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For the first time, a Russian company has entered the Indian telecom market. Sistema, the largest private sector consumer services group in Russia, on Wednesday announced its acquisition of a 10 per cent stake in Shyam Telelink, a code division multiple access (CDMA) and basic phone player in India. Sistema, which is both into global systems for mobile communications (GSM) and CDMA, acquired the stake for a cash consideration of $11.4 million. The Russian company reported revenues of $2.7 billion for the first quarter of 2007 and had total assets of $21.6 billion, as on March 2007. According to press statements issued by Sistema and Shyam Telelink, Sistema wants to increase its stake to 51 per cent after receiving Foreign Investment Promotion Board (FIPB) approval. “The overall value of the deal may touch $58.1 million at that point,” the Sistema statement added. It is believed that the Russian company may further increase its stake to 74 per cent subsequently. At present, FDI is capped at 74 per cent in the telecom sector. Shyam Telelink, which operates only in the Rajasthan circle and has a subscriber base of 2.57 lakh, has applied for unified access service (UAS) licences across the country. According to analysts, Shyam Telelink's application for pan-India operations would push up its valuation to around Rs 1,000 crore-Rs 1,200 crore. Sistema has tried to enter the Indian telecom market earlier also. […]
Real estate remains a favourite with investors and $5-10 billion worth of investment is expected in the sector in the next three years, even as investors remain wary of lack of transparency and land ownership issues, says an Ernst & Young survey. According to the survey, respondents rated real estate as one of the most attractive investment opportunities. Most investors said they prefer making investments in specific projects and not in the entity. The sector is expected to generate returns of 25-30 % over the next 2-3 years but returns are expected to plateau after that, the survey said. About 68% of the respondents said the sector would receive investments in the range of $5-10 billion over the next three years while 27% said they expect investment of over $10 billion. Most investors prefer to take the special purpose vehicle (SPV) route for picking up stakes in real estate companies. About 95% of investors surveyed prefer to take the SPV route for investment, with 69% favouring SPV with single asset/project holding and 26% favouring SPV with multiple asset holding. “Investors are still shying away from enterprise level investment,” said the survey. […]
ICICI Venture-controlled entity acquires Austrian company for $100 million. After the spate of overseas acquisitions by Indian companies, domestic private equity firms are getting into the game. VA Tech Wabag India, controlled by ICICI Venture, has acquired VA Tech Wabag GmbH of Austria from Siemens for about $100 million. In 2005, ICICI Venture had acquired the majority stake in VA Tech’s water business in India and Siemens had acquired the parent Austrian company. “This is a pioneering transaction in which a company owned by an Indian private equity firm has acquired its erstwhile parent. It will now emerge as a global water company,” said Sumit Chandwani, director-Investment, ICICI Venture, confirming the transaction. He however declined to divulge details or confirm the cost of the acquisition. VA Tech Wabag India provides water treatment solutions to domestic public and private sector companies. The Austrian company has a presence across the globe with a business volume of over €100 million (Rs 560 crore). VA Tech Wabag India, based in Chennai, is a Rs 400 crore company with presence in India and other Asian markets. Its order book is worth over Rs 800 crore. […]
Mauritius based foreign institutional investor Fidelity (FID Funds Ltd) has taken a 10 per cent stake in B.A.G Films and Media. The investment is to the tune of Rs 620 million. The equity was approved today at the B.A.G's board of directors meeting. The directors also approved the issue of 10 million warrants to M/s. Anu Films and Communications Pvt Ltd, which is the promoter group of the company. It also announced an increase in the authorised capital of the company from the existing Rs 250 million to Rs 300 million. “We are delighted to have an internationally acclaimed company as our partner in our endeavour for expansion in 360 degree of media space. Going forward, we are confident of continuing to achieve all the milestones as planned,” says B.A.G Films and Media Ltd MD Anuradha Prasad. […]
