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The Shapoorji Pallonji Group has picked up 11 percent stake in a unit Nexxoft Infotel Ltd , a top official of the domestic software services firm told Reuters. “Shapoorji has picked up a stake in one of our units,” Rakesh Joshi, chief financial officer of Nexxoft Infotel, told Reuters. “The proposal is still with the board.” The financial terms of the transaction were not immediately available. “The investments are in our gaming subsidiary and the funds will be used for developing new gaming platforms,” he added. […]
Healthcare equipment maker Opto Circuits (India) Ltd on Tuesday agreed to acquire US-based cardiology device maker Cardiac Science Corp. for $2.3 ('102.35) a share, gaining entry into the automated external defibrillation market. This is the largest of Opto Circuits' nine acquisitions since 2001. Cardiac Science had 23.82 million shares outstanding as on Monday, valuing the buyout at $54.8 million, according to Reuters data. A spokesperson for Opto Circuits put the total cost of acquisition, including employee severance payout and cost of debt, at $80-85 million. Cardiac Science expects to earn $145-150 million in revenue in 2010, according to Reuters. “This transaction…will greatly enhance product offering and presence in the US,” Vinod Ramnani, Opto Circuits' chairman and managing director, said in a statement. […]
Standard Chartered has increased its holding in Standard Chartered-STCI Capital Markets to 100 per cent by acquiring the remaining 25.1 per cent stake from its local partner, the Securities Trading Corporation of India (STCI). With this, the brokerage entity becomes a wholly-owned subsidiary of the foreign bank, which will soon be rebranded to reflect the new ownership. The acquisition of the last tranche comes nearly three years after the initial acquisition was made. In August 2007, Standard Chartered entered into a strategic partnership with STCI by acquiring 49 per cent in UTI Securities, which was then renamed Standard Chartered-STCI Capital Markets. Thereafter, in December 2008, Standard Chartered exercised an option to raise its stake to 74.9 per cent. While the complete acquisition cost Standard Chartered a little over Rs 300 crore, the foreign bank will infuse further capital to ramp up the broking services, including research and investment banking. […]
Hero Group is looking to buy out Honda Motors' 26% stake in the joint venture and needs to raise about $2 billion to do so. Hero already owns 26% of the company, with the rest held by other investors. It is still early; Hero is only just putting together a team of bankers to help it find the money, and both companies are quiet about their intentions. But if it strikes a deal, Hero is going to have to answer a number of questions for the rest of Hero Honda's shareholders. For starters, what is Hero going to do about its lack of research and development facilities? Honda's role in the joint venture is to provide technology, and its agreement to do so will come up for review in 2014. Will it continue the pact, without a stake in the company, and if so, at what cost? Even with Honda as a co-owner, Hero's royalty payments on technology have been rising faster than sales, reaching $90 million in the year to March. […]
Mudra Lifestyle today said it will issue 1.2 crore equity shares, constituting 25 per cent equity in the company, to South Korea-based textile chain E-Land for around Rs 72 crore. “The Board of Directors at its meeting held on October 15 has decided to issue 1.2 crore equity shares of face value Rs 10 each, at a price of Rs 60 per share,” the company said in a statement to the Bombay Stock Exchange. An extra ordinary general meeting of the shareholders of the company will be held on November 13 for approval. The entry into the above transactions would result in the investor being required to make an open offer under provisions of the Securities and Exchange Board of India. […]
US private equity firms Carlyle, KKR and Warburg Pincus could buy a stake of between 15% and 18% in India's motorcycle maker Hero Honda Motors (BOM:500182), the Economic Times said Monday citing unnamed sources. According to the paper, the transaction would be part of a two-stage deal, which could end up with Japanese Honda Motor (TYO:7267), which owns 26% of Hero Honda, exiting the Indian company. As part of the plan, Hero is currently in advanced talks with the investments firms to sell them 60% to 70% in a special purpose vehicle (SPV), which will acquire Honda's entire stake in Hero Honda with bridge loans. If the deal is successful, the Hero group will control up to 36% of Hero Honda, while the buyout funds will control up to 18% indirectly. Honda, Hero and KKR were unavailable for comment, while Warburg Pincus and Carlyle declined to comment. […]
Bajaj Holdings and Investment (Bajaj Holdings) on Wednesday picked up a 12.82 per cent stake in the Ahmedabad-based National Multi Commodity Exchange of India (NMCE) for Rs 25 crore. The investment, along with Equirus Capital as the exclusive financial advisor to NMCE, will partially meet the regulatory capital requirement, and also help towards the strengthening of its information technology (IT) infrastructure, business development and human resources. Besides raising its share capital from Rs 16.67 crore to Rs 19.12 crore, the investment will help NMCE meet its regulatory capital requirement and strengthen its balance sheet for investment in IT infrastructure. […]
The country’s largest lender State Bank of India (SBI) has bought 20 per cent equity stake in A Little World (ALW), a technology services providing company with a strong rural focus and an affiliate of the Zero Micro Finance and Savings Support Foundation, for Rs 80 crore. The other stakeholders of ALW include Enam Financial, Bellweather Microfinance Fund, India Financial Inclusion Fund and Legatum Ventures, a Dubai-based private equity fund. “SBI bought 20 per cent equity stake in ALW and henceforth we will undertake majority of work for SBI in future. Considering the enormous work that SBI plans to do undertake, there will be no time to work for other banks. At present, we have a tie-up with 24 other banks, they will be phased out gradually and while some may remain with us,” said a promoter of ALW and Zero Micro Finance and Support Foundation. A senior SBI official said, “We bought the equity stake in the company for a consideration of Rs 80 crore so that company could speed up the financial inclusion exercise of the bank.” […]
The National Multi Commodity Exchange of India (NMCE) on Wednesday said it will raise Rs 25 crore via selling its 12.82 per cent stake to Bajaj Group arm —Bajaj Holdings and Investment Ltd. “This investment will help NMCE to meet its regulatory capital requirement and strengthen its balance sheet for investment in exchange infrastructure,” NMCE said in a statement. Both companies on Wednesday jointly announced that they have signed a definitive agreement under which Bajaj Holdings has agreed to invest Rs 25 crore in the commodity exchange, the statement added. Equirus Capital acted as the exclusive financial advisor to NMCE for the transaction. NMCE would also utilise the raised capital for strengthening of the exchange IT infrastructure, business development and human resources, the exchange said. […]
Private equity (PE) firms are finding it difficult to raise money as their limited partners (LPs), such as endowment funds, pension funds and development finance institutions, lay down tougher terms for investment. Fund managers, also called general partners, or GPs, say the LPs are demanding a greater share of profits and a seat on the investment committee. To assess the profitability of their investments, LPs are also looking into areas such as the team composition of PE firms. The change has been driven by a proliferation of PE firms that have little to differentiate them, and a growing perception among LPs that the market is overvalued. “The burden of proof is on GPs to explain to investors how their PE fund will be different from others,” said Harsha Raghavan, who founded Steer Capital Advisors Llp with Neeraj Bhargava and is raising funds. “Notwithstanding the growth, GPs need to segment the market and consequently help LPs identify the current set of market opportunities.” India-focused PE funds raised $1.3 billion ('5,811 crore) in the first half of 2010, or less than half the $2.7 billion raised in the first half of 2009, according to an August report by Emerging Market Private Equity Association, a non-profit independent global organization. […]
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