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Leading private equity investors ICICI Venture and Baring Private Equity Asia are set to invest around Rs 500 crore to pick up around 32% stake in Karvy Stock Broking Limited (KRBL), an arm of the Hyderabad-based Karvy Group. The deal puts the enterprise value of the securities firm at around Rs 1,500-1,600 crore. MAPE Advisory Group advised Karvy on the transaction. The valuation, however, is lower than that of other established stock broking and investment banking players like Edelweiss Capital, Indiabulls, Motilal Oswal Securities and India Infoline which took PE route in the past and raised funds from the primary market. ICICI Venture and Baring Private Equity are buying the 20% equity held by existing investor Pacific Century Group (PCG), while an additional 12% stake will be offered to them in the form of fresh equity, according to sources. The Hong Kong-based PCG had acquired the stake for Rs 83 crore in 2005, which had valued Karvy at around Rs 415 crore then. KRBL offers a wide range of financial services including stock, commodities and insurance broking, investment banking, mutual fund distribution and depository services to over 3.5 lakh retail investors. These services are offered through a strong network of over 580 branches spread across India. […]
Private equity (PE) players appear to have shifted focus to education firms targeting the domestic market. Thanks to a booming economy and talent shortage, PEs expect the demand for services from such firms to pick up. Already, the sector has seen a number of PE deals and the trend is likely to continue, observers say. Companies in the education segment usually offer online tutoring services for clients abroad or tap the domestic market by setting up vocational training and coaching centers. While the investment activity earlier centered on export focussed-education companies, the focus has shifted to training institutes that target the domestic market. For example, private equity firm Gaja Capital partners invested $8.25 million in education and career counseling entity Career launcher. Similarly, Helix investments pumped in $12 million into preparatory education company Mahesh Tutorials and SAIF partners invested $10 million in English training academy Veta, plus an undisclosed sum in another vocational training company, ICA Infotech. […]
GE Energy Financial Services picked up 26% in Sayi Power Energy for an undisclosed sum, reports Business Line. Sayi Power Energy is a majority shareholder of power project developer KSK Power Venture. KSK Power Venture owns downstream energy assets in India and is listed on London Stock Exchange`s Alternate Investment Market (AIM). The company has eight projects, either in operation or under construction, representing 875 MW in capacity. Earlier this year, GE Energy Financial also invested USD 17 million in Binani Cement for construction of a 22.3-MW thermal power plant in Rajasthan. ( My IRIS) […]
Private equity firm Blackstone Group is looking to invest more than $1 billion in India over the next two years, the Economic Times said on Friday, citing the firm's country head. “We may make investments of $500-$600 million per year, and in two years may invest more than $1 billion dollars,” Akhil Gupta, chairman of Blackstone India, told the paper. “We are already much ahead of our target of $1 billion in five years and if we continue to find deals, then the allocation for India would also continue to increase,” he was quoted as saying. Blackstone, which recently paid $65 million for a reported 26 percent stake in Indian engineering firm MTAR Technologies, has said it had a huge pipeline of deals in India. It has made a series of investments this year, including in apparel firm Gokaldas Exports, $150 million in Nagarjuna Construction Co Ltd and $275 million in regional media firm Ushodaya Enterprises Ltd. (Reporting by Rina Chandran; Editing by Ranjit Gangadharan) (Reuters) […]
Essar group-run Aegis BPO said it is acquiring TeleTech Services, an equal joint venture between TeleTech Europe and Bharti Ventures, for nearly $13 million in cash. “We would be financing the acquisition through the company’s internal resources,” CEO and MD Aparup Sengupta said. This is Aegis’ seventh acquisition in past two years, Other companies acquired by Aegis include Canada’s Genesis Media, French sales promotion and direct marketing agency Implicom, which Aegis acquired in October this year. Mr Sengupta said that the acquisition has brought telecom provider Bharti-Airtel into the company’s client portfolio. Aegis already services the customer care requirements for Idea, Tata Teleservices and Vodafone. […]
