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Reliance Power (R-Power) today said it would seek shareholders’ approval for raising more funds, via share sale to institutions or by issuing securities overseas, after spending half of the Rs 11,600 crore raised in the country’s biggest initial public offer (IPO) in 2008. R-Power, a part of Reliance Anil Dhirubhai Ambani group, would consider a share sale to institutions for up to 15 per cent of the equity capital and an overseas securities issue for up to 10 per cent of the equity, the company said in a filing to the National Stock Exchange. At the current valuations, the company would raise around Rs 9,000 crore. The promoter holds 84.8 per cent in the company. The proposed issue of securities may be made in one or more tranches, according to the company. As of June 30, R-Power had spent Rs 5,997.6 crore of the IPO funds, said the company. […]
Nandi Infrastructure Corridor Enterprise, a unit of BF Utilities, is set to sell 10 percent stake in phase I of a tollway project to a private equity fund managed by JP Morgan, newspaper reports said. The project, which connected the cities of Bangalore and Mysore in southern India, has been valued at 120-150 bn rupees. BF Utilities officials declined to comment, when contacted by Reuters. JP Morgan officials could not be reached immediately. JP Morgan's private equity fund would buy 10 percent in Phase I of the project for around 5 bn rupees, the paper cited one of the sources as saying. […]
Private equity investment in emerging markets is again on the rise, with a 55% year-on-year increase over the first half of the year, research shows. Data compiled by the Emerging Markets Private Equity Association (EMPEA) found fresh investment in the area stood at $13bn for the first six months of 2010, compared with $8bn at the same time last year. EMPEA said the total value of private equity investments made in the first two quarters of 2010 was $4.5bn more than that invested through the same period last year, led by an investment surge in Latin America and continued strong activity levels in China and India. Fundraising levels are also showing signs of rebounding, with $11bn raised in the first half of 2010 compared with $9bn over the same period last year. […]
Adhunik Metaliks said State Bank of India and Macquarie SBI Infrastructure Investments together will invest Rs 125 crore as equity in a power project executed by the company's arm Adhunik Power and Natural Resources. This investment is “towards part finacing the equity of its ongoing 540 MW coal-based independent power project at Jamshedpur in Jharkhand”, Adhunik Metaliks said in a statement. Adhunik Power and Natural Resources is constructing the plant at a cost of Rs 2,650 crore and plant is likely to be commissioned in January 2012. The entire power generated here will be sold on merchant basis. In December 2009, IDFC Project Equity Fund had made an equity investment of Rs 250 crore in the Jamshedpur based power plant. “The investment by Macquarie SBI and SBI will meet the balance of the project's total equity requirement of Rs 663 crore,” the statement added. […]
Leading facility service provider ISS has acquired 49 per cent stake in SDB Cisco, one of the biggest security firms. “The transaction provides ISS India a comprehensive service offering of cleaning, catering, pest control and security and ensures ISS a leading position in one of the world's fastest growing markets for outsourced services,” ISS Group Jeff Gravenhorst told reporters. He said SDB Cisco is ISS' third large acquisition in India and constitutes the second strategic step change following the takeover of pest control provider Godrej HiCare in April 2009. “Together, ISS India and SDB Cisco will have almost 43,000 employees, making India the second largest ISS operation,” he said. […]
India’s largest utility vehicle maker Mahindra & Mahindra will put in a bid below $500 million for the troubled South Korean sports utility vehicle maker, Ssangyong, say banking sources close to the company. On Saturday, M&M board authorized the submission of bid to acquire majority stake in Ssangyong. Sources close to the development say that M&M’s bid will involve equity infusion of around $150 mn into Ssangyong which will give them a majority stake in the company. Besides, M&M will take Ssangong’s debt, aggregating to around $330 mn on its books. Ssangyong’s current debt, it is learnt, is pegged at around $600 million and its lenders may have to take a partial hit in the process. Ssangyong's consolidated debt for the last financial year ended December 2009 stood at $1.02 bn. M&M has declined to comment on the story. […]
