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Global Infrastructure Partners (GIP), a UK-based private equity firm backed by Credit Suisse and General Electric along with Delhi-based infrastructure firm Zeus Inframanagement, has acquired 74% in Hyderabad-based East India Petroleum (EIPL), a privately-owned company for around Rs 500 crore. GIP and Zeus Inframanagement have floated a joint venture to acquire 74% stake. GIP, which owns stakes in London City Airport and Great Yarmouth port, will hold an 80% stake in the JV while Zeus Inframanagement will own the rest. EIPL provides liquid storage services for petroleum, oil and lubricant products, petrochemicals, LPG and biodiesel. India is currently experiencing a strong demand for petro-products to fuel its energy needs. East India Petroleum is based close to Visakhapatnam, one of the biggest ports in Andhra Pradesh. The deal also underlines the attractiveness of India’s energy sector to foreign investors. Significant opportunities for growth as energy consumption increases in India and it builds storage capacity in line with global capacity levels. […]
(Contributed by Dr. Alok Aggarwal, Chairman and Co-founder, Evalueserve) Evalueserve, the global research and analytics firm, has identified three major groups of industries in India that are likely to be lucrative for private equity investors. One such group is that of hi-tech services and products, most of which are currently being exported. The second group consists of services that are mainly geared towards the Indian domestic market. And the third group comprises products and services related to high-end manufacturing and infrastructure. The hi-tech services and products category includes Information Technology (IT) and application development, business process outsourcing (BPO), knowledge process outsourcing (KPO), drug research and clinical research outsourcing (CRO), engineering services outsourcing (ESO), software and solutions related to the consumer Internet, software as a service (SAAS), open source, software-cum-services, and telecommunications (both wireless and wire-line) products and services. This combined group of products and services is expected to grow at approximately 22% per year during the next five years and is likely to contribute about 1.3% out of a total nominal growth of 13% per year (including 5% annual inflation), i.e., approximately 10% of the total growth of the Indian economy. […]
Eyeing a chunk of the India pie, venture capitalists and private equity players will strike deals worth $17.5 billion (Rs 70,000 crore) by 2009. This is a three-fold jump from $5.5 billion at the end of the first half in 2007, predicts a new study from market research firm Evalueserve. Consequently, the total number of deals would soar to 560 as private equity players put in funds into the new engines of growth that drive the Indian economy. The paper mentions that 173 deals have been struck by the end of the first half of 2007. Evalueserve forecasts that beyond the technology-sector focused activity that has driven PE investments in the past, private equity and venture capital firms are now aggressively looking to invest in new areas such as manufacturing, financial services, healthcare, real estate, and construction. […]
Worried over the substantial inflows of foreign funds into the real estate sector, the central bank has asked the government to allow FDI into the sector only after the clearance from Foreign Investment Promotion Board (FIPB). At present, up to 100% FDI is allowed in realty projects on automatic route with certain conditions like a three-year lock-in on investments and minimum capitalisation of $5 million. RBI wants real estate removed from the list of sectors where FDI can come in through the automatic route. RBI wants inflows routes like participatory notes (P-notes) and private equity contained. The market regulator Sebi is currently in the process of initiating moves to restrict investments coming in through P-notes. Sources said the government, which has completely backed Sebi’s action to restrict P-note flows, may now not relent on other suggestions, especially restricting FDI. Also removing one sector from the automatic list, will be seen as a retrograde measure by foreign investors. […]
Construction firm Shapoorji Pallonji & Co. Ltd, which is developing four special economic zones (SEZs) focused on the information technology and back-office businesses, plans to sell up to 10% equity in these projects to private equity (PE) firms. “We are talking to a lot of private equity firms, including (the private equity arms of) Goldman Sachs and Deutsche Bank, but we have not frozen on anybody as yet,” said Ashutosh Pathare, vice-president (commercial sales and business development) at Shapoorji Pallonji. People familiar with the development, who did not wish to be identified, said Singapore government-owned investment management firm GIC and local firm HDFC Realty were also interested in buying a stake in these projects. Several reports in the media had earlier said that Shapoorji Pallonji was considering selling a stake in its real estate projects that are FDI (foreign direct investment) compliant. Currently 100% FDI is allowed in projects covering a minimum area of 10ha for residential developments and more than 50,000 sq. m for commercial properties; such investments come with a lock-in period of three years. […]
