April 2010
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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. […]