GVK Power & Infrastructure Ltd., an Indian generator backed by T. Rowe Price Group Inc., plans to raise as much as 15 billion rupees ($326 million) selling a stake in its energy unit to boost generating capacity. The builder of airports and power plants plans to sell securities that can be converted into equity of its unit, GVK Energy Ltd., Chairman G.V. Krishna Reddy said in an interview in Hyderabad, where the company is based. GVK is in talks with private equity firms for the sale, he said. GVK joins Asian Genco Pte in seeking private equity funding as investors prepare to tap rising electricity demand in Asia’s second-most populous nation. India, ranked below Ivory Coast and Sri Lanka for the quality of infrastructure, plans to increase generation by 77 percent in the next seven years to reduce blackouts and drive the world’s third-fastest growing major economy. […]
A clutch of private equity firms and a large Indian corporate house, have initiated separate discussions to buy out Cumballa Hill Hospital & Heart Institute, a 50-bed hospital located at posh South Mumbai, two people familiar with the matter said. The management of Cumballa Hill Hospital has valued the company at around `250 crore, one of the executives privy to the development told ET. When contacted, Vijay Shetty, managing director of the institution whose family runs the hospital, said: “We are not in discussions with anybody.” He declined to comment further on the development. Cumballa Hill, which is managed and run by a trust, is one of South Mumbai’s popular hospitals and specialises in heart ailments. Started by cardiologist and founder trustee KR Shetty, it has acquired the adjacent property and is also in the process of building a 220-bed multispeciality hospital with a helipad facility for air transport, as per its website. […]
Private equity firms have invested over $5 billion in Indian companies so far this year, more than what entire 2009 saw. The PE companies, however, have also sold off shares worth about $2.5 billion yet. As many as 220 companies saw PE investment pouring in during the first seven months of 2010, or between January to July, while PE firms made an exit from 73 other companies. According to data compiled by deal space research firm VCCEdge, the first seven months of 2010 have seen private equity deals valued at $5.1 billion, as compared to $4.3 billion in entire 2009. PE firms generally exit from their investment through buyback of shares by promoters, open market transactions, merger and acquisitions and public offers. […]
INDEPENDENT News & Media (INM) sold its remaining stake in Indian newspaper publisher Jagran Prakashan for about €32m yesterday to reduce borrowing, but added that it remains interested in future co-operation between the two media groups. The decision ends INM's lucrative investment in Jagran, which began in 2005 when the company bought a 26pc stake in the Bombay-based publisher. The gradual sale of the stake over the past 14 months has yielded a profit of €67.5m for the Irish company. INM, which publishes this newspaper, has been selling some titles and investments to pay off debt since the beginning of the credit crisis in 2007, which forced the company to delay repayments to some bond holders for several months. Oligarch The company sold off the London-based 'Independent' and the 'Independent on Sunday' to Russian oligarch Alexander Lebedev's family in April. It continues to own newspapers, radio stations and advertising companies in many English-speaking countries including South Africa, Australia and New Zealand. “We have been crystal clear that our immediate and continuing priorities are on reducing bank debt, achieving and sustaining leverage ratios at significantly lower levels and focusing on growing our market-leading brands in our core markets,” INM chief executive Gavin O'Reilly said yesterday. Mr O'Reilly noted that the five-year investment had been a “highly profitable one for INM, and I want to recognise the insight of former CEOs Tony O'Reilly and Liam Healy for initiating this investment”. Gavin O'Reilly will remain as an independent and non-executive director of Jagran following a request from the Gupta family, which is Jagran's majority shareholder. “At the appropriate time, we shall continue to work with Jagran and the Gupta family in exploring other ventures in what is undoubtedly one of the most exciting media markets in the world,” Mr O'Reilly said. The company remained open to “the many exciting possibilities in the Indian media market in the future. I want to thank the Gupta family, and particularly chairman Mahendra Mohan Gupta, for their stewardship and ensuring so many years of successful partnership”, he added. […]
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