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Venture capital fund Sequoia Capital has invested in health insurer Star Health and Allied Insurance Co. Ltd, according to Sumir Chadha, managing director of the venture capital firm. “We are very excited about our investment in Star Health, India's leading health insurance company,” Chadha said. “The company has built a very strong market position in both the retail and government health insurance verticals.” Sequoia had picked up a 25% stake for $35 million ('157.85 crore), a person close to the deal said on condition of anonymity. Chadha refused to comment on the stake, but said his firm's investment was similar to ICICI Venture. ICICI Venture's investment was for a stake of 18-19%, said another person associated with the deal, who also did not want to be identified. […]
Private equity firms Carlyle and TPG are set to buy up Honda’s stake in Indian motorcycle company Hero Honda, according to reports. The Munjal family, who set up the Hero Group, are set to buy back the Japanese auto giant’s 26 per cent holding, before selling most of it on to the two firms. It is expected that the US private equity firms will end up paying $1.4bn for some 18 per cent of Hero Honda, a discount on the market price of the shares but more than the Munjals will pay Honda. The business has been run as a joint venture between Honda and the Hero Group for 26 years, but the two will become competitors once the Japanese company pulls out. Honda plans to ramp up the size of its subsidiary, Honda Motorcycle and Scooter India. Honda’s exit has been held up by the objections of some shareholders, given talk of increased payments to Honda for the use of its technology. […]
Indian medical devices company Opto Circuits has acquired US-based Cardiac Science Corporation for around $64 million. Reports indicate that the Indian business has purchased 76% of the US business, with each shareholder being paid $2.30 for each common share. The company has acquired a number of healthcare businesses in the past year; purchasing US-based Unetixs Vascular Inc at $9.7 million in July, and Indian company NS Remedies, which is engaged in research and development, for $1.5 million in April. This deal will make Cardiac Science a wholly-owned subsidiary of Opto Circuits. Cardiac Science Corporation manufactures and markets advanced diagnostic and therapeutic cardiology devices and systems. They have a number of established brands such as Burdick, HeartCentrix, Powerheart, and have customers in over 100 countries. […]
Volvo Buses India Private Ltd (VBIPL) on Monday announced that it had bought out, for an undisclosed amount, the stake held by its JV partner, Jaico Industries of the Azad Group, thus increasing its ownership share from 70% to 100%. Akash Passey, managing director, said that the Swedish parent, Volvo Bus Corporation (VBC), intends to make India a global manufacturing hub for Volvo buses for exports to different regions, and that they had targeted reaching a revenue of $1 billion (Rs4700 crore) from Rs500 crore this year, in a time frame of five years. Rune Lundberg, senior vice president, VBC, said that the company would establish a “substantial industrial presence” in India with additional capacity, more local R&D, and ramped-up hiring from its current strength of 1000 personnel. […]
Opto Circuits (India) Ltd has informed BSE that the company has successfully acquired 76 per cent of outstanding common stock of Cardmc Science Corporation US (Nasdaq:CSCX). The company plans to exercise its top-up option under the terms of the merger agreement. The merger is expected to occur in the next few days. Following the merger, Cardiac Science will become a wholly-owned subsidiary of Opto Circuits (India) Ltd. […]
The owners of Mumbai-based fashion house Kimaya Studios are said to be involved in preliminary talks with a host of private equity (PE) firms to divest around 20 per cent stake in the company for close to Rs.100 crore. The funds raised will be channelised towards expansion plans and ramp up the number of stores in the country. “India has the potential to become the next fashion hub of the world. Fashion has moved beyond metros and large cities, and become a pan-India language. Therefore, we are looking to expand our operation in a significant way,” said Pradeep Hirani, who along with wife Neha Hirani, set up Kimaya in 2002. He, however, refused to divulge details of his fund-raising plan. Kimaya plans to open at least 50 multi-brand retail stores in the country over the next three years from the existing 16 stores. Some of these stores will come up in tier-I and tier-II cities such as Chandigarh, Ludhiana, Surat and Ahmedabad. Besides, it is also looking to foray into the US and European markets after setting up shop in Dubai. […]
This enables firms to raise funds without diluting any stake at the parent level. Private equity (PE) funds are gearing up for a new set of opportunities in the road sector. Infrastructure companies are looking to raise equity by selling minor stakes at the project level, an opportunity PE players are chasing aggressively. Investment bankers which are trying to strike deals in the segment say a number of companies with highway projects are looking for investors. The projects involved are at various stages of development. Some assets are operational too, they say. “There’s a reasonable history in the sector and there are many assets in the project life cycle where development and construction risks are finished,” said Arvind Mahajan, executive director, KPMG. […]
Baring Private Equity Partners (BPEP), the global PE major, will begin investing in Indian real estate in the next six months, according to a top executive of the fund. BPEP India was looking at investing from its $650 million Baring India Private Equity Fund III, said Varun Batra, partner, BPEP India. BPEP India invested in information technology, healthcare and financial services sectors from its first two funds. The companies included business process outsourcing firm Mphasis and consumer goods company Jyothy Laboratories. “FDI in real estate has been allowed for the past five years and the market has been through one learning cycle” said Batra, who was with Citigroup before joining Baring. BPEP has been investing in India since 1998. The foray comes at a time consolidation is taking place in the real estate PE space. […]
Apollo Hospitals Enterprise is looking to offload a 49 per cent stake in its pharmacy chain unit and is also exploring the possibility of listing the unit in six months, a top official said on Thursday. The hospital chain is planning to raise `550 crore via equity and debt for expansion by March, Ms Suneeta Reddy, executive director-finance, told reporters. She also said that the pha-rmacy chain has become profitable and hence will be hived off as a separate business entity over a period of time. Apollo Pharmacy is India’s largest branded pharmacy network, with over 740 plus outlets in key locations. The company is also planning to invest `1,100 crore to add another 1800 beds by the end of 2013. She said that the company plans to raise the capital through debt, equity and internal accruals. […]
Standard Chartered Private Equity (SCPE) is in talks to invest Rs 300 crore in Hyderabadbased infrastructure solutions provider Indu Projects, picking up around 10%, said sources. The deal may involve SCPE acquiring the stake of some existing founder investors as well as infusing fresh capital into the company, they added. A substantial part of transaction value would go towards taking out some of the existing investors. When contacted, Indu Projects CFO Mahender Basani refused to comment saying that nothing had been finalized yet. “We won't be able to comment on anything at this point of time. There is nothing that is final till it is final ,” he added […]
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