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United Telelinks Ltd., the maker of Karbonn branded mobile phones, is planning to sell a 15% stake in the unlisted company to private equity firms for six billion rupees ($135.2 million) as the Indian handset maker seeks to expand its business in the world's fastest-growing telecommunications market. “We are talking to private equity firms for raising funds,” founder and Chairman Sudhir Hasija said recently. “There are quite a few international private equity firms” interested in picking up stakes in the company, he added. Mr. Hasija said he expects to strike a deal after October, when the value of his firm is likely to touch about 40 billion rupees. By that time, the Karbonn brand will have cemented its No. 1 position among domestic handset makers after unseating local brand MicroMax in June, Mr. Hasija said. […]
Private equity firms, which have typically relied on banks, insurers and retail investors to raise money, now have a new source to tap—family offices, or independent companies formed to manage the wealth of families, usually through investments. A number of family offices have been formed in India over the past two to three years as successful business families have looked to diversify their portfolios. A single-family office is dedicated to one family, while a multi-family office serves several. Altamount Capital Management Pvt. Ltd, Evergreen Family Office and Metis Family Office Services Pvt. Ltd are some examples of multi-family offices. Banks such as Kotak Mahindra Bank Ltdand Barclays Capital, and financial services firms, including Edelweiss Capital Ltd, have also set up family offices. […]
Several Indian budget and midrange hotel chains are scouting for private equity money to fuel growth and expansion. Global and domestic investors are optimistic about India's emerging branded budget hotels, though the overall hospitality sector is yet to recover from the downturn of 2008-09, analysts said. “It wouldn't be difficult to raise money because for investors, India is one of the largest target markets for budget hotels,” said Akshay Kulkarni, executive director, hospitality services, Cushman and Wakefield India, a property advisory. Peppermint Hotels is preparing to boost its valuation before raising funds. […]
Private equity investments jumped to $5.8 billion in the first six months of 2011, driven by higher number of large-size transactions as well as increased activities in the infrastructure space, says E&Y. With capital markets remaining sluggish, more and more investors seem to be preferring the PE route to raise funds. According to global consultancy Ernst & Young , PE deal value in the six months ended June climbed 34 per cent to $5.8 billion as compared to same period a year ago. “The increase in aggregate deal value was largely driven by greater number of large deals (deals over USD 100 million). […]
Frontier Mediville, the proposed medicity project of Chennai-based KM Cherian promoted Frontier Lifeline, is looking at raising Rs 16-20 crore through private equity (PE) to invest in the first phase. The company has initiated talks with PE firms to raise capital and expects to finalise the deal in the next six weeks. However, it would not look at a significant dilution of promoter stake in the project at this stage. “We are looking for a small amount of around Rs 16-20 crore fund from PE firms. This would go into the Rs 160-crore Phase I of the project. We expect the first phase to be ready by November this year,” said Alamelu Sankaran, chief operating officer, Frontier Mediville. […]
Accel Partners, the globally-renowned venture capital and private equity fund, is set to embark on a fresh round of fund-raising dedicated to India. According to investment bankers, Accel Partners is understood to be firming up plans for a $125 million fund which will be its third in India. The Palo Alto, California-headquartered marquee venture capital fund, best known for investing early on in Facebook and Groupon, is understood to have sounded out its intent to various large fund of funds. The management of Accel Partners India offered not to comment on the fresh round of fund-raising. Accel Partners entered India in late 2008 when it acquired Bangalore-based early stage venture capital fund – Erasmic Partners. Erasmic at that stage was managing a $15 million fund. Accel post that went on raise its second fund in India and as of now manages a total $80 million and has so far backed 30 companies. […]
Paras Pharma founder Girish Patel, who exited his business in a blockbuster deal with Reckitt Benckiser, has jumped on to the private equity bandwagon in a trend of successful entrepreneurs setting aside their wealth to invest into small- and medium-size enterprises. And some of the cash-rich India Inc promoters are rolling up sleeves to be active investor managers in the new growth firms. Patel, 51, has JV capital fund Access India Advantage as operating partner after he mopped up Rs 1,000 crore selling 30% stake in Paras last year. […]
Real estate PE funds are different. These funds invest in real estate projects by tying up with the developer, wherein the developer sells a portion of the project to the fund. Some funds tie up with companies also. Most funds operating in India have a lock-in period of three to seven years. At the end of this period, the fund exits the holding by selling it in the secondary market. If the investment is in a commercial property, the fund may rent it out within the lock-in period and exit later. Most funds invest in residential projects and those commercial projects that are nearing completion. While residential projects move faster in the market, there is a rental yield attached to commercial projects. […]
Lead manufacturer company Gravita India on Tuesday announced to acquire 80 per cent stake in Jammu and Kashmir based Metal Inc, Kathua. Gravity is also under process to acquire the balance 20 per cent stake in Metal Inc, Kathua, Gravity India said in a statement. The company said the latest addition hall further increase the Lead smelting and refining production capacity of company by 3,600 tonnes per annum to 46,200 tonnes per annum. […]
Motherson Sumi agreed to purchase an 80% stake in Germany's Peguform for an undisclosed amount, as the Indian maker of auto parts takes yet another step to expand its product portfolio and customer base. Motherson Sumi will buy the stake jointly with group firm Samvardhana Motherson Finance Ltd. via a special company in which the auto parts maker will hold a 51% stake and Samvardhana Motherson the remainder. The stake will be purchased from Austria's Cross Industries AG, which will hold 20% of Peguform post the transaction, Motherson Sumi said. The deal also includes buying a 50% stake in Wethje Carbon Composite, which is part of Cross Industries, it said. The acquisition is subject to regulatory and other necessary approvals. […]
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