June 2010
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Canara Bank arm launches Rs 500-cr venture fund

Canara Bank subsidiary Canbank Venture Capital Fund on Tuesday launched a venture fund with a corpus of Rs 500 crore mainly targeted at mid-sized unlisted companies. “Encouraged by the successful performance of the earlier funds, Canara Bank, with the strong support of a number of public sector banks and institutions, has now launched the fifth fund of Canbank Venture Capital Fund with a corpus of Rs 500 crore,” Canara Bank chairman AC Mahajan said after launching it. The Emerging India Growth Fund is the fifth venture capital fund unveiled by the company. Venture capital is provided as seed funding to early-stage and high-potential growth companies. […]

MEMG in talks with PE players including Kotak to raise Rs 100-125 cr for hospital expansion

Manipal Education and Medical Group (MEMG), the holding company of Manipal Group is in discussion with a few investors including Kotak Equity to raise funds to the tune of Rs 100-125 crore. The amount will be deployed to largely fund any strategic growth opportunities. In this regard, a detailed infrastructure modification plan has been drawn up to realign capacity in the existing flagship hospital at Bangalore. A new block with state-of- the-art facilities is being created in another hospital in the city. All these efforts would not only improve the look and feel of the hospital but also increase the revenue earning potential with additional beds in place, Dr Ranjan R Pai, CEO & MD, Manipal Education & Medical Group told Pharmabiz. The challenge is not raising the funds as there is plenty of PE support, but to have access to experts with a similar vision. So far, we have been lucky to work with excellent PEs, he added. […]

Lodha Developers eyes PE for Mumbai project

Lodha Developers is in talks with several private equity funds to sell stake in a Mumbai project to build the world's tallest residential tower, its managing director said on Tuesday. Last week, the developer said it would invest $426 million to build a 117-storey residential tower in central Mumbai and that the company could consider selling a 10-25 percent stake. “We are in talks with several private equity players but there is no transaction yet,” Abhisheck Lodha told the Reuters Global Real Estate and Infrastructure Summit. Media reports have linked Singapore funds GIC and Temasek with the project, but Lodha declined to specify names. The Mumbai-based developer said it would hold back its planned $600 million initial public offer until stock markets stabilise and is banking on stronger-than-expected sales to tide over immediate cash flow needs. […]

Cipla to buy stake in two biotech cos

Pharma firm Cipla, on Tuesday, announced its intent to acquire two biotechnology companies with a joint venture partner in China for a consideration of $65 million. Cipla Chairman Y K Hamied said “the entire investment will be funded through internal accruals.” The investment will be made by Cipla through its wholly owned subsidiary in a phased over over a period of three years. […]

Gold adds shine to PE portfolio

Low delinquency rates, huge demand attract investors to the unique gold financing sector. The glitter of the yellow metal has resulted in gold financing companies attracting private equity (PE) money. But the low number of players in the segment may spoil things. For instance, Sequoia Capital, which acquired 11.5 per cent in Kerala-based Manappuram General Finance and Leasing (in 2007 and 2008, at Rs 145 a share and Rs 165 a share, respectively), earned almost five times its investment in less than four years. It exited this April after selling its entire stake for Rs 740 a share. India Equity Partners (IEP), a co-investor, stayed invested. But, according to sources, there was enough interest from PE players to buy IEP’s stake as well. Then there’s the Muthoot George group. One of the largest pure-play gold financiers, the group has put its initial public offer (IPO) on hold and is in discussion with four firms, including PE players and hedge funds, to raise money before the IPO. […]