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Kolhapur-based Ratnakar Bank has raised Rs 720 crore by selling shares to institutional investors at Rs 67 per share. With this issue the bank's networth has crossed Rs 1,000 crore Speaking to TOI, Vishwavir Ahuja, MD & CEO, Ratnakar Bank, said that this was among the initial step towards putting the building blocks in place for expansion of the bank. Given that the asset base of the bank is a little over Rs 2,000 crore, the new capital infusion will provide the bank with capital to grow its business several fold. The equity investors in the bank include Beacon India Private Equity Fund, Cartica Capital, Faering Capital, Gaja Capital Partners, HDFC, Norwest Venture Partners, and Samara Capital […]
Mukta Arts Limited has completed its presence in all verticals of the Motion Picture Production pipeline by acquiring a substantial minority stake in Maya Digital Studios. When Mukta Arts went public in 2000, the only film production house at the time to go public, it laid out strategies for the next decade. Since 2000, Mukta Arts has built business models in Exhibition Programming, Distribution, Film Education and Film Exhibition. After taking this stake, the Mukta Arts group is now present in all verticals of the film industry starting from Film education (Whistling Woods International), Programming & Distribution (Mukta Movie Distributors), Exhibition (‘Mukta Cinemas’ chain of multiplexes open in April 2011) and now in the Animation & VFX industry in Maya Digital Studios. The new studio will be based out of the Mukta Arts Head Office Building ‘Mukta House’, in Filmcity Mumbai & will have 4 primary business lines – Original IP creation, outsourced Animation & VFX work for international projects, international co-productions & 2D to 3D conversion. […]
Mauritius-based venture capital fund, Enam India Infrastructure, will invest Rs 3,700 crore in India’s infrastructure and energy projects through a dedicated core sector fund. Promoted by Mumbai-based Enam Securities, the Mauritius outfit will bring in foreign direct investment worth Rs 3,450 crore through the fund. The cabinet committee on economic affairs cleared the investment proposal on Thursday. Enam India Infrastructure is a venture capital fund registered with Sebi in September last year and backed by promoters of Enam Securities. The private equity fund will essentially invest 80 per cent in infrastructure like roads, power, ports and airports. The rest 20 per cent will be invested in allied units connected with infrastructure sector. […]
India-based online travel services provider MakeMyTrip on Thursday said it will acquire 79% stake in Singapore-based travel agency Luxury Tours and Travel (LTT) for $3 million to expand its presence in markets outside India. The company, which also announced an over two-fold increase in its net profit for the quarter ended December, 2010 at $1.62 million from the same quarter of 2009, said it has the option of increasing the stake in LTT in future. “MakeMyTrip will also invest approximately $0.75 million in addition, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT,” it said. Further, the travel portal will acquire from the existing shareholders, their remaining shares in LTT, in three tranches over a three-year period ending June 2014, it said. […]
India’s education sector is likely to see heavy investments from private equity funds over the next couple of years betting on increased government spending and as private players plan expansions, officials said. The sector, pegged at $86 billion, is seeing fresh interest from foreigners and large funds who are pumping in money in services, technology and infrastructure, they added. “The education market in India is roughly worth $50 billion in the private sector and all parts of the educational value chain are offering good investment opportunities,” said Rajesh Singhal, managing partner of private equity firm Milestone Religare Investment Advisors Pvt Ltd. “Private equity investment in the next two-three years should be in the range of $400-$500 million and that should not be a difficult target at all,” he added. Currently, investments are to the tune of $200-$250 million, officials say. Milestone Religare recently invested 250 million rupees in an Indian education service firm from its Rs6 billion private equity fund that focusses on education and healthcare. […]
Real estate developers are depending heavily on private equity (PE) funds to bail them out to make payments for old land acquisitions and to kick off projects at the land-buying stage. With bank loans drying up and cash flows under stress due to dipping sales, PE money seems to be the only source of relief. Two Mumbai-based firms, DB Realty Ltd and Ackruti City Ltd, need to pay up a premium of Rs.802 crore and Rs.330 crore, respectively, in February for the redevelopment of the high-profile Bandra Government Colony project in the city that was allotted to them by the state government last year. The land premium that was to be paid in September 2010 was pushed to February this year according to a 28 January report by Anand Rathi Financial Services Ltd. Both the developers have said that they will need to raise money to make the payments. […]
Coal India Ltd , the world's largest coal producer, may buy up to a 15% stake in US-based Peabody Energy Corp's Australian assets early next fiscal for an estimated USD 100 million (about Rs 450 crore). “It (deal) should not take too long a time. It should be two to three months. We are in the final stages of talks with Peabody Energy for a 15% stake for USD 100 million,” an official privy to the development, who did not wish to be named, told PTI. More or less an agreement has been reached on the valuation, the official said, adding, “We will invest in equity and in return, we will get the right for coal offtake.” CIL Chairman P S Bhattacharyya, however, refused to comment on the issue. The proposal to buy a stake in Peabody's asset will be deliberated at a meeting of a sub-committee of the company board on the state-owned firm's foreign acquisition plans, which is likely to take place this month. […]
The departing chairman of the Securities and Exchange Board of India (Sebi), C.B. Bhave, proposed changes in key areas related to the capital market, 10 days before the end of his three-year term. In a bid to bring in more transparency in deals between group companies, Sebi will propose that the ministry of corporate affairs tighten norms for all interested parties, including promoters, in such deals. The market regulator said it will recommend to the ministry the amendment of a clause of the Companies Bill, 2009, to prevent interested shareholders from voting on the special resolution of the prescribed related party transaction. The definition of interested party will cover the promoters of companies, Bhave said, while addressing the last board meeting of his tenure that ends on 17 February. The board discussed some of the issues that had arisen out of the earnings fraud at Satyam Computer Services Ltd. Investors won’t be allowed to vote on resolutions that involve a conflict of interest. “The issue arose when Maytas was proposed to be amalgamated with Satyam. Though the transaction did not materialize eventually, the matter originated from there,” said Bhave. […]
Private equity investment slowed down to $500 million in January over the previous month, says a report by Ernst & Young. Infrastructure companies, however, attracted a major chunk of the PE investment in January, which was lower by 9% over about $550 million in December last year, the report said. “There has been a marginal decline in the aggregate investments during the month compared to last month, but activity remains robust compared to January 2010,” E&Y Partner (Private Equity) Mayank Rastogi told PTI. The total PE investment in January 2010 was $380 million. However, the total number of deals announced during the month was higher than that in both the previous month and January 2010. In January this year, 28 PE deals were announced, against 26 deals in December and 16 in the same month last year. […]
Private equity (PE) firms are taking tax insurance on exits from investments in order to protect themselves from litigation, having been spooked by the recent travails that have beset acquisitions by HSBC and Vodafone. According to tax consulting firms such as KPMG, Deloitte Haskins and Sells and PricewaterhouseCoopers (PwC), and law firms that help PE firms structure the exits, funds are seeking such cover while negotiating the deals. However, they declined to disclose details of such transactions due to client confidentiality agreements. “Funds are actively looking to take some cover regarding uncertainties on the taxation aspect,” said Pranay Bhatia, associate partner at legal firm Economic Laws Practice (ELP). In the past one year, he has worked on at least five exits where such insurance cover was taken. “There is a lot of uncertainty regarding the Mauritius tax treaty protection in the (proposed) direct taxes code, so we want to protect ourselves from any tax exposure,” said a fund manager of a foreign PE fund that invests in India. He declined to be identified. […]
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