February 2011
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Enam Infra Fund gets nod to invest Rs 3,700 cr in India

Mauritius-based venture capital fund, Enam India Infrastructure, will invest Rs 3,700 crore in India’s infrastructure and energy projects through a dedicated core sector fund. Promoted by Mumbai-based Enam Securities, the Mauritius outfit will bring in foreign direct investment worth Rs 3,450 crore through the fund. The cabinet committee on economic affairs cleared the investment proposal on Thursday. Enam India Infrastructure is a venture capital fund registered with Sebi in September last year and backed by promoters of Enam Securities. The private equity fund will essentially invest 80 per cent in infrastructure like roads, power, ports and airports. The rest 20 per cent will be invested in allied units connected with infrastructure sector. […]

MakeMyTrip to acquire Singapore-based travel company

India-based online travel services provider MakeMyTrip on Thursday said it will acquire 79% stake in Singapore-based travel agency Luxury Tours and Travel (LTT) for $3 million to expand its presence in markets outside India. The company, which also announced an over two-fold increase in its net profit for the quarter ended December, 2010 at $1.62 million from the same quarter of 2009, said it has the option of increasing the stake in LTT in future. “MakeMyTrip will also invest approximately $0.75 million in addition, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT,” it said. Further, the travel portal will acquire from the existing shareholders, their remaining shares in LTT, in three tranches over a three-year period ending June 2014, it said. […]

Education to get boost on govt reform, PE funds

India’s education sector is likely to see heavy investments from private equity funds over the next couple of years betting on increased government spending and as private players plan expansions, officials said. The sector, pegged at $86 billion, is seeing fresh interest from foreigners and large funds who are pumping in money in services, technology and infrastructure, they added. “The education market in India is roughly worth $50 billion in the private sector and all parts of the educational value chain are offering good investment opportunities,” said Rajesh Singhal, managing partner of private equity firm Milestone Religare Investment Advisors Pvt Ltd. “Private equity investment in the next two-three years should be in the range of $400-$500 million and that should not be a difficult target at all,” he added. Currently, investments are to the tune of $200-$250 million, officials say. Milestone Religare recently invested 250 million rupees in an Indian education service firm from its Rs6 billion private equity fund that focusses on education and healthcare. […]

Builders seek PE money for old land payments, more plots

Real estate developers are depending heavily on private equity (PE) funds to bail them out to make payments for old land acquisitions and to kick off projects at the land-buying stage. With bank loans drying up and cash flows under stress due to dipping sales, PE money seems to be the only source of relief. Two Mumbai-based firms, DB Realty Ltd and Ackruti City Ltd, need to pay up a premium of Rs.802 crore and Rs.330 crore, respectively, in February for the redevelopment of the high-profile Bandra Government Colony project in the city that was allotted to them by the state government last year. The land premium that was to be paid in September 2010 was pushed to February this year according to a 28 January report by Anand Rathi Financial Services Ltd. Both the developers have said that they will need to raise money to make the payments. […]