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Manappuram General Finance and Leasing (MAGFIL), the flagship company of the Manappuram Group has arranged a fund infusion of Rs 70 crore from Sequoia Capital and India Equity Partners (IEP). Sequoia Capital and IEP will invest Rs 35 crore each in two tranches to bankroll Manappuram’s expansion plans for MAGFIL and other group companies. “Eight-five per cent of Manappuram’s portfolio is investment-worthy and this was a primary guideline in the pre-money valuation,” sources said. An agreement to this effect is expected to be signed on Friday, though the date of closure of funding is unclear. MAGFIL, the BSE-listed non-banking finance company, which is the flagship of the Manappuram Group, had earlier this month finalised the raising of Rs 46.80 crore in working capital from Sequoia and Hudson Equity Holdings, an investment vehicle of IEP, a $300-million private equity fund. […]
Private banking group EFG International will acquire 75% of Stratcap Securities India to launch its entry into wealth management in India. EFG, a Zurich-headquartered private banking and asset management firm, will establish a base on the ground in India via the acquisition of Stratcap. It will benefit from both Stratcap's existing base of CHF700 million ($607 million) in assets under management and the firm's employee base of 24 people including founder, Atul Sud, who will become chairman of EFG Wealth Management India. The two firms did not disclose details of the consideration. Sud worked in a number of positions in American Express Bank in India before he set up Stratcap in 1995. Stratcap is licensed to offer a range of financial services to a private and institutional client base spanning mutual funds, fixed income and equities. It is a member of both of India’s main stock exchanges, the Bombay Stock Exchange and the National Stock Exchange. EFG already covers the non-resident Indian community in Asia, the Middle East and Europe and Stratcap provides a complementary, onshore presence. EFG, which is listed on the SWX Swiss Exchange, currently operates in 50 locations across 30 countries. […]
Hyderabad-based infrastructure company Soma Enterprise has diluted equity to the tune of Rs 400 crores to 3i India Infrastructure Fund, company’s director Akineedu Maganti said on Wednesday. The company plans to utilise the funds to invest in Build Operate and Transfer projects. Maganti said the company is not looking at an initial public offer immediately. “We are carrying out our projects from internal accruals and as and when we are in need of funds we will think of floating an IPO,” Maganti said. The Rs 1,200 crore Soma Enterprise is at present implementing projects worth over Rs 6,500 crores in sectors including roads and highways, hydro electric power plants, irrigation and water resources development and urban infrastructure. “Soma Enterprises has also won the bid for 4-kilometer underground stretch for the Delhi Metro from All India Institute of Medical Sciences to 7 Race Course Road. We will design and build the stretch in joint venture with Continental Engineering of Taiwan using the twin tunneling technology, our venture partners have immense experience in tunneling technology and we hope to complete the stretch before the original completion schedule of late 2009” Maganti said. […]
Welspun India Ltd, manufacturer of terry towels, has acquired a 76-per cent stake in Portuguese bath rug major Sorema for Rs 60 crore. The companies have also signed an agreement for marketing products exclusively in Spain and Portugal as well as in other European countries, a Welspun release said today. With the acquisition, Welspun would now have facilities in India, Mexico, Portugal and the UK. The deal would also help both companies have stronger brand and market presence, extension of product offerings and management synergies. “The acquisition would lead to enhanced presence in branded business through Sorema brands as well as Welspun's owned and licenses brands like Nautica and Umbra,” the company said. […]
Private equity (PE) firms have invested $17.14 billion (Rs67,874 crore) over 386 deals in India from January to 15 December 2007, according to a report released on Wednesday by accounting and business consultancy firm Grant Thornton India. Total investment in 2006 was $7.85 billion over 302 deals. The largest deal in 2007 until 15 December was Temasek Holdings Pte Ltd ’s $1.9 billion investment in Bharti Airtel for a 4.99% stake. The top 10 deals accounted for 39% or $6.70 billion of total investments so far this year. Real estate and infrastructure has emerged as the highest funded sector in the year so far—seven out of the top 10 deals were real estate and infrastructure and it accounted for 38% of total value of investments for the year, a press release said.( Livemint) […]
