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It has been learnt that, Bharti Airtel is in talks to sell around 10% in its hived tower company `Bharti Infratel` to a private equity (PE) player for around USD 1.1 billion, reports Economic Times. According to sources, the company has been in talks with two leading PE players for the deal, namely, Singapore government`s investment arm Temasek and US-based Warburg Pincus. The company however, is currently in the process of transferring its mobile telecom towers and related infrastructure to Infratel, its wholly-owned subsidiary. The company had about 40,000 towers during March 2007, and as part of an ongoing USD 3.5 billion expansion plan it is currently in the process of doubling the numbers by the fiscal end. Last week, the company announced that its subscriber base has crossed 50 million. It has seen around 90% increase in subscribers from 19.6 million in financial year 2006 to 37 million in the financial year 2007. Relince Communications recently completed the private placement of 5% in its telecom infrastructure company, Reliance Telecom Infrastructure (RTIL) for Rs 270 billion and Bharti`s move to unlock value in its tower arm follows it. […]
Kotak Mahindra Bank is set to raise around $400 million through a qualified institutional offering this week. The private sector bank is in talks with a string of investors including funds of Warren Buffett and other strategic investors for the proposed placement. The bank may issue 17 million equity shares (around 5% equity) to institutional investors. It has also sounded out some of the private equity players, foreign insurance firms and other bluechip investors. The bank is also said to be in talks with T Rowe Price. At present, Warburg Pincus holds 9.14% in the bank. The issue is likely to be completed in the next few days. Sources say the bank is looking at placing shares at around Rs 1,050 per share. Kotak Mahindra shares ended at Rs 959.45 on BSE on Friday. The stock has moved 31% in the last one month, and 4% last week. The deal would enable the bank raise around Rs 1,700 crore. Citi is the advisor to the issue. […]
Hyderabad-based GVK Bio, a joint venture (JV) company between GVK group and DS Brar, former CEO of Ranbaxy Laboratories, plans to raise Rs 1 billion by way of private equity (PE), reports Business Standard. The company, engaged in providing contract research services, will raise the capital by end of 2007 to fund its expansion plans. The company is setting up a new campus near Hyderabad and also is looking at inorganic growth. GVK Bio wants to take the PE route, in a bid to establish a basis for valuation when the company goes public. The company aims at Rs 2 billion in revenues in 2007-08. The company has opened a new drug discovery research centre dedicated to Wyeth Pharmaceuticals with whom it signed a 5-year USD 45-50 million contract in January.(My Iris) […]
Private equity fund SAIF Partners has invested $10 million in Amoha Education Pvt Ltd, the holding company of spoken English training academy Veta. With this investment, US-based SAIF Partners has increased its Indian portfolio of investments to 14 companies, including NSE, Sify, IL&FS Investsmart, Intelligroup, Makemytrip.com, HomeShop18 and Slashsupport, among others. Armed with fresh funds infusion, Veta is set to extend its success in India into the global arena, Veta chairman V Rajagopalan said. From 150 centres in 90 Indian cities currently, Veta plans to upgrade this to 500 centres on its educational rollcall by 2010. The company operates a centre in every district of India, and will commence operations in Singapore by December, before diversifying to other Asian countries like Malaysia, Thailand, Korea, Indonesia and China. ''China will be a huge market for us with 350 million people in that country wanting to converse in English,'' Sreenadha Reddy, general manager – branding, Veta, said. ''We also plan to reach out to American and European markets.'' […]
The realty-oriented private equity firm, Infinite India Investment Management, backed by JM Financial Ltd, is investing Rs200 crore (about $50 million) in realty firms belonging to the Kolkata-based Shrachi Group. The funds would be allocated for projects proposed in the eastern cities of the country. For Infinite India, which has drawn up plans to invest $400 million in the country’s realty business over the next two years, this is its largest single investment commitment to date. It will be picking up an undisclosed minority stake in both Shrachi’s wholly-owned subsidiaries Shrachi Developers Pvt. Ltd and Shrachi Realty Pvt. Ltd. Shrachi itself has drawn up plans for investing about Rs500 crore over the next couple of years. The funding will help Shrachi accelerate expansion plans, said Rahul Todi, managing director, Shrachi Developers. Infinite India has committed about $200 million in investments for projects across the country, said Karthik Sarma, chairman of Infinite India. The proposed projects include a 32-acre mixed-use development in Mumbai, 1.8 million sq. ft IT park in Chennai, and entry-level investments in realty and hospitality players in Bangalore, Kolkata and New Delhi.(Livemint) […]
