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RIL picks up majority stake in Deccan 360

Reliance Industries (RIL), India’s biggest private sector company with large retail interests, will buy into an air cargo firm promoted by Capt GR Gopinath in an attempt to gain an edge over its rivals in the rapid movement of goods across the country. Reliance will buy a controlling stake in Deccan 360 for an undisclosed amount and will get the right to appoint two members on the board. Deccan owns eight aircraft and transports express and normal cargo to about 50 cities which it wants to increase to 100 cities in 12-18 months. It also has a fleet of 1,000 branded vehicles for its economy cargo sector where it transfers bulk cargo over roads. RIL, which is expanding its retail presence, wants a dedicated cargo service that can fly to several destinations and deliver goods quickly. It now has shops in 200 cities and is keen to expand it further. Reliance will use Deccan’s transport fleet to ferry goods from central warehouses to shops across several cities. Deccan 360, meanwhile, will use funds from Reliance to expand connectivity to several more cities and towns. […]

Risk factor dips PE investment in SMEs to 68% in '09

Shying away from risking their capital in small and medium enterprises (SMEs) in the wake of the economic slowdown, Private equity (PE) investment in the SME sector dipped to USD 580 million in 2009, down about 68 percent year-on-year. PE investment in the SME sector last calendar year stood at USD 580 million via 81 deals against USD 1,812 million through 187 deals in 2008, a study by industry body ASSOCHAM said. “Poor returns on investments in the midst of challenging times have forced fund managers to think twice when it comes to putting too much into the (SME) sector,” it added. […]

Brainspark takes 29.9% stake in Indian Restaurants Group

Business Financial Newswire – Investment company Brainspark is taking a 299% stake in Indian Restaurants Group. Brainspark is subscribing for 5,578,994 new ordinary shares for £139,474.85 – 2.5p per share. IRG currently operates three Indian restaurants in the UK and recently opened a restaurant branded in Mela which is situated in Redhill, Surrey. IRG will use the funds for working capital purposes. […]

PE majors plunge into Indian market

In spite of eroding confidence of private equity (PE) firms during the global downturn, a clutch of big global names, who till now were not confident about India, have taken the plunge into Indian markets. These big PE players, such as Quadrangle Capital, Appollo Management, TA Associates, Summit Partners and Bain Capital, have done a deal for the first time in India, marking their entry into one of the fastest growing emerging markets. While some of them had set up shops in the country in 2008-09, they were unable to do deals because global markets went into a tailspin. Already, some of the global PE majors such as Blackstone, Carlyle, General Atlantic, Apax and 3i are present in India, but the entry of new PE funds into the Indian market shows their growing appetite for Indian companies. Investment bankers say most of these PE firms are actively scouting for deals and are no more dormant. […]

Videocon may sell 26% stake to foreign players

Diversified group Videocon Industries on Wednesday said it may sell up to 26 per cent stake in the company to foreign players. Many foreign companies are eyeing a stake in us….We may dilute a stake of up to 26 per cent,” Videocon Industries Chief Venugopal Dhoot told reporters here. Asked by when a stake dilution can take place, he said, “As soon as we get a good valuation we will do that.” He said the company's valuation, which is currently at Rs 12,000 crore, may go up further considering the rapid expansion it has undertaken. Group company Videocon Mobiles recently started its services in Tamil Nadu, Gujarat and Mumbai circles. […]

Zeel ups stake in Ten Sports to 82.2%, to add 12.8%

Zee Entertainment Enterprises Ltd (Zeel) has acquired 32.2 per cent stake in Taj TV Mauritius for an investment of $31 million during the financial year ended 31 March 2010, taking its total holding in the company to 82.2 per cent. Zeel will make the additional purchase of 12.8 per cent for $13.14 million, according to the company's corporate strategy, planning and business development head Atul Das. The holding in Taj TV Mauritius will be through a newly floated company, Zee Sports International, a subsidiary of Zeel. Zee Sports International will finally hold 95 per cent stake in Taj TV Limited Mauritius and 100 per cent stake in Taj Television (India), paying the Bukhatir Group a total consideration of $44.145 million. […]

IPL Equity deals to halt till dust clears

The door was to open for attractive equity deals soon after the completion of the third edition of the Indian Premier League (IPL).“Deals will take time now. We are not looking at selling stake,” said Kings XI Punjab co-owner and Dabur India Ltd. director Mohit Burman.Equity deals are expected to halt till the mud-slinging phase is over and the air clears on several controversial issues. “Nobody wants to put money into something that may not be clean. Till the issues do not get resolved, people may wait before making stake acquisitions,” said an investment banker on request of anonymity.Investment bankers feel a prudent approach will be to wait longer for valuations to climb as controversies die down. […]

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. […]