|
To generate revenue from new businesses, the Industrial Development Bank of India (IDBI) is waiting for approval from Reserve Bank of India (RBI) to set up a private equity venture. Yogesh Agrawal, Chairman and Managing Director, IDBI Bank said, “We are planning to get into private equity venture and have sought permission from the Reserve Bank of India. We have long experience in the business.” The central bank has already approved IDBI to start an asset management company (AMC). […] A private equity fund launched by Renuka Ramnath, the former chief of India's ICICI Venture, plans to raise $450-500 million through its assets management company, Multiples, media reports said. Multiples has already received financial commitments of $150-$200 million from some limited partners, the release said quoting chief executive officer of an unidentified private equity firm. The commitments are in the process of being formalized and the first tranche of the fund could be in place in less than two months, it said. […] Dabur India announced that the consequent to the acquisition of 92.15% shareholding in Fem Care Pharma (FEM), Jaquline, USA, a wholly owned subsidiary company of FEM, has become a step down subsidiary company of Dabur India. Dabur India manufactures and sells ayurvedic medicines, baby care products, natural, herbal, personal health products and processed foods either directly or indirectly through its subsidiaries. […] The Anil Ambani Group targets to raise Rs 2,000 crore through a private equity fund nearly a year after it announced its plan to enter this space. The fund has a greenshoe option for an additional Rs 1,000 crore. Reliance Equity Advisors (REAL), a wholly-owned subsidiary of the group’s financial services arm Reliance Capital, has begun selling the fund privately to high net worth individuals (HNIs) and financial institutions (FIs). REAL CEO Ramesh Venkat told ET that the target was to raise money equally from HNIs and financial institutions, as opposed to the common practice of domestic PE players raising most of the fund in offshore markets. “Private equity in India has matured as an asset class over the past decade. However, participation of local HNIs is not very big in this sector. Our aim is to provide an opportunity to this investor class to participate,” he added. […] Private equity investors are confident about the long-term growth in India and other emerging markets, but are adopting a cautious attitude towards new investment activity in the short to medium term, says a survey by the global consultancy firm, Deloitte. According to Deloitte's Emerging Markets Comparative Private Equity survey across eight emerging markets globally, the long-term growth confidence remains positive, even as the impact of economic downturn can be seen across all of these. The survey reveals that a general cautious attitude for new investment activity, however, exists across all the emerging markets. […] ICICI Venture, India’s largest private equity firm, has run into difficulties in securing commitments from some key investors for the $841-million India Advantage Fund Series 2. The investors have said they were not informed about recent changes in the company’s management and have, therefore, triggered a clause in their agreement allowing them to hold back their committed funds. This ‘key man’ clause, which is incorporated in the agreement between a fund manager and investors (also known as limited partners, or LPs), allows the latter to change their investment strategy if key management members or employees leave the fund in which they are investing. ICICI Venture already has a firm commitment for two-thirds of the fund’s financing, while the rest is under dispute. The company has over $2 billion in funds under management. […] US-based investment management firm T Rowe Price is set to buy a 26% stake in UTI Asset Management Company (UTI AMC) for Rs 650-700 crore, two people familiar with the matter told ET. The deal, if it were to finally go through, would value India’s oldest mutual fund house between Rs 2,500 crore and Rs 2,800 crore, or roughly 4-5% of its assets under management. As on June 30, 2009, UTI MF managed roughly Rs 68,000 crore across its debt and equity schemes, and is the fourth-largest fund house in India in terms of assets under management. Total assets managed by T Rowe Price group of companies world-wide stood at $269 billion as on March 31, 2009. […] Private equity firms sold their stakes in 21 Indian companies in the first quarter of the current financial year to cash in on the buoyancy in stock markets, even as the number of new PE investments more than halved during the period. PE firms made over $298 million from the 21 exits, compared with $969 from nine investment exits in Q1 last fiscal, according to data compiled by Venture Intelligence, a firm that tracks PE and venture capital developments in India. The amount involved in exits this year is significantly lower than that in the year-ago period. “This is primarily because of the nature of the deals. Last time, firms could cash out through the M&A route, even though the number of deals were smaller,” said Venture Intelligence CEO Arun Natarajan. […] Nomura Holdings Inc. agreed to buy a 35 percent stake in the asset-management arm of India’s biggest life insurer, to expand sales in Asia’s third-largest economy. “India is one of the fastest growing markets for asset management in Asia and is key to Nomura’s push to be the world- class asset-management firm,” Atsushi Yoshikawa, Nomura Asset Management’s chief executive officer, said in an e-mailed statement from Mumbai yesterday. The statement didn’t give financial details of the deal. Nomura will pay about 6 billion yen ($65 million) for the holding in LIC Mutual Fund Asset Management Co., a unit of Life Insurance Corp. of India, the Nikkei newspaper reported, without saying where it obtained the information. […] An investment arm of C Sivasankaran, the non-resident Indian businessman better known as Siva in Corporate India, has emerged as a significant shareholder in Aamby Valley — the company floated by the Sahara Group to develop Aamby Valley City — a famous upmarket township project in Maharashtra. According to documents available with ET, Siva Ventures (SVL) owns a 49% equity stake in Aamby Valley. SVL is a wholly-owned subsidiary and the principal investment arm of the Sterling Infotech Group promoted by Mr Sivasankaran. In a recently-prepared information memorandum, Siva Ventures said it “has a significant presence in infrastructure and township building business by way of 49% ownership in the equity share capital of Aamby Valley, owners of Aamby Valley City”. The information memorandum was prepared last month when Siva Ventures raised Rs 435 crore through private placement of non-convertible debentures. ET has a copy of the memorandum. […] |