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Transport Corporation of India (TCI), one of India’s largest logistics operators, is all set to dilute promoter holding by about 10% to raise capital for its expansion plan. This is the second time the company is looking at fund managers to finance its growth plans. Last year, Fidelity picked up 6-7% stake in the company. With this dilution, promoter holding in the company is expected to be around 57% at the end of the current fiscal. “The company plans to raise between Rs 50-75 crore in the third quarter of financial year 2008-09. The company plans to use the funds to expand its shipping fleet and trucking fleet and developing more warehousing centres across the country,” TCI executive director Vineet Agarwal said. A 10% divestment is expected to go at 15% premium and will raise about Rs 68 crore for the company at the current market rate, a senior industry analyst tracking the firm said. […]
Reliance Industries Ltd is in talks with Jet Airways Ltd to buy a 6-7 percent stake in the private airline, the Mint daily said, citing a source familiar with the development. The newspaper said on Tuesday Reliance was keen to buy a minority stake as it wanted to be associated with the domestic carrier's proposed cargo airline. “The mode of Reliance Industries' investment is not finalised. It could be issue of fresh shares or diluting promoter equity,” the daily said. Spokesmen for Reliance, India's leading petrochemical maker and a refiner, and Jet were not immediately available for comment. […]
KSK Power said its subsidiary KSK Energy Ventures, has successfully completed a pre-IPO placement of 1.73 crore equity shares at a price of Rs 240 per share, a company statement said. The company has issued shares to six financial institutions including Macquarie Bank (UK), Tree Line Asia Master Fund, Infrastructure Development Finance Company, Axis Bank, Universities Superannuation Scheme, UK and GE Capital (Mauritius). The two Indian entities IDFC and Axis Bank have invested Rs 75 crore and Rs 62.97 crore, respectively in the power projects firm. […]
Gemini Communication Ltd said on Monday it has acquired 51 percent stake in Chennai-based Veeras Infotek Pvt Ltd for 70 million rupees. The acquisition, funded through internal accruals, would start contributing to revenues from the current quarter, Executive Director R.Ramkumar told Reuters. The acquisition will extend Gemini's network security capabilities and increase its client base, he added. “They have a solid skill base, which is a big value addition. Their customer-base will also be added to ours,' he said over the telephone. Veeras has about 400 clients across the country while Gemini has more than 1000 clients. “We will be able to extend our services across the globe,” Ramkumar said. […]
Flush with cash from his wireless telephony company's sale, industrialist B K Modi is negotiating to acquire 39 per cent stake in Indian television company, Multi Screen Media (MSM), earlier known as Sony Entertainment Television. Modi, who was earlier eyeing the 32 per cent stake held by Indian shareholders, is now looking at acquiring an additional 7 per cent held by trusts. He is also planning to re-brand the television channel as Sony Spice TV. “We are in talks to buy Sony from the present shareholders and now we are close to acquiring 39 per cent stake in the company. We are also open to take our stake further to get majority control,” a top executive of Spice group said, on condition of anonymity. Apart from buying the Indian promoters' 32 per cent shares in the company, Modi is talking to various equity funds to garner another 7 per cent. With this buyout, Modi will become the largest shareholder in the company after Sony Pictures, which holds 61 per cent. The unlisted MSM is one of India's leading television channels and its minority promoters were looking at exiting the company for a long time. […]
The Saraswat Co-operative Bank Ltd has asked for Reserve Bank of India's permission to take over South Indian Co-operative Bank, sources at the bank said on Friday. “We have applied to the RBI to take over South Indian Co-operative and we expect the formalities to be completed in a couple of months,” a senior official at the bank told Reuters on the condition of anonymity. Another official said the bank management has met officials at the central bank on Thursday to discuss the proposal. Officials at the South Indian Co-operative Bank and the central bank were not immediately available for comments. Saraswat Bank has a deposit base of 110 billion rupees and an advances base of 70 billion rupees as of March, the official said. (Reuters) […]
Telekom Malaysia is understood to have picked up a little less than 15% stake in Aditya Birla group’s company Idea Cellular at a price of Rs 158 a share through a preferential offer paying above $2 billion for the acquisition. This values the Birla company over $10 billion. The preferential offer has been made to Telekom Malasyia (TM) at a substantial premium to the current market price of Idea Cellular. Idea’s scrip closed at Rs 108.25 on BSE, on Friday. Its market cap stood at Rs 28,527 crore. Sources said TM is learnt to have paid Rs 158 a share for about 15% additional stake in Idea Cellular. Idea would now buy out the Modi's 40.8% stake in Spice Communications and merge with it and TM would have 20% equity in the merged entity. While an Idea spokesperson declined to comment on this, the company in a filing to stock exchange said the company keeps pursing growth opportunities and can not comment on the reports of TM picking up 15% additional stake in Idea Cellular and as and when any definitive proposal of any nature is considered and approved by the company's board, the company shall inform the exchange. […]
The New York Times Co. intends to buy a 5% stake in Sieger Solutions, an advertising arm of India-based newspaper publisher Deccan Chronicle Holdings Ltd. If the deal goes through, DCHL will print its Financial Chronicle in association with the Times-owned International Herald Tribune, the Indian publisher announced in a filing with the Bombay Stock Exchange on Friday. That would include a daily four-page section from the Tribune in the Indian financial newspaper. The sale, the value of which has not been disclosed, will also be subject to statutory approvals and respective board approvals, the filing stated. The publisher’s Deccan Chronicle is one of India’s most widely circulated English dailies in competition with The Hindu and The Times of India. […]
US-based Merrill Lynch, Lehman Brothers, Kishore Biyani's Indivision and Standard Chartered Private Equity are in the race to buy a minority stake for $40 million (around Rs 170 crore ) in Neeraj Roy and billionaire Rakesh Jhunjhunwala-promoted Virtual Marketing India (VMIL). VMIL officials declined to comment on the development. According to sources close to the development, VMIL will sell stake to raise money for expanding Hungama, the content and mobile services arm. The Mumbai-based company has already held two to three rounds of meetings with these private equity investors. The company's valuation has been pegged at Rs 800 crore. The funds raised would be used for Hungama's expansion. The company plans to expand to 70 countries by the end of this year from the current figure of 30. Apart from the promoters, Anil Ambani-promoted Reliance Capital also holds a minority stake in the company. Hungama recently announced three key senior appointments to strengthen its business operations in South Asia. […]
Hyderabad-based IT products company SatNav Technologies has recently attracted investment of $7 million (approximately Rs 29.96 crore) from one of the leading venture capital players Sequoia Capital. The investment will be used to enhance the product portfolio of SatNav besides boost the depth of the company’s map content which is the backbone of all its products. Speaking at a press conference here on Thursday, Amit Prasad, founder and managing director of SatNav said, SatGuide is a famous navigation solution. It is today available on Windows OS mobiles, PDAs, PNDs (personal navigation devices), laptop and desktop and on Non-Windows OS phones. “We want to launch the navigation solution on other platforms like Symbian, Linux, Palm, Blackberry etc. Also we are working on different modes of delivery like GPS, GSM, CDMA and GPRS”, he said. This investment from Sequoia should see the company through for the next 12-18 months. If there is any further need, the VC firm is committed to infuse more funds, he added. […]
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