|
|
Private sector lender HDFC Banks merger with Centurion Bank of Punjab (CBoP) has driven India Inc's merger and acquisition deal volumes to 2.9 billion dollar in February this year. The total number of M&A deals announced in the month of February this year stood at 36 with a total announced value of 2.95 billion dollar and the most significant deal was the merger of two financial entities HDFC Bank and CBoP, global consultancy firm Grant Thornton said. The other most significant deal was the acquisition of 17.2 per cent stake by Walt Disney Company in UTV Software Communication for consolidating its stake to 32.10 per cent in the domestic media company. It is interesting to note that there were 102 M&A deals with a total value of about 36.80 billion dollar in January and February 2007. […]
Only professionals are likely to be allowed to float venture capital funds (VCFs) in the future . In what could be a big change in India’s venture capital regulations, no business house, financial services group or big corporate would be allowed to set up a VCF. The capital market regulator has veered around to this view, possibly driven by instances where large groups have used the funds they have sponsored to invest in companies where groups have strategic or business interests. “Since VC funds operate under a special regime in relation to taxation, foreign capital and investment lock-in , and are meant to encourage new entrepreneurs, the vehicle should not be misused by established players,” said a source. While no formal guidelines have been issued, the change in regulatory stance on VCFs follows views expressed by an informal panel to look into VC regulations. Some of the top names in the financial services industry figure in the panel. No final decision has been taken. Existing VCFs set by business houses and banking groups will not be affected. The perceived conflict of interest, though not applicable to all VCFs sponsored by big groups, is more apparent in sectors like real estate where institutional finance is difficult. […]
Infrastructure Development Finance Corporation (IDFC) will buy Standard Chartered Mutual Fund. IDFC will pay $205 million (Rs 830 crore), way above $135 million (Rs 542 crore), the amount offered by UBS for the AMC in January last year. Standard Chartered has agreed to sell Standard Chartered Trustee and Standard Chartered Asset Management, including the local minority shareholders. The UK major has a 74.9% stake in the AMC with the remaining being held by Atul Choksey, the former co-founder of Asian Paints. The consideration is before deductions of local taxes and deal expenses. ET had on Thursday reported that IDFC and Shinsei were ahead in the race. StanChart regional CEO (India and South Asia) Neeraj Swaroop said: “We will concentrate on the distribution side of the business.” This means the bank will continue to sell products of other fund houses. IDFC CEO Rajiv Lall said: “This is in line with our wider strategy of broadening our footprint in the asset management business and diversifying our fee-based revenue streams.” […]
The Tata group, which runs businesses from steel to hotels, plans to sell as much as 49% of its mobile-phone tower unit by May. The group has shortlisted 15 potential investors in the business, Anil Sardana, managing director of Tata Teleservices Ltd, the group’s telecom arm, said on Friday. Tata Teleservices Maharashtra Ltd, which is listed, offers services in Maharashtra. The Tata group is seeking similar, if not better, valuations as that of the tower units belonging to the Bharti group and the Reliance-Anil Dhirubhai Ambani Group, Sardana added. (Livemint) […]
Yes Bank has announced that it would be raising up to Rs 1,100 crore in 2008-09, through a combination of debt and equity routes. While the bank would look at raising anywhere between $150-170 million through a qualified institutional or private placement between April and June. The balance amount would be raised through multiple tranches in the debt market later by September. YES Bank has already entered into talks with banks and private equity players to effect this fund-raising. Under the equity issue, the bank will be issuing 20 million fresh shares to the new investors, diluting the promoters’ stake further by 6.3%. Speaking to mediapersons on the sidelines of a press conference, YES Bank managing director and CEO, Rana Kapoor said, “Global Orients, a Singapore-based financial institution led by Richard Chandler picked up a 4.99% stake in the bank in December, for Rs 331 crore. We are now in talks with investment arms of two multinational banks, one which already has presence in India. We are also in discussions with few private equity arms and are looking at a strategic investor, not a strategic partner.” Mr Kapoor added that the funds raised would be used for setting up new branches, as the bank is targeting to have 250 branches in place by 2010. It would also help the bank raise the exposure limits both for single and group borrowers, he added. […]