International Press Softcom (IPS), a Singapore headquartered supply chain services major, is acquiring majority stake in the Chennai-based print and packaging company Scantrans. IPS, listed on Singapore Stock Exchange (SGX) is picking up 55% stake in Scantrans for over $5 million (Rs 20 crore). IPS, with annualized revenue of over $130 million, is a significant player in the integrated supply chain services market across Asia-Pacific and counts high technology clients like Apple, Dell, HP and Intuit as its key accounts. Print and packaging and media replication figure prominently in its supply chain services play. Set up in 1994, Scantrans has client base across sectors like pharma, electronics goods and hardware, FMCG and automobiles. It is projected to end the year with a turnover in excess of Rs 40 crore during the ongoing financial year. The customer list includes names like Cipla, Orchid, Flextronics, Motorola, Panasonic, Ford and BMW. Veda Corporate Advisors was advisor in this cross border deal making. […]
In the rarified world of private equity, people speak of Kohlberg Kravis Roberts & Company (KKR) with awe. One of the largest PE firms in the world, the firm has near mythic proportions, in large part because it seems to have access to an endless supply of funds that allow the company to buy into practically any asset in the world that catches its fancy. This year alone, the company announced acquisitions worth $123 billion. Sources say the firm now has plans to get into India. ''A few law firms, including us, have been sounded off by KKR to help set up operations in India,'' said the CEO of a New Delhi-based legal firm who did not wish to be named. Officials at KKR's offices in New York declined to comment. Last week though, a senior partner at KKR told TOI that ''Unlike in the West where private equity has acquired negative connotations, in India and other markets, it is viewed as a sexy business. We are looking at India closely.'' As things stand right now, KKR has made one investment in the country. The deal was completed last year when the company picked up the software business of Flextronics International for $900 million. The company has offices in Palo Alto, Singapore and operates predominantly out of Bangalore, For KKR, the investment in Flextronics was its second investment in Asia. KKR's current operations in Asia include recently opened offices in Hong Kong and Tokyo. The company is believed to be looking at China and Korea too as potential outposts to begin operations. […]
Private equity (PE) investment in the country are set to touch $13.5 billion this year, making India one of the top seven recipients of such funding in the world, a new study said. It is projected to reach around $20 billion by 2010. According to a study by research firm Evalueserve, there are more than 366 PE firms operating in the country while another 69 are planning to start operations soon. “They have amassed $48 billion, which are earmarked for investments in India in the next three and a half years,” says the report. Investments made by private equity firms in India have seen a drastic rise, touching $7.46 billion from 299 deals in 2006. The figures stood at $2.18 billion from 146 deals in 2005. The investments were just $20 million from five deals in 1996. […]
Foreign funds and institutions have, till date, raised approximately $30 billion to be invested in Indian real estate with an estimate of $3 billion that has been committed, according to real estate services firm Cushman & Wakefield. The industry is progressing up the learning curve, and the spectrum of private equity transactions range from project-specific special purpose vehicles (SPVs) to entity-level investments. According to Cushman & Wakefield’s latest report ‘India Gaining Momentum-Indian real estate investment dynamics’, investments in the market have spread rather evenly over three broad investment vehicles. While a majority of the investment still remained either at the portfolio and SPV-level partnership, at 40 per cent and 36 per cent respectively, the number of entity-level partnerships formed 26 per cent of the total investment in the sector. […]
The Wadia family is evaluating proposals to sell a stake in Go Airlines (India) Pvt Ltd, which owns low-fare carrier GoAir. “We have not yet made a decision,” GoAir managing director Jeh Wadia told the media at a news conference in New Delhi yesterday, without giving any details. However, sources indicated that the family might sell up to 26 per cent, depending on the terms and conditions. Most Indian low-cost carriers are looking for mergers and alliances (M&As) to reduce costs, after Jet Airways bought Sahara Airlines in April and Kintgfisher Airlines snapped up Air Deccan in May. The two state-owned carriers, Air India and Indian airlines, have also merged. India's aviation industry lost Rs2,000 crore ($500 million) last year, according to the Centre for Asia Pacific Aviation as a large number of airlines have started in the past four years, lured by a market that is expected to grow at around 25 per cent annually until the end of the decade. […]
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