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US-based investment management firm T Rowe Price is set to buy a 26% stake in UTI Asset Management Company (UTI AMC) for Rs 650-700 crore, two people familiar with the matter told ET. The deal, if it were to finally go through, would value India’s oldest mutual fund house between Rs 2,500 crore and Rs 2,800 crore, or roughly 4-5% of its assets under management. As on June 30, 2009, UTI MF managed roughly Rs 68,000 crore across its debt and equity schemes, and is the fourth-largest fund house in India in terms of assets under management. Total assets managed by T Rowe Price group of companies world-wide stood at $269 billion as on March 31, 2009. […]
Private equity firms sold their stakes in 21 Indian companies in the first quarter of the current financial year to cash in on the buoyancy in stock markets, even as the number of new PE investments more than halved during the period. PE firms made over $298 million from the 21 exits, compared with $969 from nine investment exits in Q1 last fiscal, according to data compiled by Venture Intelligence, a firm that tracks PE and venture capital developments in India. The amount involved in exits this year is significantly lower than that in the year-ago period. “This is primarily because of the nature of the deals. Last time, firms could cash out through the M&A route, even though the number of deals were smaller,” said Venture Intelligence CEO Arun Natarajan. […]
Nomura Holdings Inc. agreed to buy a 35 percent stake in the asset-management arm of India’s biggest life insurer, to expand sales in Asia’s third-largest economy. “India is one of the fastest growing markets for asset management in Asia and is key to Nomura’s push to be the world- class asset-management firm,” Atsushi Yoshikawa, Nomura Asset Management’s chief executive officer, said in an e-mailed statement from Mumbai yesterday. The statement didn’t give financial details of the deal. Nomura will pay about 6 billion yen ($65 million) for the holding in LIC Mutual Fund Asset Management Co., a unit of Life Insurance Corp. of India, the Nikkei newspaper reported, without saying where it obtained the information. […]
An investment arm of C Sivasankaran, the non-resident Indian businessman better known as Siva in Corporate India, has emerged as a significant shareholder in Aamby Valley — the company floated by the Sahara Group to develop Aamby Valley City — a famous upmarket township project in Maharashtra. According to documents available with ET, Siva Ventures (SVL) owns a 49% equity stake in Aamby Valley. SVL is a wholly-owned subsidiary and the principal investment arm of the Sterling Infotech Group promoted by Mr Sivasankaran. In a recently-prepared information memorandum, Siva Ventures said it “has a significant presence in infrastructure and township building business by way of 49% ownership in the equity share capital of Aamby Valley, owners of Aamby Valley City”. The information memorandum was prepared last month when Siva Ventures raised Rs 435 crore through private placement of non-convertible debentures. ET has a copy of the memorandum. […]
Aegis, the business process outsourcing arm of the diversified Essar Group, has bought South Africa's CCN Group – paving the way for 5000 jobs to be created. Aparup Sengupta, Global CEO and Managing Director of Aegis said in a statement on Thursday that CCN was a strategic fit for Aegis. “This combined entity will offer CCN's clients and prospects an expanded set of solutions and services from a broader geographic delivery platform,” he said. “South Africa becomes an integral part of our growth strategy and offers an opportunity for Aegis to develop skills, create employment and bring in international experience to South Africa.” […]
Improving market sentiments post parliamentary elections seem to have begun showing in the private equity investment space. Private equity investments in June 2009 increased 74% in value terms and 20% in number of deals as compared with May 2009 figures, according to monthly private equity update by Anand Rathi Investment Banking Research (ARIBR). According to data compiled by ARIBR analysts Arnab Banerjee and Sachin Mehta, overall, investments worth $662.7 million were made across 24 deals – as against $332.7 million and 20 deals in May 2009. […]
UTI Ventures, the venture capital (VC) arm of UTI Asset Management Company (AMC), is raising Rs 15 to Rs 20 billion fund and hopes to complete the process by December, reports Business Standard. This fund would focus on deals in the range of Rs 500-750 million in areas such as infrastructure services, domestic consumption and outsourcing. UTI Ventures is looking at domestic institutional investors (DIIs) — including insurance companies, mainly Life Insurance Corporation of India (LIC), and banks — and foreign investors such as sovereign wealth funds, endowment funds and private pension funds. […]
At a time when raising funds is a concern for private equity (PE) players globally, sponsor commitments are increasingly gaining relevance among funds as a committed source of capital. Experts said that in many cases, it has rescued the funds which were unable to achieve closures due to inadequate commitments. The trend has become especially prominent in the last few months when limited partners (LPs) tightened the flow of capital to private equity funds. Sponsor commitment or anchor investment is the amount of capital committed by the sponsors of a fund. The anchor investment is made at the initial stage of fund-raising to start the process and provide a sense of confidence to LPs. […]
Private-equity investments in India fell sharply to $ 888 million in the April-June quarter from $2.6 billion a year earlier, an organization tracking such investments said Tuesday. The number of deals during the quarter fell to 44 from 92 a year earlier, Venture Intelligence said in a statement. The reported INR6 billion ($124 million) additional capital raised by Quippo Telecom Infrastructure Ltd. from its existing investors – IDFC PE and Oman Investment Fund – was among the largest deals during the period, Venture Intelligence Chief Executive Arun Natarajan said. (Nasdaq) […]
Private Equity (PE) and Venture Capital (VC) firms which have been using the trust route as vehicle for funds to pass through the tax at entity level are divided if they should opt for Limited Liability Partnerships (LLPs). The government had introduced the LLP mechanism on April 1 this year, giving PEs and VCs hope of an alternative to the trust route. However, yesterday’s Budget announcement with regard to taxing LLPs at the entity level has created some disappointment. “It is out of sync with international practices,” said Nishith Desai, founder of Mumbai-based corporate law firm Nishith Desai Associates. “In a cross-border scenario, issues relating to application of tax treaties and availability of tax credit to foreign partners will arise. There are also problems on the treatment of losses in the hands of the partners,” he said. […]
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