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Dealmaking is back in the private equity and venture capital circles with the economic recovery taking hold. After a pretty subdued 2008 and 2009, PE deals have breached $500 million mark every month since February, according to VCCEdge, the financial research platform of VCCircle. The gestation period for deals which doubled to 6-9 months, rising even up to a year in fiscal 2009, has also come down and deals in various stages of due diligence are finally seeing closures. Bharat Banka, MD & CEO, Aditya Birla Capital Advisors, said, “With the exception of any unanticipated shocks in the economy such as extremely weak monsoon or external shocks such as oil prices, the investment interest is expected to remain robust.” […]
New Delhi Television Ltd (NDTV) said that it has decided to call off its deal with US based Scripps Networks Interactive Inc. ‘The NDTV Group has decided to exercise its right to terminate the definitive agreements and is in the process of terminating them,’ a company statement said. In November, both the parties had entered into a deal where Scripps had agreed to pay 55 million dollars for acquiring a 69 per cent stake in NDTV Lifestyle. […]
Ajmera Realty & Infra India today announced that its investment committee has approved the proposal to invest in Ultra Tech Property Developers (P) to acquire the 36% equity shares. The aforesaid decesion is subject to such approvals, consent, sanctions and permissions of the appropriate authorities. Ultra Tech Property Developers (P) is holding a Leasehold right of 604.50 square meters in Kalina, Santacruz (East). The plot is adjacent to BKC and is having potential of development of approx 40,000 Sq. Ft. […]
Salt-to-steel conglomerate Tata Group is forming a joint venture with private equity investor Actis that could spend $2 billion (about Rs 8,900 crore) in building roads over five years, as Indian and foreign investors seek to cash in on opportunities created by the governments attempt to upgrade the countrys network of highways, the third largest after the US and China. Tata Realty & Infrastructure, a company set up by the Tata group to foray into the roads and highways sector, will own 65% of the venture, called TRIL Roads Pvt Ltd. Actis will own the rest, Tata Realty managing director & CEO Sanjay Ubale told ET. Actis will pay $77.5 million, or Rs 345 crore, to buy the stake in TRIL Roads in its first investment in the Indian infrastructure sector, said its partner Michael Till. […]
In its first investment, the private equity (PE) arm of Anil Ambani-controlled Reliance Capital Ltd has purchased a stake worth Rs100 crore in Pathways World School, a group of schools for students from kindergarten to Class XII. The size of the stake acquired by Reliance Equity Advisors (India) Ltd hasn’t been disclosed. Reliance Equity Advisors is seeking to tap annual growth in the education sector that its chief executive officer Ramesh Venkat estimates at 50-60%. A recent report by education-focused PE fund Kaizen Management Advisors Pvt. Ltd has estimated that the so-called K-12 segment (kindergarten to Class XII) is a $20 billion (around Rs89,000 crore) business. “Also, there are a lot of government initiatives and policy changes which are attracting investment in the sector,” Venkat said. […]
AT&T Inc. (T) Wednesday sold its entire 7% stake in Tech Mahindra Ltd. (532775.BY) through two block deals for about INR6.55 billion ($147 million), leaving analysts worried that this could hurt outsourcing business from the U.S. telecommunications major to the Indian software services provider. The stake sale comes just a month after AT&T International Inc., a unit of AT&T, bought an 8.07% stake, or about 9.9 million shares, in Tech Mahindra from Mahindra-BT Investment Co. (Mauritius) Ltd. for $34.6 million as part of a 2005 agreement with the Indian company. AT&T sold just over 1% stake earlier this month and the balance 8.6 million shares Wednesday at about INR762 apiece, two people familiar with the matter told Dow Jones Newswires. […]
As private equity (PE) and venture capital (VC) deal-making gathers pace, PE firms are trying to raise cash, both in India and overseas, to purchase stakes in companies hungry for capital after last year’s downturn in the alternative investment market. Alternative investors such as PE and VC firms also stand to derive tax benefits by using the so-called dual structure, in which they raise separate domestic and offshore funds for investment in Indian firms. The alternative is a unified structure, which requires offshore funds to register in India as a foreign venture capital investor (FVCI) or through the Foreign Investment Promotion Board (FIPB) and put money in a domestic trust that makes the final investment. […]
Private sector lender Yes Bank plans to raise Rs 1,500 crore of capital this financial year, a top bank official said. “We are very well capital-endowed as at March 2010 but we do have a headroom to raise around Rs 1,500 crore of hybrid capital in both our Tier-II and Tier-I structure,” Yes Bank Managing Director and CEO Rana Kapoor told reporters here today. “We will be tapping this window definitely this fiscal because in a rising interest rate environment it is better to raise money sooner than later,” he said. As on March 31, the bank's total CRAR stood at 20.61 per cent. The bank would be tapping the domestic market for this hybrid capital, he said. […]
Ananta Capital, an alternative investment fund set up in August last year, is raising a total of $150 million for its two funds — a pledge fund focused on private equity deals, and an equity fund dedicated to stake acquisitions in publicly-traded companies. Jaganath Swamy, managing partner, Ananta Capital, said both funds had so far drawn commitments of $20 million from limited partners (LPs), high networth individuals and financial institutions. “We are looking at closing $110 million in the next three-four months for both funds. The pledge fund is designed to be LP-friendly and will be focussed primarily on the advanced materials and renewable energy sectors in India,” Swami said. […]
Private Equity backed Allcargo Global Logistics (AGL), a Mumbai based logistics firm, on Friday raised nearly Rs 100 crore through qualified institutional placement (QIP). The QIP proceeds will be used for acquisition in US and India, informed sources. Institutions to whom QIP was done include State Bank of India, Bajaj Alliance, Prudential and ING. In September 2009, New York-based private equity major Blackstone Group invested had invested Rs 142 crore in the company, raising its stake to over 11 per cent from 5.26 per cent stake earlier. Earlier in January 2006, New Vernon had picked up 6 per cent stake in AGL for Rs 60 crore. In a filing to the stock exchanges, AGL had recently informed that it proposed to raise funds not exceeding $150 million equivalent to Rs 700 crore, to meet the long term needs of the company to augment long term resources for investing in expansion and development of its businesses, future acquisitions, capital expenditure, working capital requirements and general business purposes. […]
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