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Tata, Actis to roll out $2 bn JV for road projects

Salt-to-steel conglomerate Tata Group is forming a joint venture with private equity investor Actis that could spend $2 billion (about Rs 8,900 crore) in building roads over five years, as Indian and foreign investors seek to cash in on opportunities created by the governments attempt to upgrade the countrys network of highways, the third largest after the US and China. Tata Realty & Infrastructure, a company set up by the Tata group to foray into the roads and highways sector, will own 65% of the venture, called TRIL Roads Pvt Ltd. Actis will own the rest, Tata Realty managing director & CEO Sanjay Ubale told ET. Actis will pay $77.5 million, or Rs 345 crore, to buy the stake in TRIL Roads in its first investment in the Indian infrastructure sector, said its partner Michael Till. […]

Reliance Capital PE’s first deal is in education

In its first investment, the private equity (PE) arm of Anil Ambani-controlled Reliance Capital Ltd has purchased a stake worth Rs100 crore in Pathways World School, a group of schools for students from kindergarten to Class XII. The size of the stake acquired by Reliance Equity Advisors (India) Ltd hasn’t been disclosed. Reliance Equity Advisors is seeking to tap annual growth in the education sector that its chief executive officer Ramesh Venkat estimates at 50-60%. A recent report by education-focused PE fund Kaizen Management Advisors Pvt. Ltd has estimated that the so-called K-12 segment (kindergarten to Class XII) is a $20 billion (around Rs89,000 crore) business. “Also, there are a lot of government initiatives and policy changes which are attracting investment in the sector,” Venkat said. […]

AT&T Sells Full 7% Stake In Tech Mahindra For About INR6.55 Bln

AT&T Inc. (T) Wednesday sold its entire 7% stake in Tech Mahindra Ltd. (532775.BY) through two block deals for about INR6.55 billion ($147 million), leaving analysts worried that this could hurt outsourcing business from the U.S. telecommunications major to the Indian software services provider. The stake sale comes just a month after AT&T International Inc., a unit of AT&T, bought an 8.07% stake, or about 9.9 million shares, in Tech Mahindra from Mahindra-BT Investment Co. (Mauritius) Ltd. for $34.6 million as part of a 2005 agreement with the Indian company. AT&T sold just over 1% stake earlier this month and the balance 8.6 million shares Wednesday at about INR762 apiece, two people familiar with the matter told Dow Jones Newswires. […]

Firms use dual structure to raise cash, get tax benefits

As private equity (PE) and venture capital (VC) deal-making gathers pace, PE firms are trying to raise cash, both in India and overseas, to purchase stakes in companies hungry for capital after last year’s downturn in the alternative investment market. Alternative investors such as PE and VC firms also stand to derive tax benefits by using the so-called dual structure, in which they raise separate domestic and offshore funds for investment in Indian firms. The alternative is a unified structure, which requires offshore funds to register in India as a foreign venture capital investor (FVCI) or through the Foreign Investment Promotion Board (FIPB) and put money in a domestic trust that makes the final investment. […]

Yes Bank to raise Rs 1,500 cr capital this fiscal

Private sector lender Yes Bank plans to raise Rs 1,500 crore of capital this financial year, a top bank official said. “We are very well capital-endowed as at March 2010 but we do have a headroom to raise around Rs 1,500 crore of hybrid capital in both our Tier-II and Tier-I structure,” Yes Bank Managing Director and CEO Rana Kapoor told reporters here today. “We will be tapping this window definitely this fiscal because in a rising interest rate environment it is better to raise money sooner than later,” he said. As on March 31, the bank's total CRAR stood at 20.61 per cent. The bank would be tapping the domestic market for this hybrid capital, he said. […]

Ananta Capital raising $150 mn for two funds

Ananta Capital, an alternative investment fund set up in August last year, is raising a total of $150 million for its two funds — a pledge fund focused on private equity deals, and an equity fund dedicated to stake acquisitions in publicly-traded companies. Jaganath Swamy, managing partner, Ananta Capital, said both funds had so far drawn commitments of $20 million from limited partners (LPs), high networth individuals and financial institutions. “We are looking at closing $110 million in the next three-four months for both funds. The pledge fund is designed to be LP-friendly and will be focussed primarily on the advanced materials and renewable energy sectors in India,” Swami said. […]

Allcargo raises Rs 100 cr through QIP

Private Equity backed Allcargo Global Logistics (AGL), a Mumbai based logistics firm, on Friday raised nearly Rs 100 crore through qualified institutional placement (QIP). The QIP proceeds will be used for acquisition in US and India, informed sources. Institutions to whom QIP was done include State Bank of India, Bajaj Alliance, Prudential and ING. In September 2009, New York-based private equity major Blackstone Group invested had invested Rs 142 crore in the company, raising its stake to over 11 per cent from 5.26 per cent stake earlier. Earlier in January 2006, New Vernon had picked up 6 per cent stake in AGL for Rs 60 crore. In a filing to the stock exchanges, AGL had recently informed that it proposed to raise funds not exceeding $150 million equivalent to Rs 700 crore, to meet the long term needs of the company to augment long term resources for investing in expansion and development of its businesses, future acquisitions, capital expenditure, working capital requirements and general business purposes. […]

DLF arm buys out PE stake in group firm for Rs 3,085 cr

Real estate company DLF Ltd said on Saturday that its subsidiary, Caraf Builders & Constructions Pvt Ltd, acquired 24.52 crore compulsorily convertible preference shares (CCPS) in group company DLF Assets from PE firm SC Asia for Rs 3,084.68 crore. The company said the move is in line with its strategy of consolidating shareholding of DAL, a co-developer for four IT/ITES SEZs based in Gurgaon, Chennai and Hyderabad. With this, Caraf's stake in DLF Assets has risen to 91.90 per cent. DSIPL (a company owned by SC Asia) would continue to hold 2.72 crore CCPS, representing an economic interest of 4.59 per cent in DAL. The balance 3.5 per cent is held by DE Shaw. Sources said that before the deal, SC Asia's stake in DAL was 45-50 per cent. […]

EID Parry India announces acquisition of majority holding in GMR Industries

EID Parry India has entered into a definitive agreement with GMR Holdings to acquire majority equity stake in GMR Industries, the agri-business entity of GMR Group. As per the definitive agreement entered into between the parties, GMR Group will divest a majority equity stake such that post the mandatory open offer (as per SEBI regulations), EID Parry would hold a minimum 65% equity stake in GMR Industries. Post the open offer, GMR Group would become a minority share holder in the company.(Bloomberg UTV) […]

Reliance Capital's equity arm invests Rs 100 cr in Pathways

Reliance Equity Advisors (India) Ltd (REAIL), the private equity arm of Reliance Capital Ltd, today said it has invested Rs 100 crore in Pathways World School. This is the first private equity investment made by REAIL. “We feel the education sector offers tremendous growth potential and is poised for rapid growth in the next few years,” REAIL CEO Ramesh Venkat told PTI. “Going forward, we would be looking at more such emerging opportunities in this sector,” Venkat added. He said the fund has a robust investment pipeline and is actively looking at logistics, hospitality and other sunrise sectors. […]