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Integrated townships seem to be the preferred investment option for private equity (PE) players in India. In fact, a Cushman and Wakefield (C&W) report finds that 28% of PE investors favour investment through this route in the real estate market. According to the real estate global consultancy, till date, foreign funds and institutions have raised approximately $30 billion to be invested in Indian real estate with an estimate of $3 billion that has been committed. Integrated townships — as a low risk investment avenue due to their diversification benefits and low entry cost — are a highly attractive option. Agrees Sandeep Singh, national head, capital markets, C&W, “In today’s high land price scenario, integrated townships offer higher value creation opportunities due to low entry costs for land and synergies created by mixed-use development within them. Says Kunal Banerji, president, marketing, Ansal API, “Yes, it is true that private equity players are showing a lot of interest in this model. The returns on investment are good and the demand for integrated townships is ever increasing. An investor needs to look at both the micro and macro aspects and this model incorporates both.” […]
IT major Infosys is learnt to be eyeing UK-based Aviva’s offshoring centres in Bangalore and Colombo as well as its two Pune facilities that are currently operated by WNS and EXL under the build-operate-transfer (BOT) model. The deal is expected to be in the range of $75-80 million. The Colombo and Bangalore units are now run by Aviva Global Services (AGS)—Aviva’s global BPO and IT offshoring arm. The two Pune facilities were to be transferred to AGS in January 2008. But Aviva, UK’s largest insurance provider, recently deferred its decision to repossess the centres by a quarter to April 2008. “We can confirm that we have decided to defer the transfer of Pune by three months and we are taking the opportunity to thoroughly review the options available to us around our offshoring capabilities. Aviva continues to remain fully committed to maintaining its offshore operations and is proud of what has been achieved. Aviva Global Services will continue to play a key role in supporting the UK businesses,” said an Aviva spokesperson. […]
The Tayals, the promoters of Bank of Rajasthan (BoR), are likely to bring down their stake in the 64-year-old private bank to around 25% from the current 43.9%. The bank is likely to go in for a series of preferential allotments to Indian and overseas investors. Private sector bank promoters have been under pressure to bring down their stakeholding in the bank to 10%. The board of BoR on Friday issued 2.35 lakh shares and warrants to investors, including BNP Paribas and Avenue Capital Group. They include 65 lakh shares at Rs 200 per share to Glasia Mauritius II (Avenue Capital Group), 70 lakh shares to BNP Paribas at Rs 200 per share, 35 lakh warrants to Naman Developers at Rs 202 per warrant and 65 lakh warrants to Darashaw & Company for Rs 202 per warrant. The bank would garner Rs 471 crore through the fresh issue of shares. The bank had earlier issued one crore shares at a price of Rs 166.75 per share on a preferential basis to Indus Capital Partners LLC New York and Max India. In recent months, the RBI has been pressurising private banks to bring down their promoter holding. Promoters of Dhanalakshmi Bank — another old private sector bank — have also bought down their holding from 37% in June-end to less than 10% by September. […]
3i India Infrastructure Fund, part of the London-based private equity and venture capital company 3i Group Plc, has invested $101 million (Rs 398 crore) in Hyderabad-based infrastructure company Soma Enterprise. Though the companies have not disclosed the exact stake the fund picked up, Avinash Bhosale, joint managing director, Soma Enterprise said, “3i has got minority stake; the stake figure is in mid-teens (between 13% and 17%).” This figure values the company at over Rs 3,400 crore. Soma will use the money for expansion. “We will invest the money to further build capacities to undertake bigger projects. This includes buying infrastructure machineries,” Bhosale. Hyderabad-based Rajendra Prasad Maganti and his family owns majority stake in the infrastructure firm. Pune-based flamboyant real estate developer and hotelier Avinash Bhosale is the other promoter. […]
