|
|
Axis Private Equity Limited, (AXIS PE), a company set up by Axis Bank to manage private equity funds has announced two significant investments of Rs. 750mn (USD 19 Mn) and 670mn (USD 17 Mn) in Neesa Leisure Limited (Neesa Leisure) and Corrtech International Private Limited (“Corrtech”) respectively. These investments further reaffirm Axis PE’s commitment to invest in companies involved in infrastructure development of the nation i.e. hospitality, railways, development of oil and gas pipelines, water supply and sanitation.This comes close after Axis PE announced investment of Rs 12mn (USD 30 Mn) in Harish Chandra (India) Ltd. earlier this month “We are very pleased to announce the closure of these investments. Both these investments fall in line with our vision and mission of investing in high growth potential sectors. We have been actively exploring investment opportunities in the oil and gas infrastructure space and believe that Corrtech has immense potential to be a key player in the oil and gas pipeline business,” says Alok Gupta, MD & CEO, Axis PE […]
Automotive engineering major Renold Plc today said it is in talks with Indian firm LG Balakrishnan & Bros for acquiring 75 per cent stake in its industrial chain business for an undisclosed amount. In a regulatory filing made to the London Stock Exchange, the company said “.. It is in discussions to acquire a 75 per cent interest in the industrial chain business of LG Balakrishnan & Bros Ltd (LGB).” The remaining 25 per cent stake in the business would be retained by LGB, which is listed on Indian bourses, the filing added. LGB would provide an established manufacturing base and sales distribution network. “This network would enable Renold to promote its existing product range into India's rapidly growing market place as well as exploit new product, market and export opportunities,” the filing said. […]
Transport Corp. of India Ltd (TCIL) is planning to raise Rs50-75 crore by selling shares to a select group of investors before the end of the year as the company expands its warehousing operations and ventures into the real estate business.Selling shares to a select group under a deal known as private placement does not have to be registered with the market regulator. Investors involved in such transactions are usually banks, mutual funds, insurance firms and other financial companies. The Gurgaon-based company is acquiring land for constructing warehouses across the country to tap opportunities in the retail and agriculture sector. It also plans to develop a part of its land bank in Mumbai, New Delhi and Bangalore for commercial and residential projects, and is setting up a team with expertise in real estate development. TCIL, which manages 7.5 million sq.ft. of warehousing space in India, has already acquired land Chennai, Mumbai, Nagpur and New Delhi and has started construction in Pune. “We have earmarked about Rs200 crore to expand warehousing capacity,” said Vineet Aggarwal, executive director of the company. […]
Talks between the promoters of Indian mobile phone services firm Idea Cellular Ltd, smaller rival Spice Communications Ltd and its foreign partner Telekom Malaysia Bhd over a merger or sell-out are progressing, one person close to the situation said, even as a new suitor, Bahrain-based Bahrain Telecommunications Co. or Batelco, has entered discussions in a deal that will pare fully or in part the 40% stake held by the B.K. Modi family in Spice. “Telekom Malaysia and Idea are engaged in talks, and Spice has not got the offer yet. All the three companies are looking into their valuations post the deal. In case Telekom Malaysia and Idea strike a deal, (the promoters of) Spice will exit the mobile phone service business,” this person said, asking not to be identified. “Nothing has happened so far, an announcement will not happen before Tuesday or Wednesday.” Telekom Malaysia owns 39.3% in Spice; the rest is held by public shareholders and institutions. Yusof Annuar Yaacob, executive director and group chief financial officer of Telekom Malaysia, said on the telephone from Kuala Lumpur that he had no specific comment on the stage the talks were in. […]
Private equity-controlled Arch Pharmalabs has acquired a controlling stake in Benzochem Lifesciences, an active pharmaceutical ingredients (API) maker, for around Rs 100 crore. Sources said Arch would buy around 70% stake in Benzochem Lifesciences while the balance 30% will remain with the promoters of Benzochem. When contacted, Arch Pharmalabs CMD Ajit Kamath declined to comment. Benzochem is a privately-held company engaged in API manufacturing for oncology and anti-malarial drug segment. The company has a FDA-compliant manufacturing facility in Tarapur. Benzochem has also filed drug master file (DMF) application for all anti-cancer APIs. The company closed the last financial year with a top line of around Rs 150 crore. […]
