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US-based private equity fund Citi Venture Capital (CVC) has picked up nearly 30% stake in Mumbai-based bulk drug maker Unimark Remedies for Rs 113 crore. The transaction, one of the largest investments in the pharma sector in 2007 and CVC’s first in the pharma sector, is made through its Indian arm — CVC India. “We have made an investment of Rs 113 crore in Unimark Remedies at a pre-funding company value of Rs 380 crore. It’s a mid-sized company and as PE investors we find value in the investment,” CVC India MD Ajay Relan told ET. When contacted, a Unimark Remedies spokesperson declined to comment. It is learnt that the company is planning to list the company soon. For the year ended March 31 ‘07, Unimark Remedies had reported total revenues of $90 million or around Rs 360 crore. However, the size of the stake that will be diluted is not known. Unimark Remedies is focused on manufacturing speciality active pharmaceutical ingredient (API) in cephalosporins, ace inhibitors, anti bacterials, anti-inflammatory, narcotics, oncology products and controlled substances segments. The company also manufactures advanced speciality intermediates. […]
The cement and construction major Jaiprakash Associates (JAL), a part of Jaypee group, is believed to be in talks with the Aditya Birla group to acquire Bina Power (BPC) in Madhya Pradesh. The 500-MW project has been on the backburner since it failed to make headway in late 90s when investments in the domestic power sector hit a trough due to unhealthy state electricity boards across the country. The group sold Rosa project in UP to Reliance Power in 2006. Rosa has tied up with a consortium of financiers led by IDBI to mobilise Rs 2,162 crore for the first phase of its 1,200 MW power project. The coal-based Bina project will require almost Rs 2,000 crore investment to set up 500-MW plant. Sources said JAL is interested in doubling the capacity to 1,000 MW, if the state government gives necessary approvals. The MP government would be ready to allocate coal blocks for the plant, said sources. “For the project, the Madhya Pradesh government has acquired land and given all necessary clearances. BPC, the shell company which owns the assets, will be transferred to JAL after the acquisition. The value of the deal would be just the investment already made at the location and the premium,” said sources in the know. Both Birla group and JAL have declined comment on the proposed deal. […]
The Iceland-based investment bank, Askar Capital on Tuesday said it has plans to float a $500 million private equity (PE) fund with Nikhil Gandhi-promoted Sea King Infrastructure (SKIL). Both Askar Capital and SKIL will hold 50% stake each in the fund. Askar Capital, CEO, Tryggvi Herbertsson, said the fund would capitalise on a diverse and exciting range of investment opportunities in India and the wider South-East Asian Region. Both firms will contribute to managing private equity investments. The private equity platform will operate within a multi-sector framework, looking to aggressively commit capital in particular to small-and medium-sized enterprises. Both Askar Capital and SKIL have already identified a healthy pipeline of investment opportunities in the region. “Private equity is a core business area for Askar Capital globally. Our investment strategy in India will primarily be in the domain of real estate, infrastructure and private equity. Our fund with the SKIL group is a step to move in this direction. The setting up of this private equity platform in India is another important step for us in growing our business in this region,” Mr Herbertsson said. […]
Textile firm S Kumars Nationwide (SKNL) has approved the demerger of its division Reid & Taylor, into a subsidiary of the parent company. Reid & Taylor has been operating as a division and is in the business of luxury textiles and ready-to-wear garments. The new subsidiary, Reid & Taylor (India), will focus only on the rapidly growing brand ‘Reid and Taylor’ – a luxury brand for men and will encompass the entire spectrum of male attire and presentation, the company statement added. This arm will benefit from a sharper business focus as a business entity and is aimed to consolidate Reid & Taylor’s position at the higher end of the textile business, SKNL added. This subsidiary will capture a bulk of this rapidly growing, high profit margin segment. SKNL also has plans to bring private equity investors in the demerged entity before going in for an IPO, it said. (ET) […]
