June 2010
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Inno to invest $150 mn in India

Inno, a global investment group focused on real estate, is planning to invest around $150 million (Rs 690 crore) in various residential projects in the country in the next six to seven years. Speaking to reporters at the launch of Inno Geocity, a Rs 750-crore flagship residential project to come up in the industrial belt of Oragadam near here, Rajamannar Ramaswamy, group managing director, Inno Group Holdings Limited, said the company had raised $200 million (around Rs 920 crore) so far and had invested $50 million in three projects including a hotel project and residential projects in Chennai, and a villa project at Coimbatore. Inno Investments has raised four India-focused real estate private equity (PE) funds and funded six projects in India with a total gross development value (GDV) of Rs 2,600 crore, involving development of over 14 million sft. […]

Reliance Industries may pay $1.35 bln for stake in Pioneer

India's biggest company by market value Reliance Industries Ltd is considering buying a stake in shale gas assets in U.S. owned by Pioneer Natural Resources, media reports said. Reliance Industries, which is controlled by billionaire Mukesh Ambani, is close to announcing a deal to pay $1.35 billion for a stake in a field controlled by Pioneer, the Financial Times reported, citing sources familiar with the matter. The company will buy a 45 percent stake in the Eagle Ford shale gas field in south Texas, the newspaper report said, which will be the second deal of its kind in recent months for Reliance. In April, Reliance's energy-based conglomerate had agreed to pay $1.7 billion to Atlas Energy to form a joint venture and own a 40 percent stake in Atlas' Marcellus Shale operations in the eastern United States. […]

Vivendi denies in talks for Reliance Comm stake

Vivendi , Europe's largest entertainment group, said on Wednesday it was not in talks to buy a 26 percent stake in Indian mobile carrier Reliance Communications. Indian newspaper Economic Times said Vivendi, which has telecom operations in France, Morocco and Brazil, had been talking to Reliance for a month and discussions were at an advanced stage, citing a person with direct knowledge. Reliance Communications, the No.2 mobile carrier in India's fast-growing market, is burdened by debt and the cost of rolling out third-generation (3G) services. It said earlier this month its board had agreed to sell up to 26 percent of the firm. The company has a market capitalisation of 384 billion Indian rupees ($8.6 billion) and is majority owned by billionaire Anil Ambani's Reliance conglomerate. […]

Rabo cuts its Yes Bank stake to start own unit

Dutch bank, dubbed Rabo bank sold 11% stake out of its 15.9%in private sector lender Yes bank to a group of domestic and foreign institutional investor for around Rs.1, 000crore to set up its own banking operations in India. Rabo, at present got a non-banking finance company in India called Rabo India Finance. Sipko Schat, member of the executive board of Rabobank said that the bank as per the la w is bound to reduce its shareholding in Yes Bank. Rabo is waiting for the approval of a full banking license in India. He said that they are confident on the future prospect of the Yes Bank and for that they were retaining 4.9% of stake in the bank. Schat will step down from the board of Yes Bank as a result of this reduction in shareholding. […]

PNB to restructure its JV with Principal and Vijay Bank

Punjab National Bank said it signed a memorandum of agreement (MoA) with Mauritius-based Principal Financial Group and Vijaya Bank for restructuring of their existing joint ventures. Both the lenders will continue to support Principal in the asset management company for next three years. PNB and Vijaya Bank will sell their 30% and 5% stake in the distribution joint venture company to Principal. Similarly, PNB will buy Principal’s 26% stake and Berger Paints’ 25% stake in the insurance broking company. PNB will buy out Principal and UK Paints stake of 26% and 32%, respectively in Principal PNB Life Insurance Co Ltd. […]

Khaitan creates two PE funds in VC structure

Khaitan & Co has advised on the setting up of two domestic venture capital (VC) funds iPro Capital Private Equity Trust and Subhkam Growth Fund, with each planning to raise approximately Rs 100 crores in various sectors under their maiden schemes. Subhkam’s current scheme was floated on 4 June 2010 after the company’s initial announcement to launch in 2008, while iPro Capital was launched in March 2010. Both of these Securities and Exchange Board of India (SEBI- registered VC funds plan to invest in varied core areas such as infrastructure, health care, education and financial services. […]

Baring Private Equity may invest Rs 370 cr in Oriental Tollways

Baring Private Equity Partners India, an India-focused fund, is understood to be close to investing Rs 370 crore in Oriental Tollways, part of the Rs 1,000-crore, New Delhi-based, Oriental Structural Engineers (OSE), a company focused on infrastructure development, specialising in highways and runways. According to investment bankers close to OSE, the fresh infusion of funds will be used for the company’s equity contribution of various special purpose vehicles (SPV). While a senior OSE official, who requested not to be named, confirmed interest from PE funds, Baring said it wouldn’t comment on market speculation. BPEP India is currently investing from its third fund, with a corpus of close to $300 million (Rs 1,390 crore) with focus in the manufacturing, pharmaceutical, information technology and services sectors. […]

European Firm In Talks To Acquire Stake In RCom

Europe's largest entertainment group, Vivendi, that has telecom operations in France, Morocco and Brazil is said to be in talks with Reliance Communications to buy a 26 per cent stake, media reported on Wednesday. It is believed that Vivendi was in talks with RCom for a month and the discussions were in the advanced stage now. Once the deal is finalized, Reliance will issue new shares to Vivendi and the French company would make an open offer to acquire 20 per cent stake in the Indian firm. RCom burdened by debt and the cost of rolling out 3G services, decided to offload stake early this month. […]

ING to sell stake in Kotak Mahindra Bank-

Dutch financial services group ING is selling its entire 3.1 percent stake in India's Kotak Mahindra Bank to raise up to $173 million, a source with direct knowledge of the matter said on Wednesday. The shares would be sold at 730 rupees to 750 rupees each, said the source, who refused to be named as he was not authorised to speak to the media. The price represents a 4 percent discount at the upper range of the band to Wednesday's closing price of 783.20 rupees. “The book-building for institutional investors has started,” the source said. An ING spokesman said the company did not comment on market rumours. […]

Basix plans to raise Rs 200 cr via PE route

Hyderabad-based micro finance institution (MFI) Basix is planning to raise Rs 200 crore through private equity route this financial year. This is will be the fifth round of private equity infusion in the MFI since 2001. Existing investors in Basix include SIDBI, IFC and private equity players such as Matrix Partners, Lok Capital, Hivos Triodos Fund and Avishkaar Goodwell. This infusion of Rs 200 crore is likely to happen through a new private equity investor. The funds will help in meeting MFI’s growing lending needs with addition of new states such as Gujarat and UP to its network this year. Basix operates across 16 states at present, catering to about 2 million customers. It would also help the MFI maintain the capital adequacy ratio a measure of financial strength of 12 per cent stipulated by the Reserve Bank of India. From April 2011 the CAR would be increased 15 per cent by RBI. […]