December 2011
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UTI Capital buys 4% stake in Indian Oiltanking for Rs 100 crore

UTI’s private equity arm, UTI Capital, has bought 4% stake in Indian Oiltanking, a joint venture between state-run Indian Oil Corporation and Germany’s Oiltanking GMBH, for Rs 100 crore. Indian Oiltanking, which builds operating terminals and storage facilities for petroleum products, will use the proceeds to fund its upcoming storage terminal in Paradip and for its overseas EPC projects, said Jayanta Bhuyan, managing director, Indian Oiltanking.

“We have been looking at raising funds from private equity players primarily to fund […]

SAR Group buys 55% stake in Fly Mobiles’ business in India, Saarc regions

SAR Group, makers of Wynncom brand of mobile phones, has acquired a 55% stake in UK-based Fly Mobiles’ business in India and Saarc regions. Both Fly and Wynncom, with combined sales of about Rs300 crore annually, and selling nearly 2,00,000 units a month, will continue to be separate brands. SAR plans to become a Rs 1,200-crore brand by mid-decade.

SAR Group promoter Rakesh Malhotra confirmed the development and said that deal size along with additional investments over the next three […]

Private equity funds step up logistics exposure

FDI in retail may be on the backburner for now, but private equity investors are ramping up investments in the logistics sector. The latest in the series of deals is a pact by New York-based private equity fund, India Equity Partners (IEP), to acquire the road operations of Dutch freight major TNT Express in India. While the deal value could not be ascertained, the road transportation business of TNT Express had a top line of Rs 200-220 crore. The segment […]

Lack of meaningful exits remain big concern for PE funds in India, says KPMG

About a third of PE investments are currently losing money, but the evidence is publicly hidden by many fund managers’ decisions not to divest underperformers

India’s economic growth has propelled private equity (PE) investments in the country to $8.2 billion in 2010 from $470 million in 2003. Although the increase in deal volume and value indicates the attractiveness of India as a PE destination, the true measure of success of a PE investment is when the fund exits, makes […]

PE firms may close India operations over economic uncertainty

Rising economic uncertainty will lead to several private equity (PE) firms closing their India operations in the coming months fear industry watchers.

“”Due to the imminent slowdown in the economy, arising out of uncertainty in the global markets, decline in factory output and the weakening of the rupee, several PE firms are finding the going tough and a few could even shut shop in the months to come,”” said Rahul Bhasin, managing partner at Baring Private Equity Partners.


PE firm Bravia Capital may invest in Kingfisher Airlines

After pushing the Government to allow foreign airlines to invest in domestic airlines and seeking a debt recast from banks, debt-ridden Kingfisher Airlines may be looking for investment from China. Hong Kong-based private equity firm, Bravia Capital is said to be eyeing an investment in Kingfisher Airlines. When contacted, a spokesperson for the airline merely said, ‘no comments’. And e-mails sent to Bravia Capital remained unanswered. Government sources said that there were no restrictions on investments from China, including Hong […]

PE firm Jacob Ballas to invest $150 mln in India

India-focused private equity firm Jacob Ballas Capital expects to invest about $150 million in Asia’s third-largest economy over the next 12 months, scooping up assets that offer strong long-term growth, a top official said on Wednesday. A sluggish near-term economic outlook has brought down valuations in the country of more than 1.2 billion people, and has thrown up good opportunities, Srinivas Chidambaram, managing director of the firm’s Indian operations said. “Most of the companies are more reasonably priced now. If […]

Pantaloon denies sale of financial services units

Kishore Biyani’s Pantaloon Retail (India) Ltd, today denied a newspaper report that said the company had sold its stake in Future Capital Holdings and Future Future Generali Life. The Mumbai-based group informed the stock exchanges that it denies any such transaction “at this stage.” The denial came after The Economic Times today reported, citing people close to the development that the retail entrepreneur will sell his financial services units to Deccan Chronicle and Industrial Investment Trust (IITL), through two separate […]

Taxman spoils Indian M&A party

Corporate guarantees given for 2007-08 deals facing high taxes now; industry presses for change in rules. Three years after the great Indian deals party of 2007-08 got over, the taxman is playing the party pooper. Indian companies that purchased assets abroad are facing an up to 10 per cent increase in deal costs due to transfer pricing adjustments raised by the income tax department. The department is raising these adjustments on commission or fees chargeable for corporate guarantees given by […]

Hedge fund, private equity rules soon

The Securities and Exchange Board of India (SEBI) hopes to finalise regulations for alternative investments in the next two months, UK Sinha, chairman of the capital market regulator, said on Tuesday. SEBI had put up a concept paper for regulation of alternative investment funds, or AIFs, on its website in August. AIFs have been classified into nine categories, including a category for private equity funds. Any fund operating as a hedge fund shall be required to be registered as ‘strategy […]