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About 77% of private equity players in the country expect an increase in investment momentum in the coming 12 months, according to a survey by Deloitte Touche Tohmatsu India. And the deals will be simpler. The report said 87% of respondents rated 'structured development capital' (in essence, a return to the traditional way of structuring development capital deals, using less leverage and a simplification of the structure) to be the key focus area for investment this fiscal. Following this are transactions in the venture capital, pre-IPO and buyout space, in that order of priority. “Some funds have committed a lot of private investments in public enterprise (PIPE) deals since 2007 and have suffered mark-to-market losses. We'll increasingly see a return to basics — back to structured development capital deals. However, PIPEs will continue to see activity given the lack of sizable development capital deals,” Avinash Gupta, head-financial advisory services for Deloitte Touche Tohmatsu India, said in the report. […]
Fortis Healthcare, Asia’s biggest hospital chain, raised Rs 380 crore by selling shares to Singapore state-run investment company GIC Special Investments as part of its plans to raise Rs 3,000 crore for expansion. The company has agreed to sell 6.58% of the company, or 22.35 million equity shares, at Rs 170 apiece, 1.5% higher than its closing price on Monday. Its shares rose 1.27% to Rs 167.25. The funds will be used to part finance recent acquisitions like the purchase of TPG Capital’s 25% stake in Singapore’s Parkway Holdings for around $715 million and also for more in the future, said a statement. The deal may close by June. The New Delhi-based Fortis plans to sell foreign currency convertible bonds (FCCBs) and other securities in the months ahead as it funds the Singapore acquisition and last year’s purchase of 10 hospitals from Wockhardt. The company has been growing its revenues through acquisitions, but the profits are yet to come by. […]
Council of Scientific and Industrial Research (CSIR), the industrial research and development organisation under the central government, plans to take equity stakes in some companies to whom it is lending technological innovations. Samir K Brahmachari, director general, CSIR and secretary, department of scientific and industrial research, Government of India, told DNA, “We will take stakes in smaller companies. We have received the government’s approval for it and are already negotiating with the companies. Many are in the pipeline in the life sciences and energy sectors, which have great potential.” CSIR has been charging fees and royalties for its technology transfers for commercial use to private companies but hasn’t taken stake in any company. […]
ICICI Venture, the private equity arm of lender ICICI Bank , plans to launch a $500 million fund by July to invest in infrastructure projects, its chief executive said. “In the private equity context I would put education (and) hospital as part of infrastructure, but there is also a big opportunity on serious infrastructure like roads, ports, power,” Vishakha Mulye told Reuters in an interview. India has made building of roads, bridges, airports and power plants a priority and expects private firms to fund half of a projected $1 trillion in infrastructure between 2012 and 2017. India's diversified conglomerate Tata Group and private equity firm Actis aim to bid for $2 billion of road projects in India over the next five years as the country makes a major push to build highways. […]
Godrej Consumer Products is in talks with a clutch of private equity investors to raise USD 125 million, two sources with direct knowledge of the matter said on Tuesday. The company is in talks with US giants Carlyle Group and Blackstone, as well as India's ChrysCapital and Standard Chartered Private Equity, the sources said. Godrej has hired JM Financial Ltd to arrange the deal, sources said. […]
Private equity (PE) funds will remain a preferred choice for capital growth and Indian industries will receive about $ 10 billion investments from the PE deals by the end of this year, says a latest report jointly released by global auditing firm KPMG and the Confederation of India Industries (CII). “India has a very vibrant private equity industry with over $ 32.5 billion invested across more than 1,500 PE deals from January, 2006, till date. As per the industry estimates, PE investments would be in the range of $ 9-10 billion in the year ending December 31, 2010,” says the report. It adds PE funding is expected to provide capital to fund much-needed infrastructure projects to support gross domestic product (GDP) growth of seven to eight per cent in India. According to the report, the country needs about $ 1.3 trillion investment over the next three years to sustain a GDP growth of seven to nine per cent out of which $ 60-100 billion will be PE investments. […]
Crisis-ridden private-sector lender Bank of Rajasthan's promoter P K Tayal today ruled out any possibility of selling his stake in the bank amidst speculations that ICICI Bank and Axis Bank have evinced interest for a buy out. “There are people who are coming (to buy the stake). They are not welcome … the answer is no,” Tayal told PTI when asked if he was open to sell his shareholding in the bank. At present, Tayals have a stated holding of around 28 per cent in Bank of Rajasthan while according to market regulator Securities and Exchange Board of India, promoters' actual holding in the entity is around 55 per cent. […]
Dalmia Cement (Bharat) Ltd. (DCBL), and Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”) today announced the signing of a definitive agreement under which KKR has agreed to invest up to Rs 750crores in DCBL’s wholly owned unlisted subsidiary (“Company”) which will house post restructuring DCBL’s 9MTPA cement manufacturing capacity, DCBL’s stake in OCL India Limited (5.3MTPA capacity) along with the upcoming green field projects of 10MTPA across the country. The use of proceeds will be for both organic / inorganic growth and de-leveraging. “When we realigned our businesses in March, 2010, one of our goals was to create separate pure play entities that could thrive on their own and have flexibility to raise capital. This transaction with KKR is not just about capital but the foundation of a long term relationship. It will enable us to enhance our capacity and market share through organic as well as inorganic routes, while benefiting from KKR’s global network and proven value creation capabilities,” said Mr. Puneet Dalmia, MD of Dalmia Cement (Bharat) Limited. […]
Chennai-based VGN Developers Pvt Ltd is planning to raise Rs 600-700 crore private equity (PE) fund to support its proposed investment of around Rs 3,000 crore in various residential projects. The company has developed two million sft of residential projects in the last four years. Over the next 3-4 years, it is planning to develop another 7-8 million sft, said Pratish Devadoss, managing director, VGN Developers. “The total investment, including land, would be around Rs 3,000 crore,” said Devadoss. The company is planning to fund the project through internal accruals, debt and equity. “We just signed an agreement with a PE player, who will invest around Rs 80 crore. Going forward, we are planning to raise another Rs 600-700 crore,” he said without disclosing the name of the PE player. […]
Dabur India in talks to acquire Paras Pharma; PE Fund Actis looking to exit Paras Pharma: Sources Dabur India is in talks to acquire Paras Pharma, reports CNBC-TV18 quoting sources. PE Fund Actis is looking to exit Paras Pharma. Actis currently holds almost 60% stake in Paras. Pharma player Paras sells Dermicool, Moov, Krack brands. Actis had first bought 23% stake in Paras for $ 43 million in 2006. Sources said that the talks are at advanced stage level. Dabur first looked at Paras 6 months ago. Dabur India said that the company cannot comment on market speculations. The company continues to look at acquisition opportunities. […]
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