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Differences over valuation have held up Wockhardt Hospital’s plan to raise money from private equity (PE) investors. After talks with several PE players, discussions between Wockhardt Hospital and General Atlantic had reached advance level in August for the latter to pick up around 20% in the Indian hospital chain. But the two companies could not agree on the valuation of the healthcare firm. “There are differences, though talks with General Atlantic has not completely fallen through,” a person with the knowledge of developments told ET. Earlier this year, Wockhardt Hospital had withdrawn its IPO to raise around Rs 700 crore by diluting 24% stake due to adverse market conditions. Wockhardt Hospital plans to invest around Rs 1,000 crore to increase its bed strength to 4,000 from the current 1,500 in the next three years. […]
As private equity (PE) firms find it difficult to raise capital in difficult economic times, they are offering limited partners (LPs) more incentives to put in their money. Making the most of the situation, LPs are now demanding a greater say in the use of and returns on the money they commit to PE firms. LPs are entities that include public and corporate pension funds, insurance companies, high net-worth individuals, and university and other endowments that are the source of money for PE firms, which then establish funds to invest. PE fund investors Mint spoke with said LPs have collectively turned cautious, are demanding more rights, and subjecting those raising funds to intense scrutiny. “LPs are now negotiating terms on the fee and share of profits that the fund can take home,” said Sandeep Aneja, chief operating officer and managing director of Milestone Capital Advisors Pvt Ltd, a Mumbai-based real estate fund that is raising a $400 million fund from overseas, and has commitments of $220 million. […]
Private equity major Actis has raised a $2.9 billion private equity fund – Actis Emerging Markets 3 (AEM3) – for emerging markets of Africa, China, India, Latin America and south-east Asia. This is one of the emerging markets private equity funds closed this year and doubles the amount raised by Actis in 2004. The new fund will invest $1 billion in India over a period of 3-4 years. AEM3 includes commitments from a group of 100 investors from across the globe, including a number of first time investors in emerging markets. […]
The Blackstone Group has taken a majority stake in Mumbai-based CMS Computers and set-up up a company by carving out the IT infrastructure management and outsourced business services division. The new company's valuation is estimated to be around Rs 500-550 crore. Blackstone is understood to have taken slightly less than 55 per cent stake, and Rajiv Kaul — appointed as its executive vice chairman and CEO — is understood to have taken a minority stake of around 5 per cent. Till recently, Kaul was a global partner with Actis Capital LLP based out of London. Prior to that, he was with Microsoft for over 10 years. His last assignment at Microsoft was as senior director for emerging markets, including BRIC-based in Redmond and the US. […]
United Spirits has announced that its board of directors has considered and approved the proposal of merger of Balaji Distilleries into United Spirits. According to the company, the merger, which will come into effect from April 1, 2009, is subject to the necessary approvals. United Spirits has said that through Balaji Distilleries, it secures presence in Tamil Nadu in India. […]
Religare Enterprises Ltd (REL) one of the leading integrated financial services groups of India, confirmed that Religare Securities Ltd (RSL), its wholly owned subsidiary has received clearance from SEBI to acquire the entire shareholding of Lotus India Asset Management Company (Lotus India AMC) from its shareholders. Earlier this month, Religare had announced its decision to acquire Lotus AMC and subsequently announced its restructuring plans relating to Religare's partnership with Aegon in the asset management business in India. Religare had a 50-50 JV with Aegon in 'Religare Aegon AMC'. Religare has also received regulatory approval for divesting its stake in this AMC partnership. […]
Plethico Pharmaceuticals has decided to acquire 20% stake in a CIS retail pharmacy chain for $20 million. In an all-cash deal, Plethico will acquire 20% stake in a subsidiary of Hong Kong-based Tricon Holdings, the company said in a release to the BSE on Friday, without disclosing the name of the target firm. The acquisition is expected to add Rs 100 crore to Plethico’s topline in the first year. On the other hand, Tricon will get access to over 1,000 products from Plethico and its subsidiary, Natrol. The deal is expected to be completed by next month. […]
The terror attacks that rocked India's financial capital may depress stocks, dampen tourism and slow new investment, but are unlikely to inflict long-term damage on the nation's economy, analysts and business people said Thursday. “This is a challenge for the government to maintain law and order in the country,” said Takahira Ogawa, director of sovereign ratings at Standard & Poor's in Singapore. “At this stage, I don't think there will be any major impact on the macroeconomic or fiscal position of the government.”Indeed, Mumbai has a long history of terror attacks — and has managed to bounce back from them. A series of bombings in July 2006 killed 187 people. Chandiok said Indian companies are going to have to take security issues more seriously going forward, and Grant Thornton's India office has already begun a review of its policies. […]
The global economic downturn notwithstanding, venture capital (VC) investments have continued to flow into India and China, with both countries witnessing a significant surge in the third quarter this year. According to a study by research firm Venture Intelligence, VC investment in India grew by 36 per cent at $290 million for the third quarter ended September 30. Meanwhile in mainland China, VC investments grew by 22 per cent to $964 million at the end of the third quarter, as per data by Dow Jones VentureSource. […]
Ujjivan Financial Services announced the successful completion of the fourth round of equity infusion. Originally planned for $15.6 million (Indian Rupees 750 million), the equity round was over-subscribed and increased to $19.6 million (Indian Rupees 940 million). The incremental capital was largely subscribed by existing shareholders including Unitus Equity Fund (UEF) managed by Elevar Equity L.L.C., Bellwether Microfinance Fund, Michael & Susan Dell Foundation, A.W. Holdings and individual investors including promoter & CEO Samit Ghosh. The five new investors in this private placement transaction includes: Sequoia Capital, Lok Capital, Unitus Equity Fund II, India Financial Inclusion Fund and SIDBI. […]
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