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Shriram Properties on Tuesday said it would partner with U.S. real estate private-equity firms Walton Street Capital and Starwood Capital Group to develop a $1.25 billion township in eastern India. The project in the city of Kolkata in West Bengal will cover about 20 million square feet of land and include residential, retail, office and civic infrastructure, the companies said in a release. Hindustan Motors previously owned the land. International architecture firm HOK has been signed on for the project. “Starwood Capital is committed to playing a strategic role in this alliance and creating a world-class integrated township. The group is focused on expanding its footprint in India both in real estate and the hospitality sectors, across asset classes and geographical regions,” said Balaji Rao, managing director of Starwood Capital India. Last year, it reportedly committed $500 million to investments here. Shriram Properties is the real estate arm of the $6 billion Channai-based Shriram Group that has interests ranging from insurance to technology. It has built over 4.5 million square feet of residential and commercial space in the cities of Bangalore, Chennai and Hyderabad. The company is developing 70 million more square feet of space across the country, including retail, hotels and civic infrastructure. […]
The poster girl of India’s beauty business, Shahnaz Husain, is opening up her closely-held company, Shahnaz Herbal, to private equity (PE) players. The company, which dominates the premium product segment, is looking at private equity funding of around $ 43 million (Rs 175 crore) to build and promote new brands. “We are in talks with a host of Indian and foreign private equity firms for fund infusion, but nothing has been firmed up yet,” Sharik Currimbhoy, vice-president, Shahnaz Herbals, told ET. He is the grandson of Shahnaz Husain. Launched in 1970, Shahnaz Herbal has a turnover of around Rs 500 crore now and a valuation exercise is underway. The company proposes to use PE funds to promote new brands such as Shahnaz Forever that will be launched soon. This brand will have an entire range of products targeted at the mass market. […]
American International Group (AIG), Carlyle and General Atlantic Partners are in the final race to pick 10-15% stake in Bangalore-based Sobha Renaissance Information Technology (SRIT) for around $50 million. The deal could value SRIT, the tech arm of Sobha Developers Group, at $400-450 million, a source said. It is believed that AIG is the front-runner in the process managed by Edelweiss, while multi-stage venture capital giant Oak Investments Partners is seen as another possible player in the fray. “Out of the 11 interested suitors, the list has been narrowed down to three, or possibly four. The deal could be unveiled by this month end,” the source added. SRIT, with estimated current revenue of around $60 million, is an emerging player in digitized healthcare, telecom and enterprise solutions. The company is seen attracting 7-8 times valuation on revenues going by the details emerging on the impending transaction. The promoter $2-billion Sobha Group owns almost 100% of SRIT currently. When contacted, SRIT confirmed Edelweiss was running a mandate for picking up a partner, but declined to identify the suitors in the fray. […]
Bennett, Coleman and Co. Ltd (BCCL), the publisher of The Times of India and The Economic Times, has acquired 6.83% equity stake in Kolkata-based lifestyle retail firm Nik-Nish Retail Ltd. “The association with BCCL will help us achieve a higher brand visibility through access to the large audiences provided by the group’s media,” says Bharat Jain, managing director of Nik-Nish Retail. Nik-Nish has been in operation since the past four years and is into retailing of lifestyle products, fashion accessories, gift items and household products. The group’s marketing strategy is to emerge as a leader in fashion accessories and home decorations. […]
Investment company Promethean India PLC said it has acquired a 5.28 pct stake in India-based Nitco Tiles Ltd through its Mauritian subsidiary, Promethean India Investments Fund 1. Nitco Tiles makes building products and distributes ceramic tiles and imported marble. The company also has a newly formed real estate development business through its wholly owned subsidiary, Promethean India said. No financial details were disclosed. (Hemscott) […]
