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India Debt Management (IDM), part of the the Hong Kong-based ADM Capital (ADM), is picking up a 14% stake in Mehtas-controlled Saurashtra Cement through the conversion of debentures into equity. Saurashtra's board will meet on August 16 to consider allotment of shares to equity warrants and convertible debentures at a conversion price of Rs 35 per share. Saurashtra Cement will allot shares worth 74.5 lakh equity shares of Rs 10 each to IDM by converting a part of the convertible debentures at a price of Rs 35 per share. This will translate into 14% equity stake for IDM. The company's shares were trading at Rs 58.35, down 0.09 per cent, on the Bombay Stock Exchange on Friday, when the benchmark Sensex dipped 231.9 points to close at 14,868.25. Mehtas, which own close to 78 per cent in the company, will see their stake coming down proportionately post conversion. IDM had invested close to Rs 93 crore in the company through the preferential allotment route. A significant part of this investment is now being converted into equity. […]
Private equity players including Darby Overseas Investments and a PE arm of Deutsche Bank are in the race to invest $75-100 million in Cafe Coffee Day (CCD), the Bangalore-based chain of cafes, to buy around 10-15% stake, according to sources. The enterprise valuation of Amalgamated Bean Coffee Trading (ABCTL), the parent of CCD, is pegged between $550 million and $600 million. The funds will be used to ramp up the company’s expansion plans across the country. While an e-mail to the company remained unanswered, senior officials told ET, “Nothing has been finalised as of now and it will take a few weeks.” It is believed that some of the big PE firms like Carlyle group and Sequoia (which is a current shareholder in the company) have been in the picture for buying a stake. ABCTL chairman VG Siddartha at a recent interaction with ET said that the group was looking at raising its tally of cafes to 750 stores by June next year, and possibly to 2,000 stores over the next 4-5 years. There is market speculation that Mr Siddartha will revamp the operations, making ABCTL a holding company, separating the plantation business from the retail operations (CCD). […]
Morgan Stanley has picked up 5 per cent preferential equity in Ess Dee Aluminium for Rs 575/share, in a transaction totalling Rs 81 crore.
Ess Dee Aluminium told BSE that its board decided to issue 1.41 million equity shares on a preferential allotment basis to Morgan Stanley. Earlier, foreign fund Fidelity had picked up 5 per cent stake in the company.
The Morgan Stanley move comes close after the company said it is in talks to buy out […]
US billionaire George Soros and six other investors have picked up a 5 per cent stake in Reliance Telecom Infrastructure Ltd, a subsidiary of Reliance Communications (R-Com), for Rs 1,400 crore.
Besides George Soros’s Quantum Fund, other investors who picked up stakes in the R-Com arm are Fortress Capital, HSBC Principal Investments, Galleon Group, New Silk Route, GLG Partners and DA Capital.
The proceeds from the transaction have been received in full, and capital gains […]
Gokaldas Exports Ltd has dubbed speculative media reports that private equity fund Blackstone Group is close to investing $100 million to pick up 10-15% stake in the company.
According to reports, the proceeds from the deal would be used to fuel the company's domestic expansion against the backdrop an appreciating rupee, which brings down the value of exports. (Source: ET)
Blackstone Group, a global private equity fund with $85 billion assets under management, is close to investing $100 million in publicly listed Gokaldas Exports, one of India’s largest apparel exporters. According to market information, Blackstone is likely to pick up 10-15 per cent stake for this investment to fuel Gokaldas’ expansion. A company spokesperson declined to comment on this development. If this investment sails through, it is expected to be one of the largest private investment in a public enterprise (PIPE) in the apparel sector. Gokaldas is a Rs 1,000 crore apparel exporter, which is looking at tapping into the domestic Indian market as the rising rupee is hitting exporters hard. The majority of this sum is expected to be used to fund its 400-acre, Rs 2,000 crore-special economic zone at Kanakapura, on the outskirts of Bangalore. A spokesperson said they were going through the process of getting approvals for this project, which is expected in the current financial year. […]
Janapriya Engineers Syndicate, a closely held firm credited with building 21,000 units in the affordable home segment in its 20 years of existence, is planning to divest 25 per cent equity to a US-based privately-held real estate private equity company, which is making its maiden entry into India. The offer of stake translates to around $40 million (over Rs 150 crore). The deal is expected to be finalised by next month, according to Janapriya officials. “We have decided to limit our offer to 25 per cent at this stage though the American firm was keen to hold much higher equity in the company,” K Ravinder Reddy, chairman & managing director, said. There has been a growing interest in the Hyderabad-based realty and infrastructure companies among overseas private equity firms in recent times. US-based Citi Venture Capital International (CVC) had recently invested Rs 150 crore in Indu Projects. […]
Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore. The private equity funds made an investment of Rs 190 per share including a premium of Rs 180 per share. With this investment, the net worth of the bank will go up considerably, according to a release issued by the bank. The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital. The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore. The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development. However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%. The bank has also been grappling with the central bank’s refusal to transfer the shares acquired by Singapore-based Chawla group, which had purchased about 36% stake in 1997 for Rs 85 a share. […]
Baring India will acquire 44.8 per cent stake in brokerage house JRG Securities for 35 million dollar through a preferential issue. The deal is subject to approvals from the Securities and Exchange Board of India (SEBI), shareholders and other regulatory authorities. The Board of Directors today approved the investment proposal for further consent of shareholders, JRG Securities said in communique to the Bombay Stock Exchange (BSE). […]
Private equity firm General Atlantic has paid $60 million for a minority stake in India's IBS Software Services, the Indian firm said on Wednesday. IBS, which provides services for the travel, transport and logistics industries, has two development centres in India. Edelweiss Capital was the financial adviser to IBS. In a separate deal, venture capital firm Canaan Partners said it had led The Entrepreneurs Funds and Miven Venture Partners in buying a minority stake in Indian career networking portal techTribe. It did not disclose the value of the deal. […]
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