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The energy sector has attracted maximum investments from the private equity players during July-September, the third quarter of calendar year 2011. Of the $2.25 billion worth PE placements across 98 deals in Indian companies during the quarter, about $823 million, or 37%, was in 16 energy-sector companies, according to data by Chennai-based research firm Venture Intelligence. Vikram Uttam Singh, head-private equity, KPMG, said, “We saw deals of close to $5 billion in the energy space last year and what is happening now is an extension of it. One of the reasons for this is that until recently very few deals of this size were available in the market. Power industry is very capital intensive and hence the deal sizes tend to be huge,” he said. […]
Chennai-based eShakti, which makes customized, designer clothes for women, started exports to the US in 2008. It plans to use the money to scale up operations, add new product lines and also cater to Indian consumers. “Over the next six months, we will add accessories—belts, bags, jewellery, which would complement our clothes,” said B.G. Krishnan, founder and chief executive of eShakti.com. The company may look at yet another round of fund-raising next year, he said, but declined to reveal how much stake has been sold to Bangalore-based IDG Ventures. […]
Reliance Capital Asset Management Ltd, the mutual fund arm of the Anil Ambani-controlled Reliance Group, may sell a 26% stake to Japan’s Nippon Life Insurance Co. Two Reliance Group officials said that the companies are in advanced talks and the transaction may be clinched at a valuation of up to Rs4,000 crore, which would be a record for a mutual fund stake sale. “Nippon Life has vast experience in managing assets. They bring expertise and scale on board. On the other hand, Nippon gets direct access to the growing financial services market in India through one of the most profitable Indian fund houses. So it benefits both,” said one of the two Reliance Group officials, both of whom declined to be named as final approvals are yet to be secured. […]
Marquee ethnic wear chain Fabindia has acquired majority stake in the UKbased womenwear retailer EAST. The New Delhi-based Fabindia has the option to buy the balance stake and take full control of the foreign retailer within a year, said a top company executive. Although the deal size could not be independently ascertained, industry insiders peg it between Rs 35-40 crore for 62.5% stake. “With the acquisition, we have the option of getting EAST products into India and also improving our apparel line using their design capabilities and technology,” said Sunil Chainani who represents Fabindia on the board of EAST. He, however, refused to disclose the deal size. Fabindia, known for its handcrafted jewellery and Kurta made from hand-woven fabric, acquired a 25% stake in EAST, for an undisclosed amount in early 2009 with the option of acquiring the rest in the next three years. […]
The private equity arm of brokerage CLSA said on Tuesday it has invested $22 million for a minority stake in Indian education specialist Resonance Eduventures, the latest in a string of recent investments from the fund. Indians' obsession with schooling combined with woeful public education and rising incomes means private equity firms like CLSA Capital Partners (CLSACP) are hunting for opportunities in the country's booming but fragmented for-profit education sector. Resonance, founded in 2001, is one of India's largest test preparation coaching institutes, focusing on entrance exams for engineering and medical sciences. […]
Bank of India (BoI) is “revisiting” its plan to buy 51% stake in Bharti AXA Investment Managers, a source with the public sector bank said. “Considering the current market conditions, we will revisit this plan and the board will take a final call on the deal,” the source said on condition of anonymity. An email query sent to Bharti AXA Investment Managers on Tuesday remained unanswered at the time of going to press. Bank of India, which had exited the mutual fund business in 2004, has confirmed that it is committed to re-entering the asset management business now. […]
The Carlyle group, which manages Rs7.55 lakh crore worth assets globally, has picked up a 9% stake valued at Rs192 crore in brokerage and financial services firm India Infoline (IIFL). The stake was picked up over the last few weeks from the open market, according to a Carlyle spokesperson. The private equity firm would get a seat on the board of the company, said a joint-note on the development. “Carlyle becomes a key institutional shareholder in IIFL and will be invited to join IIFL’s board of directors to support its future development, subject to necessary approvals,” it said. […]
Private equity investment in India touched $1.91 billion in July-September this year, which was 18 per cent higher than that in the same period last year. For the third quarter of 2011, PE deal values amounted to $1.91 billion against $1.71 billion in the same period last year, according to Grant Thornton’s ‘Dealtracker’ report. In terms of number, the July-September quarter saw 94 deals compared with 58 deals in the same period last year. “Private equity investments during Q3 2011 have shown a marginal growth in value and a high growth in volume over the same period for the previous year,” Grant Thornton India Partner and Practice Leader, Valuations, Ms Srividya C.G., said. […]
GAIL has once again set the cat among the pigeons by offering to buy the Asian Development Bank's entire 5.2% stake in Petronet LNG Ltd, a private company promoted by state-run oil companies for importing gas in ships. It has written to petroleum secretary G C Chaturvedi, who is the company's ex-officio chairman, that the stake can be equally split among the three other state-run promoters of Petronet if they too wanted a share of the pie. GAIL, ONGC, BPCL and IOC have 12.5% stake each in Petronet . French major Gaz de France holds 10%. The shareholders agreement gives all five of them the first right of refusal in case the ADB sells its stake. […]
Future Group firm Pantaloon Retail India Ltd (PRIL) today said it plans to raise up to Rs. 1,500 crore by issuing equity-linked securities amounting to stake dilution of not more than 15 per cent. In a filing to the BSE, PRIL said its Board of Directors which met today approved the raising of additional long-term funds. The securities could be either convertible instruments, convertible into shares, debt instruments with attached warrants giving right to the holder of such warrants to subscribe for Equity/Class B Shares, issue of Equity/Class B shares, it added. […]
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