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Qatar’s largest investment bank QInvest has bought a stake in Indian student coaching organistion, Fiitjee, the company said on Monday. The value of the deal, which marks QInvest’s third deal in India, was not disclosed. Fiitjee offers tutoring to students preparing for engineering entrance exams in India’s technology colleges. The tie-up will pave the way for Fiitjee’s expansion into the Middle East market, said Anuj Khanna, head of investment management at QInvest. “Every year in excess of 450,000 students aspire for approximately 9,000 slots at one of the IITs (Indian Institutes of Technology) and the number of aspirants continues to increase.” QInvest, whose shareholders include Qatar Islamic Bank, has looked outside its borders in recent months in a bid to diversity its investment portfolio. […]
As valuation of companies have improved with recovery in the stock market, a number of private equity (PE) players are offloading their stakes worldwide. These exit valuations have shot up nearly three-times in the year 2010 to USD 203 billion, according to a report. According to a research firm Preqin, 811 PE-backed exits occurred in 2010, with an aggregate exit transaction size of USD 203 billion. This is almost three times the aggregate exit value seen in 2009 at USD 73.6 billion. “End of year results suggest the private equity deals sector has recovered following the financial crisis, with both the value and volume of deals and exits returning to, or exceeding, pre-crisis levels,” the report noted. Market persons said years would be good for PE players in terms of offloading their holdings in companies. […]
Parsvnath Developers Ltd said on Tuesday it has signed an agreement with SUN-Apollo India Real Estate Fund LLC , for an investment in a residential project at Ghaziabad, Uttar Pradesh. SUN-Apollo will invest upto 1 billion rupees for a 49.9 per cent stake in the project's special purpose vehicle, Parsvnath Buildwell Private Ltd , it said in a statement. […]
Real estate developers in north India are again aggressively scouting for funds for the completion of residential projects announced much earlier. New Delhi-based realty firm Parsvnath Developers Ltd (PDL) has raised Rs.100 crore by selling 49.9% stake in a housing project at Ghaziabad to private equity (PE) firm SUN-Apollo India Real Estate Fund LLC. The 31-acre housing project “Parsvnath Exotica” is being developed by its subsidiary Parsvnath Buildwell Pvt. Ltd. In another development, Red Fort Capital Advisors Pvt. Ltd is close to investing Rs.150 crore in the “Esencia” township project in Gurgaon of Ansal Properties and Infrastructure Ltd. “While we may see a steady flow of PE transactions in real estate this year, many of them will be in projects that have garnered good amount of pre-sales and are already in the development mode,” said Adhidev Chattopadhyay, analyst, Edelweiss Securities Ltd. “Both these investments have been in the better projects of the developers, who both have large tracts of land.” […]
With the bullish market leading to new projects, realty funds are now in search of greener pastures. Availability of capital is one of the major constraints faced by property developers. While bank funding comes with strings attached, a number of private equity (PE) funds are eyeing the real estate market with the demand level picking up in many cities now. Most real estate investments across India are through PE funds, who prefer to invest at the entity or special purpose vehicle (SPV) level. Even a small player can access real estate funds for a longer tenure. Moreover, association with real estate funds provides credibility during IPOs. However, while domestic funds are catering to the demand of smaller projects closer to the city, FDI investment can only happen in the suburban and peripheral areas with the prescribed minimum threshold limit of 5 lakh sqft built up area. Industry sources estimates that there are 15 PE funds with a surplus of close to $300 million looking at potential investment of $5 billion in the domestic market. Though they prefer to invest in residential projects, some funds are keen on commercial and retail development projects, according to market sources. […]
Marking a robust year for deal activities, mergers and acquisitions (M&As) involving Indian companies trebled to USD 68.3 billion in 2010 as compared to the previous year, says global consultancy Ernst & Young . Easy availability of finance as well as better economic prospects saw Indian players involved in as many as 1,267 M&A deals last year. “For the year 2010, India's M&A deal value has reached a whopping USD 68.3 billion, having grown three-folds compared to the value recorded in 2009,” E&Y said today. India recorded 554 cross border deals worth USD 54.9 billion — accounting for an 80 per cent share of 2010 total deal value. The average deal size last year rose to USD 120 million — “an all time high and more than three times compared to the average deal size of last year (2009)”. E&Y 's Partner and National Director (Transaction Advisory Services) Ranjan Biswas in a statement said that 2010 has been a blockbuster year for Indian M&A deals. […]
Profits posted by listed companies backed by private equity (PE) firms grew at nearly double the pace of the broader market in 2010, but the performance of their stocks has been mixed, with over half of them underperforming the Nifty. A Mint analysis of earnings at 67 PE-backed listed companies shows that aggregate profits grew 46% in the 12 months to 30 September 2010 from the year-earlier period. Profits made by the 50 companies that make up the Nifty rose 11% in the same period, while BSE 500 companies saw a 26% growth. The BSE 500 accounts for 93% of the market capitalization on the Bombay Stock Exchange. As December quarter results have not been declared, earnings of the year to September were considered for the analysis. The list of PE-backed companies was provided by VCCEdge, a financial research platform. […]
Jindal Poly Films (JPFL) plans to go for private equity investment in its subsidiary Jindal India Thermal Power. The BC Jindal-group promoted company may also go in for listing Jindal India Thermal once the company’s Rs 9,121-crore power plant in Orissa becomes operational. Jindal India Thermal’s 1800 Mw plant will have three units of which the first will be commissioned in March 2012, the second in September 2012 and the third in September 2013. “Before the project goes on on-stream, we will go in for PE investment or a public issue to unlock the value for JPFL. We are looking at 10-15 per cent dilution in the company,” Sanjeev Aggarwal, Chief Financial Officer, Jindal India Thermal, said. Jindal India Thermal has signed a second power purchase agreement with Tata Power Trading Company for sale of 400 Mw power from the plant on merchant basis for 12 years. With the signing of PPA, the company will sell a total of 900 Mw to Tata Power for which it has been guaranteed a minimum tariff of Rs 2.70 a unit besides getting a 10 per cent share in the upside. […]
Karbonn Mobiles, a joint venture between Delhi-based Jaina Group and Bangalore-based United TeleLinks (UTL), is reportedly in preliminary talks to raise Rs230 crore ($50 million) from two US private equity firms. The Times of India, citing unnamed sources close to the development, said that Karbonn Mobiles has held discussions with Accel Partners and Mount Kellet Capital to raise funds-valuing itself at around Rs2,300 crore ($500 million). Karbonn, which imports handsets from original design manufacturers in China, Taiwan and South Korea to help cut down on handsets cost, is planning to expand its factory in Bangalore in the future. Sudhir Hasija, MD of UTL told the paper, ''A lot of private equity firms are approaching us but we are not immediately interested in raising money. Maybe when we expand our mobile phone factory in Bangalore further and get good valuations, we will consider it.'' […]
American fund house KKR is likely to start an India focused USD 1.5 billion fund to invest across listed and unlisted Indian companies. Reports suggest that the fund would focus mainly on energy, power, infrastructure, auto components, brokerage houses and capital market infrastructure institution. KKR’s fund may also look at facilitating buyout deals in India. The America based firm is said to have already raised 25% capital for its India fund and is likely to close the fund by July-end. Presently, KKR founder, Henry Kravis is in India to monitor the India fund. Kravis has also met with Indian firms for investment opportunities. […]
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