Chennai-based communication services provider Dhanus Technologies is set to acquire two US-based communications companies and a Chinese telecom services provider as part of its global expansion, a source close to the deal said. The company plans to raise up to Rs 800 crore to finance these acquisitions. Dhanus has zeroed in on VPN and VoIP services firm Seawolf Technologies in China, a vehicle tracking services provider Hetrogenous and an NYSE-listed company serving the US market for satellite telephony and mobile virtual networking, the source said. The name of the third company could not be ascertained. Dhanus plans to acquire 60-70% stake in each of these companies. The company has valued the Seawolf deal at $52 million and that of Hetrogenous at $40 million. Dhanus would use $100 million to acquire a majority stake in the NYSE-listed company. […]
Global Investment House “Global” announced today that it has acquired through its private equity funds a significant equity stake in Reach (Cargo Movers) Pvt. Ltd, a surface transport company in India. The transaction was concluded by the private equity funds team for its Funds focused on investing in the MENA and South Asia region. Reach was established in 1971, the existing management took over the company in 2001 and changed the focus from being an agent for various transporters to a logistics service provider and focused on Providing Logistic Service, Transportation of Small & Parcel Consignments, Transportation of Capital Goods & Construction Equipments. Currently Reach provides logistics support for motor spare parts, engines, raw materials, finished products, project equipment, entire plant, sophisticated machineries, heavy transformers, oversized boiler and tankers. The Funds have invested USD5 million for a significant stake in the company. […]
Deutsche Bank Singapore has picked up 5% stake in Lavasa Corporation, a real estate project promoted by Hindustan Construction Company (HCC) at Lavasa near Pune, for Rs 500 crore. The deal values Lavasa Corporation at Rs 10,000 crore. Sources said Lavasa would issue fresh equity to Deutsche Bank. HCC was holding 65% in Lavasa through its real estate subsidiary, HCC Realty. Other partners in the project, the LM Thapar group and Venkateshwara Hatcheries, along with other minority stake holders, account for the remaining 35%. When contacted by ET, Lavasa Corporation COO Rajgopal Nogja declined to comment on the deal. However, sources close to the development said a term-sheet had been signed between HCC and Deutsche Bank last week. The deal makes it one of the largest investments by Deutsche Bank in India’s real estate space. A few weeks ago, Deutsche Bank invested around Rs 1,700 crore in a special purpose vehicle (SPV) floated by Mumbai-based Lodha group. […]
Ishaan Real Estate, the first India-focused real estate fund listed in the Alternative Investment Market (AIM) in London, has acquired 40% stake each in eight real estate projects promoted by K Raheja Corp, for Rs 1,082 crore (£133 million). The properties in which the fund has invested include three IT parks, two Inorbit shopping malls and one hotel property. The Ishaan-K Raheja Corp’s deal could be the first investment by an AIM-listed property fund in the Indian realty space. Last November, Ishaan had raised about £180 million in its first phase from the AIM market of London Stock Exchange. The entire fund was to be invested in K Raheja’s properties in India. It may look at raising further funds from AIM market , and may look at investing other properties in India, said sources. Ishaan picked up equity in K Raheja Corp’s Inorbit shopping mall in Hyderabad, Inorbit shopping mall and IT park in Pune, Mindspace IT park in Hyderabad, Mindspace IT park in Navi Mumbai, two Mindspace IT parks in Hyderabad, Commerzone IT park, hotel and retail development in Bangalore, and Viverea residential development at former Hindustan Spinning & Weaving Mills site in Mahalaxmi at Mumbai. […]
KDDL Ltd, manufacturer of premium watch dials, on Tuesday said it is exploring options to acquire a watch company in Switzerland with an aim to tap the European and Swiss market. Besides, the company (formerly known as Kamla Dials & Devices) also plans to invest Rs 60 crore for expanding its retail chain of Swiss watches under the brand Ethos in the domestic market in the next couple of years. “We are quite keen on acquiring another watch company in Switzerland as there is a huge potential for a firm like us in this luxury watch region. But it will take some time to get things materialised,” KDDL CEO Yashovardhan Saboo said. KDDL was the first Indian company in the watch business segment to acquire a watch factory in Switzerland with an investment of $2.7 million this year. […]
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