Sarovar Hotels is exploring the option of going in for an initial public offer (IPO) or a second round of private equity funding to raise Rs 250-300 crore for funding its domestic expansion plans. The hospitality company, in expansion mode, is setting up 23 new properties at an investment of over Rs 500 crore. Sarovar's own commitment has been to the tune of Rs 150 crore. Anil Madhok, managing director, Sarovar Hotels, told DNA Money, “At the moment, we have Rs 200 crore of investible funds. But, we are weighing the option of an IPO or private equity placement to raise Rs 250-300 crore.” More than a year-and-a-half ago, the company had raised $8.5 million from US-based Bessemer Venture Partners and New Vernon through an equity dilution of about 24 per cent. […]

The 70-year-old Madras Stock Exchange (MSE), with the consent of SEBI, has successfully completed the allotment of equity shares to the corporates and high net worth individuals under its disinvestment programme. With this, MSE has complied with the demutulisation programme of the regulator, which required offering new shares through a bidding process. Sources said MSE received an overwhelming response from bidders to the extent of 87% of the expanded equity. MSE’s strong fundamentals and sentimental factor influenced the good response from listed corporates across the country and HNIs, exchange officials told ET. Leading corporates — listed and unlisted — who have been allotted shares include: Amalgamations group (Bimetal bearings and Simpsons), Kalpathi Suresh of SSI, Orchid Chemicals, Polaris Holdings, Venture Tech solutions (Megasoft), Sonata Investments (Reliance energy-Anil Ambani group), Tidco, TCP (Udayar group). Besides, MSE has issued shares to HNIs. Though MSE was required to divest 51% or more to new investors, Sebi has approved allotment up to 72% of the expanded equity. This has raised the disinvestment level to 57%. The Rs 10 paid-up share of MSE was placed at a premium of Rs 490, based on the estimated enterprise value of Rs 676. The exchange has mobilised Rs 9 crore from the disinvestment process. Apart from this, on the expanded equity of Rs 36 lakh, it has built reserves of Rs 11 crore. […]

Old Lane Mauritius IV Ltd, a vehicle of Old Lane Opportunities Funds, has invested $26 million (Rs107 crore) for a 26% stake in a new unit of Chennai-based logistics firm Sical Logistics Ltd. Sical Infra Assets Ltd has been formed to park the company’s asset-heavy, capital-intensive, longer gestation infrastructure-based business such as the logistics hub at Nagpur, the iron ore terminal at Ennore port, a container rail project, Sical Distriparks and the container terminals at Tuticorn and Chennai ports. The Old Lane investment will be subject to approval by the Foreign Investment Promotion Board. The decision to segregate the short-cycle service oriented business from the longer duration build, operate and transfer type assets was to crystallize the value of investments made by Sical into its special purpose vehicles and then invite equity participation as was done in the case of the Old Lane investment. Sical Logistics would in future look after only the bulk logistics business of the group as well as its services business such as stevedoring, ship chartering, shipping agency, trucking, warehousing and offshore logistics. Sical Logistics also plans to list its new subsidiary on the stock exchanges to raise funds to finance the company’s growing infrastructure business, a company spokesperson said. […]

Gaja Capital Partners, an India-focused private equity firm, is in talks with the Mumbai-based Kaycee Group to pick up a 49% stake in Kantilal Chhaganlal (KC) Securities, according to a source familiar with the development. The deal size for the the Mumbai-based broking house is pegged at roughly $40 million (around Rs 160 crore). Kantilal Chhaganlal Securities managing director Jayesh Sheth confirmed that he is in talks with more than one prospective investor. However, he refused to divulge more details “We have been looking for a partner and have kept all options open. We are looking at strategic business in all segments. We are talking to private equity players, domestic and foreign broking houses and also our close associates,” he said. Gaja Capital Partners, too, refused to comment on the issue. Gaja has investments in companies Educomp and Vishal Retail. Sources involved with the deal process said KC Securities had been in talks with a UK-based firm. However, the deal fell through as both parties could not reach an agreement over valuation. […]

International Finance Corporation (IFC), the private sector funding arm of World Bank, is in talks with Angel Broking group to pick up a minority stake in its holding company. The group is in advanced discussions with four global investors and IFC is one of them. “We expect to finalise an investor soon,” said Angel Chairman and Managing Director Dinesh Thakkar. The new investor will be issued fresh equity in Angel Infin Private, a holding company of group. Angel expects to raise Rs 150 crore from the investors to fund its retail expansion, taking its branches from 80 to 260 in smaller cities. The multilateral agency discloses the investment proposal as part of its efforts to enhance the transparency of its activities. IFC said the proposed investment will help Angel introduce new products to serve its clients more effectively. […]