March 2010
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ICICI Venture:Subhiksha stake ‘written off'

Seven months after a corporate debt restructuring (CDR) plan for Subhiksha Trading Services Ltd hit a dead end, ICICI Venture Funds Management Co. Ltd, the main investor in the troubled retailer, considers its investment in the company a “write-off” and is struggling to find buyers for its stake, according to a person familiar with the development. “The investment is already written off in a way. Its equity value has eroded,” this person added, speaking on condition of anonymity. “The firm can’t be revived now.” ICICI Venture holds the largest non-promoter stake in Subhiksha, but a senior executive at a large consulting company said the private equity (PE) firm would not face any loss from writing off its investment. “ICICI Venture rather made (a) profit on (its) investment while selling 10% stake to PremjiInvest […]

DE Shaw looks to buy 49% in Pegasus ARC

New York–based hedge fund DE Shaw will buy a 49% stake in Mumbai-based Pegasus Asset Reconstruction Company, subject to approvals from the government and the Reserve Bank of India (RBI). The offshore fund is in touch with the Bhimjyani family, the promoters of Pegasus, and leading investor Rakesh Jhunjhunwala, who owns a sizeable stake in the stress asset firm. As per the proposal, the foreign fund will buy 23% from the Bhimjyani family and 26% from Mr Jhunjhunwala. Post transaction, which puts the enterprise value of Pegasus at Rs 250 crore, the Bhimjyani family and Mr Jhunjhunwala will hold 50% and 1%, respectively. When contacted, DE Shaw country head Anil Chawla declined to comment. A large equity interest in Pegasus is a strategic fit for DE Shaw as it plans to get into a non-banking finance company (NBFC), said a person familiar with the negotiations. […]

Welspun Gujarat to acquire MSK Projects

Welspun Gujarat has okayed the acquisition of MSK Projects, reports CNBC-TV18. It plans to acquire 75% stake in the latter. The deal size is Rs 400 crore, and this is to be funded entirely through internal accruals. Welspun Infratech, a 100% subsidiary of Welspun Gujarat Stahl Rohren and part of the USD 3 billion Welspun group, has signed an agreement to acquire a majority stake in construction major MSK Projects India. […]

Cafe Coffee Day to get $200 mn pvt equity infusion

Coffee Day Holdings, promoters of Cafe Coffee Day which helped in spreading the coffee bar culture in the country,is set to receive $200 mn from a New York based private equity firm, according to a report in Financial Times. The deal, one of the largest private equity transactions in India in the past year and a half, will give KKR and its partners, Standard Chartered Private Equity and New York-based New Silk Route, exposure to India’s fast-growing coffee house culture, the FT report added. Cafe Coffee day has over 900 coffee bar outlets in the different parts of the country with the rising disposable incomes in urban centres and metros adding to the demand. […]