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US private equity firm Bain Capital and Government of Singapore Investment Corporation, the sovereign wealth fund, are close to an agreement to buy a minority stake in listed Indian motorcycle maker Hero Honda from the controlling Munjal family, according to people familiar with the matter. The expected transaction, for which an exact price has not been disclosed, could be as much as $1.75bn. It follows the sale at the end of last year by Japan’s Honda Motor of its 26 per cent stake in the company back to the Munjal family at a sharp discount, for Rs900-Rs1,000 a share, the same people said. Shares in Hero Honda, the world’s largest motorcycle maker, have been dropping on the Bombay Stock Exchange since the start of January. They traded at Rs1,620 on Monday, giving the group a market capitalisation of about Rs320bn ($6.9bn). Part of the downward pressure has come from concerns over the impact of Honda exiting its stake, but the sale also comes as the Reserve Bank of India is raising interest rates and the stock market has stumbled. […]
PE fund spotted Facebook, Groupon early on This may well be the best fund news for Indian entrepreneurs looking at growth capital. Accel Partners, the marquee global venture capital and growth equity provider with $6 billion assets under management, is enroute to setting up a $400 million India-dedicated private equity fund. The Palo Alto, California-headquartered fund, best known for investments in Facebook and Groupon, with both of them commanding blockbuster valuations, is understood to have hit the road to set up the India fund. Investment banking players indicate that Accel is aggressively looking at this space even as it is looking to expand its venture capital business. The fund, during late 2009, hired Neeraj Bhardwaj from Apax Partners as MD of the growth capital business in India and presently has a three-member team manning this. Accel Partners did not respond to mails requesting for statement on this. Founded in 1983, Accel Partners has a long history of excellence and innovation in the global venture capital and growth equity business. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California, London and Bangalore, as well as in China via the IDG-Accel Partnership. […]
Dubai-based $6-billion conglomerate Emirates Trading Agency (ETA) will be divesting up to 25% stake in its Indian engineering services firm ETA Engineering to New Silk Route (NSR). The Rajat Gupta-spearheaded private equity may invest Rs 300 crore in ETA Engineering, said sources privy to the development. ETA Engineering, based in Chennai, provides electromechanical services to hotels, hospitals, technology parks and other commercial buildings. A top official at ETA group said the company was in talks with the PE funds to raise capital for unlocking the huge growth potential in India. The investor will subscribe mostly to fresh shares apart from buying a small part of the promoting holding in a secondary transaction, he added. Veda Corporate Finance is adviser to the transaction, sources added. NSR is $1.4-billion private equity fund focused on Asian markets, especially India. The recovery in private equity investments has been led by the buoyancy in the core infrastructure and allied services, and this potential transaction reflects the continued investor interest in solution providers to the infra play. […]
Three months after a spate of lawsuits were filed in the Delhi high court by suppliers to recover their dues from Koutons Retail India Ltd, Ascent Capital, one of the principal investors in the cloth seller, has exited the firm at a loss and considers the investment a “write-off”, said two executives at the private equity (PE) firm briefed on the development. “We have completely exited Koutons. It’s at a loss…it’s as good as a write-off. We haven’t made any money in it,” one of them, a top executive at Ascent Capital, said on condition of anonymity. He declined to give more details. Ascent Capital, formerly known as UTI Ventures, invested about Rs.54.6 crore in Koutons through two rounds in 2006, a year ahead of the company going public. The PE firm held an 8.3% stake. In December, VC Circle reported that Ascent Capital part-exited from its investment by selling 2.8% stake at a 58% loss. It sold the balance stake in the market late December. […]
