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Private equity (PE) and venture capital (VC) funds in India have tightened their purse strings. That’s because limited partners (LPs) – the main source of funding for venture capitalists — are reducing their exposure in this space. As per industry estimates, there has been a drop in new investments to the tune of 71% during the first nine months of 2009 as compared to the same period last year. Industry observers say limited partners are miffed with the returns shown by the general partners, who manage the fund and its operations on a daily basis, say industry observers. “Clearly, many LPs are looking at better returns and shorter investment term cycles,” says Sameer Mehta of Atlas Advisory. […]
Quippo Telecom Infrastructure Ltd. is looking to raise around $300 million through a stake sale to pay off its debt, the unlisted Indian telecom tower company's managing director said Wednesday. “We are looking to sell less than a 10% stake. It will most probably be a fresh issue (of shares) to private-equity companies,” Sunil Kanoria, who is also the company's vice chairman, told Dow Jones Newswires. The company holds a 49% stake in Wireless TT Info-Services Ltd., or WTTIL, which was earlier named Wireless Tata Telecom Infrastructure Ltd. Wireless Tata Telecom Infrastructure was formed via a merger of the telecom tower operations of Tata Teleservices Ltd. and Quippo in January. […]
Private Equity deals slowed to a four-year low of $644MM in Q3 Sep’09. (Year to date(Jan-Sep’09),113 private equity deals with $2,186MM were closed ) The quarter was the worst quarter in terms of deal value as total transactions size declined to $644MM compared to $793MM and 749MM in Q2 and Q1. […]
Apalya Technologies, a Hyderabad based company providing India’s No.1 Mobile Video platform, announced funding of US$ 3 million from IDG Ventures India and Qualcomm Ventures. Consort Capital, a premier Mumbai-based investment bank, was the advisor for the deal. Mumbai Angels, a leading angel investment group, along with some other angel investors, are also stakeholders in the Company. Apalya Technologies has pioneered and emerged as a leader in developing and enabling Mobile Video Delivery Platform that seamlessly streams video content to Mobile Consumers. It aggregates premium entertainment content from many different content providers, content aggregators and mobile advertisers and then delivers the same on Mobiles optimizing the content to be suitable for viewing on small-screens. […]
United Spirits, is set to sell new shares worth about $300-350 million to institutions to help cut its debt, after efforts to sell a stake to private equity firms and Diageo failed. The world's third-largest spirits maker by volume is set to place the shares with institutions (QIPs) as early as this week, three sources with direct knowledge of the deal said. “The market is good enough for a share sale. Why opt for a PE firm that buys at the same price and adds little value otherwise,” one source said. The sources declined to be named as they are not authorised to speak to the media. […]
Reliance Capital Ltd. may sell a 20%-26% stake in its life insurance unit – Reliance Life Insurance Co. – in the fourth quarter of the current fiscal year, its chief executive said Wednesday. “It (sale) could be to a strategic or financial partner … most likely it will be foreign company,” Sam Ghosh told Dow Jones Newswires over the phone. […]
The domestic and international private equity players see India as the second most attractive destination after China and feel that the country may lead the global PE recovery, according a survey. As many as 33 per cent of investors, who participated in the survey, ranked China as the most attractive market, followed by India (29 per cent), other emerging markets (19 per cent) and developed markets (20 per cent). “India offers immense opportunities for PE investments and India will likely be at the forefront of a global PE recovery,” said a survey by research firm KPMG. […]
As part of the growth strategy for the Sugar business, EID Parry India Limited, has acquired 76% stake in the equity of M/s Sadashiva Sugars Limited based in Bangalore with its factory at Bagalkot, Karnataka. EID Parry is a leading manufacturer of sugar in Tamil Nadu and Puducherry with 5 factories having sugarcane crushing capacity of 19000 TCD and a Cogen capacity of 84.5 MW. It also operated two distilleries with a capacity of 135 klpd. This acquisition will be EID Parry Sugar Division's first entry into Karnataka. […]
Western drug makers are stepping up the hunt for emerging market “tigers” in India. UK-based GlaxoSmithKline Plc has emerged as frontrunner for a phased buy-in of Dr Reddy’s Laboratories Ltd, people familiar with the matter said. A deal could spark a fresh wave of foreign deals in India’s drugs sector after the troubled purchase of Ranbaxy Laboratories Ltd by Daiichi Sankyo Co. Ltd last year. While nothing is finalized, one possibility is that Glaxo will take a 20% stake in Dr Reddy’s Holdings, a family vehicle that in turn owns 23.2% of the drug maker. This would give Glaxo a stake of just under 5%, worth around $165 million (around Rs764 crore). But the British firm could also get right of first refusal on the family’s remaining holding, the sources said. Officials at both firms declined to comment. […]
Global buyout giants such as Warburg Pincus and the Carlyle Group may have to wait a decade or more for Indian family business cultures to change before they can make big buyout deals, finance industry executives said. Meanwhile, growth capital funds have seen better opportunities in India finding bargains by taking stakes in new, fast-growing sectors such as education, healthcare, logistics and consumer-driven business, a private equity conference was told on Wednesday. “Private equity deals in India are mostly growth-led rather than leveraged buyout, as in the West,” said Deepak Parekh, chairman of Housing Development Finance Corp, India's top mortgage lender. […]
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