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Infrastructure, including roads, power, highways, airports, ports and railways, has emerged as an asset class with long-term growth that can provide relatively stable returns, said an Assocham-Ernst & Young survey on Private Equity in Indian Infrastructure: Strengthening the Nexus. The joint study highlights that the global economic crisis has not dampened investor confidence in the sector. Last year’s crisis had limited or short-term impact on PE investments, and activities in the sector will pick up in the next 8-12 months, it said. The survey points out that PE funds have already invested close to $2,694 million in the country’s infrastructure sector in the past three years. […]
ICICI Venture Funds Management Co. Ltd, the private equity (PE) subsidiary of India’s largest private sector lender, is ready to float a $500 million (Rs2,420 crore) equity fund with an option of retaining another $300 million, its first attempt to raise money from investors after the exit of its high-profile former chief executive officer (CEO) Renuka Ramnath. ICICI Bank Ltd will chip in with 10% of the size of the fund. The PE firm has also received commitments of about Rs1,000 crore from domestic institutional investors and high networth individuals. Four months into her new assignment, Vishakha Mulye, ICICI Venture’s new managing director (MD) and CEO, is also planning to cap the size of the $810 million India Advantage Fund Series 2 at $583 million, 72% of its original corpus. […]
IDFC Private Equity, the country’s largest infrastructure-focused PE fund, is buying out energy giant BP’s wind power assets in India for Rs 650 crore, signalling the latter’s exit from India’s wind power business and underscoring its renewed focus on the US market, a person close to the development said. IDFC Private Equity, which is bullish on clean technology and has dedicated Rs 1,000 crore for this, will buy the entire wind power portfolio of BP in India. BP has 40 mw assets in Maharashtra and 60 mw assets in Karnataka. The fund will make the payment for BP assets in two tranches, with the first worth Rs 350 crore. This acquisition will give the PE player a foothold in the wind power space. […]
Axis Private Equity (PE), a fund sponsored by the third largest private sector lender Axis Bank, plans to invest Rs 200 crore in two more companies, while it lines up its second fund. The second fund will hit the market later this year. While its first fund with a corpus of Rs 600 crore was primarily raised from the domestic market, especially from some large banks and companies, it aims to raise the second fund from abroad. The company, however, declined to disclose the details of the forthcoming fund. Raising fund internationally is difficult at the moment as limited partners (LPs) are closely evaluating the performance of PE players. Of late, LPs have started buying interests of other LPs at a discount. […]
Advent International Corp., a Boston-based private equity firm, hired Shweta Jalan to expand its private equity business in India. The U.S. firm began investing in Asia’s third-largest economy two years ago when it acquired a stake in Computer Age Management Services Ltd., a transaction processing company. Advent appointed P.J. Nayak, former chairman of Axis Bank Ltd., as a partner in July to advise on Indian investments. Advent International has raised $24 billion in private equity capital and has completed over 250 transactions valued at about $45 billion in 35 countries, the release said. […]
According to a report by Sobia Khan & Pranav Nambiar of DNA, realty majors, left with few avenues to fund their ambitious hotel projects, are now hoping for a private equity (PE) bailout. Developers like Parsvnath, Nitesh Estate and Brigade Group have kicked off negotiations with PE players to bail them out. For instance, New Delhi-based Parsvnath Developers recently prepared an information memorandum for the purpose. “We plan to raise money for hospitality projects but currently it is in an early stage of discussion,” said an official on condition of anonymity. The company has expressed its intention to focus on six projects in Hyderabad, Ahmedabad, Lucknow, Goa, Mohali and Shirdi. […]
The Capital International Global Emerging Markets Private Equity Fund has sold a 3.9 per cent stake in Indian computer services provider MindTree. The fund sold 1.52 million shares at INR540.02 ($11.13) each. According to Bloomberg, 1.03 million of the shares were bought by the Franklin India High Growth Companies Fund, the Franklin India Taxshield Fund and the Franklin India Flexi Cap Fund. […]
A sovereign fund of the Sultanate of Oman is investing roughly $125m, in Mangalore-based realty developer Mohtisham’s 300-acre integrated township, sources privy to the development said. The deal is probably the largest fund action in Indian tier-II real estate. Oman Investment Fund, through a Cypress-incorporated entity, is picking up 50% stake in Mohtisham Estates […]
Zain shareholders have agreed to sell a 46% stake in the company to various other investors, although very few details have been confirmed at this time. In a statement to the Kuwait Stock Exchange, National Investments said that it would sell its 10.86 percent stake in Zain for a price of 2 dinars ($6.97) a share, and will lead a group of other shareholders in selling their stakes. It has been reported that a group led by the little known, privately held Vavasi Group and Malaysian billionaire Syed Mokhtar Al-Bukhary may buy the take, valued at US$13.7 billion. The Indian-Malaysian group signed a “transaction agreement” yesterday – and it is reported that India's state controlled BSNL and MTNL will also join the consortium, although that has not been confirmed yet. […]
Whilst it appears that the market downturn has caused Institutional Investors (Limited Partners) to abandon investing in new private equity funds, many investors have eagerly flocked to the secondary private equity market with the intention of purchasing secondary interests at substantial discounts from the expected flood of distressed investors. This strategy has seen little success to date as the bid-to-offer spread has been too wide for many secondary transactions to complete, with the anticipated deluge of distressed sellers looking to sell interests at any price not quite materialising. […]
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