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Standard Chartered Bank on Tuesday said it was still in “advanced stage” of talks with Securities Trading Corporation of India (STCI) to buy a stake in its broking arm UTI Securities. “We remain interested in it (UTI Securities) and continue to talk,” Standard Chartered Bank India CEO Neeraj Swaroop told reporters here. The foreign bank can pick up about 49 per cent stake in the company as UTI Securities is not allowed to sell more than 50 per cent, he added. The deal will help the bank to enter the retail stock broking market as UTI Securities offers institutional broking, retail broking and online broking. In February 2006, STCI had bought 100 per cent stake in UTI Securities for Rs 265 crore from the Specified Undertaking of UTI. […]
India's Bharti Airtel Ltd., Reliance Communications Ltd. and the Tata Group are bidding for 51 percent in state-owned Telkom Kenya, the Economic Times and Business Standard said on Wednesday. Representatives of the Indian companies are in Nairobi to participate in a bidders' conference, the Economic Times newspaper said, citing unnamed sources. A spokesman for Bharti, India's top mobile services operator, said the company was interested in international opportunities but would not comment on speculation. A spokesmen for Reliance Communications, the No. 2 operator, did not immediately return a call. A spokesman for Tata's Videsh Sanchar Nigam Ltd. said Africa had been identified as an important market. […]
Indian promoters, from the Tatas to the Birlas are upping their stake in group companies. But are they really under threat? The Mahindras may soon follow the Birlas and Tatas in raising promoter stake in group companies. Keshub Mahindra, Chairman, Mahindra & Mahindra said, “We are thinking and will do it at an appropriate time. ” After the hostile takeover of Arcelor in June last year, the question everyone asked was, would Mittal do the same with Tata Steel, since the promoter holding is barely 26%. To which, Mittal, President & CEO, Arcelor Mittal said, “Why should Tata Steel be worried?” But Ratan Tata is not taking any chances. Tata Steel announced a 10% preferential allotment to its promoters Tata Sons last year to hike its stake from just above 20%. Ratan Tata, Chairman, Tata Steel said, “The vulnerability when the industry is trying to consolidate is considerable.” […]
Wipro Ltd, the country's third largest software exporter, on Monday achieved the distinction of making the largest overseas acquisition in the information technology space when it announced the acquisition of US-based, Nasdaq-listed outsourcing firm Infocrossing for approximately $600 million (around Rs 2,430 crore) in an all-cash deal. The acquisition will be conducted through a tender for all the outstanding shares of Infocrossing, followed by a merger of Infocrossing with a Wipro subsidiary. Institutional members have a majority holding (close to 10 per cent) in the company. Wipro is making an open offer at $18.70 per share, which — if fully subscribed — will cost close to $600 million. Wipro currently has cash reserves of $750 million and expects to close this acquisition by December 2007. The $232.44 million Infocrossing, with a net income of around $10 million, and its wholly-owned subsidiaries provide IT outsourcing solutions to companies, institutions and government agencies in the US. The company's enterprise value is around $510 million (on August 6) and its enterprise value/revenue (trailing 12 months) was 2.18 times. Founded in 1985, the New Jersey-headquartered Infocrossing went public in 1992. […]
Private equity funds with a special focus on micro finance institutions have lined up billions of dollars for the sector in India. For instance, Aavishkaar Goodwell, a micro finance private equity company, is building a $25 million portfolio across India, $2 million of which has already been invested into Share Microfin, a micro finance company with over a million clients. Funds such as Bellwether and Lok Capital have also lined similar plans. Private equity funds raise capital from financial institutions and banks and lend it to micro finance companies, mostly for equity. For example Deutsche Bank, Netherlands Development Finance Company (FMO) and International Finance Corporation (IFC) of the World Bank group have provided funds for Aavishkaar Goodwell. IFC and FMO have also invested in the $12 million Lok Capital fund. Some other private equity funds have lined up much bigger sums. “For India we are not talking millions but billions,” says Vikram Akula, founder of the new age micro finance company SKS. […]
The total of private equity investments in India is set to cross $10 billion in the calendar year 2007 and may even touch $15 billion according to PricewaterhouseCoopers. In the last 18 months private equity investments in India have picked up pace. According to Pricewaterhouse in 2005 the total private equity investment was $3.8 billion, in 2006 it moved up to $7.9 billion and in the first half of 2007 it has already crossed $6 billion. […]
The Sebi-appointed committee on dedicated infrastructure funds (DIFs) to be launched by asset management companies, has proposed that DIFs should have the flexibility to invest its entire corpus in unlisted companies, including equity and debt instruments. The committee has also proposed that these funds should be allowed to own the 100% paid-up capital of a company, if they so desire. However DIFs’ exposure to listed companies should not exceed 10% of the net asset value (NAV) at the time of investments. The product, once approved, will allow retail investors an exposure to unlisted companies in the infrastructure space. So far, it is the deep-pocketed venture capital funds who have been buying stakes in unlisted companies in the infrastructure sector. Retail investors on most occasions are unable to meet the minimum investment requirements of these funds, thus missing out on a portion of the company’s growth phase prior to the listing. With this product, retail investors can buy units of this product from mutual funds, which will invest the proceeds in shares or debt of unlisted companies. […]
India`s biggest lender State Bank of India is mulling selling up to 10% stake in its proposed holding company for its life insurance and mutual fund businesses to institutional investors, reports Business Standard.
SBI is planning to set up this holding company in next two-three months and even plans to list it in this financial year. The 10% stake, valued at about Rs 20 billion, would be sold to as many as four investors.(Source : My Iris)
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The IFCI Board on Saturday decided to invite expression of interest (EoI) for shortlisting a strategic investor. A large number of financial big-wigs like Barclays, Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and other Indian banks are understood to be interested in picking up 26% equity in the company. The process of receiving EoIs would begin on August 13 and the last date for submitting EoIs would be September 14. The company expects the process of selection of a strategic investor to be over by January, a company official said. The lender has appointed Ernst & Young to look for the strategic investor. E&Y has been asked to suggest names of strategic investors and will help IFCI in carrying out modalities related with stake sale. […]
After losing its bid for a stake in South African government-owned telecom network operator Infraco, Tata-controlled Videsh Sanchar Nigam Ltd is planning to invest in the submarine cable projects of the state-owned entity. VSNL may invest close to $200 million for the cable project, group sources said. “Currently, it is in the very early stages of negotiations. Just now, they came out with an idea of inviting partners for the submarine projects. We are interested in partnering in that,” a top company official said. Infraco, South Africa's third network operator, which has been formed to lower the broadband costs, is planning to invest close $700 million to build an undersea cable network. The cable network will connect Africa, America and Europe. “VSNL has a stake in SA's second national operator, Neotel. Now the company is interested in equity participation in the undersea cable projects of Infraco,” sources said. […]
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