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A clutch of domestic banks and foreign financial investors (FIIs) has picked up around 9% stake in GMR Infrastructure, the flagship company of the GMR group, for around $1 billion through a qualified institutional placement (QIP). The deal is the largest among the recent QIP deals. The investors include State Bank of India (SBI), Canara Bank, Capital International, Citigroup, T Rowe Price, Credit Agricole, UBS and Kotak Mahindra. The deal involves selling part-stake by promoters and issuing fresh shares. Post-issue, promoters’ holding will be down to 74%, while the public and new investors together will hold the remaining 26%. Sources said SBI and Canara Bank were the largest investors in the QIP, investing Rs 500 crore each. Other investors have invested between $40 million and $70 million. […]
GoAir is believed to be mulling over bringing in a new equity partner from among three aspirants, including a leading Indian corporate and a global venture capitalist – a move that would help the Wadias-promoted airline to expand its fleet to 40 aircraft by 2012. Ahead of advancing the negotiations, the budget carrier has been valued at up to Rs 1,600 crore ($350-400 million) by a leading international consultancy firm. Asked about the new equity partner and the stage of negotiations, a company spokesperson declined to comment, saying: “As a policy, GoAir does not comment on market speculations.” With the recent round of consolidation in aviation space, such as Jet Airways-Air Sahara and Kingfisher-Deccan deals, GoAir is emerging as an attractive investment target and has received offers from an international venture capital firm, an Indian corporate and another domestic financial investor, people close to the development said. […]
Hyderabad-based Ramky Group, which had revenues of Rs1,000 crore last fiscal, is set to unlock value of three of its entities that attracted investments from global private equity (PE) firms through initial public offerings (IPOs). The group has three entities, Ramky Infrastructure Ltd, Ramky Enviro Engineers Ltd (REEL) and Ramky Estates and Farms Pvt. Ltd (REFL). The group is valued at around $3 billion (Rs11,880 crore). Global PE players that picked up minority holdings in these companies include Infrastructure Leasing & Financial Services Ltd (IL&FS), Sabre-Abraaj Capital, Lehman Brothers Holdings Inc. and Deutsche Bank AG. The first off the block with its IPO will be Ramky Infrastructure—a Rs720 crore company in revenues last year, which is mainly into developing industrial estates. Ramky Infrastructure plans to go public sometime in the first quarter of next year. […]
Infrastructure company Larsen and Toubro Ltd (L&T) has acquired 26% equity in consulting and engineering firm Feedback Ventures Pvt. Ltd for Rs40 crore. L&T was one of Feedback’s largest clients in 2006-07, the company said in a press statement. Promoters of Feedback Ventures also increased their holding to 46%, buying out investors such as real estate company DLF Ltd, while infrastructure finance company Infrastructure Development Finance Corp. Ltd reduced its equity stake to 16%. With this new status the Feedback Ventures management hopes to significantly enhance its presence in most infrastructure sectors by working alongside L&T, both domestically and internationally. The company, which employs 800 professionals, provides engineering and project management advisory services. (Livemint) […]
Italy's Prysmian Group is poised to fork out a minimum of Rs 130 crore to acquire a majority 60% stake in Kolkata-based Nicco Corporation’s industrial cables business. Nicco will spin off its cables business into a distinct JV company, christened Nicco Cables, in which Prysmian Cable Moulding, Netherlands will hold 60% while the balance 40% stake will be held by Nicco. Nicco has just inked a JV agreement with Prysmian Cable Molding. “The entire cables business of Nicco will be transferred into the new company in which Prysmian will have a 60% shareholding,” Nicco chairman Rajive Kaul told ET on Tuesday. Nicco is likely to receive a consideration of Rs 130 crore for transfer of its cables division. According to the contractual arrangement, the Nicco Cables board will consist of five directors, three of them including the managing director will be appointed by Prysmian and other two, including the chairman, will be appointed by Nicco. Rajive Kaul will be chairman of the new company, while Prysmian will be responsible for managing the JV’s operations. […]
