December 2010
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Corporate managers seek new rush in PE

From FMCG to the financial sector, an increasing number of veterans are joining private equity or venture capital firms. It's the new rush of adrenaline that's sweeping corporate boardrooms. As private equity players become bolder in India , they are cherry-picking the best talent to help them nurture new entrepreneurial stories and spot the next big investment theme. In the past six months, the flow of those leaving the comfort of their organisations to enter the private equity or venture capital space has gathered momentum. And the exodus has been across the board, from FMCG to financials. The examples of Wipro's former boss, Vivek Paul (he joined TPG then launched his own fund, Kinetic Glue), and Unilever's Vindi Banga (who moved to Clayton Dubilier & Rice) have clearly influenced the trend. […]

Blackstone emerges as top PE investor in 2010

Global private equity giant Blackstone has emerged as the top private equity investor in India investing a total of $441 million during 2010 which saw the PE investors invest $5.4 billion, a growth of 56 per cent over 2009 levels of $3.45 billion. Blackstone was followed by Singapore’s sovereign fund Temasek ($375 million) and then KKR with $358 million. CG Srividya – Partner, Specialist Advisory Services, Grant Thornton said that maximum investments have taken place in the power & energy sector, followed by real estate & infrastructure and banking & financial services. “There have been several significant PE exits in 2010, which have been made possible by some of the high value M&A transactions as well as the considerable pick up in the IPO segment,” she added. However, in terms of more number of deals IFC, the investment arm of World Bank, has come on top striking 24 deals followed by Sequoia Capital (13 deals) and then Nexus with ten deals. […]

Baring PE buys small stake in Cethar Vessels for $90m

Baring Private Equity Partners India, has bought a minority stake in Cethar Vessels, India’s Trichy-based second largest manufacturer of thermal power boilers, for around Rs 405 crore ($90 million). The second largest investment by Baring in India will be used by Cethar Vessels for setting up facilities to manufacture steam turbine and generator, acquiring land for developing power plants and enhancing the manufacturing capabilities for super critical boilers. IDFC Capital was the adviser for this private equity transaction. Karthik Ranganathan, partner, Baring India, told Financial Chronicle, “Given the current demand supply mismatch, we see tremendous growth opportunity in the sector. Besides, Cethar as a company has strong potential to grow further. We plan to stay invested for a long-term period as we invest for at least 5-7 years in power sector.” “If the opportunity arises we would like to buy further stake in the company,” Ranganathan said. […]

HCL Info buys 20% in Dubai’s Techmart

Technology firm HCL Infosystems Ltd has acquired a 20% stake in Dubai-based distribution company Techmart Telecom Distribution FZCO for an undisclosed sum, gaining a toehold in the distribution business in West Asia and Africa. Techmart Telecom has a partnership with Finnish mobile phone maker Nokia Oyj for distributing its products through its regional distribution network in 50 cities across West Asia and Africa. Harsh Chitale, chief executive officer of HCL Infosystems, refused to divulge financial details of the deal, citing a confidentiality agreement with the company. He said Techmart Telecom’s revenue for the month of December is expected to be in the range of $40-50 million (Rs.179.6-224.5 crore), adding that distribution was a “low profit margin” business. “We have taken another step in further expanding into emerging markets of Middle East and Africa,” he said. […]

iGate to control Patni with 60% stake buy

Nasdaq-listed iGate Corporation will sign definitive agreements to buy a controlling stake in Patni Computer Systems on Monday, three people with direct knowledge of the development told ET NOW. iGate corporation will buy around 60% stake in the company from the founders and private equity investor General Atlantic, they said on condition of anonymity. iGate will make an open offer to Patni shareholders according to the norms of the Securities and Exchange Board of India (SEBI), the capital market regulator. The board of Patni Computer Systems will meet on Monday to approve the transaction as well as the open offer, the people said. iGate CEO Phaneesh Murthy is currently in India to close the deal. An iGate-Patni combination will create an information technology company with over a billion dollars in revenue and presence across multiple geographies. The deal is likely to be executed at a price of around Rs. 500 per share. […]

