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The plea of UKbased telecom operator Vodafone to buy 5.48% stake in the joint venture – Vodafone-Essar – from two Mauritius-based entities has been approved, the government said. “Since the transaction is between non-resident (firms) to non-resident, there is no foreign equity inflow,” the finance ministry said in a statement. The transaction is for transfer of shares of Vodafone Essar from Mauritius-based Essar Communications and Essar Com Ltd to Euro Pacific Securities – an indirect Mauritius-based subsidiary of Vodafone International Holdings BV. The transaction is worth Rs 2,700 crore. The FIPB cleared the transaction based on information provided by the company and inputs from a committee headed by a senior government official, the statement said. […]
Private equity giants Blackstone and Carlyle Group have jointly expressed interest to bid for Reliance Communications Ltd's tower business, said two sources briefed on the matter. The potential investors are holding initial due diligence that may lead to a bid offer valuing the enterprise at about $4 billion, they added. Reliance Communications (RCom) has put Reliance Infratel, which owns at least 50,000 towers, on the block looking at a valuation of around $5 billion. RCom is open to selling its entire 95% stake in its tower arm. Blackstone and Carlyle may face a competing bid from another private equity consortium consisting Apax Partners and Advent International, said one source, but the same could not be ascertained at the time of going to press. […]
Small Industries Development Bank of India, or Sidbi, plans to launch three venture capital funds worth 850 crore this fiscal to support small and medium enterprises. “The domestic market for SMEs is buoyant. The funds will support the growth story,” Sidbi managing director S Muhnot told newsmen in Kolkata. The SME sector grew 11% last year. The largest of the venture funds – the India Opportunity Fund – will be worth 500 crore and will be given to SMEs having a good track record. The second one will be worth 50 crore and will be floated to encourage and invest in small units planning to enter the capital market through the proposed SME exchanges. “We will act as a market maker for the proposed SME exchange. So, we will launch the Nominated Investors Liquidity Fund to this endeavour,” Muhnot said. […]
Company will carry out an open market sale of shares in several tranches. Mahindra & Mahindra (M&M), India's largest sports utility vehicle manufacturer, on Thursday said its board has approved the sale of 8.09 per cent stake in its hospitality arm, Mahindra Holidays & Resorts India (MHRIL). M&M, which currently holds 83.09 per cent of direct equity stake in MHRIL, a listed subsidiary, will carry out an open market sale of shares in several tranches that would be completed before June 2013. “The first tranche will happen in the near term. This move is primarily to comply with the statutory requirement for listed companies to reach a minimum threshold of 25 public shareholding,” said the Mumbai-based company. Uday Phadke, president, finance & legal, M&M, said: “We plan to divest a total of 8.09 per cent of MHRIL equity share capital in small lots over the course of the next 16 months through the market. In addition to meeting the statutory requirement this sale will significantly improve the float of MHRIL shares in the market.” […]
Baring Funds that began their investments in Indian entities in 1997, is looking for investment opportunities in the pharma space and could invest up to $ 75-100 million, said Amit Chander, head of investments (healthcare & pharma), Baring Private Equity Partners India. Currently, Baring Private Equity Partners India (BPEP India) has around $50 million invested from active funds in the healthcare space that are spread across 7-8 companies in the country, he added. Some recent investments in the sector include Sphaera (a startup engaged in discovery and development of pharmaceutical drugs) and Shilpa Medicare (manufacturer and exporter of high-quality bulk drugs). Chander, who previously worked in Accenture and Crisil, said that Baring would consider investing in pharma companies focussed on exports in lesser-developed markets, India-focussed businesses that are involved in branded generic products or special pharma businesses. […]
Rising consumer spend on luxury couture is leading to a sharp spike in private equity investment in the apparel sector. Investors have put in $98 million of risk capital into high-end luxury apparel firms this year, up from a meagre $4 million invested in the sector last year. More global fashion houses are seeking to partner with Indian firms. Waiting in the wings is Spanish luxe chain Massimo Dutti which is looking to sew up a joint venture with the Tata Group's retail firm Trent. L Capital, the PE arm of luxury brand LVMH, plans to showcase ethnic haute couture through a joint venture with Genesis Luxury to promote work of leading Indian designers such as Sabyasachi Mukherjee, Rohit Bal and Tarun Tahiliani in addition to bringing international brands. […]
A fund managed by JPMorgan Chase & Co has agreed to invest about $400 million in India's SKIL Infrastructure for a stake of just under 20 percent, two sources with direct knowledge of the development told Reuters. SKIL, which controls ship-builder Pipavav Defense and Offshore Engineering Ltd and has a 21 percent stake in Everonn Education, will use the funds to pare debt and fund its growth, one of the sources said. Part of the funds will be used by SKIL to repay loans it took to buy about 20 percent of Pipavav from construction firm Punj Lloyd last year, the source said, adding SKIL will also invest in defense and education. Pipavav, which is now 43 percent owned by SKIL, was previously known as Pipavav Shipyard. […]
Private equity firm Ascent Capital has invested Rs 200 crore in Karaikal Port Private Ltd (KPPL), a subsidiary of Chennai headquartered Marg Ltd. The funds will be used for the Marg Karaikal Port-Phase 2A expansion, which is expected to enhance its capacity from the planned 21 MMTPA to 28 MMTPA and involves an additional capex of Rs 600 crore. KPPL had entered into definitive agreements with Ascent and as per the terms of the agreements, the latter would invest Rs 200 crore by way of secondary purchase of promoter equity shares amounting to Rs 150 crore and by way of primary infusion of Rs 50 crore by subscribing to compulsorily convertible preference shares. The deal values KPPL at Rs 1,330 crore on a pre-money basis. […]
After growing nearly 10 times in the past six years—from handling $300 million (Rs.1,395 crore today) of assets in 2005 to $3.2 billion in 2011—IL&FS Investment Managers Ltd (IIML), the largest private equity (PE) firm in India, plans to focus on consolidating its position this fiscal even as it is raising three funds. “In 2005, given the growing opportunity base and stability of the PE industry, the strategy was to splice the business and create well-defined funds,” said Archana Hingorani, chief executive and executive director, IIML. Accordingly, IIML grew the business along three business segments—growth private equity, infrastructure and real estate. […]
Private equity investment in India's real estate sector declined by around 20.2 per cent to $ 831 million (about Rs 3,740 crore) in the first five months this fiscal due to sluggish demand. Factors like the tight availability of funds with PE players and delays in project execution prompted fund houses to adopt a cautious approach toward the real estate sector, according to data compiled by research firm Venture Intelligence. PE players had pumped $ 1,041 million (around Rs 4,685 crore) into the realty sector during the April-August period of the previous fiscal, as per the data. […]
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