Multiples Alternate Asset Management, a private equity (PE) fund founded by Renuka Ramnath, the former CEO of ICICI Venture, has received Rs 325 crore ($70 million) for its offshore fund from the Public Institution for Social Security (PIFSS) — a pension fund run by the Government of Kuwait. With this fund, Multiples has achieved a corpus of more than $425 million. It is targeting a size of $450 million. In March, the government-run Canada Pension Plan Investment Board made an anchor investment of $100 million into the fund. In July, CDC Group, a UK-based development finance institution, committed $30 million. Its first sector-agnostic fund will focus on sectors like financial services, healthcare, infrastructure and retail, with a typical deal size of $20-30 million. Though the size of PIFSS is not known, it is one of the largest pension funds in West Asia. […]
3i Group Plc, Europe's largest publicly traded private equity firm, plans to start a $1.5 billion fund in about six months to invest in Indian infrastructure including railways, ports and roads. The fund, to be based in London, would probably target a return of between 13 per cent and 18 per cent, Chief Executive Officer Michael Queen said in an interview in New Delhi today. Queen is traveling as part of a delegation with UK Business Secretary Vince Cable, who is seeking to increase exports and secure investment for Britain. 3i, one of the U K's oldest private equity firms, is seeking to boost profit after the credit crisis slowed deal- making. India is planning to spend about $1 trillion in the five years to 2017 on upgrading its transport and power networks, which are ranked below those of war-ravaged Ivory Coast. […]
Standard Chartered Private Equity Advisory (India) Pvt Ltd., or SCPE, has decided to offer debt finance alongside private equity (PE) finance as it seeks to enter India’s lucrative infrastructure sector. The PE arm of Standard Chartered Plc is currently working on three mezzanine deals—which include equity and debt components—in India and hopes to close at least two by March, Nainesh Jaisingh, managing director, SCPE, said in an interview last week. “For the first time in the history of Indian PE investing, four-five deals in the $200 million-plus category happened in 2010. All of these were infrastructure asset plays,” Jaisingh said. The Planning Commission has forecast a major ramp up in infrastructure spending—from $514 billion in the 11th Five-Year Plan (2007-12) to $1 trillion in the 12th plan (2012-17). […]
American fund house KKR is likely to start an India focused USD 1.5 billion fund to invest across listed and unlisted Indian companies. Reports suggest that the fund would focus mainly on energy, power, infrastructure, auto components, brokerage houses and capital market infrastructure institution. KKR’s fund may also look at facilitating buyout deals in India. The America based firm is said to have already raised 25% capital for its India fund and is likely to close the fund by July-end. Presently, KKR founder, Henry Kravis is in India to monitor the India fund. Kravis has also met with Indian firms for investment opportunities. […]
Kohlberg Kravis Roberts and Co. (KKR), one of the world’s largest private equity (PE) firms, has started offering debt finance to Indian corporations to complete its suite of products. Globally, PE funds such as The Blackstone Group LP and Oaktree Capital Management LP do provide debt financing, but KKR has made the first move in India. KKR has completed four debt transactions worth around Rs.2,800 crore through its non-banking financial company (NBFC) KKR India Financial Services Pvt. Ltd, set up in 2009, while the PE arm has deployed at least Rs.4,600 crore across five deals. “The strategy is to be a multi-asset solutions provider,” said Sanjay Nayar, chief executive and country head of KKR in India. […]
Global private equity giant Blackstone has emerged as the top private equity investor in India investing a total of $441 million during 2010 which saw the PE investors invest $5.4 billion, a growth of 56 per cent over 2009 levels of $3.45 billion. Blackstone was followed by Singapore’s sovereign fund Temasek ($375 million) and then KKR with $358 million. CG Srividya – Partner, Specialist Advisory Services, Grant Thornton said that maximum investments have taken place in the power & energy sector, followed by real estate & infrastructure and banking & financial services. “There have been several significant PE exits in 2010, which have been made possible by some of the high value M&A transactions as well as the considerable pick up in the IPO segment,” she added. However, in terms of more number of deals IFC, the investment arm of World Bank, has come on top striking 24 deals followed by Sequoia Capital (13 deals) and then Nexus with ten deals. […]
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