The $2-billion Indiastar (Mauritius) fund, foreign private equity investor, has picked up an 18.5 per cent equity stake in Punjab-based IOL Chemicals and Pharmaceuticals Ltd (formerly known as Industrial Organics Ltd), a leading manufacturer of industrial chemicals and bulk drugs in the country. The board of IOL Chemicals and Pharmaceuticals today approved the issue of up to 1.33 million equity shares with a face value of Rs 10 per share, each at a premium of Rs 65 per share to Indiastar (Mauritius) Ltd, and 1.4 million unsecured fully convertible debentures (FCDs) of Rs100 each aggregating to Rs 14 crore. These FCDs would be converted within a period of 18 months from the date of allotment into equity shares of a face value Rs 10, each at a premium of Rs 65 per share to Indiastar (Mauritius) Ltd. The board also decided to issue up to 2.3 million warrants, of which 1.2 million warrants will be issued to Mayadevi Polycot Ltd (promoter of the company) and 1.1 million warrants would be issued to Indiastar (Mauritius) Ltd. They would carry an option to convert each warrant into one equity share of face value of Rs 10 per share, each at a premium of Rs 65 per share within a period of 18 months from the date of the allotment. […]
Upcoming listings may see returns of some funds rising three-fold. Private equity (PE) funds are looking at a more than three-fold increase in returns in some upcoming initial public offers (IPOs). In the case of the recently concluded IPOs of Koutons Retail and Consolidated Construction Consortium, the funds are looking at returns of nearly three times the issue price — the returns would be much bigger after listing. The issues were subscribed 45 times and 81.18 times, respectively. Some funds are also set to hit the jackpot from the upcoming floats of Jyothi Laboratories (Actis and CLSA) and Edelweiss Capital (Greater Pacific). Both the companies have filed their draft documents with the Securities and Exchange Board of India. Private equity funds UTI Ventures ($12 million), Argonaut Private Equity ($10 million) and Passport India Investment ($5 million) had invested $27 million in Koutons Retail, buying the shares at Rs 140 apiece couple of years back. Now, at the IPO price band of Rs 370-415 alone, the PEs have got handsome returns. […]
The net value of mergers and acquisitions (M&A) involving Indian companies announced till date in 2007 has crossed the $50 billion (Rs1.99 trillion), for the first time in a year, according to deal-data tracker Grant Thornton India. The value of deals announced in the first 15 days of September, has already taken the year’s total deal value well over $50 billion, said Dhanraj Bhagat, a partner who heads the firm’s investment banking practice in Mumbai. Grant Thorton India is a member firm of Grant Thornton International. The firm will publish the M&A deal report for September, only around mid-October. “The value of announced deals in September could be around $4 billion,” said Bhagat. The value of 460 inbound and outbound M&A deals involving Indian companies announced until the end of August stood at $48.5 billion. On the other hand, net value of M&A deals involving Indian companies during 2006, was about $35.6 billion, according to annual data compiled by consulting major PricewaterhouseCoopers. The forecast of net M&A deal value until the end of December this year, according to Bhagat, “will be in the range of $60 billion to $70 billion, excluding any large deals (over $1 billion) that could be announced in the next three months.” […]
India focused real estate investment company Yatra Capital Ltd said it plans to raise 150 mln eur through an equity offering in Netherlands and private placements. In a release, Yatra said it will use the proceeds to invest in Indian real estate development projects identified by its Mauritius-based subsidiary, K2 Property Ltd. K2 Investment Committee, its advisor, has identified further financing opportunities of 231 mln eur and in order to fund this pipeline projects, Yatra will raise 150 mln eur with the right to increase the offer size. Since its initial capital raising in Dec 2006, Yatra has committed to investing 88.4 mln eur through ten investments in India.(Forbes) […]
Business process outsourcing firm, Tricom India has acquired the assets of US-based Apex Document Solutions for 2 million dollar, a deal that would enhance the domestic firm's presence in the litigation support vertical. “The acquisition will augment the company's current sales setup in the US with the newly acquired on-site processing and support facility eliminating the distance and data confidentiality barriers,” Tricom India Managing Director Chetan Kothari said. A Memorandum of Understanding was signed between Tricom and the US-based service provider of litigation support service, which include any professional assistance non-lawyers provide to lawyers in the litigation process. The acquisition was funded through internal accruals and finance from banks or other financial institutions. […]
The board of directors (BoD) of IT People India, at its meeting held on Sep. 24, 2007, approved acquisition of 100% stake in Marketplace Technologies, formerly known as ENC Software Solutions, a closely held company, and the eventual amalgamation of it into IT People, subject to necessary approvals from shareholders and authorities. The company entered into memorandum of understanding (MoU) with the promoters (stakeholders) of Marketplace Technologies on Sep. 24, 2007.(My IRIS) […]
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