October 2011
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Nomura to acquire 25% stake in Market Xcel

Global consulting firm Nomura Research Institute (NRI) today said it has decided to acquire 25.1% stake in Market Xcel Data Matrix for an undisclosed amount. “Interest in the Indian market is growing among many Japanese companies…NRI will provide them with much quicker and more elaborate research and consulting services, with our partnership with Market Xcel, we see great value coming to our efforts in this direction,” NRI Director and Corporate Senior Vice President Shiro Tanikawa said in a statement. The company however did not disclose financial details. NRI's Indian subsidy will start operating in November, 2011. At first, it will have 10 staff members, but this figure will rise to around 30 after five years, it added. […]

M&A drops 41.5% in nine months

Mergers and acquisitions (M&A) in India have slumped by 41.5 per cent to $26.8 billion during first nine months of 2011 as rising interest rates and uncertainties in the global economy dampened sentiments, a report showed Friday. During January-September 2011 period, 177 mergers and acquisitions deals, valued at $26.8 billion, took place which is 16.9 per cent lower in volume and 41.5 per cent lower in terms of value when compared to the same period in 2010, according to data compiled by mergermarket, an independent mergers and acquisitions intelligence firm. Inbound deals accounted for 88.1 per cent of all Indian M&A activity, four times that of Indian investments overseas. Inbound deals stood at $7.32 billion in July-September quarter as compared to $2.65 billion in the previous quarter. […]

Walt Disney pays Rs 95 cr to pick up promoter stake in Indiagames

UTV Software Communciations has acquired the promoter and employee shareholding of 30.02 per cent in Indiagames — mobile and online gaming developer and publisher — for Rs 94.56 crore. Walt Disney already owns majority stake in Indiagames, as it acquired media conglomerate UTV in a Rs 2,000-crore deal in July this year. This values Indiagames at Rs 300 crore, six times its FY10 revenue of Rs 54 crore, making the deal one of the largest in the Indian gaming space. Disney will own 86.02 per cent stake in the company from its earlier 56 per cent. An announcement from UTV on the Bombay Stock Exchange said it was also in talks to acquire the 14 per cent stake from other investors. […]

For PE firms, energy is a red-hot pick

The energy sector has attracted maximum investments from the private equity players during July-September, the third quarter of calendar year 2011. Of the $2.25 billion worth PE placements across 98 deals in Indian companies during the quarter, about $823 million, or 37%, was in 16 energy-sector companies, according to data by Chennai-based research firm Venture Intelligence. Vikram Uttam Singh, head-private equity, KPMG, said, “We saw deals of close to $5 billion in the energy space last year and what is happening now is an extension of it. One of the reasons for this is that until recently very few deals of this size were available in the market. Power industry is very capital intensive and hence the deal sizes tend to be huge,” he said. […]

IDG Ventures buys stake in eshakti.com

Chennai-based eShakti, which makes customized, designer clothes for women, started exports to the US in 2008. It plans to use the money to scale up operations, add new product lines and also cater to Indian consumers. “Over the next six months, we will add accessories—belts, bags, jewellery, which would complement our clothes,” said B.G. Krishnan, founder and chief executive of eShakti.com. The company may look at yet another round of fund-raising next year, he said, but declined to reveal how much stake has been sold to Bangalore-based IDG Ventures. […]

Nippon may buy 26% in R-Cap MF arm

Reliance Capital Asset Management Ltd, the mutual fund arm of the Anil Ambani-controlled Reliance Group, may sell a 26% stake to Japan’s Nippon Life Insurance Co. Two Reliance Group officials said that the companies are in advanced talks and the transaction may be clinched at a valuation of up to Rs4,000 crore, which would be a record for a mutual fund stake sale. “Nippon Life has vast experience in managing assets. They bring expertise and scale on board. On the other hand, Nippon gets direct access to the growing financial services market in India through one of the most profitable Indian fund houses. So it benefits both,” said one of the two Reliance Group officials, both of whom declined to be named as final approvals are yet to be secured. […]

Fabindia acquires majority stake in UK based EAST

Marquee ethnic wear chain Fabindia has acquired majority stake in the UKbased womenwear retailer EAST. The New Delhi-based Fabindia has the option to buy the balance stake and take full control of the foreign retailer within a year, said a top company executive. Although the deal size could not be independently ascertained, industry insiders peg it between Rs 35-40 crore for 62.5% stake. “With the acquisition, we have the option of getting EAST products into India and also improving our apparel line using their design capabilities and technology,” said Sunil Chainani who represents Fabindia on the board of EAST. He, however, refused to disclose the deal size. Fabindia, known for its handcrafted jewellery and Kurta made from hand-woven fabric, acquired a 25% stake in EAST, for an undisclosed amount in early 2009 with the option of acquiring the rest in the next three years. […]

CLSA Capital Partners invests in Indian education

The private equity arm of brokerage CLSA said on Tuesday it has invested $22 million for a minority stake in Indian education specialist Resonance Eduventures, the latest in a string of recent investments from the fund. Indians' obsession with schooling combined with woeful public education and rising incomes means private equity firms like CLSA Capital Partners (CLSACP) are hunting for opportunities in the country's booming but fragmented for-profit education sector. Resonance, founded in 2001, is one of India's largest test preparation coaching institutes, focusing on entrance exams for engineering and medical sciences. […]

Bank of India rethinks 51% stake in Bharti AXA Investment

Bank of India (BoI) is “revisiting” its plan to buy 51% stake in Bharti AXA Investment Managers, a source with the public sector bank said. “Considering the current market conditions, we will revisit this plan and the board will take a final call on the deal,” the source said on condition of anonymity. An email query sent to Bharti AXA Investment Managers on Tuesday remained unanswered at the time of going to press. Bank of India, which had exited the mutual fund business in 2004, has confirmed that it is committed to re-entering the asset management business now. […]

Carlyle picks up 9% in India Infoline

The Carlyle group, which manages Rs7.55 lakh crore worth assets globally, has picked up a 9% stake valued at Rs192 crore in brokerage and financial services firm India Infoline (IIFL). The stake was picked up over the last few weeks from the open market, according to a Carlyle spokesperson. The private equity firm would get a seat on the board of the company, said a joint-note on the development. “Carlyle becomes a key institutional shareholder in IIFL and will be invited to join IIFL’s board of directors to support its future development, subject to necessary approvals,” it said. […]