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The Dandekar family, owners of the 80-year-old office stationery major, Camlin, is in talks with private equity major India Value Fund to sell a part of its shareholding to part finance growth plans. The promoters— four members from the Dandekar family — own close to 40% in Camlin. According to people with knowledge of the talks, the negotiations are for valuing a stake close to 15% stake. It would be in addition to a borrowing programme as the Rs 330-crore Camlin battles rivals such as Faber-Castle and Pidilite . The deal could be for around Rs 100 crore . Chairman Dilip Dandekar denied any deal was in the offing . “We had diluted the holding 2-3 years back. As for professionalising the management, we have already initiated the process.” The talks with Camlin, a leader in office and school stationery and an iconic brand for most school going children, could eventually lead to a gradual divestment by the Mumbai-based family, which is seeking to professionalise the company management, said people close to the family. […]
Reliance Venture Asset Management Pvt. Ltd co-invested $12 million (Rs54.72 crore) in biomass power-focused AllGreen Energy India Pvt. Ltd, ending a three-and-a-half-year search for an “investable” clean-tech firm. There are only a few quality companies in this space, said Harshal J. Shah, chief executive of Reliance Venture, the venture capital (VC) arm of the Reliance Group, formerly known as the Reliance-Anil Dhirubhai Ambani Group (R-Adag). “There are two kinds of deals in India in this space—a form of implementation play and smaller tech-innovation deals. It is an implementation versus innovation game here,” he said. “Most large PE deals are in the implementation side. VC’s focus is on innovation.” By implementation play, Shah refers to technologies or models companies adopt from others and implement locally, such as hydropower generation that need large capital. Clean-tech innovation is about companies designing a new technology to generate power in a cost-effective manner with minimum emissions. […]
Coastal Projects Limited has acquired a 26-per cent stake in Societa Esecuzione Lavori Idraulici S.p.A (SELI) of Italy, for around 17.85 million euros (approximately Rs108 crore). SELI, one of the world's most experienced tunneling contractors, has established operations across the world, including India. Hyderabad-based Coastal Projects, a civil engineering and construction firm, specialises in tunneling and underground excavation for hydro-electric, irrigation, rail, road and mining projects. The company has successfully completed more than 75 km of tunneling work and has 250 km under execution at present. […]
Bangalore-based Unibic India Private Ltd is being bought over by FMCG giant Marico Ltd headquartered in Mumbai, reported a TV news channel on Friday. The channel said Marico will pay Rs 130 crore for 51 per cent stake in the privately held company and the deal will be announced by the end of this month. When contacted, senior officials in Marico and in Unibic did not confirm the news. But a source close to the deal told Deccan Herald that Unibic India is certainly talking to Marico and they are expected to sign the takeover agreement soon. Marico (2009-10 revenue Rs 2,661 crore and net profit Rs 232 crore) is a 17 year old consumer products company with welknown brands like Parachute, Saffola, Nihar, Mediker, Revive etc. Unibic India is a leading cookies company with an estimated sales of around Rs 60 crore in 2010. […]
Qatar’s largest investment bank QInvest has bought a stake in Indian student coaching organistion, Fiitjee, the company said on Monday. The value of the deal, which marks QInvest’s third deal in India, was not disclosed. Fiitjee offers tutoring to students preparing for engineering entrance exams in India’s technology colleges. The tie-up will pave the way for Fiitjee’s expansion into the Middle East market, said Anuj Khanna, head of investment management at QInvest. “Every year in excess of 450,000 students aspire for approximately 9,000 slots at one of the IITs (Indian Institutes of Technology) and the number of aspirants continues to increase.” QInvest, whose shareholders include Qatar Islamic Bank, has looked outside its borders in recent months in a bid to diversity its investment portfolio. […]
As valuation of companies have improved with recovery in the stock market, a number of private equity (PE) players are offloading their stakes worldwide. These exit valuations have shot up nearly three-times in the year 2010 to USD 203 billion, according to a report. According to a research firm Preqin, 811 PE-backed exits occurred in 2010, with an aggregate exit transaction size of USD 203 billion. This is almost three times the aggregate exit value seen in 2009 at USD 73.6 billion. “End of year results suggest the private equity deals sector has recovered following the financial crisis, with both the value and volume of deals and exits returning to, or exceeding, pre-crisis levels,” the report noted. Market persons said years would be good for PE players in terms of offloading their holdings in companies. […]
Parsvnath Developers Ltd said on Tuesday it has signed an agreement with SUN-Apollo India Real Estate Fund LLC , for an investment in a residential project at Ghaziabad, Uttar Pradesh. SUN-Apollo will invest upto 1 billion rupees for a 49.9 per cent stake in the project's special purpose vehicle, Parsvnath Buildwell Private Ltd , it said in a statement. […]
Real estate developers in north India are again aggressively scouting for funds for the completion of residential projects announced much earlier. New Delhi-based realty firm Parsvnath Developers Ltd (PDL) has raised Rs.100 crore by selling 49.9% stake in a housing project at Ghaziabad to private equity (PE) firm SUN-Apollo India Real Estate Fund LLC. The 31-acre housing project “Parsvnath Exotica” is being developed by its subsidiary Parsvnath Buildwell Pvt. Ltd. In another development, Red Fort Capital Advisors Pvt. Ltd is close to investing Rs.150 crore in the “Esencia” township project in Gurgaon of Ansal Properties and Infrastructure Ltd. “While we may see a steady flow of PE transactions in real estate this year, many of them will be in projects that have garnered good amount of pre-sales and are already in the development mode,” said Adhidev Chattopadhyay, analyst, Edelweiss Securities Ltd. “Both these investments have been in the better projects of the developers, who both have large tracts of land.” […]
With the bullish market leading to new projects, realty funds are now in search of greener pastures. Availability of capital is one of the major constraints faced by property developers. While bank funding comes with strings attached, a number of private equity (PE) funds are eyeing the real estate market with the demand level picking up in many cities now. Most real estate investments across India are through PE funds, who prefer to invest at the entity or special purpose vehicle (SPV) level. Even a small player can access real estate funds for a longer tenure. Moreover, association with real estate funds provides credibility during IPOs. However, while domestic funds are catering to the demand of smaller projects closer to the city, FDI investment can only happen in the suburban and peripheral areas with the prescribed minimum threshold limit of 5 lakh sqft built up area. Industry sources estimates that there are 15 PE funds with a surplus of close to $300 million looking at potential investment of $5 billion in the domestic market. Though they prefer to invest in residential projects, some funds are keen on commercial and retail development projects, according to market sources. […]
Marking a robust year for deal activities, mergers and acquisitions (M&As) involving Indian companies trebled to USD 68.3 billion in 2010 as compared to the previous year, says global consultancy Ernst & Young . Easy availability of finance as well as better economic prospects saw Indian players involved in as many as 1,267 M&A deals last year. “For the year 2010, India's M&A deal value has reached a whopping USD 68.3 billion, having grown three-folds compared to the value recorded in 2009,” E&Y said today. India recorded 554 cross border deals worth USD 54.9 billion — accounting for an 80 per cent share of 2010 total deal value. The average deal size last year rose to USD 120 million — “an all time high and more than three times compared to the average deal size of last year (2009)”. E&Y 's Partner and National Director (Transaction Advisory Services) Ranjan Biswas in a statement said that 2010 has been a blockbuster year for Indian M&A deals. […]
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