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The Rs 80-crore Nandan Biomatrix Ltd, which claims to become the largest biodiesel producer in the next five years with an annual capacity of 2.5 million tonnes, will soon be signing an agreement with an overseas private equity green fund for raising $30 million. With the biodiesel policy in place, the company is bullish on the expected increase in demand for biodiesel and hopes to increase its targets for producing the feed stock. While the company is on the verge of closing the deal, V Bhaskar Rao, MD, said that the fund infusion aims to fund its expansion pan India and overseas as well. Targeting a turnover of Rs 140 crore for this fiscal, the company is looking at a spread of 800,000 hectares in the next five years with 16,000 hectares in each state for producing 2.5 million metric tonnes. […]
The secular decline in stock prices for a good part of this year has prompted private equity funds to shun listed companies and opt for investment in unlisted firms. Of the 206 deals struck by private equity funds in the past eight months, 182 deals were in unlisted companies. Interestingly, India has been largely a PIPE (private investment in public equity) market but the pummelling of stocks over the last few months has influenced private equity funds to change track. After seeing a high of 21,000 early this year, the BSE Sensex, the benchmark index for the Indian stock markets has slid to below the 13,000 mark. The public markets have corrected by 30-40% across sectors this year. According to industry experts, there is always a difference in correction between stock market and private equity valuations. […]
Leading private equity (PE) firms such as Blackstone, TPG, Blue River Capital, Actis and Silk Route are eyeing more than a 40% stake in agri-processing firm Usher Agro, it is learnt. The deal, if concluded, will pave the way for the PE investor to acquire management control with a majority stake. In that case, it will be third instance where a PE investor is taking control of a listed company in the recent past. Broad contours of the plan suggest that Usher will raise funds by issuing new shares to the PE investor. […]
BTS India Private Equity Fund Limited announced that it has concluded definitive agreement for investment of Rs. 320 million in SAISUDHIR Infrastructures Limited, fast growing infrastructure engineering / Construction Company based out of Hyderabad. The investment will focus on SAISUDHIR’s next level of growth and used for expanding engineering capacities along with providing the working capital for completing medium to large infrastructure projects. With this investment, BTS has concluded six investments from its recently launched BTS India Private Equity Fund. According to Mr. K Srinivas, Managing Partner, BTS Investment Advisors Pvt Ltd, “We are happy to announce the investment in SAISUDHIR and work with the management towards further development of the company’s project management skills, to help achieve the company’s long term objective of becoming one of the preferred EPC companies in its focus areas of Water Supply, Solid Waste Management and Power Sector.” […]
India Infoline received regulatory approval for the India Infoline sponsored venture capital fund, India infoline Ventures Capital Fund. India Infoline will act as the investment manager to the fund, which will provide seed captial to entrepreneurs and business with innovative and scalable business ideas across a variety of sectors.(Business Standard) […]
Three multinational firms are in the race to pick up a 15% stake in Future Logistics Solutions Ltd (FLSL), the logistics and supply chain unit of the Future Group, said an executive with knowledge of the deal. Hong Kong-based Li and Fung Group, the world’s biggest trade sourcing company, European logistics and distribution operator Logista, and CMST, a Chinese logistics enterprises solutions provider, are competing for a slice of FLSL for about $40 million (Rs186.8 crore), which will be used to finance an expansion plan, said this executive on condition of anonymity because he is not permitted to speak publicly about the transaction. Kishore Biyani, chief executive officer of Future Group, confirmed that the firm was looking to divest a 15% stake to raise funds for investment. “We are looking to raise $40 million through private equity,” he said in a telephone interview. […]
Lupin has acquired 60% stake in Pharma Dynamics, a South African generic marketing firm, for an undisclosed amount. This acquisition—fifth in 12 months—gives Lupin a foothold into the South African market. “We are looking at creating strong footholds in various markets to register sales of $1 billion by the year end. This year we have allocated Rs 250 crore for R&D and we expect our growth to be more than 40%,” Lupin chairman D B Gupta said. Pharma Dynamics is the sixth-largest generic player in South Africa. It recorded sales of Rand 118 million (nearly $15 million) for the year ended February 2008. It had an EBITA of over 20%. […]
JDS Apparels (P) Ltd has initiated the process of raising Rs 40 crore from private equity players to fund its second phase of retail expansion in the country. The Noida-based fashion and lifestyle retailer currently operates 6 stores under the Ritu Wear brand in north India with another 10 in various stages of opening. According to sanjay Sahni, director of JDS Apparels, the expansion of another 10 stores is expected to be accomplished by second half of 2009. “In fact, two new stores are set to open in Faridabad and Indirapuram in a couple of months from now,” said Sahni. […]
IDBI Bank has revived its plans for entering the private equity (PE) business. The bank has sought permission from the Reserve Bank of India (RBI) again to foray into the segment and is targeting a corpus of Rs 1,000-1,500 crore for its first fund. Initially, it intends to tap domestic sources to raise funds and may look at tapping overseas investors later from second fund onwards, a bank executive said. The bank approached RBI for a second time in August this year. The erstwhile development financial institution had approached the regulator in 2007 to get into the private equity business. While no formal proposal was moved, RBI had then advised the bank to concentrate on its upcoming life insurance business. Its joint venture with Fortis and Federal Bank is now up and running. […]
Indian insurance regulator IRDA has reportedly asked Tata AIG to clarify its solvency. A tight-lipped AIG (India) confirmed that its solvency had been questioned, but refused to answer additional questions. “Having regard to the developments reported in USA, the IRDA has asked for the reports of the companies in the matter,” a spokesperson said. According to IRDA, the US economic downturn and recent collapse of several banks has caused serious concern in Indian financial markets.AIG India shares are currently split between Tata and AIG, with the former holding 74 per cent and the latter retaining the remaining 26 per cent.Nevertheless, Indian policy holders will be relieved to learn that the Federal Reserve Board has agreed to lend as much as $85 billion to rescue the floundering American International Group. […]
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