October 2010
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Red Fort Capital acquired 24.50% stake in FDPL

Parsvnath Developers Limited (PDL), India’s leading integrated infrastructure developer with a pan-India presence and a diversified portfolio, has partnered with Red Fort Capital to develop “Red Fort Parsvnath Towers”, a modern, state-of-the-art commercial office complex located in the heart of New Delhi’s Connaught Place on Bhai Veer Singh Marg. PDL has executed a concession agreement with Delhi Metro Rail Corporation (DMRC) to deliver the project on a BOT basis for a consideration of Rs. 995mn. PDL has partnered with Red Ford Capital, a leading international private equity real estate firm, to jointly develop the landmark Grade A commercial office complex according to international standards. The entities controlled by Red Fort Capital have acquired 24.50% equity stake in FDPL by inducting Rs1200mn as foreign direct investment. “Red Fort Parsvnath Towers” shall offer end-users world class design, modern floor plates and compelling value. Located on a 5-acre parcel adjacent to the five-star Metropolitan Hotel, the project has a leasable area of approximately 300,000 sq. ft., approx. 800 basement parking spaces and a wide array of mixed-use facilities and amenities. […]

Sun Tyre & Wheel Buys Watts Lanka Factory

Sun Tyre & Wheel Systems, part of the $6 billion TVS Group of India, has completed the acquisition of Watts Lanka Private Limited, the firm’s solid industrial tyres manufacturing company in Colombo, Sri Lanka. No details of how much was paid for the company or of the extent of the new owner’s expansion plans have been released. Announcing the news Sun Tyre & Wheel Systems said it is “dedicated to serving the world’s material handling industry with a wide range of tyre and wheel solutions covering most applications and operating environments.” Watts Lanka Private Limited (which will be renamed shortly) was a joint venture between Watts Tyres Limited of the UK and KVK Invest JSC of Bulgaria, principal shareholder in Balkancar Zarya PLC. One insider told Tyres & Accessories that, as the sale relates to a purchase prior to Watts’ recent buyout, this had been considered as an option for some time. Sun Tyre & Wheel Systems reports that 95 per cent of its sales overseas are exports with distribution across all continents. Despite expanding its manufacturing facilities in India substantially over the past three years, the firm reports that it still “finds itself seriously short of capacity.” Even during the global recession, the company is said to have recorded a healthy growth rate of 40 per cent. […]

Shapoorji Pallonji group buys 11% in Nexxoft unit

The Shapoorji Pallonji Group has picked up 11 percent stake in a unit Nexxoft Infotel Ltd , a top official of the domestic software services firm told Reuters. “Shapoorji has picked up a stake in one of our units,” Rakesh Joshi, chief financial officer of Nexxoft Infotel, told Reuters. “The proposal is still with the board.” The financial terms of the transaction were not immediately available. “The investments are in our gaming subsidiary and the funds will be used for developing new gaming platforms,” he added. […]

Opto Circuits to buy US cardiology device maker

Healthcare equipment maker Opto Circuits (India) Ltd on Tuesday agreed to acquire US-based cardiology device maker Cardiac Science Corp. for $2.3 ('102.35) a share, gaining entry into the automated external defibrillation market. This is the largest of Opto Circuits' nine acquisitions since 2001. Cardiac Science had 23.82 million shares outstanding as on Monday, valuing the buyout at $54.8 million, according to Reuters data. A spokesperson for Opto Circuits put the total cost of acquisition, including employee severance payout and cost of debt, at $80-85 million. Cardiac Science expects to earn $145-150 million in revenue in 2010, according to Reuters. “This transaction…will greatly enhance product offering and presence in the US,” Vinod Ramnani, Opto Circuits' chairman and managing director, said in a statement. […]

StanChart acquires 100% in brokerage venture with STCI

Standard Chartered has increased its holding in Standard Chartered-STCI Capital Markets to 100 per cent by acquiring the remaining 25.1 per cent stake from its local partner, the Securities Trading Corporation of India (STCI). With this, the brokerage entity becomes a wholly-owned subsidiary of the foreign bank, which will soon be rebranded to reflect the new ownership. The acquisition of the last tranche comes nearly three years after the initial acquisition was made. In August 2007, Standard Chartered entered into a strategic partnership with STCI by acquiring 49 per cent in UTI Securities, which was then renamed Standard Chartered-STCI Capital Markets. Thereafter, in December 2008, Standard Chartered exercised an option to raise its stake to 74.9 per cent. While the complete acquisition cost Standard Chartered a little over Rs 300 crore, the foreign bank will infuse further capital to ramp up the broking services, including research and investment banking. […]