Rel Cap, Aditya Birla in race to buy 44% stake from E*Trade. Anil Ambani-promoted Reliance Capital, the Aditya Birla group, Religare Securities, Indiabulls and private equity investors ICICI Ventures and Barings India Private Equity are in the race to acquire a significant stake in Mumbai-based IL&FS Investsmart. The development comes after E*Trade, the US-based discount broking firm, which holds a 44 per cent stake in the Indian brokerage house, has decided to sell its holding following heavy losses in the sub-prime credit turmoil in the United States. IL&FS Investsmart, a listed entity, currently has a market capitalisation of Rs 1,200 crore. Sources said that apart from private equity investors all others are keen on entering as strategic partners. They are evaluating this option to expand their presence in the booming broking segment in India. […]
The stock markets are in a tailspin and private equity (PE) players have found the value of their portfolios declining. Good enough reason for them to latch on to the bull run in cricket — all thanks to the flames stoked by the emergence of the Indian Premier League (IPL). It seems franchisee owners are locked in talks with these players to offload a part of their stakes in their respective teams. Investment banking sources say, many team owners are in the market to raise funds. “We are given to understand that minority stakes will be diluted by the owners. Names of franchisees going around include Deccan Chronicle (Hyderabad), Vijay Mallya (Bangalore), Ness Wadia and Preity Zinta (Mohali) and Shah Rukh Khan's Red Chillies Entertainment (Kolkata),” an investment banker, who did not wish to be named, said. Chennai Super Kings, the team owned by India Cements (ICL), has been approached by private equity investors. Admitted N Srinivasan, vice chairman and MD, India Cements: “A few private equity investors met me. They were interested in knowing if I would be willing to dilute my stake in the team's equity. I have told them that we are not in favour of diluting to anybody for the moment.” […]
Jet Airways promoter, Mr Naresh Goyal, would offload five per cent of his equity in the airlines before the end of this month to a private equity player, a top company official said. “Mr Goyal is targeting to dilute five per cent before the end of this month,” Jet Airways senior general manager Mr KG Vishwanath said. “We are talking to five to six private equity players. They include both national and international players,” he said. Mr Naresh Goyal holds 80 per cent in Jet through Tail Winds. According to Sebi guidelines, his stake needs to be bought down to 75 per cent. Once the dilution of five per cent stake takes place, Jet would go ahead with its $400 million rights issue. (The Statesman) […]
A group of institutional investorsand a start-up firm run by country's top B-school IIM-A alumni, Educational Initiatives Pvt Ltd (EI), have entered into a strategic tie-up for a project on school education and assessment. A consortium of investors including Footprint Ventures, Novak Biddle Venture Partners, the ICICI Bank-supported IFMR Trust and industrialist Gautam Thapar have joined hands with EI to fund the latter's project. EI's ASSET test, which is expected to be taken by hundreds of thousands of students in India this year, is the company's core initiative. EI executes large scale assessment and research projects with contracts from agencies such as the World Bank, UNICEF, and the Michael and Susan Dell Foundation. “In the schools, efforts to shift from rote to learning by understanding makes for a great starting point,” said EI's managing director, Sridhar Rajagopalan. […]
The year 2007 turned into a remarkable one for Indian M&A, both at home and abroad. Spending more money on overseas acquisitions than foreign companies did in their own market, Indian companies have made their presence felt globally. Domestically, 2007 saw another record year of deal activity, with total mergers and acquisitions (M&A) and private equity (PE) deals up 82 per cent from Rs 865 billion ($21 billion) in 2006 to Rs 1,576 billion ($38 billion) in 2007. As well as volume, both number (867 against 697) and average size of deals also rose significantly. International acquirers have continued to account for the bulk of domestic deals at Rs 1,189 billion ($29 billion). This is 75 per cent of the total domestic deal value as against 71 per cent in 2006. But the real story of the year is overseas, where Indians bought up companies in Europe and the US, splashing out some Rs 1,367 billion ($33 billion). […]
|
Post your messages.Please refrain from posting offensive messages. IndiaPE accepts no liability for the consequences of your reliance on these postings and messages.
|