Australia-based Link Market Services, a provider of registry services and technology to financial market participants in Australia, is learnt to be in an advanced stage to pick up controlling stake in Mumbai-based Sharepro Services. The deal, pegged at around $10 million and likely to be sealed within a month, is yet another example of the interest among foreign capital market intermediaries to build a presence in the Indian capital market. In 2004, Australia’s leading firm in this segment, Computershare formed a joint venture with one of India’s leading share registry firms, Karvy, aiming to offer support to the sharply-growing IPO market in India. Sharepro Services is a Sebi-registered category-I registrar and securities transfer agent with depository connectivity for both NSDL and CDSL. Sharepro Services CEO Chhaya Shah confirmed that talks were on. “Nothing has been firmed up yet. We are still talking,” she told ET. […]
India Glycols acquired a controlling stake of 96.56% in Shakumbari Sugar & Allied Industries, located in Uttar Pradesh. The company acquired the majority stake at a consolidated price of Rs 470 million. India GlycolsCompany has acquired 3,17,24,200 shares of Rs 10 each of Shakumbari Sugar and Allied Industries. Shakumbari Sugar & Allied Industries has a crushing capacity of 3,200 tons per day (TCD) along with a modern distillery of 40 kilo litres per day (KLPD).(My Iris) […]
Monginis Foods, an over 100-year-old bakery products brand which was acquired by the Khorakiwalas in 1970, is attracting the attention of investors. It is learnt that Motilal Oswal Financial Services (MOFSL) and a few private equity players had made some overtures towards picking up a stake in Monginis Foods. The Khorakiwalas though seem to be unwilling to dilute their holding at this point in time. When contacted, Monginis Foods CMD Zoher Khorakiwala said: “We do not intend to dilute our stake in the near future.” Motilal Oswal, chairman, MOFSL declined to comment. The move comes at a time when Monginis Foods is chalking out a fresh business strategy to take the company beyond brand 'Monginis'. For instance, the firm has forayed into the premium chocolate gifting segment with a new brand called 'Swiza'. Swiza, which has already opened an outlet in the western suburbs of Mumbai, is on the lines of chocolate boutiques such as Fantasie. Being synonymous with 'celebrations' and 'gifting', Swiza is like an extension of the company's cakes business. […]
Engineering and construction giant Larsen & Toubro (L&T), Infrastructure Development and Finance Company (IDFC), Lehman Brothers and Singapore-based private equity (PE) firm Amansa Capital together have picked up a 7% stake in Hyderabad-based construction firm B Seenaiah & Company Projects (BSCPL) for Rs 152 crore. B Seenaiah seems to have trebled its valuation since its last stake sale 18-20 months ago when it sold around 19% stake to two foreign investors, New Vernon Private Equity Fund and Tiger Veda for Rs 150 crore. Sources said L&T has routed its investment through two of its group companies, L&T Infrastructure Finance and L&T Capital. This is the second round of PE funding in BSCPL. BSCPL is one of the leading construction firms in road and irrigation projects in India. BSCPL, which has a significant overseas presence, has already completed seven road projects in Afghanistan. IDFC SSKI acted as exclusive financial advisor to BSCPL for the deal. IDFC was also the company’s advisor during its first round of PE funding. […]
Private equity (PE) investments into India have surged during the current year; the announced value of deals has crossed $15 billion during the year-to-date, nearly double the $8 billion received in 2006. PE flows confer a number of benefits. At the macro level these include widening the availability and source of capital, increasing the accuracy of company valuations (factoring in their growth potential), enhancing the efficiency of corporate capital structures and facilitating corporate development. At a micro level, benefits include avoidance of bankruptcy or other legal restructuring up to and possibly including governmental intervention or, more positively, providing financing and executive skills lacking in current management. However, for regulators, charged with the multiple objectives of protecting investors, ensuring that markets are fair, efficient and transparent and reducing systemic risk, rise of PE during the past few years poses a number of ticklish issues. A recent paper (comments invited) of the technical committee of the International Organisation of Securities Commissions (IOSCO) has identified six such broad issues. […]
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