April 2010
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Private equity investment in clean energy to exceed by 80pct

According to a joint Paper brought out by Deloitte and ASSOCHAM, more than 80% private equity investment is likely in healthcare, education and clean energy in future as these 3 sectors are emerging as most favoured ones for PEs investors in India. Dr Swati Piramal president of ASSOCHAM pointed out that the Government of India has been laying substantial focus to build these sectors through public-private partnership projects across the country with a view to providing quality services in these three key areas of economic activities. PEs investment in these sectors suits their investors the most as the aforesaid areas assured return on investments for a period exceeding 5 years, pointed out joint findings of Deloitte and ASSOCHAM Paper. […]

CPPIB invests US$100m in India fund

The Canada Pension Plan Investment Board (CPPIB) has made its first investment in an India-focused private equity fund. The pension fund investor agreed to commit up to $100m to the fund managed by India's Multiples Alternate Asset Management, set up by former ICICI Venture managing director Renuka Ramnath less than a year ago. Multiples said the CPPIB was one of the key investors in the domestic and international fund, reflecting pension funds growing appetite for emerging markets private equity funds. The firm has announced a first close of its first private equity product at $250m. It is targeting $450m. “I look forward to building Multiples as a bridge between providers of long-term risk capital and the new generation of capital hungry entrepreneurs in India,” said Ramnath. […]

TFCI eyes private equity, has no FPO plan for now

Tourism Finance Corporation of India (TFCI) is planning to tap private equity firms for its equity expansion as it seeks to finance large infrastructure projects and has ruled out plans to launch a follow-on public offering (FPO) soon. “Based on my profitability statement, I will try to raise further capital, whe-ther from promoters or from other sources. Private equity would be one of the options,” Archana Capoor, chairman and managing director of TFCI, told FC. “I am not thinking of an FPO right now. We would like to improve out earnings per share (EPS), which stands at Rs 3.6, and then consider going to the public again,” she said. […]

Carlyle Group to invest $850 mn in India soon

Global private equity (PE) firm Carlyle Group is planning to invest around $850 million (around Rs 3,750 crore) in India in the near future, according to the fund. It has raised $2.55 billion under Carlyle Asia Partners (CAP) III Fund from international investors to invest in the Asia-Pacific region, excluding Japan. One- third of the amount is proposed to be invested in India. The size of the last CAP fund for the region was $1.8 billion, of which $600 million was put in housing finance company HDFC in 2007. “We have raised the fund at the right time as companies are coming back to investing ways. They have already started contracting debt and the next in the round will be equity,” said Rajeev Gupta, managing director of the Carlyle Group in India. […]

Ex-Baring co-head to float private equity fund

N Subbu Subramaniam, former Baring Private Equity Partners co-head who left the firm in August 2009, is set to launch his own private equity firm in India. Subramaniam has been globetrotting ever since his exit from Baring, to chalk out his next career move. The options explored included joining an existing PE firm, bringing a new PE firm in India or launching an entity on his own. Subramaniam, who was not available for comment, had told DNA Money a few weeks ago that the name of his investment entity has been finalised and regulatory approvals were awaited. The new entity in most likelihood will be called M Cap Fund Advisors. Subramaniam is currently in the process of building a management team that will identify target companies for possible investments. “The approach is to become an India focused growth capital provider. The dream is moving towards a (investment) theme and building of team. We want to create the Indian PE firm of choice across stakeholders,” Subramaniam's post read on a professional networking site. […]

Lilliput to sell stake to TPG Growth for 115 cr

Kidswear maker and retailer Lilliput today said it will sell an undisclosed stake to private equity firm TPG Growth for around Rs 115 crore. This will be second time the capital-based retail player dilutes stake within a week after agreeing to sell 31 per cent stake for around Rs 270 crore to private equity player Bain capital. The company said one of its old stakeholders, Everstone Capital, will be exiting the company. Everstone had held an undisclosed stake in Lilliput since 2006. […]

Realty private equities start raising money again

Domestic real estate-specific private equity funds have started raising money after a hiatus as developers are finding it difficult to tap the capital markets through initial public offerings. Indiareit, a real estate private equity fund promoted by Ajay Piramal group, is raising Rs 700 crore in the domestic market. The fund is looking at projects in major cities such as Mumbai, Bangalore and Pune and the investments would be made in other developers’ projects and not in the company’s real estate firm. Ramesh Jogani, managing director and CEO, Indiareit, said, “The fund will be subscribed by June and its duration is 7 years.” Jogani plans to invest 30% from this new fund in projects this year itself, with 20% in the initial-stage projects and 10% in the later-stage projects. The fund is targeting an internal rate of return of 25%. […]

France's Vicat buys 51% in Bharathi Cem

SA des Ciments Vicat, the French cement major, has sealed an agreement for acquiring 51% in Bharathi Cement, it told the NYSE. DNA first broke the story on April 16 that Vicat is acquiring Bharathi Cement, which is owned by Y S Jagan Mohan Reddy, a Member of Parliament from Kadapa and son of former Andhra Pradesh chief minister Y S Rajasekhara Reddy. The company will finance the acquisition through debt. Though Vicat has not disclosed any valuation, an investment banking source said the deal, to be priced around $200 per tonne, at Bharathi’s current capacity of 2.5 million tonne, could cost $500 million. […]