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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. […]
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. […]
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. […]
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%. […]
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. […]
Asia-focused private equity firm New Silk Route said Monday it has invested INR3.60 billion for an undisclosed stake in Coffee Day Resorts. “The Coffee Day Group…is emerging as an attractive aggregation of businesses in a variety of consumption and infrastructure sectors,” New Silk Route's founding general partner and chief executive, Parag Saxena, said in a statement. Saxena will join the board of Coffee Day Resorts, the statement said. “This investment will be used across the various current and future business of the group, i.e. Cafe Coffee Day, luxury resorts and infrastructure,” […]
Paris-based Vicat has announced an agreement with Y S Jagan Mohan Reddy and other shareholders to acquire 51% stake in Bharati Cement. According to a release issued by Vicat today, Bharati Cement operates a cement plant of two lines in Andhra Pradesh that will reach a total annual capacity of five million tonne at the end of 2010. Y S Jagan Mohan Reddy, an MP, is the son of former Andhra Chief Minister Y S Rajasekhara Reddy who died in an air crash last year. […]
GMR Group is planning to raise $100 million in private equity for its power business, apart from $515 million it collected this month, reports say, quoting a top official. Bengaluru-based GMR is discussing with firms for the additional funding and hopes to clinch the deal by next month-end, Group Chief Financial Officer Subbarao Amarthaluru said. It is expanding its Indian power capacity to 5,500 MW from 823 MW at an estimated cost of Rs.30,000 crore ($6.7 billion), and is building road projects worth Rs.5,000 crore, he said. Unlisted GMR Energy, the power arm of the group, had raised $200 million in private equity from Singapore's Temasek Holdings in early April. […]
Mumbai-based construction and engineering firm, Larsen & Turbo is planning to launch a US$300 million private equity fund to invest in power and road projects in India, Bloomberg reported. Quoting the company’s Senior Vice President for Financial Services N Sivaraman, the newswire said the infrastructure major will invest this fund in companies outside L&T. The firm is leaned to be looking for a Singapore-based partner to invest in the fund besides putting in some money from its own. […]
Private equity (PE) and venture capital (VC) deals in India may be hit once a Central Board of Direct Taxes (CBDT) formula to determine the fair market value of shares for calculating tax comes into effect after the finance Bill is passed in Parliament. Finance minister Pranab Mukherjee in his February Budget had proposed that a firm which buys shares at a price lower than the fair market value of such shares will have to pay tax on the difference between the two. He did not define fair value. The board issued a notification on 8 April saying the fair market value of unlisted shares will be calculated based on a formula that uses the net asset value methodology, based on the difference between assets and liabilities appearing on the balance sheet. […]
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