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Three venture capital (VC) funds, which had pumped in around $75 million into Nevis Networks, a provider of security for the enterprise local area network (LAN), filed for bankruptcy last week. While the VC funds have filed for bankruptcy, one India-based founder, Ajit Shelat, is seeking to revive the company, having arranged $2- million funding. Mr Shelat, a Pune-based serial entrepreneur who was India general manager of Nevis Networks and now CEO of the Indian and US companies, said the name of the US company has been changed and Nevis’ sole secured creditor has transferred the assets to the new company. The new company, Aviram Networks, will continue with the Nevis name and brand in India. […]
Japan's Nomura Group is set to acquire 35 per cent in LIC Mutual Fund, India's seventh largest mutual fund, after the board of directors of Life Insurance Corporation (LIC) approved a proposal to induct the Japanese financial services major as a strategic partner in the mutual fund business, sources in the state-owned life insurer said. The insurance company has formed a four-member committee headed by LIC Chairman TS Vijayan to decide the valuation of LIC Mutual Fund. Exim Bank Chairman T C Venkat Subramanian and GIC Chairman Yogesh Lohiya are among the other members. […]
Hong Kong-based, Asia-focussed private equity firm SAIF Partners, which has in the past invested in Indian companies such as Homeshop18, Makemytrip.com, Sify and Just Dial, will infuse Rs120 crore into Network18 Media and Investments Ltd, Raghav Bahl-promoted (pictured right) holding company of the Network18 Group, which has subsidiaries such as TV18 India Ltd and IBN18 Broadcast Ltd. In a press release to the Bombay Stock Exchange, Network18 said the company’s board today approved a preferential allotment of 92,02,650 equity shares at Rs130 per share. Shares of Network18 closed at Rs155.20, up 16.56% from its previous close of Rs133.15 on BSE. The Benchmark Sensex closed at 14,870, down 0.03% from its previous close. […]
LIC Housing Finance, India’s second largest housing finance company, plans to raise capital by issuing 10 million shares through the qualified institutional placement (QIP) route. The issue is to be approved by the housing finance company’s (HFC) share holders in the annual general meeting (AGM) scheduled for 21 July. QIP is the private placement of equity shares–which can be converted into equity by a listed company–with qualified institutional buyers approved by the market regulator Securities and Exchange Board of India (Sebi). […]
Global multi-stage investment fund Norwest Venture Partners (NVP) has bought 2.11 per cent equity stake in India’s premier bourse National Stock Exchange (NSE) for about Rs 250 crore, valuing the exchange at over Rs 12,000 crore (nearly $2.56 billion). NVP bought the stake from IL&FS Securities Services at Rs 2,650 per share, which is higher compared to Rs 2,450 per share from the previous transaction on NSE shares. The investment by NVP is being treated as foreign portfolio investment following a finance ministry notification in November 2008 that foreign institutional investors (FIIs) could hold up to 23 per of equity in an Indian exchange even if such an exchange is not listed. […]
After being at the receiving end of investors’ wrath, the real estate sector is back on the radar of private equity (PE) investors. Real estate consultants say PE funds are now finding good investment opportunities in the sector. The high level of interest is quite clear in the recent wave of qualified institutional placements from real estate companies. According to Grant Thornton’s deal tracker, Orient Global, Sandstone Capital, HSBC and Och-Ziff Capital recently invested $325 million in Unitech. Standard Chartered Private Equity has pumped in an undisclosed sum in Man Infraconstruction. And TPG Capital and Fidelity have invested in the qualified institutional placement by Indiabulls. […]
The BK Modi Group is all set to plunge into financial services. It has entered into a joint venture with Singapore based 3 Degrees Asset Management to start a special situations offshore private equity fund. CNBC TV-18's Sajeet Manghat and Sandeep Srikant report. The BK Modi Group is definitely spicing things up, this time in the world of financial services. Spice Finance, the group's newly-launched finance arm, has entered into a joint venture with Singapore-based 3 Degrees Asset Management to start an offshore special situations private equity fund, with a USD 150 million kitty. […]
Venture capital (VC) firms, that usually invest in early stage companies (also the riskiest), are now trying to stay invested in firms already in their portfolios from earlier funding rounds, with or without co-investors, even as there has been a dip in the overall funding activity. This trend among venture capitalists of funding firms they have already backed before, is partly driven by the high demand for investible firms that venture backers can fund. The paucity of such opportunities has led to VC investors, across the spectrum, eager to get a stake in these firms. Also, existing investors fear that they may soon become minority players in their own portfolio firms, if they don’t extend financial help. At least nine firms in the last five months have received subsequent rounds of funding where their previous investors have also participated. These include: […]
Hospitality major Panoramic Universal today said it is in talks with a couple of private equity players and a strategic investor to raise up to Rs 100 crore by offloading stake to part-finance acquisitions of three-star and four-star hotels in India. “A couple of private equity investors and a strategic investor have evinced interests in acquiring stake in the company. We are in discussions with them but, no decision has been taken yet,” Panoramic Universal's Senior Vice President (Finance & Operations) Utpal Parekh told PTI. Declining to reveal the identities of the interested parties in acquiring stake in the company, Parekh said that Panoramic Universal intends to raise Rs 75-100 crore through equity dilution. […]
Private equity (PE) players are bullish about deal flows following the strong election mandate and expect the focus to be on growth-oriented sectors and improved sentiments in the equity market to provide an exit option. “India is predominantly growth capital market for private equity players. The case for India now becomes even more compelling with political stability. The valuations need to be looked in the context of growth quantum of earnings in future and certainty of achieving that. In a stable economic environment and moderate interest regime, the risk appetite does look up,” Bharat Banka, managing director and chief executive officer, of Aditya Birla Private Equity, said. Gaurav Malik, managing director of Olympus Capital Holdings Asia agreed and said conditions have improved since March, as negative news flow has stopped. […]
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