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Apar Industries entered into an agreement to acquire 42% %in the listed Uniflex Cables to become the single largest shareholder in the company. Apar Industries will make a public offer for acquiring another 20% stake in the company. In addition Apar will subscribe to 4 million warrants at the SEBI formula price to increase its stake to 49% making the deal size about Rs 700 million plus the open offer. Uniflex Cables has been valued at an enterprise value of over Rs 1,600 million. The key members of the Baid family, Ajay Kumar Baid and Jay Kumar Baid will assume leadership positions of managing director and joint managing director of the company. Vijay Kumar Baid, will continue as the non executive chairman of the company. The family continues to hold about 15% shareholding on a fully diluted basis. The Rs 70 billion cable industry has been growing at over 25% on a per annum basis and holds promise to continue this growth for the next decade. […]
CITI Venture Capital International, a part of Citigroup, has invested Rs 164 crore in the New Delhi-based brokerage Globe Capital Market. Citi’s shareholding in the company will be in the range of 10-15%, depending on the size of the warrant issue the promoters plan to subscribe. The deal puts the valuation of the company at Rs 1,100-1,640 crore. When contacted Globe Capital chairman Ashok Agrawal told ET that the fund will be utilised to expand the company’s retail network and arbitrage business. So far, Globe’s retail network is confined to northern India. Mr Agarwal said Citi will send a representative on the board. Globe does not have any immediate plans of listing itself, but it will eventually do so, he added. City-based Singhi Advisors were the sole advisors to the transaction. “The arbitrage opportunities attach lower risk but gives return better than debts. I would like to utilise a major chunk of the fund to expand our arbitrage business to help benefit the small investors,” he said. Globe has a large presence in F&O segment. It is clearing an average of 10% of F&O segment of NSE. It is a trading-cum-clearing member of NSE and BSE, depository participant in NSDL and CDSL and also approved DP from the commodity exchanges such as NCDEX and MCX. […]
Signs of weakness in the primary market issuance can bring private equity (PE) deals to the fore, experts believe, as higher cost of debt may not prompt issuers to borrow significantly. Expansion and future projects of these companies cannot be delayed, however, and weak response from the equity market is likely to push them towards PE. “Certainly, the environment is positive and has improved on the backdrop of this (primary market weakness), we can see better traction and momentum in PE deals,” said Pankaj Karna, partner and head mergers and acquisitions, lead advisory, Grant Thornton Corporate Finance. In the last two days, two major public issues – Emaar MGF Land and Wockhardt Hospitals – have been withdrawn on account of weak response from investors. In 2007, India witnessed over 150 per cent rise in deals worth $70 billion, according to Grant Thornton’s Deal Tracker. Out of the total, $51.11 billion was the value of strategic mergers and acquisitions involving Indian companies, and the remaining $19.03 billion was the result of PE deals having average size of $47 million. […]
Private equity investors are showing a greater interest in special economic zones in the country, according to ICICI Venture, one of the major PE players. In a write-up, which forms part of a report titled ‘Private Equity Impact 2008´ released by Venture Intelligence, which tracks private equity and venture capital investments in India, ICICI Venture said: “PE investors are finding SEZ story interesting and are increasingly making larger and more investments in SEZs in the country.” The report has listed recent PE investments in SEZs such as the one by ICICI Venture, which has invested $40 million in an IT/ITES zone in Hyderabad and DLF’s receiving $400 million from US hedge fund DE Shaw. Besides, it noted, that Trinity capital has invested about $75 million in Luxor Cyber City and Mundra Port and SEZ receiving an unspecified private equity investment before its IPO. According to ICICI Venture, while private equity would be willing to come into large SEZs, they are also talking to some of the developers of smaller SEZs for pharma, gems and jewellery, and textiles. […]
