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Norwest Venture to invest Rs.200 mn in IT firm

Norwest Venture Partners (NVP), promoted by angel investor Promod Haque, will invest Rs.200 million (Rs.20 crore) in infrastructure management services firm Appnomic Systems, it was announced here Wednesday.The venture fund will be invested to expand into the US market and build innovative product and service offerings, the Bangalore-based Appnomic said in a statement. “The fresh investment will also enable us to strengthen our presence in India, the Middle East and Africa markets,” Appnomic chief executive D. Padmanabhan said. With the first institutional funding in the IT services firm, NVP managing partner Haque will join the Appnomic board. […]

Fortis picks up 59% in Mauritius hospital

Making its first international foray, Fortis Healthcare is investing $3.5 million for picking up a 58% stake in a hospital in Mauritius.Fortis has tied up with a diversified industrial group based in Mauritius, CIEL to acquire a controlling stake in Clinique Darne, now rechristened Fortis Clinique Darne. “Our total investment is $7 million which will be shared jointly between the partners,” Fortis Healthcare CEO and MD Shivinder Mohan Singh told TOI, adding “going international is not a focus for the company and this is a one-off growth opportunity which the group spotted and has invested in”. The 120-bed hospital is an interesting opportunity, as it would enable Fortis to leverage medical value travel by creating a gateway to the group's network in India, and develop it as a hub for medical tourism in Mauritius, he said. […]

Bhushan Steel acquires 9.5% stake in Orissa Sponge Iron & Steel

Delhi-based Bhushan Steel has acquired 9.5% stake of cash strapped real estate firm Unitech promoter, Chandra family, in Bhubaneswar-headquartered Orissa Sponge Iron & Steel for about Rs 23 crore, confirmed a top executive of Bhushan Steel. Bhushan Steel already owns 6% in Orissa Sponge. Prior to the acquisition, Chandras share in Orissa Sponge stood at 12.11%. The acquisition, which has increased Bhushan Steel's stake in Orissa Sponge to 15.5%, fetched the Chandras Rs 118 per share. Orissa Sponge's scrip moved up 5% to Rs 111.95 on the BSE on Thursday. The speculation around Chandra's stake sale in Orissa Sponge has been in the market for the past two months, as financial situation at Unitech worsened. Since sales in the real estate sector have plummeted and private equity is not flowing into the sector, companies are finding it difficult to raise funds to execute their expansion plans, said a person in knowledge of the development. […]

Big-ticket PE deals unlikely this year

Investment by private equity (PE) firms has declined by 22.9 per cent in calendar year 2008 as most international funds were wary of investing in equity markets on depleting valuations of listed stocks, which has led to fewer public offers, thereby denying an exit route. PE investors put $10.79 billion in 399 deals during 2008 calendar — a decline of $3.2 billion compared to $14 billion invested across 439 deals in 2007. According to Arun Natarajan, Managing Director and CEO of Venture Intelligence, the decline in PE investment is primarily because of the sharp decline in equity prices. PE firms have lost heavily on private investments in public equity (PIPE) deals in 2008 — a value erosion of $0.89 billion (around Rs 4,400 crore) or 53.3 per cent out of $1.67 billion invested in 31 deals. The loss from the 65 PIPE deals of 2007 has been 40 per cent or $2.04 billion out of the deal size of $5.16 billion. […]