September 2009
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Tata may sell 15% stake in financial arm

Citing two sources familiar with the development, a local business daily says Tata Motors intends to sell a 10-15% equity stake in its financial arm, Tata Motors Finance. This move is reportedly aimed at raising funds in order to reduce its debt. The company's debt currently stands at Rs240bn (US$4.96bn). This potential stake sale could yield Rs2bn, which would value the subsidiary at Rs13-20bn, The Economic Times says. It is believed that Tata Capital could be a potential buyer for this stake. Sources have said that other companies operating in the same industry could be the targets for this sale. […]

Limited PE partners take the solo route

In a trend that may affect private equity (PE) inflows into the country, many institutional investors of PE funds are abandoning these funds to make their own investment decisions. With global downturn affecting PE returns, these institutional investors, or limited partners, have raised doubts on the ability of fund managers, or general partners, to maximise investments and justify their high management fee, which is typically not less than 2% of the corpus. A large UK-based PE firm, which recently announced a $1.2-billion infrastructure fund to invest in power, port and road projects in India, has seen its limited partners declining to go ahead with their commitments, an industry executive said. These partners, mostly institutional investors, are taking their own decisions and co-investing with the fund in target companies, said the executive who requested not to reveal the identity of the company. […]

IOC buys 5% stake in Oil India for Rs 11 bn

Indian Oil Corporation (IOC) today informed that pursuant to the disinvestment of its equity holding in Oil India by the government of India, it has purchased 10,700,220 equity shares of Rs 10 each of Oil India for a total amount of Rs 11.2352 billion from the government of India. Thus, Indian Oil Corporation now holds 5% of the equity capital in Oil India.(My Iris) […]

Spencer to raise funds from PE firms

RPG group-owned Spencer's Retail, a leading multi-format retailer, plans to raise funds for its expansion, a top company official said. Spencer's CEO, Vineet Kapila, said the company is holding talks with private equity players to raise funds. “We are in talks with some private equity players to raise funds,” Kapila told reporters here today. He, however, did not divulge the amount the company proposes to raise. […]