Global investment group Eton Park will spend 5.01 billion rupees ($127 million) for about 5 percent in the asset management arm of Indian financial services firm Reliance Capital Ltd RLCP.BO, the Indian firm said on Wednesday. The funds will be used for domestic and international expansion, Reliance Capital said in a statement. The transaction is subject to approvals and is expected to close in January 2008, it said.(Reuters) […]
Private equity firms are likely to pick up stake in Bengal Faith Health Care, the Special Purpose Vehicle (SPV) formed to set up the Bardhaman Health City, a Rs 1,000 crore PPP (public-private partnership project) to come up on a 60-acre plot near Durgapur Expressway(NH-42). “We are in talks with some private equity firms who have evinced interested in acquiring stake in Bengal Faith Health Care (BFHC) and we are open to offloading stake in the SPV”, said S S Chakraborty, chairman of CES Infratech, a joint venture between Consulting Engineering Services (India) and West Bengal Industrial Development Corporation (WBIDC). […]
Bollywood is beginning to enjoy the benefits of corporatisation. As the world’s largest film industry organises itself into a bigger and better-managed entity, it’s being helped along by a steady infusion of funds, not the least from private equity (PE) investors, who have been pouring money into sectors like infrastructure and real estate. Although PE activity was slack in 2007—and no one is willing to give out details—experts believe that the New Year may see a lot of development on that front. With the industry growing at a frenetic pace, everyone agrees that filmmaking in India is no more the job of an individual producer or financier. Second, the growth of the film industry has attracted PE players the most. Third, with the onset of corporatisation, foreign investors feel investment in the film industry is a safe bet. According to a study by FICCI-PricewaterhouseCoopers, the size of the entertainment industry, which was pegged at Rs 8,400 crore in 2006, is likely to double by 2011. So, how are PE funds being routed to the industry? Experts say equity is coming into the industry through both foreign and domestic routes. According to reports, some of the big film production houses are in the race for PE funds to fuel their business growth plans. The trend began last year when PE investors like 3i, Cisco and Oman International Fund invested Rs 552 crore in the media and entertainment house Nimbus Communications—producer of films like Sarhad Paar, which flopped, and the Sanjay Dutt-starrer Yakeen. PE funds have got more aggressive plans in the movie sphere in the future. […]
The $150-million early-stage technology venture capital fund, IDG Ventures India, and part of the IDG Ventures global network of venture capital funds, has announced its investment of $ 2.5 million in innovative network security and vulnerability management startup iViZ, founded by an IIT Kharagpur alumni who has introduced the world's first automated and on-demand penetration testing product. Kolkata-based iViZ has addresses the over $10 billion global security and vulnerability management market where losses due to identity theft in the US alone have been estimated at at annual $ 48 billion. The security and vulnerability management market has been growing annually at over 18 per cent. . ''It is our privilege to support iViZ founded by Bikash Barai and Nilanjan De,'' said Sudhir Sethi, chairman and managing director, IDG Ventures India. ''This investment is based on our thrust of investing in disruptive software product firms out of India with a potential to scale globally. Security is a key market for us. iViZ has built a highly committed and innovative team whose first product has already generated significant market traction and is well positioned to be a leader worldwide,'' iViZ received recognition as being amongst Asia's top five security startups in the Global Security Challenge held by London Business School in September 2007. The company plans to utilise the investment to build its sales team in North America, Europe, Middle East/APAC and India and to significantly enhance its product development initiatives. […]
Asia-focused British bank Standard Chartered said on Tuesday it plans to invest $50 million in Indian brokerage UTI Securities Ltd until 2010. It also said it has received the Reserve Bank of India's approval for its 49 per cent acquisition in UTI Securities. The bank has the option to raise its stake to 100 per cent in phases by 2010, it said in a statement. UTI Securities offers broking, wealth management and investment banking services across 60 cities in India. (Sify) […]
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