December 2008
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Milestone invests Rs 139 crore in The Cerebrum

IL & FS Milestone Fund I, a private equity fund co-promoted by IL & FS and Milestone Capital Advisors, has invested Rs.139 crore in The Cerebrum B2, the 2nd tower of Kumar Builders’ three tower IT Park, ‘The Cerebrum’ at Kalyani Nagar. The three lakh sqft building, which is part of the 1 million sq ft ‘The Cerebrum’, is already complete and ready for handover to the institutional investor, stated a press release. […]

Mallya firm on raising $400 million

Kingfisher Airlines' chief, Mr Vijay Mallya, today reiterated that his plans to raise $400 million remained firm claiming that the private equity players remained upbeat about his airlines. Discussions were continuing with the interested players, he said, without, however, detailing the time-frame for the planned deal or the dilution of his stake that might come about. Addressing newsmen immediately after the annual general meeting of the company, he said that there was every reason for private equity investors to show interest in his airlines now with crude oil slumping to about $36 per barrel. (Statesman) […]

PE stay put even as valuations dive

Although they’re not buying, private equity (PE) firms aren’t panic-selling either. The number of investment exits or selloffs by PE and venture capital (VC) firms dropped by a whopping 70% to just 12 companies during April-December from 60 companies in the corresponding period last financial year, according to data compiled by Venture Intelligence, a firm that tracks PE and VC developments in India. In terms of value, PE firms encashed $750 million through exits this fiscal as against $1.7 billion during the nine-month period last year. The exits have primarily been in the IT/ITeS, manufacturing and healthcare and lifesciences sectors. […]

MMTC to buy 15% stake in 4th currency futures exchange

Country`s largest public sector trading agency MMTC is entering to partnership with 4th currency futures exchange and it will invest Rs 225 million to pick up to 15% equity in that exchange, reports Business Standard. The exchange will be known as United Stock Exchange of India (STOX) and it is a special purpose vehicle (SPV) created by Jaypee Capital Services. Jaypee Capital, formed by Jaypee Commodities, will be the single-largest shareholder in the proposed exchange. […]

Private equity funds expect tougher year ahead

Private equity (PE) deals in India may further slow down in 2009 as raising funds is getting tougher and marginal players are feeling the pressure of exits. According to Grant Thornton, the global accountancy firm, the value of PE deals is expected to shrink over 40 per cent during 2008. Between January and December 15, 2008 the value of PE deals was estimated at $10.42 billion, as against $19.03 billion in 2007. […]

Kumar Builders received Rs 139 crore investment

The city’s cooling real estate market has witnessed two major transactions recently. Kumar Builders, a leading city-based developer, has received Rs 139 crore investment for its one building — part of a three-tower development — from IL&FS Milestone Group, a private equity fund. Additionally, the developer-builder has received private equity funding of Rs 100 crore for its 124-acre development at Hinjewadi from Sanjay Dalmia’s Landmark Holdings, giving the latter a 10% stake for the investment. Analysts said this was part of the emerging trend — of builders bringing in investors to take completed projects off their hands. […]

Top P E fiirms reported to be in Sulzon stake deal: report

Wind power equipment maker Suzlon Energy, after having negotiated a revised payment schedule with the Martifer Group of Portugal to acquire its 22.4-per cent stake in Germany's REpower Systems AG , is now trying to raise $500 million to fund this stake by selling a 10-15 per cent stake in itself, to potential suitors like the Carlyle Group and TPG Capital. According to media reports quoting bankers close to the deal, said that the Carlyle Group and TPG Capital may be interested in acquiring 10 to 15 per cent stake in Sulzon Energy for approx $300 million and the wind power equipment maker, would be raising an additional $200 million by way of debt offering or selling stakes from its other units. […]

Morgan Stanley starts India PE deals

Morgan Stanley's private equity unit has invested $37.5 million (25.2 million pounds) in an unlisted firm in its first transaction in India, and a top official said the firm expected a busy 2009 as the need for capital drives deals. Morgan Stanley Private Equity Asia took a “significant minority” stake in Indian castor oil maker Biotor and was focusing on healthcare, education, financial services and consumer products, said Srinavasa Rao Aluri, managing director of its India PE unit. “We have the dry powder, a good team in place and a healthy pipeline, which makes the coming year look interesting,” he told Reuters. “I do hope the activity will be feverish for us next year.” […]

Wipro buys Citi Technology Services for $127 mn

In a move that can well send out a signal to the industry about the state of the affairs in the captive delivery centres of global banking giants in India, Wipro Technologies, the flagship business of consumer care to IT major Wipro, has announced to acquire Citi Technology Services, the captive delivery centre of IT services and solutions centre of Citigroup in India, for a consideration of $127 million (around Rs 609 crore) in an all cash deal. This is Citigroup's second India-based asset which is being sold out to one of its service provider, after the company recently sold its captive BPO arm Citigroup Global Services to TCS for about $505 million. While acquiring Citi Technology Services along with 1,650 odd employees working across its four delivery centres in Mumbai and Chennai, Wipro has managed to get a revenue commitment of about $500 million over the next six years, what Citi's Global Technology Head Jagdish Rao termed as 'minimum commitment' to the buyer. […]

Israel firm to buy 50% in Surana arm

Israel’s leading construction company U Dori Group is picking up a 50% stake in residential project in joint venture (JV) with Hyderabad-based Surana Group for Rs 125 crore, a person involved in the transaction said on the condition of anonymity. The U Dori Group will invest in Bhagyanagar Properties and Scientia Infocom, the two real estate arms of Surana Group, for setting up a residential group for housing and construction development project in Hyderabad. The Israeli company will invest either on its own or through its subsidiaries, Dori Global and Gazit Globe. […]