 32 million rupees. The JV, in which Geojit would have a 51 per cent stake, would be formed with The Financial Corp Co. SAOG, it said in a statement. The JV will offer brokerage services and distribute financial products, it added. Separately, Geojit said its consolidated net profit for the quarter to September declined 58.27 per cent to 52.2 million rupees, while revenue dipped 0.82 per cent to 506.1 million rupees. (ET) […]
Private equity (PE) investments in India witnessed a decline for the last three months ended September though the number of deals has increased. A latest data from Venture Intelligence, a research service focused on the private equity and venture capital space, reveals during this period PEs invested about $3 billion in 116 Indian companies, which was lower compared to the same quarter last year when the investment reached at $4.2 billion being invested across 115 deals, but higher compared to the immediate previous quarter ($2.9 million across 80 deals). Simultaneously, there is a rapid increase in venture capital deals, which has a lower deal size compared to PE investments. Venture Intelligence finds that the VC investments have touched at $20 million and deals have gone up to 50 in the September-ended quarter. […]
The promoters of Pyramid Saimira have bought Ravichandran and Nirmal Kotecha's 24.9% stake at Rs 200 per share. Commenting on this stake buy, PS Saminathan, CMD, Pyramid Saimira said the promoters have bought the stake way above the current market price, as the current price is not a reflection of the company's worth. “Both Ravichandran and Nirmal Kotecha entered the company at Rs 10-15 per share. This was at an early stage in the evolution of the company. They have stayed with the company and have been good investors. So, it is a normal investment exit as they are making a profit.“ Post acquisition, Saminathan will hold 51% in the company. […]
Falling equity markets have trapped major private equity (PE) investors such as Warburg Pincus, Blackstone Group, Carlyle, Apax Partners, Chrys Capital and Citigroup.Last year, when the market touched new highs, these PE funds invested in companies such as Bharti Airtel and Suzlon, some with one-year lock-in periods. Now, the value of these investments has fallen drastically and the funds find their PIPE (private investment in public enterprises) portfolios awash in red. PIPE deals include qualified institutional placements, or QIPs, which have no lock-in and private placements. […]
India’s largest cement maker ACC has announced that the conglomerate has acquired 40% equity stake in Goa-based Alcon Cement Company for Rs 222.5 million. Alcon has a clinker grinding and cement packing plant in Goa with a production capacity of 500 tonnes a day. It entered into a joint venture with ACC for technical and marketing support. According to the sources, the equity stake was acquired in the previous quarter. […]
International Finance Corporation (IFC) is planning to invest up to $75 million in the agro-chemical company, United Phosphorous Ltd (UPL), to fuel its expansion plans. UPL will use the funds in enhancing its production capacities and products portfolio, along with possible acquisitions. During the financial year 2008, UPL has invested around Rs 229 crore as capital expenditure in increasing capacity of agro chemicals and industrial chemicals plants. “For the next three years capital expenditure of the company may cross Rs 500 crore,” said chairman and managing director (CMD), UPL, Rajju Shroff. “The company will continue to look for acquisition opportunities world over.” In previous financial year, the firm acquired 100 per cent stake in Evofarms […]
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