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Leading PE firms and banks such as ICICI Venture, Yes Bank, GM Financial and Standard Chartered are learnt to be in talks with Ranbaxy’s diagnostic chain, SRL Ranbaxy, for a minority stake ahead of the company’s proposed IPO. SRL Ranbaxy has received expressions of interest (EoI) from several financial funds and talks are at a fairly advanced stage. However, the company has not finalised the financial details or the stake it would offload before its public issue. “The equity that the company will divest to financial funds will be finalised after the valuation of SRL Ranbaxy is worked out,” sources said. SRL Ranbaxy plans to raise around Rs 200-Rs 250 crore through its maiden IPO and may dilute 10-20% to PE funds as a pre-IPO arrangement. […]
Lizer Cylinders Limited today announced participation by South Africa based Rand Merchant Bank’s (RMB) private equity arm, FirstRand (Ireland) PLC, a leading foreign private equity investor. RMB is advised by Rosewood Investment Advisor Pvt. Ltd in India.Lizer is promoted by Mr. Ashok Ramsinghani who has extensive business experience of over 30 years in diverse industries. Mr. Vishal Ramsinghani – Managing Director, a business graduate from USA manages the day to day operations. Commenting on the participation, Mr. Vishal Ramsinghani said, “We are happy to have RMB Private Equity as financial partner, which would help us in achieving faster growth. The RMB – Private Equity has invested INR 400 Million (US $ 10 Million) in Lizer Cylinders. The fund raised will be utilized to further expand the Company’s manufacturing capacity from current level of 200,000 to 400,000 CNG Cylinders per annum.” […]
Morgan Stanley, the second-biggest U.S. securities firm, will set up a private equity unit in India from May 1, the company said in an e-mailed statement today. The New York-based company also said it has hired Aluri Srinivasa Rao from ICICI Venture, a unit of ICICI Bank Ltd. and India's largest private equity fund, as a managing director. Rao, 43, will run the group's private equity investments in India, the statement said. “We are excited to be entering the India market,'' Chin Chou, managing director and chief executive officer of Morgan Stanley Private Equity Asia, said in the statement. This year presents one of the most attractive times to be investing capital in India, he said. Morgan Stanley's private equity unit will invest in India through its third fund dedicated to Asia, which manages $1.5 billion, the company said. (Bloomberg) […]
Indian infrastructure specialist IDFC Private Equity is raising a new $700 million fund to buy stakes in firms expected to thrive as the country modernises its rag-tag power and transport networks. IDFC's managing director for investment, Satish Mandhana, told Reuters the fund would close in the next two to three weeks, with around 85 percent of the money coming from abroad. Foreign investors are increasingly drawn to Indian infrastructure, as the government estimates about $500 billion will be needed to build new roads, ports, airports and power plants by 2012 to keep pace with a fast-growing economy. Around 30 percent of that spending is expected to come from the private sector, with the rest split between the central and state governments. […]
The unending euphoria over real estate, which India has been witnessing over the past few years, is finally starting to show signs of ebbing, and that is probably healthy news for the long-term growth of this sector. Collapse of a few recent PE deals, postponement of capital-raising plans by developers and poor response to government land auctions are indicators of the “expected slowdown” in Indian real estate chapter. Recalling the success story of a few years ago when home loan rates sank to 7.5%, it resulted in huge demand for quality real estate and paved the way for the spiking in property rates in many cities. Since then this industry displayed an unstoppable upward curve. However, today, with interest rates already very high with negligible scope of reduction due to inflationary pressures, the real estate momentum would not be the same. Signs of a slowdown have started becoming visible in the residential sector. There has already been a marginal decline in rental and capital values of apartments across a few micro markets and the trend will only gain momentum as we move ahead, especially in peripheral and suburban locations where significant supply is in the pipeline. Even the office market has not escaped. It has witnessed stagnancy in rentals in majority of locations in Q1 2008. […]
Private Equity investments (PE) in India have grown to about twice the value to $4 billion in the first quarter ended March 31 of the calendar year 2008, when compared to the corresponding period last year, maintaining its position as the hot destination in Asia (excluding Japan) surpassing China, which has recorded just $570 million in investments so far. According to a statement from IndusView Advisors, a corporate advisory firm, India had first achieved the milestone of surpassing China in attracting PE investments towards the end of the second quarter of the calendar year 2007 when it had grossed $10 billion compared with China’s $8 billion. China received $13 billion in private equity investments in 2006 compared with $7 billion in India during the same period. The equation has changed since then, with India well in the lead now. […]
Hyderabad-based NetXcell, an application service provider for the telecom domain, is in the processing of raising a $3-million (around Rs 12 crore) private equity fund to expand its sales operations in India and the US besides product portfolio, said Executive Chairman Dayakar Puskoor. “Our current investors have given their consent for extended funding and we expect to close the transaction during this year,” he said here on Tuesday. NetXcell had raised $1 million (Rs 4 crore) in its first round of funding from Lee, a venture partner of Ignition Partners, and Ruderman Capital last year. […]
While the VC/PE business has matured a lot in recent years, it is still instructive to see the dramatic transformation which has occurred in terms of where investments are going. Completely different sectors are soaking in money in 2008, compared to even 2-3 years ago. The industry started off in the late 90s, when the first foreign firms started looking at India. The new entrants focused at IT and internet, much in line with the craze in US at that time. Quite a few of the early deals didn’t work out. The business really picked up only when investors broadened their horizons started looking at non-tech sectors like infrastructure, capital goods, financial services, retail, and so on. In the last three months, for example, infrasructure and real estate accounted for 30% of PE investments. Energy, telecom, media/entertainment, financial services, and manufacturing followed. Between them, these six sectors mentioned here accounted for 90% of all PE investments over the last three months. […]
Cleartrip, India’s leading online travel agency received $18.5 million, making this the largest round of venture funding in 2008 – according to India Venture Capital Report. The company has raised a total of $30.2 million over the past three years. India’s travel portals have received a flurry of investments over the past two years, but Cleartrip stands out as the only company in this space to have successfully secured world class investors such as Sherpalo, Kleiner Perkins and Draper Fisher. These investors have collectively created billions of dollars in market capitalization by helping to build businesses such as Google, Amazon, skype and many others. With this pedigree of investors Cleartrip customers can rest assured that the company is backed by investors and a management team that believes that the best businesses are those that put the customer first. […]
Rabobank, the Netherlands-based financial institution, is planning to set up a $100 million private equity fund in India which will focus on the agriculture value chain. The plan to set up an agri-focussed fund is a logical extension of more than a century old tradition of backing the food and agribusiness by Rabobank. Founded as a cooperative of Dutch agricultural banks in the late 1800s, the Rabobank Group has some 175-member banks in the Netherlands and dozens of subsidiaries around the world that focus on the food, agribusiness, and financial industries. […]
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