PTC India Financial services, subsidiary of PTC India, will immediately get Goldman Sachs Strategic Investments and Macquarie Securities Asia on board as `strategic financial partners`, reports Business Standard. The companies will pick up 20% each in PTC Financial Services, a non-banking finance company (NBFC). The total investments will be Rs 500-600 million, including a premium of Rs 3-5 on a face value of Rs 10 a share. `FIPB has already given its approval for this investment. We are now finalizing the shareholder's agreement,` said a senior PTC executive. PTC India will continue to hold the remaining 60% stake in the NBFC. […]
Hindustan Unilever Ltd (HUL) is selling its Modern Foods unit to Middle East-based Switz Group for about 1 bln rupees, local business daily The Economic Times said quoting sources close to the deal. The Middle East-based Switz Group is owned by Mumbais Khorakiwala family, which also owns Indian pharmaceutical firm Wockhardt Ltd, retail chain Akbarallys and bakery chain Monginis. The report cited unnamed sources as saying that HUL will not sell the plant, real estate and manufacturing facilities of Modern Foods as part of the deal. […]
Yatra Capital (Yatra), a private equity player with focus on the Indian real estate, today announced investments in two companies in the retail and hospitality sectors. One of them is a $3.91 million (around Rs 22.8 crore) investment for a 28 per cent holding in Gangetic Developers, a joint venture formed to develop a retail mall in Agra, Uttar Pradesh. The other company that Yatra invested in was Alliance Hospitality Services to develop premium star category hotel and services apartments in Pune, Maharashtra. Yatra would invest ¤4.88 million (around Rs 28.5 crore) in the company for an equity holding of 20 per cent. With these investments, Yatra has now committed USD 80.5 million (around Rs 470.9 crore) of the initial USD 100 million (Rs 585 crore) it raised in December 2006. The PE player has identified hospitality and retail as the next growth areas. The hospitality sector in India is forecasted to grow at 8.8 per cent every year over the next 10 years, and it is anticipated that 1 lakh rooms will be required in the next 5-7 years with average room rates rising by 20-25 per cent in 2-3 years. […]
The Ruia-controlled Essar Power (EPL) is offloading 10% stake to private equity (PE) investors to raise up to $700 million. The equity of the company is valued at $7 billion, sources said. Essar Power currently operates power plants with a capacity of 1,200 MW and has drawn up an investment plan of over $4 billion to set up three more projects with cumulative capacity of 3,600 MW. The projects are coming up in Gujarat, Madhya Pradesh and Jharkhand and are expected to be funded on the basis of debt-equity of 3:1. The company has drawn up plans to set up projects of about 6,000 MW capacity. Though company officials declined to comment, sources in the company confirmed that Mumbai-based SSKI has been appointed as the merchant banker. […]
Reliance Technology Ventures Limited (RTVL), the corporate venture capital arm of the Reliance ADA Group, has invested an undisclosed amount in E-Band Communications Corporation (EBCC) as a lead investor for its Series B round. Reliance Technology Ventures Ltd. is a 100% subsidiary of Reliance Capital Ltd. EBCC was started in 2003 to develop ultra-high capacity wireless communications systems for the 70/80 GHz E-band spectrum, recently licensed by the US Federal Communications Commission for commercial communications. EBCC has an exclusive license agreement to co-develop products and communication systems around this technology, with the $30 billion Northrop Grumman Corporation, one of the world’s largest defense, aerospace and technology companies. EBCC’s technology enables the highest possible wireless transmission speeds ranging from 1 Gigabit per second up to 10 Gigabits per second. The funding round includes existing investors namely ADC and one of the largest US telecom companies along with Reliance Technology Ventures Ltd., Investec and Hercules Technology Growth Capital. […]
Dish TV has sold a 4.9% stake to a private equity group, and expects more finance-raising soon. Indivision Capital bought the 4.9% stake for Rs2.5 billion, valuing the DTH operator at Rs42 billion. With Dish TV aiming to invest Rs11 billion over the next two years as competition in the Indian DTH sector ramps up, more corporate activity is likely. The deal will see a first tranch of equity shares issued, at Rs100 per share. A second tranche will convert warrants at Rs130 per share. Dish TV, which is backed by the Zee Group of companies, had 2.6 million subscribers at the end of November, with 126,000 added in that month. The new chas will be used for subscriber acquisition, marketing and set-top boxes.( Rapid TV News) […]
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