December 2009
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Franklin Templeton Private Equity invested Rs.600 million in GKC Projects

Franklin Templeton Asset Management (India) Private Limited, (“FT India”), announced that Franklin Templeton Private Equity Strategy (“FTPES”), a private equity portfolio managed by FT India and advised by Darby Asia Investors (India) Limited (“Darby India”) the private equity affiliate of Franklin Templeton, has invested up to Rs.600 million in Hyderabad based GKC Projects Limited (“GKC”). Transaction details were not disclosed. GKC provides construction services in key infrastructure areas such as highways, irrigation, industrial infrastructure/power and water supply projects, and has operations across various regions in India. The company now plans to leverage on its expertise in the infrastructure space executing projects of larger size and complexity in the existing segments and venture into new areas such as railways, mining and BOT projects. The funds will be used to execute current projects and enable acquisition of larger projects. […]

ICICI Bank may sell 3i Info stake to US PE firm

Talks for acquisition of ICICI Bank Ltd’s controlling 30 per cent stake in 3i Infotech Ltd have veered to a likely price range of Rs 110-120 a share, sources told NewsWire18. Analysts said prospects for a price near Rs 130 per 3i Infotech share seem distant given the uncertainty over the visibility of business from current promoter ICICI Bank. 3i Infotech gets 8 per cent of revenue from ICICI Bank. A fund manager with a portfolio management service company said: “Such deals normally have an assured business component. The business that ICICI will guarantee will determine the bidder’s price.” […]

IDFC invests Rs250 crore in Adhunik plant

IDFC Project Equity Company will invest Rs 250 crore through its India Infrastructure Fund in a 540 mw plant being built by Adhunik Power & Natural Resources in Jamshedpur. Adhunik Power is a subsidiary of the Rs 1,300 crore Adhunik Metaliks. Arun Kedia, group CFO, Adhunik Power, told DNA Money the investment by the IDFC subsidiary will be spread over two years. “The funding will come in through the issue of convertible bonds, which will be converted into equity shares after two years. They (IDFC) will hold 27% stake in the project then.” […]

Citibank sells Bharti stake to JPMorgan

Citibank has sold its stake in the telecom tower arm of Bharti Airtel to JPMorgan, exiting without any gain from the $50 million investment it made over two years ago, two persons aware of the development told ET NOW. The deal, described as a “distress sale”, values Bharti Infratel at a little over $10 billion (Rs 47,000 crore). The troubled US lender purchased an undisclosed minority stake in Bharti Infratel in 2007 through a unit called the Special Situations Group, a proprietary investment arm that specialised in investing in high-yield debt and distressed assets. The division is now being closed. Representatives for Citibank, JPMorgan and Bharti declined to comment. […]

SIDBI picks up 11% more in Bandhan

Small Industries Development Bank of India (SIDBI) on Wednesday raised its stake in the country's leading microfinance institution, Bandhan, to 12.23% from the existing 1.31%, underscoring the growing role of such institutions that lend to the poor. The additional 10.92% stake will cost SIDBI Rs 50 crore. Accordingly, the paid-up capital of Bandhan-which lends only to women-will rise to Rs 118 crore from Rs 68 crore, and its net worth to Rs 165 crore (Rs 115 crore). At present, SIDBI is the lone institutional stakeholder in Bandhan. Both Bandhan and SIDBI confirmed the development to ET. […]

Anil Group buys Vigo Biotech

Ahmedabad-based Anil Group has firmed up plans to enter the food processing and hospitality business. On Monday, it announced the acquisition of a 90% stake in Vadodara-based Vigo Bio-Tech Dairy. The deal size is expected to be around Rs 22-25 crore. Besides investing close to Rs 100 crore to ramp up this newly acquired dairy business, the group will also invest an additional Rs 15 crore to open a chain of restaurants. Anil Group consists of the flagship Anil Products Limited, one of the oldest and largest corn wet millers in India. It also comprises of Anil Hospitality Ventures Limited and Anil Biochem Limited. […]

India Inc favours QIPs over PE deals

Qualified institutional placements (QIPs) appear to be crowding out private equity firms (PE) in fund-raising activity of public listed companies in India. In the current year, while there was a sharp rebound in India Inc’s fund-raising from institutional investors through QIPs, PE deals in listed companies remained depressed. Somasekhar Sundaresan, partner at corporate law firm JSA said, “The stock market is always the biggest competitor to private equity with its valuations, which come without the strings of governance discipline attached. Corporates will continue to opt for QIPs if the market does well.” […]

Bharti to buy controlling stake in Warid Telecom

Bharti Airtel is looking to buy a controlling stake in Bangladesh’s fourth-biggest mobile phone operator Warid Telecom, pressing ahead with its international ambitions just two months after it failed in its second attempt to merge with South Africa’s MTN. India’s largest phone company, by both revenues and subscribers, has applied to the Bangladesh Telecommunications Regulatory Commission (BTRC) for permission to buy a 70% stake from the Abu Dhabi group, the owner of Warid, the regulatory body’s chairman Zia Ahmed told news agencies in Dhaka. He declined to say how much the stake was worth, but added that Bharti Airtel “initially intended to invest $300 million.” […]

M&M Acquires 2 Aerospace Companies In Australia

Mahindra & Mahindra Ltd. said Tuesday it has acquired a 75.1% stake each in two Australian aerospace companies for INR1.75 billion (US$37.4 million) to expand its aircraft and aerospace-component manufacturing business. The company, through its wholly owned unit Mahindra Aerospace Pvt. Ltd. and jointly with Kotak Private Equity, acquired the stake in aircraft maker Gippsland Aeronautics and parts supplier Aerostaff Australia, it said. “The 24.9% stake remaining with each company (Gippsland and Aerostaff) will be eventually converted into stocks in Mahindra Aerospace,” Arvind Mehra, senior vice president of strategy at Mahindra Systech, told reporters. He didn't say when or under what terms the stake will be converted. […]

Despite second-half revival, PE deals and M&As decline in 2009

As was widely expected, mergers and acquisitions (M&As) and private equity (PE) investments in India have seen a substantial decline in value and volume compared to previous years, despite the revival in the second half of the year. The total value of deals (M&A and PE) announced in the calendar year 2009 (January-December 13) was $21.20 billion as against $41.54 billion and $70.14 billion in 2008 and 2007, respectively, as per a latest study by Grant Thornton India. Deal volumes (M&A and PE-QIP together) have dropped in 2009 as compared to 2008. There were more than 766 deals in 2008, as compared to 488 in 2009. The average Indian M&A deal size was $37.55 million, while the average Indian PE deal size was around $50.55 million during the period. […]