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The National Multi Commodity Exchange of India (NMCE) on Wednesday said it will raise Rs 25 crore via selling its 12.82 per cent stake to Bajaj Group arm —Bajaj Holdings and Investment Ltd. “This investment will help NMCE to meet its regulatory capital requirement and strengthen its balance sheet for investment in exchange infrastructure,” NMCE said in a statement. Both companies on Wednesday jointly announced that they have signed a definitive agreement under which Bajaj Holdings has agreed to invest Rs 25 crore in the commodity exchange, the statement added. Equirus Capital acted as the exclusive financial advisor to NMCE for the transaction. NMCE would also utilise the raised capital for strengthening of the exchange IT infrastructure, business development and human resources, the exchange said. […]
Private equity (PE) firms are finding it difficult to raise money as their limited partners (LPs), such as endowment funds, pension funds and development finance institutions, lay down tougher terms for investment. Fund managers, also called general partners, or GPs, say the LPs are demanding a greater share of profits and a seat on the investment committee. To assess the profitability of their investments, LPs are also looking into areas such as the team composition of PE firms. The change has been driven by a proliferation of PE firms that have little to differentiate them, and a growing perception among LPs that the market is overvalued. “The burden of proof is on GPs to explain to investors how their PE fund will be different from others,” said Harsha Raghavan, who founded Steer Capital Advisors Llp with Neeraj Bhargava and is raising funds. “Notwithstanding the growth, GPs need to segment the market and consequently help LPs identify the current set of market opportunities.” India-focused PE funds raised $1.3 billion ('5,811 crore) in the first half of 2010, or less than half the $2.7 billion raised in the first half of 2009, according to an August report by Emerging Market Private Equity Association, a non-profit independent global organization. […]
IDFC Private Equity Co. Ltd, the private equity (PE) arm of Infrastructure Development Finance Co. Ltd (IDFC), will swap its minority stake in SE Forge Ltd for shares in its listed parent company Suzlon Energy Ltd, the largest wind turbine maker in India. On Monday, Suzlon informed the Bombay Stock Exchange that its board will meet to consider an issue of 31.99 million equity shares of '2 each to IDFC Private Equity Fund III (IDFC PE) by way of preferential allotment. After the stock swap, SE Forge will become a wholly owned subsidiary of Suzlon. “This will give us an opportunity to take a broader exposure in multiple components through a stake in Suzlon,” said S.G. Shyam Sundar, managing director, IDFC PE. “It's a methodology through which we can look at liquidity.” […]
Power utility company Kalpataru Power Transmission Ltd said it will buy 20% stake in its subsidiary company JMC Projects (India) Ltd, at Rs207 a share, in cash. Kalpataru Power proposes to buy 52.8 lakh shares representing 20.2% of the post preferential issue paid up capital consisting of 20% of the emerging voting capital of JMC Projects, Kalpataru said in filing with the Bombay Stock Exchange (BSE). The offer will open for subscription on 29 November 2010 and close on 10 December 2010, the filing said. Collins Stewart Inga Pvt Ltd is manager to the offer. […]
Fortis Global Healthcare Holdings today said it would acquire the healthcare businesses of Hong Kong-listed Quality Healthcare Asia Ltd for around Rs 882 crore. In a statement issued today, the Malvinder and Shivinder Mohan Singh-promoted firm said the deal marked an important step in achieving the promoter family’s vision of creating a premier pan-Asia healthcare business. Fortis Global will acquire five subsidiaries of Quality Healthcare Asia (QHA). However, the elderly healthcare businesses of QHA will not be part of the deal. An agreement to this effect was reached between the two companies on October 8. […]
Suzlon India Limited, India’s largest wind-turbine maker, said it will consider today a proposal to sell 31.99 million shares to IDFC Private Equity Fund in a no-cash transaction. IDFC Private Equity, which invests in Indian infrastructure companies, will get preference shares in Suzlon in return for stock it holds in Suzlon unit SE Forge Ltd., it said in a statement to the Bombay Stock Exchange today. “This is a transfer of IDFC’s stake to the parent company and no money is involved,” Anoop Kharayat, Suzlon’s spokesman, said by telephone. Pune, western India-based SE Forge will become a wholly owned unit of Suzlon after the transaction, he said. Suzlon’s shares climbed 2.3 percent to 58.75 rupees at 11:33 a.m. local time in Mumbai. India’s 30-share benchmark Sensitive index, or Sensex, advanced 0.3 percent. The stock has fallen 35 percent this year compared with a 16 percent gain in the Sensex. […]
Private equity investments as well as merger and acquisition (M&A) transactions in the country have witnessed consistent growth so far this year, as deals worth over $52 billion have been announced in this space. According to data compiled by research firm VCCEdge, the total private equity investments till September this year stood at $7.18 billion, while M&A activity for the first three quarters of 2010 reached at $45.1 billion. In the month of September the total M&A deal value amounted to $11.7 billion. Though the M&A activity in September noticed a drop on a quarter-on-quarter basis, but has quadrupled from last year’s level, the report said. The most active sectors in terms of deal value was energy, which saw deals worth $4.6 billion, followed by healthcare ($1.8 billion) and industrials ($1.7 billion), and materials ($1.6 billion). […]
US private equity giant Carlyle Group is betting patience will be rewarded in an Indian market where global players have had to content themselves almost exclusively with deals for minority stakes. India's family-run and entrepreneur-driven firms have long been reluctant to sell out, preferring instead to raise money by going public or through bank borrowings. Private equity firms have adapted their strategies by providing growth capital or investing in companies that are already listed. “We don't have a 'runs on the board' approach. We are quite happy to sit on the sidelines and wait for the right deal,” said Devinjit Singh, a managing director at Carlyle. “And if we get the right deal, we go hard after it and are willing to put substantial capital behind it,” he told Reuters in an interview. […]
Intelenet Global Services P. Ltd. Announced that Barlcays has acquired a 12.75 % stake in SKR BPO Services, the holding company of Intelenet Global Services. Barclays Capital and Morgan Stanley were bankers for this deal. Susir Kumar, Intelenet Managing Director and CEO remarked, “Barclays has always been and will continue to be a 'Stellar Partner' for Intelenet. We are pleased to again welcome Barclays as a shareholder and are grateful to them for their unwavering support.” He further added – “this deal goes onto demonstrate the trust and the exemplary working relationship between both the organisations over the last 6 years.” […]
The US-based Kohlberg Kravis & Roberts (KKR), one of the leading global private equity firms, has picked up 9% stake in Avantha Power & Infrastructure (APIL) for Rs 217 crore. APIL, the power venture of Avantha Group, has issued 6.4-crore equity shares at Rs 34 per share to the PE firm, an investment banker familiar with transaction said. “At this price, the transaction has valued the company at Rs 2,450 crore,” he added. APIL is in the midst of entering the capital market to mop up Rs 1,250 crore through an initial public offer (IPO). The divestment to KKR is part of the pre-IPO placement, the official said. APIL spokespersons refused to comment as existing guidelines do not allow a company to comment if it is in the midst of raising fund through an IPO. A KKR official also declined comment. This is the fourth investment by KKR, which has so far put in nearly $1 billion in the previous three transactions, namely; Aricent, a niche technology services company it acquired in 2006, Cafe Coffee Day and Dalmia Cement […]
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