February 2011
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SIDBI to launch Rs 1,000 cr venture capital fund for SMEs

Small Industries Development Bank of India (SIDBI) will launch a venture capital fund of Rs.1,000 crore (USD 220 million) to provide loans to small and medium enterprises (SME) sector, a top official of the bank said Tuesday. “We are in the process of launching the venture capital fund to provide loan to the SME sector. The corpus of the fund will be Rs.1,000 crore,” SIDBI deputy managing director N.K. Maini told reporters on the sidelines of a programme organised by the Conferderation of Indian Industry (CII) in Kolkata. Maini said total disbursements of the bank were expected to grow at a rate of 15 to 20 percent this fiscal. The asset size of the bank, which was Rs.37,000 crore last fiscal, was expected to be about Rs.41,000 crore in the current financial year. “Total loans sanctioned and disbursements were Rs.35,000 crore and Rs.32,000 crore respectively in FY '10,” he said. […]

StanChart Private Equity invests Rs 460 mn in Innoventive Inds

Standard Chartered Private Equity announced that it has made an investment of Rs. 460 million in Innoventive Industries, a multi-product engineering company based in Pune, India. The investment includes a primary infusion of Rs 304 million into the Company as part of the Pre-IPO investment. This funding will part finance the expansion of the Company`s existing precision steel tube manufacturing facilities at Pune. With this investment, SCPE`s equity stake in Innoventive Industries Limited will be 10.14%. Innoventive is a multi-product engineering company focused on precision steel tubes and value added steel products (including boiler steel strips) and oil well couplings (through its subsidiary). The company`s product range find application in diverse industrial sectors including transportation, oil & gas, power, farm equipments and general engineering. […]

Ansal may raise up to Rs 350 cr from PE deals

Realty firm Ansal Properties & Infrastructure plans to raise up to Rs 350 crore within this year from private equity players by diluting its stake in various projects to fund its ongoing construction activities. According to sources, Ansal API is in talks with 4-5 private equity firms to raise $50-75 million by diluting stakes in 3-4 townships, being developed in North India. “The company is aggressively pursuing its development works and is in talks with various PE firms… It is almost in the final stages of negotiations with Red Fort Capital (RFC) for its Gurgaon township — Esencia,” a source said. RFC is likely to pump in over Rs 150 crore in the project for “some” stake, he said. When contacted, Ansal API CEO and Joint Managing Director Anil Kumar declined to comment on the development. The Gurgaon township is being developed in 112 acres of land with about 3 million sq ft of saleable area. […]

Kingdom of Dreams operator to sell 20% stake, raise Rs 200 cr

The Great India Nautanki Company (GINC), which runs the mega entertainment project 'Kingdom of Dreams' in Gurgaon, is looking to offload 20% stake to raise up to Rs 200 crore to fund future expansion. Besides, the company is also considering an initial public offer by 2013 to raise more funds. It is currently holding talks with high networth individuals (HNIs) and private equity investors for the stake sale. GINC, a joint venture of Wizcraft International Entertainment and Apra Group of Companies, was set up to promote Indian culture and performing arts with a focus on Bollywood. “We are looking at equity dilution of 20% to create funds for which we are talking to a few people and expect to raise anywhere between Rs 150 crore to Rs 200 crore,” GINC, Chairman and Managing Director Anumod Sharma told PTI. […]

LVMH to pick up stake in Gitanjali Gems' new arm

The world's largest luxury conglomerate, LVMH, through its private equity arm L Capital, is set to acquire a significant minority stake in Gitanjali Gems' proposed subsidiary that will control its branded jewellery and retail businesses, said two persons directly involved in the transaction. The deal worth $100-125 million is aimed at bringing the world's best know-how, expand aggressively in the domestic market and take Gitanjali Gems to global scale. With India and China accounting for 60 percent of the wealth of the region, the French multinational would be happy to get a larger footprint here. L Capital will pick up stake using money from its $500-million L Capital Asia Fund, which was raised in 2010. L Capital India's senior official, Anuradha Raja, declined comment on the transaction. NM Rothschild and Keynote Corporate Services are the advisors to Gitanjali Gems, and officials from both the investment banking firms refused comment. […]

Ratnakar Bank raises 720 crore from Institutional Investors

Kolhapur-based Ratnakar Bank has raised Rs 720 crore by selling shares to institutional investors at Rs 67 per share. With this issue the bank's networth has crossed Rs 1,000 crore Speaking to TOI, Vishwavir Ahuja, MD & CEO, Ratnakar Bank, said that this was among the initial step towards putting the building blocks in place for expansion of the bank. Given that the asset base of the bank is a little over Rs 2,000 crore, the new capital infusion will provide the bank with capital to grow its business several fold. The equity investors in the bank include Beacon India Private Equity Fund, Cartica Capital, Faering Capital, Gaja Capital Partners, HDFC, Norwest Venture Partners, and Samara Capital […]

Mukta Arts acquires stake in Maya Digital Studios

Mukta Arts Limited has completed its presence in all verticals of the Motion Picture Production pipeline by acquiring a substantial minority stake in Maya Digital Studios. When Mukta Arts went public in 2000, the only film production house at the time to go public, it laid out strategies for the next decade. Since 2000, Mukta Arts has built business models in Exhibition Programming, Distribution, Film Education and Film Exhibition. After taking this stake, the Mukta Arts group is now present in all verticals of the film industry starting from Film education (Whistling Woods International), Programming & Distribution (Mukta Movie Distributors), Exhibition (‘Mukta Cinemas’ chain of multiplexes open in April 2011) and now in the Animation & VFX industry in Maya Digital Studios. The new studio will be based out of the Mukta Arts Head Office Building ‘Mukta House’, in Filmcity Mumbai & will have 4 primary business lines – Original IP creation, outsourced Animation & VFX work for international projects, international co-productions & 2D to 3D conversion. […]

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. […]