A clutch of leading private equity giants such as Blackstone are in the race to acquire a minority stake in Nusli Wadia’s Bombay Dyeing. There is growing buzz in the market that the Wadias are looking at shedding less than a 15% stake to private equity funds. People close to the situation said that Bombay Dyeing, which needs money to expand its real estate and airlines business, along with its planned forays into retail, may consider the private equity route as one option for raising money. A Bombay Dyeing spokesperson categorically denied any plans to rope private equity investors into the company. When quizzed if private equity giant Blackstone is the frontrunner, a senior executive of the company said: “We have not even had a cup of coffee with anyone in Blackstone at any level.” Akhil Gupta, chairman and managing director of Blackstone India, said: “We have signed confidentiality agreements with several people. I cannot comment on the individual specifics of the deal.” People close to Bombay Dyeing say that the Wadia family, which has never shared equity with outside investors in any of its old core companies, will have the final say in determining the transaction’s success. The deal may not happen if the terms are too onerous or if the Wadia family feels that money can be easily obtained through other means such as a rights issue. […]
Institutions, who were unwilling to touch IFCI with a barge poll even a few years ago, now want to buy a stake in the company. Soon it will be clear whether such interests are genuine, or the hype around the scrip is only to help some operators who have built up positions to make a killing. The latest buzz is that the US-based hedge fund DE Shaw has joined the race for acquiring a strategic stake in IFCI, India’s oldest state-owned financial institution. DE Shaw, with assets worth over $30 billion, is believed to have put in bids in response to IFCI’s decision to sell a 26% stake in favour of strategic investors, said sources. When contacted by ET, DE Shaw country head Anil Chawla said: “I do not comment on my investments.” Apart from DE Shaw, a host of other leading investors are also reportedly contending for the IFCI pie. Blackstone, Citigroup, Barclays and Standard Chartered Bank figure prominently among the possible foreign suitors. Besides some of IFCI’s investments which have grown in value, the stock is thriving on the story that there is a real estate play underlying several dud loans of IFCI. […]
UK-based Ashmore Investment Management Ltd is picking up a 74 per cent stake in Broadband Pacenet, a Mumbai-based broadband services provider. Earlier, Zee Group had agreed to buy out Pacenet but the deal did not conclude over differences in valuation. In May Jagjit Kohli, one of the three founder-promoters of Pacenet, quit Zee's demerged cable company Wire & Wireless India Ltd (WWIL) where he was the managing director. Broadband Pacenet will soon apply for FIPB (foreign investment promotion board) clearance. “We are making an application to FIPB for its approval to enable Ashmore take a 74 per cent stake in Broadband Pacenet,” says Kohli. The FIPB, in fact, has advised Broadband Pacenet to submit a revised proposal. This follows the new guidelines on ISPs (internet service providers) which allow a 74 per cent FDI (foreign direct investment) cap. Broadband Pacenet had earlier made an application to FIPB for a 100 per cent FDI clearance. […]
U.S.-based private equity group Blackstone is likely to join the race to acquire a 26 percent stake in state-run financial lender IFCI Ltd , the Economic Times said on Tuesday. Blackstone could come in as a standalone strategic investor or as the lead partner in a consortium, the report said citing sources. Company officials were not immediately available for comment. Other firms that are likely to submit their bids for IFCI include Standard Chartered Bank, Citigroup, Reliance Capital , Barclays and Swiss UBS Securities, the report said without citing sources. Earlier media reports have indicated that Punjab National Bank , Life Insurance Corp of India and IDBI Ltd are also likely to bid for the stake. Last month, the lender had invited expressions of interest for the 26 percent stake. The last date for bid submission is September 14 and the shortlisted candidates will be named on September 25, the report added.(Reuters) […]
Blackstone, JC Flower, Fortress, Temasek and 3i in talks with LIC Global private equity investors Blackstone, JC Flower and Fortress of the US, Temasek of Singapore and 3i of the UK are in talks with the Life Insurance Corporation of India (LIC) for buying a combined 15 per cent stake in the life insurer’s proposed credit card venture with US-based GE Money. The valuation of the proposed company is still to be worked out. LIC will own a 40 per cent stake, GE Money India 30 per cent and Corporation Bank, LIC Housing Finance and LIC Mutual Fund 5 per cent each. GE Money would lend its credit card expertise and technology platforms for the LIC credit card venture, while LIC will tap its 200 million customers to grab a share of the fast-growing credit card market. Payments via credit cards rose 22 per cent to Rs 41,361 crore in 2006-07. The total credit cards receivables outstanding at the end of March 2007 was Rs 13,316 crore, up 46.6 per cent from a year earlier. A senior LIC official confirmed that talks were on with these private equity players. Industry sources said Carlyle too had evinced interest in buying a stake in the venture. Consulting firm KPMG is advising LIC on it. […]
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