Gitanjali Gems takes 90% stake in Italian firm Glantti

Jewellery-maker Gitanjali Gems Ltd (BSE:532715) on Tuesday said it has picked up majority stake of Italian firm Glantti Italia S.R.L. The company acquired 90 per cent stake in Milan-based Glantti Italia from its Dubai-located wholly owned subsidiary Gitanjali Ventures DMCC, Gitanjali Gems said in a filing with the Bombay Stock Exchange. However, the company did not disclose any financial details of the said acquisition. The Italian firm has become a direct subsidiary of the company following the acquisition, it said. The filing added that the said acquisition has been aimed at growth of the branded jewellery business overseas and gain the designing and branding concepts expertise from Italy. […]

Indian companies to raise USD 20 Bn from Primary Market in 2011: Study

Capitalising on a market revival, the 2010 year saw Indian companies raising nearly Rs 59,000 crore (US$13 billion) from IPOs and the total mop-up from initial offerings is expected to touch Rs 90,000 crore in the coming year, says a study. According to a report by SMC Global Securities Limited, Indian companies, both public and private,have collected about Rs 59,523 crore from the primary market so far this year. In 2009 only 20 companies raised close to Rs 20,000 crore from initial public offers. The report added that the pipeline is indicating a total public issue volume of about Rs 90,000 crore during 2011. “…Rs 50,000 crore from private sector and Rs 40,000 crore from public sector,” SMC Global Securities Strategist & head of research Jagannadham Thunuguntla said. […]

Sahara India Pariwar buys London's Grosvenor House Hotel for Rs3,275 crore

Sahara India Pariwar, the conglomerate run by Indian billionaire Subrata Roy, is the latest Indian company to buy a landmark business in Britain by acquiring the historic Grosvenor House Hotel that was once home to the Duke of Westminster and frequented by royalty, celebrities and business leaders since its re-opening in 1929. After having failed to buy debt-ridden Hollywood studio Metro-Goldwyn-Mayer Inc (MGM) in September 2010, Sahara has acquired the iconic London hotel from Royal Bank of Scotland (RBC) for, what some say, a throwaway price of £470 million (Rs3,275 crore). “The valuation of the hotel, three years back was more than £1 billion. The valuation, even today is quite high but due to highly satisfactory due diligence by the RBS who owned the property and after long and strict negotiations, we have purchased it for £470 million,” said Sahara Group chairman Roy. […]

PE investments likely to cross $7bn in 2010: E&Y

India is likely to get over $7 billion in private equity investments in 2010, as robust economic growth is making the country an attractive market for fund mangers, according to global consultancy E & Y. “PE investments are expected to touch $6.5 billion in 2010 up from $3.5 billion in 2009,” Ernst & Young's Partner (Private Equity) Mayank Rastogi said. “This number may well cross the $7 billion-mark if some of the large ticket deals which are currently in works may get announced in the last week of December 2010,” he said. Sectors such as power and transportation, infrastructure ancillaries, consumer and branded products, health care, education and financial services, are expected to increased PE activities next year. […]

iGate-Apax team offers $915 Million bid to buy Patni

The Indian-American IT services company Patni Computer Systems is likely to be acquired by a consortium of Apax Partners and iGate in a deal said to be worth nearly $1 billion. Several media reports suggest that the U.S.-based iGate Corporation and private equity firm Apax Partners are close to striking a deal to buy 63 percent stake in Patni Computers which is valued at around $915 million. According to a Hindustan Times report, the Apax-iGate consortium has offered about 500 a share for the stake. Meanwhile, Patni shares were closed at 486.40 on Bombay Stock Exchange on Monday. Patni had reportedly rejected an earlier bid by a team of Carlyle, Advent International and Akansa Capital. It is said that the present consortium will make an open offer to buy another 20 percent of the company following the agreement. […]