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Clear Trade, a US-based private equity firm with Indian roots, has floated a $12 billion fund in association with leading US private equity companies to exclusively invest in upcoming power and infrastructure projects over a five year period. Philip Ho, managing director of the US PE firm Cornell Capital, Axis Bank-promoted Axis Private Equity, Morgan Stanley and other leading US funds, including one of the largest PE players in the hospitality sector are participating in this fund. Clear Trade is also talking to some leading European pension funds to join the fund. Power Finance Corporation (PFC) is likely to pick up 20 per cent and has given a letter of intent to join the “Clear Investments Power and Infrastructure Fund”, Deepak Kavadia, managing director of Clear Trade told Business Standard in a telephonic interview from the US. The initial corpus of the fund — set to kick off in the first week of April — will be $1 billion. “We will close this fund within 18 months and raise $2.5 billion. Majority of the investments will be in the power sector, especially thermal projects” he said. Clear Trade has identified about 11 power projects for investments in the first phase, including two projects of over 1000 mw promoted by two leading corporate houses based in Hyderabad and Mumbai, besides two hydro-electric projects coming up in the north east. […]
Chennai-based EID Parry India, a part of Murugappa group, said on Thursday that Pune-based Phytoremedies Biolabs has become a subsidiary of the company consequent to the acquisition of 51% stake. Phytoremedies Biolabs is a company engaged in the business of Nutraceuticals. EID Parry India swung to loss of Rs 233.30 million for the quarter ended Dec. 31, 2007, compared with a profit of Rs 35.30 million in the same quarter, last year. Net sales for the quarter climbed 30.78% to Rs 1,972.80 million when compared with the corresponding quarter, a year ago.(My Iris) […]
AIG Global Investments, the private equity arm of American International Group (AIG), is putting in close to $20 million in Uniparts, a Rs 500-crore company that specialises in making machinery for the construction and agricultural equipment sector, a niche segment within the auto ancillary sector. This is AIG’s third investment in the last three months and second in the auto sector with Kinetic Engineering being the other investment. Mr Ashish Kumar of AIG will sit on the board of Uniparts. Paramjit Soni, founder and managing director of Uniparts, confirmed about the deal to ET. AIG’s investment in the sector is a bit counter-intuitive because the entire auto component sector has taken a beating over the last year. A slowdown in consumer demand (especially trucks) has affected the domestic market while the rising rupee has hit the exports market. But Uniparts, say industry experts, operates in a niche that makes it different and more profitable. […]
Markets may have crashed, justifying some recent high-profile exits by leading private equity players from Indian companies, but their pullouts may have cost them a few billions, at least notionally. Some number crunching by ET shows that although global PE majors like Warburg Pincus, Baring, ChrysCap and Citigroup Venture Capital have made big profits from their Indian investments, they would have pocketed a few billions more had they held on to their shares for a little bit more. And this is exclusive of the dividend money which would have accrued to them while they were holding the stock. Given the spectacular bull run over the last couple of years in the Indian stock markets, the value of the listed firms rocketed sky high. While some PE funds timed the market right by exiting at a price with a fair degree of profits in Actis-Punjab Tractors, IDFC Private Equity-Hotel Leela Venture, many others made huge losses from their early exits, notionally speaking. Take Warburg Pincus’ investments in Bharti Airtel. This has been the most valuable exit by any PE firm in the country till date. The PE firm had invested Rs 1,300 crore in 1999 in the telecommunication company. Subsequently, through various partial exits, it made a phenomenal Rs 8,496 crore, or $1.9 billion, at the time of the final exit, taking home more than six times its original investment. […]
Netmagic Solutions, a leading carrier-neutral managed IT services provider based in India, today announced that it has received Rs 80 crore in private equity funding. The funding was led by the Indian proprietary venture and growth capital arm of Fidelity International (FIL) and Nexus India Capital, a leading Indian venture capital firm. Netmagic said it will use the proceeds of the financing to accelerate business growth and expand footprint in the domestic and international markets and build a nationwide network of data centres. “Over the last few years, we have built a bluechip client base in the financial, telecom and online trading and travel sectors,” Sharad Sanghi, CEO and managing director, Netmagic, said. “This is the right time to invest more aggressively and scale our business to the next level and roll out new locations and services in 2008.” […]
Citi Venture Capital International and Hudson Equity Holdings, a part of India Equity Fund, have invested in Jai Balaji Industries by subscribing to 61,18,000 & 22,41,000 compulsorily convertible debentures (CCDs), respectively, at Rs.326.90 per CCD. According to a release issued by Jai Balaji today, the company has raised Rs 273.25 crore by the issue of CCDs. Each CCD is to be converted into one equity share, and the holding of Citi Venture Capital and Hudson will be 11% and 4%, respectively, after the conversions. “The company has simultaneously issued 9.6 million warrants at Rs 326.90 each to be converted into one equity share within 18 months to promoters and other investors,” the release added.(Business Standard) […]
Reliance Technology Ventures Limited (RTVL), the corporate venture capital arm of the Reliance ADA Group, has directed the investment of an undisclosed amount in Sequans Communications (Sequans). RTVL is a wholly-owned subsidiary of Reliance Capital Ltd. Sequans Communications, a leading WiMAX semiconductor company, provides innovative system-on-chip (SoC) solutions for both fixed and Mobile WiMAX systems. The company offers chip solution for building wide range of WiMAX network components like femto, micro, and macro base stations, outdoor and indoor subscriber terminals, home gateways and all types of mobile devices. […]
California-based IT firm Digital Liberty Group (DLG) has taken over 55 per cent stake in Comprehensive Software Solutions and Services (CS3). Both DLG and CS3 are working towards consolidating the merger process and once it is through, CS3 will go in for a re-branding exercise targeted towards positing it as a DLG group company. CS3 will also undergo a HR revamp by adding another 150 IT professionals capable of serving the global clients. DLG is also planning to enhance CS3 presence in the Indian IT space, by extending solutions and services across India. The new entity will be working towards achieving CMM certification at the earliest. […]
Delek Group's financial arm Delek Capital Ltd. has signed an memorandum of understanding (MOU) to acquire 20% of a publicly traded Indian financial services company for $25 million. Delek did not disclose the name of the company. Delek Capital has a 30-day exclusivity period and is already conducting due diligence on the company. Delek Capital added that it may be required to make an additional investment in the target company as part of an offer to buy as mandated by Indian law. […]
Bangalore-based drugmaker Biocon will acquire a 70% stake in German pharmaceutical company AxiCorp GmbH for a consideration of euro 30 million. According to a release issued by Biocon to the BSE today, this will enable the marketing and distribution of a range of pharmaceuticals including generics, biosimilars, biologics and innovative pharmaceutical products in Germany and Europe. Allegro Capital was the financial advisor to Biocon for the transaction, the release added. AxiCorp is a specialised marketing and distribution company established in 2002 by a group of industry experts to address the lucrative generics and parallel distribution market in Germany and Europe. AxiCorp is ISO-9001 certified with a differentiated distribution model that is aligned with the functions of the German pharmaceutical market. […]
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