DLF Ltd, the largest real estate developer in India, has announced its equal partnership with Aman Resorts, to enter into definitive agreements to acquire a controlling interest in the Aman Resorts Group. The entire transaction, when completed, is estimated to be valued at $400 million with an assumed debt of approximately $150 million. Aman Resorts is one of the world's leading hospitality and lifestyle businesses and currently owns and operates 22 luxury hotels, many with residences, in 12 countries. Several of the properties, such as the famed Amanpuri in Phuket and Amandari in Bali have received numerous awards over the years. In addition to expanding its resort locations, Aman Resorts is developing projects in key gateway cities around the world, the first of which is scheduled to open in New Delhi, India, in 2008. It has ambitious growth plans with many new properties in various stages of development. […]
Canaan Partners, the two-decade old, US-based early stage venture capital firm with $2.5 billion under management is planning to raise its eighth fund, targeting a corpus of $650 million. The seventh fund from which the VC is presently investing is $450 million. The company, which styles itself as venture catalysts, has been increasing its exposure in India and has so far understood to have committed close to $50 million in four companies during the past year and half, including investment in BharatMatrimony.com and techtribe.com Canaan India head Alok Mittal confirmed that Canaan is in the process of a new fund of around $650 million and added that the India team is being expanded to handle the hike in the deal flows. “We do not have a target of how much we will have to invest in India, but we are certainly looking for more opportunities,” Mittal added. The move by Canaan to raise its next round comes close on the heels of venture firms like Matrix India Partners, Sandalwood […]
Pyramid Saimira Theatre Ltd. said on Wednesday that its Board has approved the acquisition of a 51% stake, for cash, in Dimple Chie Advertising Pvt. Ltd., Mumbai. Dimple Cine Advertising has an all-India presence and is a one-stop cinema solution provider for both on-screen and off-screen advertising business capable of all types of cinema campaigns. Keynote Corporate Services Ltd., Mumbai, was the advisor to Pyramid Saimira on this transaction.(India Infoline) […]
Valuemart Info Technologies acquired a 74% stake in Datatalk Services (India) (Datatalk) a Bangalore based IT and BPO company. The shareholders agreement with Datatalk was signed on Nov. 28, 2007. After acquisition, Datatalk will be a subsidiary of Valuemart. The acquisition will help the company to acquire premium clients and broad base our service offerings in the BPO segment. Datatalk, a Bangalore based BPO, offers direct marketing, customer acquisition and retention and telemarketing services in the domestic market to prestigious clients like Airtel, Club Mahindra, Deutsche Bank, Nestle, Pepsi, Tektronics and Zee Television among others. Datatalk currently operates a 100-seat facility, in Bangalore and will set up an additional 200-seats capacity for its clients in Bangalore and Hyderabad in the next six months. […]
Global private equity player Sequoia Capital has invested Rs 100 crore in Hyderabad-based contract research organisation GVK Biosciences. The investment comes close on the heels of Sequoia picking up an 18% stake in Hyderabad-based CRO SAI Advantium, signaling the PE major’s interest in the contract research space. GVK Biosciences plans to use the money to fund acquisitions in the CRO space and also add to its existing capacities. “We are looking at targets both in India and abroad for expanding our work. Low-cost destinations are not a priority for us because we are open to making acquisitions even in the US and Europe,” GVK Bio president Manni Kantipudi told ET. According to him, the acquisitions would be made to compliment the company’s existing activities in the pre-clinical and clinical research areas. […]
Private equity (PE) investors have become bearish on returns, according to a half-year survey conducted by private equity advisory group Deloitte Corporate Finance Services India Pvt. Ltd among 40 PE firms across September and October. A majority (52%) expected returns to decrease in the next six months compared with 23% in their survey for the first half of 2007. One survey respondent, who was not named, qualified this concern by saying: “Investments made two or three years ago that exit in the next six months will do very well. More recent vintages will see more muted returns.” Also, one in five respondents expected a decrease in new funds being raised for India. No respondent expected a slowdown in investment activity The slight cooling down in PE market sentiment largely comes from the rise in the number of PE funds in India— a phenomenon that has raised company valuations. Increasing competition has also caused PE firms to focus more on the factors that differentiate them as companies look for more than money. Despite the outlook on returns, none of the respondents expected a slowdown in investment activity (65% expected increased activity versus 84% in the last survey). […]
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