CMYK Printech Ltd, publisher of English daily The Pioneer, has engaged consulting firm Deloitte and Touche Consulting India Pvt. Ltd to find strategic investors willing to take up to 49% stake in the media company, a person close to the development said. The firm, with interests in print, Web and media education business, had held equity talks in August 2006 with Jagran Prakashan Ltd, publisher of Dainik Jagran. The talks failed because Jagran Prakashan wanted a majority stake and the Pioneer management was unwilling, according to this same person who did not want to be identified. CMYK Printech is currently majority owned by the promoter group, which holds 74% stake in the firm. The promoter group comprises Chandan Mitra, who is also editor of the newspaper and a member of Rajya Sabha; Durbar Ganguly, who looks after marketing and administration, and Amit Goel, who handles the media education business. “In May this year, the present management will complete 10 years of running the paper. We posted small profits in the past two years, so now we feel it’s time to go in for an aggressive expansion. We will sell some equity to fund these plans,” confirmed Ganguly, joint managing director and vice-chairman, CMYK Printech. […]
Institutional interest in the Thrissur-based South Indian Bank (SIB), which does not have either a domestic or a foreign promoter, is on the rise and the latest to pick up stake in the bank are International Finance Corporation (IFC), Washington and Morgan Stanley through its arm Morgan Stanley Mauritius Ltd. Others including Swiss Financial Corporation had also picked up stake in one of the old generation private sector banks in the country. The total institutional holdings in the bank stood at 57.57% by the end of the third quarter of the current fiscal up from 45.81% during the previous quarter. According to data available with FE, IFC, World Bank's industrial financing body, had picked up 2.99% stake in SIB during the third quarter of the current financial year. Morgan Stanley, similarly had mopped up 2.77% of the SIB's floating stock. Both the institutions had purportedly mopped up the stock of the bank from open market. Similarly, Swiss Finance Corporation had picked up close to 2% stake in SIB. Other institutions which had picked up stake in the bank during the last quarter include FD Funds Mauritius which picked 2.77% in the Thrissur-based bank and UTI which had mopped up 2.71% stake. […]
Deals indicate growing interest of private equity firms in India's pharma, healthcare segments. Private equity firms are discovering value in picking up small stakes in Indian pharma and healthcare companies. At least two dozen such deals, worth about $400 million (or Rs 1,600 crore), have happened in the last year. The cumulative investment, although not significant in size when compared to that in sectors like real estate or infrastructure, is indicative of the active interest by some 20 PE firms in India’s pharma and healthcare sectors. Only last week ICICI Venture announced the acquisition of substantial stake in Sahyadri Hospitals Ltd for $35 million (Rs 140 crore). Experts think it is a trend that’s here to stay. “We are certainly looking at buyout opportunities in the domestic pharmaceutical space this year,” said Sanjiv Kaul, managing director, Chryscapital. “We can bring in smart capital, world class teams and facilitate international collaborations through partnerships.” […]
Billionaire investor George Soros bought a stake worth $100 million in Anil Ambani-controlled Reliance Entertainment Pvt. Soros bought a 3 percent stake of the privately owned company, Sharad Goel, spokesman for Reliance Entertainment, said in New Delhi today. The stake sale values Reliance Entertainment, which runs the Big 92.7FM radio stations and social networking and gaming Web sites in India, at $3.33 billion. Reliance Entertainment may sell shares in an initial public offering, the Hindustan Times reported yesterday, without saying where it got the information. A prospectus detailing the share sale for the stock market regulator is being prepared, the report said. (Bloomberg) […]
Global investment banks American International Group Inc. (AIG) and JPMorgan have taken a 25% stake in the Bangalore-based hospital group Narayana Hrudayalaya Pvt. Ltd (NHPL) for Rs400 crore. The two leading individual promoters of NHPL are Narayana Hrudayalaya founder Dr Devi Shetty and Biocon Ltd chairman and managing director Kiran Mazumdar-Shaw. Announcing the investment on Wednesday, Dr Shetty said the funds, Rs200 crore each from AIG and JPMorgan, would be used by NHPL to build a nationwide chain of so-called health cities in the state capitals. “We will create 5,000-bed hospitals in most state capitals, reaching 20,000 beds within five years,” said Dr Shetty, a cardiac surgeon himself at Narayana Hrudayalaya, the flagship hospital of the group which currently owns three hospitals across Bangalore and Kolkata with a total bed capacity of 2,500. […]
Indiabulls Real Estate, the realty arm of Indiabulls group, has said that Indiabulls Infrastructure (IIL), a subsidiary of the company, has acquired 100% shareholding of Catherine Builders and Developers (Catherine) from DLF Home Developers. Catherine owns 50% shareholding of Kenneth Builders & Developers (Kenneth) which had earlier won the auction by DDA to develop a residential project on 35.8 acres of land located at Tehkhand in South Delhi. […]
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