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Private-equity investments in India fell sharply to $ 888 million in the April-June quarter from $2.6 billion a year earlier, an organization tracking such investments said Tuesday. The number of deals during the quarter fell to 44 from 92 a year earlier, Venture Intelligence said in a statement. The reported INR6 billion ($124 million) additional capital raised by Quippo Telecom Infrastructure Ltd. from its existing investors – IDFC PE and Oman Investment Fund – was among the largest deals during the period, Venture Intelligence Chief Executive Arun Natarajan said. (Nasdaq) […]
Private Equity (PE) and Venture Capital (VC) firms which have been using the trust route as vehicle for funds to pass through the tax at entity level are divided if they should opt for Limited Liability Partnerships (LLPs). The government had introduced the LLP mechanism on April 1 this year, giving PEs and VCs hope of an alternative to the trust route. However, yesterday’s Budget announcement with regard to taxing LLPs at the entity level has created some disappointment. “It is out of sync with international practices,” said Nishith Desai, founder of Mumbai-based corporate law firm Nishith Desai Associates. “In a cross-border scenario, issues relating to application of tax treaties and availability of tax credit to foreign partners will arise. There are also problems on the treatment of losses in the hands of the partners,” he said. […]
Tata Capital, a subsidiary of Tata Sons, has tied up with Japanese securities firm Mizuho Securities to raise a private equity fund in Japan. The $500 million fund will invest in equity shares of unlisted mid-sized Indian companies. Tata Capital sources confirmed the development. They added that the Mizuho group is also likely to make proprietary investments in the fund. They refused to give further details. Interest rates in Japan are hovering around zero levels for years now and investors there are looking at overseas investments to make any returns at all. […]
Telecom and defence manufacturer Kavveri Telecom Products on Thursday announced its acquisition of Canada's Trackcom Systems International (TSI), a design and development company. It did not disclose the size of the deal which involves picking up 67% stake in the Montreal-based R&D company. It will acquire the remaining 33% over the next 4-5 years. Shivakumar Reddy, managing director of Kavveri Telecom, said the new buyout, which has the R&D capability for radio frequency (RF) products up to 40 gigahertz (Ghz), would help his company transfer technology to its manufacturing units in India and North America. […]
UK-based hedge fund Laxey Partners Ltd has sold its 11.63% stake in London-listed Hirco Plc. to Halbis Capital Management (UK) Ltd, an unit of HSBC group, people familiar with the development said. Laxey sold eight million shares at 95 pence a share in a transaction on 1 July, they said on condition of anonymity. HSBC, with all its four subsidiaries, holds 9.9% stake in India-focused Hirco. Halbis Capital individually holds 2.15% stake. […]
Personal care products maker Emami Ltd is likely going to announce this week, the sale of a 10% stake to foreign institutional investors. The company, which in October acquired a 72% stake in herbal healthcare firm Zandu Pharmaceutical Works Ltd for around Rs750 crore, is looking to raise around Rs300 crore through the share sale, according to chairman R.S. Agarwal. “Some of the best institutional investors in the world have evinced interest in acquiring shares of our company,” Agarwal said. “We connected with them by conducting roadshows in places such as Singapore and Hong Kong.” The money raised is likely going to be spent on expanding Zandu and Emami’s production facilities, to pay down debts and to introduce new products under the Zandu brand, according to Agarwal. […]
Reliance Power Ltd (R-Power), part of the Reliance Anil Dhirubhai Ambani (ADA) group, is in talks with five leading global power companies to sell 15 per cent equity stake in the company. Preliminary talks have started with three Chinese power companies, which include China Light and Power Holdings (CLP), and French and Canadian companies. Sources said Anil Ambani was in China last week to hold discussions with Chinese power companies for a possible stake sale. The company is willing to place the equity to one or two power companies. […]
India’s United Spirits, the world’s third largest spirits maker, has received term sheets from private equity firms Blackstone, KKR and Capital International interested in buying a stake worth $250-300 million in the company, the Economic Times said on Wednesday. The company’s talks with financial investors were proceeding along with other plans to raise cash and pay down a part of its debt, the report said citing people familiar with developments. The three private equity firms were doing a due diligence and a possible transaction with any of them would happen at a slight premium to the prevailing market price, some time soon, the paper said. The deal could see 10% of the firm changing hands, it added. United Spirits has a current market capitalisation of around $1.82 billion. […]
Mirroring unrelenting investor demand for exposure to China and India, Carlyle Group, a US-based private equity firm, has raised $1 billion for its growth fund targeting smaller Asian companies, reported Financial Times. Carlyle said that the size of the latest Asian growth capital fund, which is almost 50% larger than its previous fund, had taken the firm’s aggregate amount raised in Asia, to $2 billion. Carlyle may invest 40% of this fund into India. […]
Gemini Communication, a leading player in the wireless networking and Wimax solutions space, on Friday said it has acquired a majority stake in Sanat Technologies for an undisclosed amount. In a filing to the Bombay Stock Exchange, Chennai-based Gemini Communications said it has acquired a 51 per cent stake in Sanat Technologies. The acquisition would strength Gemini's focus on design, development and marketing of unique product solutions. […]
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