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SUUTI to exit Stock Holding Corp

The Specified Undertaking of UTI (SUUTI) is planning to sell its entire 17% stake in Stock Holding Corporation of India (SHCIL), according to two senior officials involved with the process. SUUTI is expected to net around Rs 300 crore through this stake sale, a person involved with the transaction told ET. “The offer will be made first to the existing shareholders of the company (SCHIL),” the official said. However, according to senior bankers it is very unlikely that the existing shareholders may buy SUUTI’s stake. “Even the other key promoters may consider offloading their stake in SHCIL,” said another investment banker. SHCIL is jointly promoted and owned by banks and financial institutions like IDBI Bank, ICICI Bank, SUUTI, IFCI, LIC and GIC. […]

With big deals rare, global PE fund managers begin to move out

Several Indian managers of global private equity (PE) funds have quit their jobs in the past few months to strike out on their own or move to smaller funds—a trend that industry executives say stems partly from the rarity of big-ticket deals coveted by overseas investors. Last month, Warburg Pincus India Pvt. Ltd managing director Rajesh Khanna stepped down to start his own PE fund. Khanna declined to comment about his plan for this story. In December, Harsha Raghavan, who was with the PE arm of Goldman Sachs in India and later moved to the local unit of UK-based buyout firm Candover Investments Plc., teamed up with Neeraj Bhargava to start Steer Capital after Candover shut its India operation. In August, Subbu Subramaniam, a partner with Barings Private Equity Partners India Ltd, left to start his own fund. “Foreign funds bring only two things—access to funds and investment discipline. After investing in India, frustration creeps in (among local managers) when the fund does not understand the Indian market as well as you do,” […]

Bhartiya Samruddhi Finance raises Rs1.18bn equity with Matrix Partners India

Bhartiya Samruddhi Finance Limited (BSFL), a Livelihood Promotion Institution has announced that it has closed its Series C with Rs1.18bn ($ 26 MM) of equity. Matrix Partners India has invested Rs1bn as the lead investor in the funding of BSFL along with returning investors Hivos Triodos Fonds and Lok Capital, in a total transaction size of Rs1.18bn. BSFL is the flagship company of the BASIX Group, promoted by Vijay Mahajan. Welcoming Matrix Partners, India to BSFL, Vijay Mahajan, Chairman of BSFL and BASIX said “Matrix with their long term investment horizons and an in-depth understanding of the MFI sector complement the BASIX mission of inclusive growth through sustainable livelihood promotion in India, with valuable growth capital. With this capital infusion, during the current fiscal year, we will double our credit portfolio to over two mn customers and Rs20bn in outstandings, while our micro-insurance and micro-pensions services will reach three mn, and our Agri/Business and Institutional Development Services one million, poor households respectively”. […]

PE firms invest $2-B in Indian Cos. in Q1 '10

Private Equity firms invested about US$2,000 million across 56 deals during the quarter ended March 2010, according to a study by Venture Intelligence (http://www.ventureintelligence.in), a research service focused on Private Equity and M&A transaction activity in India. The amount invested during the latest quarter was the highest in the last six quarters. The figure was significantly higher than that during the same period last year (which witnessed $620 million being invested across 58 deals) and also the immediate previous quarter ($1,681million across 102 deals). The largest investment during the quarter was the $425 million investment into power generation firm Asian Genco by General Atlantic, Morgan Stanley, Norwest, Goldman Sachs and Everstone. Other top investments reported during Q1'10 included Quadrangle Capital Partners' $300 million investment into telecom tower infrastructure company TowerVision India; StanChart PE, KKR and New Silk Route's $217 million investment into Coffee Day Resorts and TPG Growth's $115 million investment into Clean Tech firm Greenko Group. […]