|
|
Several PE (private equity) funds are eyeing the Indian cricket board’s lucrative Indian Premier League (IPL) for a stake in the franchisees. Sources close to some of the franchisees, which include Reliance Industries, India Cements and United Spirits, told Business Line that funds such as ICICI Ventures and Kotak Private Equity Group are reportedly in talks with some of them. Sources in ICICI Ventures said there is a possibility the company is involved in talks with Reliance Industries, which has bought the rights for the Mumbai team for Rs 441 crore. An official with Ceat Tyres, which brings out annual cricket ratings, said the company is on a ‘wait and watch’ mode before deciding on investing in the IPL. An official with Kotak Private Equity Group, however, denied any such move. […]
Private equity managers going into emerging markets in search of higher returns or in hopes of avoiding the global credit crunch won't escape the impact of a U.S. recession, the president of the Emerging Markets Private Equity Association, or EMPEA, said Thursday. “At a minimum, a U.S. recession will negatively impact growth prospects for some, if not many of the companies in a fund manager's portfolio,” Sarah E. Alexander said at an EMPEA conference in New York. But investors who got burned in emerging markets during the early 1990s recession should take comfort in the “fundamental shifts” and growth that emerging market economies have experienced. “Let me convince you that a crash is highly unlikely,” she said. Many private equity managers have a lot riding on these fundamental changes. Last year, the private equity industry raised more than $59 billion for investments in emerging markets, a record and nearly double the amount raised in 2006, according to EMPEA data. […]
Gujarat Venture Fund Limited (GVFL) has raised Rs.600 million for its SME (small and medium enterprises) Technology Venture Fund. “The fund would be used for investing in various projects of both small and medium technology companies. GVFL plans to invest this entire fund in six to eight projects in a time period of one year with an approximate investment amount per project anywhere between Rs.5 and 15 crore (Rs.50 million to 150 million),” said Vishnu Varshney, CEO of GVFL, in a statement here Friday. GVFL plans to raise the entire corpus of its SME Technology Venture Fund to Rs.250 crore (Rs.2.5 billion) by 2009-10 from existing Rs.60 crore (Rs.600 million),” the statement said. “Venture capitalists invested over $777 million in 57 deals in India during the first three quarters of 2007, as per the India Venture Capital Report as against $158 million in 2006. […]
Telco Construction Equipment Company Ltd (TELCON), leading construction equipment sector in India, signed an agreement with the existing shareholders of Serviplem SA, Spain for acquisition of their 79% stake in the company. As part of the partnership strategy, the existing owners will continue to be associated with the venture and own the remaining 21%. […]
Deutsche Bank has picked up close to 40% stake in Ramprastha Promoters and Developers, a group company owned by Delhi-based Ramprastha Group for $80 million. Ramprastha Promoters and Developers has been primarily engaged in developing housing projects in the national capital region(NCR). Confirming the deal, Ramprastha group director Arvind Walia told ET, “We signed the agreement with Deutsche Bank recently.” Mr Walia didn’t specify the stake Deutsche Bank has bought, but he said it was less than 40%. Ernst & Young advised Ramprastha on the deal. In the largest private equity deal in real estate sector, Deutsche Bank had picked up around 25% stake in a special purpose vehicle (SPV) owned by Mumbai-based developer Lodha Group for Rs 1,700 crore, last year. Currently, Ramprastha Promoters and Developers is developing a 200 acre township in Gurgaon. The land for the project has already been acquired. […]
India-focused real estate investment company Yatra Capital Ltd said it has invested 28.01 mln eur in two joint venture projects in Bangalore. Yatra said it has acquired a 30 pct stake in Palladium Constructions, for 17.86 mln eur, and another 30 pct stake in Platinum Hospitality Services, for 10.15 mln euro. The company said with the new projects, it now has invested in 11 deals and has used 146.34 mln eur of 220 mln eur it has earmarked for investments in the Indian real estate market. […]
The Rs. 3500-crore Gitanjali Gems Ltd., India's largest integrated diamond and jewellery manufacturer and retailer, today announced the complete acquisition of Gili. Earlier the Group had 65% stake in the 'Superbrand'. The first jewellery brand to be launched in India- Gili is evaluated at INR 85 cr today and had achieved a Superbrand status in 2004. For more than a decade now, the brand offers Indian consumers a world of choice in gold and diamond jewellery – truly “Easy Elegance”. Gili was launched in the year 1994 with its primary brand value being, “Genuine diamond and gold jewellery at affordable prices” and it has come a long way becoming andd sustaining itself as one of the most preferred brand in its category. Gitanjali Gems Ltd has also acquired 100% Shares of 'Modali Gems Pvt Ltd.' (MGPL), earlier a joint venture Company. By way of this acquisition, MGPL has become a wholly owned subsidiary of the Company. The main business of MGPL is to manage the distribution of the brand Asmi and allied products. It is currently a 120 people company with about 45 distributors and 345 retailers under its banner. These powerful acquisitions will drive much more value to key stakeholders including end customers, and partners of Gitanjali Group. This all adds up to advantages including better deals for consumers and access to the world's most coveted brand than ever before. […]
Kotak Investment Advisors Ltd (KIAL) has raised $440 million in a fund to invest in private equity opportunities, taking its total corpus under management to $1.4 billion. Kotak will continue its focus on investing in small and medium enterprises, mostly unlisted, a top official said. The fund has been raised entirely from institutional investors and high networth individuals in India who are Kotak Mahindra’s clients. Compared to three years ago when the emphasis of investment was on global themes, private equity strategy is increasingly shifting to domestic opportunities, C Jayaram, head of KIAL and executive director at Kotak Mahindra Bank, told ET. “We believe that is where the growth story is. Our sweet spot will also continue to be investments in range of $10 m-$30 m,” he said. […]
Liquor tycoon Vijay Mallya is open to buying back Heineken’s 37.5% stake in United Breweries (UB), in which he holds an equal stake, at the prevailing market price. “If you ask me whether I would buy them back, my answer is at today’s price, sure, I am a buyer,” Mr Mallya told ET. But Heineken sources said the Dutch brewer has no plan to sell its stake. Heineken will inherit stake in UB from Scottish & Newcastle (S&N) after the completion of a worldwide takeover of the British brewer. The Heineken-Carlsberg combine announced S&N’s acquisition for $15.4 billion in January. The acquisition process is still on. At the current price, UB’s market cap is pegged at Rs 3,800 crore, down almost 50% from January’s peak. Mr Mallya will have to show up with Rs 1,425 crore if he were to buy back at the prevailing rate. The UB scrip closed flat at Rs 176 on BSE on Thursday. […]
On networked access, the report highlighted the extensive networking with industry insiders in the sectors where the private-equity firms operate while on domain expertise. The capacity to quickly implement improvements that turn around their portfolio companies is another capability, the report said. Commenting on the opportunity in India, BCG partner and director Saurabh Tripathi said, “Richness and diversity of Indian market allows for specification of private equity funds along the lines identified in this report – be it expertise in domain, operational improvement or private networks.” […]
|
Post your messages.Please refrain from posting offensive messages. IndiaPE accepts no liability for the consequences of your reliance on these postings and messages.
|