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Private equity players including Darby Overseas Investments and a PE arm of Deutsche Bank are in the race to invest $75-100 million in Cafe Coffee Day (CCD), the Bangalore-based chain of cafes, to buy around 10-15% stake, according to sources. The enterprise valuation of Amalgamated Bean Coffee Trading (ABCTL), the parent of CCD, is pegged between $550 million and $600 million. The funds will be used to ramp up the company’s expansion plans across the country. While an e-mail to the company remained unanswered, senior officials told ET, “Nothing has been finalised as of now and it will take a few weeks.” It is believed that some of the big PE firms like Carlyle group and Sequoia (which is a current shareholder in the company) have been in the picture for buying a stake. ABCTL chairman VG Siddartha at a recent interaction with ET said that the group was looking at raising its tally of cafes to 750 stores by June next year, and possibly to 2,000 stores over the next 4-5 years. There is market speculation that Mr Siddartha will revamp the operations, making ABCTL a holding company, separating the plantation business from the retail operations (CCD). […]
Government plans to sell 10% cent stake in Oil India Ltd (OIL) to state refiners along with the company's initial public offering in February to garner Rs 1,000 to Rs 1,500 crore.
“We have moved a note for consideration of the Cabinet for divestment of 10% government stake alongside the company's IPO,” a top Petroleum Ministry official said.
OIL, the nation's second largest state-run oil explorer, plans to offer 10% stake to public in an IPO and another one […]
Entreprenuerial spirit in India is on the rise and it's no longer confined only to information technology. While IT still remains hot, retail, hospitality, healthcare and clean technology are seeing a rush of activity with young professionals with innovative ideas setting up ventures in these areas. Indian Angel Network (IAN) — earlier called the Band of Angels — said that it had lined up 60 members who had done well with the ventures they had set up to not just offer funds but also do some hand-holding. While IAN is in talks with start-ups, its members are looking at retail and early stage companies from IT, high-end BPO, telecom, education and media for investment. IAN, which is itself a start-up, having been set up 15 months ago, has seen the number of people coming with plans rise from just around half-a-dozen a month last year to nearly 40 a month now. […]
The volatility in the stock market on account of the US subprime mortgage losses could be a blessing in disguise for private equity (PE) deals that are in the pipeline. For, the turmoil should bring valuations of Indian companies to reasonable levels that would result in the conclusion of many more PE deals. “PE investors, who have been bullish on India, would remain cautious, scrutinising the deals a little more, till they see some stability in the market,” said Dhanraj Bhagat, Partner, Grant Thornton, a leading international accountancy firm. […]
Venture capital funds (VCFs) registered with the Securities and Exchange Board of India (Sebi) will be allowed to invest only in those companies, which have an Indian connection, for example, a company which has a front office overseas, while back office operations are in India. Also, the VCFs cannot invest more than 10% of their corpus in these companies. The directive is a part of the guidelines for overseas investments by VCFs issued by the capital markets regulator on Thursday. The guidelines come in the wake of the Reserve Bank of India (RBI) clearing the decks in April this year for VCFs to invest in equity and equity-linked instruments only of offshore venture capital undertakings, subject to an overall limit of $500 million and applicable Sebi regulations. […]
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