Bangalore-based MindTree Consulting has acquired the Indian subsidiary of French company TES Electronic Solutions SA in an all-cash deal of $6.55 million. The unit, TES-PV Electronic Solutions (Purple Vision), provides differentiated services in IC design and employs 150 people. The transaction will become effective upon completion of closing conditions and is expected in 4-6 weeks. “With this, MindTree’s IC design team will be a formidable size of 350 professionals, making it one of the largest independent design services organizations in India. The domain expertise of Purple Vision will complement MindTree’s existing offerings, enabling us to bid for end-to-end chip design projects,” said Janakiraman S, President and CEO – R&D Services, MindTree Consulting. […]
Bangalore-based venture capital firm Footprint Ventures will focus one-third of its investments on exploiting the India-US-Israel triangle. The firm will invest directly into Israeli technology firms and set up new companies in India that would have exclusive rights to the technology and distribution here and in other developing markets. Success will ride on the firm’s co-founder Neill Brownstein, who also co-founded Silicon Valley-based, long-standing venture capital firm Bessemer Venture Partners, and founded Novak-Biddle Venture Fund. The other co-founders are Linda Brownstein, Josh Bornstein and Shalini Elassery. “We are looking to accelerate industrial technology’s entry into India,” says Brownstein. This Israel-India route is yet to be exploited by funds in India. Footprint’s strategy also demonstrates the deepening interest from abroad in exploiting India’s domestic market, as opposed to taking advantage of just the low costs here, and private equity’s role in it. Brownstein would not disclose the size of the fund, saying, “We are backed by well-healed investors.” […]
DLF Ltd, India's largest listed real estate company, is buying luxury chain Amanresorts for around $250 million, a source close to the development said on Wednesday, confirming a report in the Business Standard. DLF will also assume debt of about $220 million, the source said. A spokesman for DLF declined comment. The valuation of the Singapore-based privately held chain of luxury hotels and spas was “extremely conservative”, the paper said, citing sources close to the development. DLF has a joint venture with Hilton Hotels Corp to develop 75 hotels and serviced apartments over seven years in India.(Reuters) […]
New York-based, India-focused real estate investment company Trikona Capital, plans to raise a Rs1,500 crore domestic fund. Trikona’s co-founder and managing director Ashish Kalra said the fund would be “by-invitation-only” with “a minimum ticket size of Rs25 crore.” It will invest in residential and commercial properties. The fund, which is to be launched in December, will be the largest rupee-denominated real estate fund to be raised so far. Kotak Realty recently closed its domestic realty fund at Rs1,200 crore. Trikona Capital president Mahesh Gandhi said the fund would be deployed in the company’s second series of investments in India. Trikona also plans to launch a $1 billion (Rs3,940 crore) infrastructure fund. Trikona raised its first fund of £250 million (Rs2,032.5 crore) in April 2006 on the London Stock Exchange’s Alternative Investment Market (AIM) and has completely invested this. […]
Indian companies received more than $74 million (Rs290.8 crore) venture capital funding in October. Deals included investments in sectors ranging between e-learning, digital media and engineering solutions outsourcing. The single largest deal was struck by online travel portal Makemytrip.com, which received $15 million in its third round of funding. The New Delhi-based portal, which plans to go for an initial public offering by 2009, received funding from the US-based hedge fund Tiger Fund, along with existing investors Helion Venture Partners, Sierra Ventures and SAIF Partners. Online education and e-learning services emerged as the flavour of the season as venture capital firms struck three deals in this space in the last month—Mumbai-based Hurix Systems Pvt. Ltd received $5.1 million from Helion Venture Partners; TutorVista.com, an online tutorials company started by serial entrepreneur K. Ganesh, received $2.5 million from Manipal Education Group; Mumbai-based e-learning services company 24×7 Learning Solutions Pvt. Ltd received $4 million from Capital18, the venture capital arm of media group Network18. All three companies have had earlier rounds of funding. Digital media was another sector popular with venture capital firms—New Delhi-based Live Media and Bangalore-based Tag Media Network, which operate in-store television networks for advertising and marketing, received funding from Draper Fisher Jurvetson (DFJ) and Intel Capital, respectively. The month also saw investments in outsourcing services companies such as New Delhi-based RT Outsourcing Services Ltd by Motilal Oswal Venture Capital, Indo-US outfit Satellier Llc. by Sequoia Capital India and engineering and technology services company Neilsoft Ltd. […]
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