Modi group, the promoter of telco Spice Communications that was mulling a stake sale from a long time, is likely to ink a deal with AV Birla group company Idea Cellular for selling its holding. After the sale of Modi group's over 40 per cent stake in Spice to Idea, the two telco might be merged, sources close to the development said. Though Idea's Managing Director Sanjeev Aga and B K Modi of Spice were tight-lipped about the development, industry sources said a deal is likely to be announced this week. Earlier, during its annual general meeting Spice Chairman B K Modi had said he was open to all kinds of proposals for stake sale. Though the exact value of the deal could not be ascertained, it is believed to be at least Rs 60 per share. […]
Clearstone Venture Advisors, a global venture capital fund with over $650 million of committed capital for investment globally, is set to invest in a company in the mobile value-added services (VAS) space in India. The size of the investment will be less than $10 million. The company expects to close the deal in the next four to five months. “Since the mobile touches millions of people in India, it is a great horizontal delivery vehicle — whether for transaction processing, electronics payments or mobile advertising. We do believe that everyone with a mobile phone is part of a digital network. This means they are ripe for some kind of network model or services model over the phone. So we are looking at the entire VAS space for breakthrough opportunities,” said Rahul Khanna, director, Clearstone Venture Advisors. Since starting operations in India in 2006, Clearstone has invested in four Indian companies with a committed capital of about $20 million. These are being funded from the company's third fund which is $210 million in size. […]
Italian modular kitchen company Aran World has announced a 49 per cent equity investment in KitchenWorld India, a modular kitchens and interior designs brand. As part of the deal, KitchenWorld India will now be called Aran KitchenWorld. KitchenWorld India has been Aran's channel partner in India for several years and has nine stores across India. Aran KitchenWorld has plans to strengthen its presence in India with 50 more stores across the country by the year 2010. As a part of this plan, the company has launched its flagship store at Rajouri Garden, New Delhi. Being one of the large format stores, it spreads over an area of 5000 sqft, the flagship showroom includes world class amenities designed by Italian architect. […]
Alok Industries, the Rs 2,200-crore Mumbai-based textile firm, has resumed talks with private equity players to dilute about 20% equity it owns in its unlisted unit, Alok Infrastructure. A realty company, Alok Infrastructure has been looking at options to raise around Rs 600 crore for developing its large land bank, said sources. Alok Industries plans to sell part of its stake in its realty unit to 3-4 private equity firms by August end. The company’s chief financial officer Sunil Khandelwal is currently in the UK for negotiations on this issue. “We are working out different options and strategies for our realty venture and something will happen before August. I am not in a position to divulge anything more now,” he told ET from London. Ernst & Young is advising Alok Industries on the equity dilution in Alok Infrastructure. […]
There’s nothing stopping the ongoing slump in the real estate market. Analysts say land values and the selling price of real estate projects across the country are expected to slide further. At the same time, investors are becoming more cautious in the face of the rising cost of money and growing market risks. The high-risk scenario has resulted in private equity (PE) players increasing their internal rate of return (IRR) expectations from projects. A big PE player says its expectation are up from 20-25% about a year ago to around 25-30%. The director of Investment Advisory, DTZ, a property advisory firm, Ambar Maheshwari , says that the expectations today are more towards structured deals. “There has been a correction in the market and the values are expected to go down further. So, most investors are safeguarding their interests by inking structured deals,” explains Maheshwari. A number of deals are being structured in a way that the investor is entitled to a preferred or a priority return and even capital protection in some cases. […]
|
Post your messages.Please refrain from posting offensive messages. IndiaPE accepts no liability for the consequences of your reliance on these postings and messages.
|