Hero Group to buy out Honda Motors' 26% stake in the joint venture

Hero Group is looking to buy out Honda Motors' 26% stake in the joint venture and needs to raise about $2 billion to do so. Hero already owns 26% of the company, with the rest held by other investors. It is still early; Hero is only just putting together a team of bankers to help it find the money, and both companies are quiet about their intentions. But if it strikes a deal, Hero is going to have to answer a number of questions for the rest of Hero Honda's shareholders. For starters, what is Hero going to do about its lack of research and development facilities? Honda's role in the joint venture is to provide technology, and its agreement to do so will come up for review in 2014. Will it continue the pact, without a stake in the company, and if so, at what cost? Even with Honda as a co-owner, Hero's royalty payments on technology have been rising faster than sales, reaching $90 million in the year to March. […]

Mudra to sell 25% stake to E-Land

Mudra Lifestyle today said it will issue 1.2 crore equity shares, constituting 25 per cent equity in the company, to South Korea-based textile chain E-Land for around Rs 72 crore. “The Board of Directors at its meeting held on October 15 has decided to issue 1.2 crore equity shares of face value Rs 10 each, at a price of Rs 60 per share,” the company said in a statement to the Bombay Stock Exchange. An extra ordinary general meeting of the shareholders of the company will be held on November 13 for approval. The entry into the above transactions would result in the investor being required to make an open offer under provisions of the Securities and Exchange Board of India. […]

Carlyle, KKR, Warburg Pincus in talks to buy stake in Hero Honda

US private equity firms Carlyle, KKR and Warburg Pincus could buy a stake of between 15% and 18% in India's motorcycle maker Hero Honda Motors (BOM:500182), the Economic Times said Monday citing unnamed sources. According to the paper, the transaction would be part of a two-stage deal, which could end up with Japanese Honda Motor (TYO:7267), which owns 26% of Hero Honda, exiting the Indian company. As part of the plan, Hero is currently in advanced talks with the investments firms to sell them 60% to 70% in a special purpose vehicle (SPV), which will acquire Honda's entire stake in Hero Honda with bridge loans. If the deal is successful, the Hero group will control up to 36% of Hero Honda, while the buyout funds will control up to 18% indirectly. Honda, Hero and KKR were unavailable for comment, while Warburg Pincus and Carlyle declined to comment. […]

Bajaj Holdings picks up 12.82% stake in NMCE

Bajaj Holdings and Investment (Bajaj Holdings) on Wednesday picked up a 12.82 per cent stake in the Ahmedabad-based National Multi Commodity Exchange of India (NMCE) for Rs 25 crore. The investment, along with Equirus Capital as the exclusive financial advisor to NMCE, will partially meet the regulatory capital requirement, and also help towards the strengthening of its information technology (IT) infrastructure, business development and human resources. Besides raising its share capital from Rs 16.67 crore to Rs 19.12 crore, the investment will help NMCE meet its regulatory capital requirement and strengthen its balance sheet for investment in IT infrastructure. […]

SBI buys 20% stake in its biz correspondent

The country’s largest lender State Bank of India (SBI) has bought 20 per cent equity stake in A Little World (ALW), a technology services providing company with a strong rural focus and an affiliate of the Zero Micro Finance and Savings Support Foundation, for Rs 80 crore. The other stakeholders of ALW include Enam Financial, Bellweather Microfinance Fund, India Financial Inclusion Fund and Legatum Ventures, a Dubai-based private equity fund. “SBI bought 20 per cent equity stake in ALW and henceforth we will undertake majority of work for SBI in future. Considering the enormous work that SBI plans to do undertake, there will be no time to work for other banks. At present, we have a tie-up with 24 other banks, they will be phased out gradually and while some may remain with us,” said a promoter of ALW and Zero Micro Finance and Support Foundation. A senior SBI official said, “We bought the equity stake in the company for a consideration of Rs 80 crore so that company could speed up the financial inclusion exercise of the bank.” […]