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Carlyle Group to focus on growth deals in India, China

Next month, 18-odd private equity (PE) professionals who make up Washington DC-headquartered Carlyle Group LLC’s Asia investment team will troop down to Kumarakom in Kerala for the firm’s annual brainstorming meet. This is the first time India will play host to the event and it underscores the importance the PE firm, which has $58.5 billion (Rs2.36 trillion) under management, attached to this market. India is one of the firm’s key markets for investments from its $680 million Asia Growth Partners III fund, which has done two deals since its launch in 2005—Claris Lifesciences Ltd and Elitecore Technologies Ltd, both based in Ahmedabad. The Asia growth fund invests primarily in four markets—China, India, Korea and Japan. […]

China private equity deals fall 83%

The mainland has suffered a spectacular collapse in the value of private equity deals, according to figures released for the first half of the year by Thomson Financial. The total value of deals made by buyout companies to June 30 was US$678.9 million, a decline of more than 83 per cent from the US$4.2 billion for the same period last year. The mainland's share of deals in Asia-Pacific, excluding Japan, fell from 33 per cent to just 3 per cent, placing it well behind India, Taiwan Province and Singapore. The mainland's disappointing performance is set to reignite concerns about protectionism in Asia's second-biggest economy. The Chinese government has announced plans to make foreign investors buying companies go through national security checks, while Carlyle Group's failure to take a controlling stake in State-owned Xugong Group Construction Machinery last year raised fears of an anti-foreigner backlash. […]

Baring India takes stake in InfrasoftTech

Private equity firm Baring Private Equity Partners will invest over Rs 100 crore for a significant stake in InfrasoftTech, a specialist banking and financial industry IT solutions company. This investment will be utilised for accelerating the company’s growth in both organic as well as inorganic manner, and to further build upon the strong platform and market presence which InfrasoftTech has developed. The core competence of InfrasoftTech include retail banking, investment banking, eChannels, trading, wealth management, Islamic finance and anti-money laundering. […]

India's Megasoft to buy Boston Communications for $65 mln

Billing systems provider Boston Communications Group Inc. said it agreed to be acquired by India-based software services firm Megasoft Ltd. for about $65 million, or $3.60 a share, in cash.

The offer represents a premium of about 81 percent over Boston Communications' Tuesday closing price of $1.99.

The deal is expected to be completed in the third quarter. (Source : Reuters)

Tatas to pick up 4.6% in DCB

The Tata group will pick up to 4.6 per cent stake in Development Credit Bank (DCB) through its newly-formed subsidiary Tata Capital. The board of DCB today approved raising up to Rs 310 crore by issuing preferential shares to five investors, including Tata Capital, at Rs 105 per share. This would form 16.6 per cent of the post-issue capital of the bank. The other investors who will pick up up to 4.6 per cent stake in the Aga Khan Fund for Economic Development (Akfed) promoted bank are UAE-based Al Bateen Investment Co, GRA Finance Corp, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius. […]

Morarjee Textiles acquires 67 pct stake in Men’s Club

The Rs. 213 crore Morarjee Textiles Ltd., an Ashok Piramal Group-owned company has acquired 67 percent controlling stake in an Italian brand of shirts, Men’s Club, Mr Harshvardhan Piramal, Executive Vice-Chairman, Morarjee Textiles Ltd. said. He clarified that the company is scouting for another acquisition for its front-end business in Europe, but has not zeroed in on anything as the company would prefer to acquire a brand that offers high value-added products and fits well within our strategy. Although, the manufacturing has been outsourced to a plant in Southern Italy, the company wants to maintain a relative independence with Men’s Club as they hopes to make a dent in the Japanese and European markets through this acquisition. […]

DCB to sell 16.6 pc stake

Private sector lender Development Credit Bank plans to sell 16.6 per cent stake to five investors and raise around Rs 3.10 billion, a senior official said on Tuesday. The shares will be issued at Rs 105 each, Managing Director and Chief Executive Officer Gautam Vir said. The investors are Tata Capital Ltd, Al Bateen Investment Co of the United Arab Emirates, GRA Finance Corp, DCB Investments Ltd, Mauritius and India Capital Opportunities 1 Ltd. […]

Avesthagen to raise $100mn for expansion

Avestha Gengraine Technologies (Avesthagen), a Bangalore-based biotech firm, has outlined plans to raise $100 million (Rs 410 crore) to fund its growth and acquisition plans for the next three years. The amount will be raised through a mix of private equity and an initial public offering (IPO). Avesthagen, which focuses on the convergence of food, pharmaceuticals and clinical genomics, provides solutions to agriculture and health problems such as degenerative conditions, metabolic disorders and infectious diseases. […]

Dishman to buy Solvay Pharma vitamins unit

Dishman Pharmaceuticals & Chemicals will soon acquire the vitamin and fine chemicals business of the Netherlands-based pharmaceuticals major, Solvay Pharmaceuticals (Solvay), for an undisclosed amount. According to a memorandum of understanding between the two parties, Dishman will take over Solvay’s facilities, people and activities located in Veenendaal in the Netherlands, besides acquiring the technology, patent and intellectual property rights for fine chemicals. After the completion of due diligence and employee information procedures and gaining the approval of relevant authorities, the transfer of ownership will be completed, during 2007, according to Dishman. […]

JM Fin India Fund to invest Rs 40cr in MFI

JM Financial India Fund, a $225 million private equity fund sponsored by JM Financial and Old Lane Partners LP, will invest Rs 40 crore in Spandana, a leading microfinance institution (MFI). Spandana caters primarily to the lower income borrowers located in rural and urban areas. The company operates through its 300-plus branch network in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Tamil Nadu with a client base in excess of 1 million. […]