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Tata Capital and Tata Investments would jointly pick up a 4.5 per cent stake in Development Credit Bank (DCB) for around Rs 85 crore, a bank official said. The bank would make a preferential allotment of shares to five specific group of investors, including the Tatas, for Rs 300 crore, DCB Managing Director and CEO Gautam Vir said. Other investors who would be allotted shares are Al Bateen of Abu Dhabi (4.5 per cent), Lehman Brothers arm, Marc Faber and SVG. Vir said the issue is being made to increase the capital base of the bank and is awaiting approval of the Reserve Bank of India (RBI) for the allotment. Following the issue, the bank’s capital adequacy ratio (CAR) would increase from 10.5 per cent to 17.7 per cent. […]
With Dutch paint maker Akzo Nobel giving the nod today for the $16 billion global takeover of ICI, Akzo is expected to make an open offer of 20 per cent to the shareholders of ICI India. India’s largest paint maker Asian Paints also holds a 9.2 per cent stake in ICI India. According to the Securities and Exchange Board of India (Sebi) regulations, a company, which intends to buy shares that would entitle it to exercise 15 per cent or more voting rights, has to make an open offer for at least an additional 20 per cent shares of the target company. The open offer will be priced on the average 26-week price or the average of the daily high and low prices, two weeks prior to the date of announcing the offer. In case the shares of the target company are not frequently traded, then the pricing parameters for the open offer will be based on the fundamentals of the company such as returns on the net worth of the company, book value per share, EPS and so on. Akzo executives from Amsterdam refused to comment on India specific initiatives, citing it was too early to comment. […]
The $14 billion Chinese consumer durables major, Haier Co., Ltd. has firmed up its Indian operations by acquiring the manufacturing facility of Anchor Daewoo Electronics in a few hours from Mumbai in Pune, Maharashtra. The acquisition, for an undisclosed amount, was announced by Haier India last week. The acquisition of Anchor Daewoo's facility, spread over 40 acres in Ranjangaon, Pune, will give Haier access to a manufacturing capability of refrigerators, color televisions and washing machines. According to a Haier official, the company plans to upgrade the new facility, which currently employs around 500 people, and create a research and development facility for its refrigerator range. The plant has a capacity to make 350,000 refrigerators annually, about 300,000 washing machines and 500,000 colour TVs. […]
The IFCI board has put been in place a more transparent procedure for inducting a strategic investor amid concerns over the manner in which the country’s oldest financial institution had set about doing the job. The bidding process has been rejigged to address the issues raised at the board meeting held on August 4 by some of the directors who felt that the sale procedure was opaque and non-transparent. These directors wanted to ensure that there was no repeat of a scenario similar to the Sasan power project, according to a source who is privy to the developments. The project’s consultants Ernst & Young had failed to identify problems in the bid document of Lanco-Globeleq till the project was awarded to the consortium. Ernst & Young is the consultant for IFCI as well. “Responding to this, the board had decided to have a foolproof and a transparent sale procedure and consider only serious buyers who will enable IFCI emerge as a stronger institution,” said senior level Delhi based officials. At the the last board meeting, the directors had appointed N Balasubramanian, former chairman of Sidbi, as chairman of IFCI, replacing PS Shenoy. […]
Blackstone Group LP President Hamilton James said on Monday the company has a “huge” pipeline of deals in India, and is eyeing transactions in Japan as well while a freeze remains in U.S. and European credit markets.
Blackstone has fewer, but larger deals in the works in China, James said, a sign it is moving rapidly to build up its new Asia strategy. He was speaking on the company's first quarterly earnings conference call.
James said Blackstone is targeting smaller […]
HDFC Realty, Citigroup and Government of Singapore Investment Corporation (GIC), among others, are set to pump $300 million into Shapoorji Pallonji Group’s realty business. Sources said the deal—amongst the biggest private-equity plays in the Indian real estate sector—was imminent and might also involve a few more investors. It is believed that PEs could pick 15-20% stake in the recently-created holding entity of the group’s realty venture. When contacted, Shapoorji Pallonji & Company director Jimmy Parakh said: “We are in talks with PE investors. But we have not concluded any deal. We are raising $300 million.” […]
Seven broking firms have been happy recipients of around $270 million in investments by private equity firms during the first six months of 2007, signalling a new trend in the industry. This compared to just three deals of $202 million which the broking space saw in the whole of 2006. According to Venture Intelligence, a Chennai-based research service focused on private equity and venture capital activity, the banking, financial services and insurance (BFSI) sector overtook manufacturing, healthcare and lifesciences to emerge as the second most attractive private equity investment asset class. The first quarter of FY08 logged 15 deals worth around $1.3 billion in the sector. In the 18 months ended June 2007, BFSI segment attracted about $3.3 billion across 58 investments. While banks, retail broking houses, NBFCs were among the favourites within the sector, stock exchanges (both BSE and NSE) as well as housing finance major HDFC raised large amounts of capital. Within the BFSI sector, broking houses were the most sought-after investment class. The reason for this could be the fact that PE funds think India is under-penetrated as far as equity is concerned and there is still a good leeway left for the upside, said Venture Intelligence managing director Arun Natarajan. […]
Baring Private Equity Partners (BPEP) will raise $450 million for its third India fund for strategic investments in healthcare, pharmaceutical, IT-enabled services, FMCG and alternative energy generation sectors in India. About 30 per cent of the fund will be specifically targeted towards healthcare and pharmaceutical sectors, Akhil Awasthi, partner, BPEP (India) said. BPEP’s ongoing investments in over 20 companies have come from its earlier India funds of an aggregate size of $200 million. BPEP had raised $175 million as second India fund in 2004. “Unlike several other sectors, healthcare and pharmaceutical is an ideal industry to leverage on intellectual capital. There are various niches, technologies and market segments that one could explore. There are at least 25-30 knowledge driven companies in this sector that could go for an expansion mode on their intellectual strengths,” Awasthi said. […]
Fidelity Investments International has picked up a 7% stake in Transport Corporation of India (TCI), the Delhi-based express logistics company, for Rs 53 crore. TCI will issue equity shares of Rs 2 face value to Fidelity Investments at Rs 105.25 per share, in accordance with Sebi guidelines for preferential issue.Post-issue, Fidelity’s stake in TCI would increase to nearly 10% of the paid up equity. TCI’s executive director Vineet Agarwal said: “The amount raised will be utilised to fund the expansion of TCI, specifically for building capacity in the warehousing space and setting up information technology (IT) systems.” Earlier, in 2006, TCI had announced expansion plans requiring Rs 450 crore of investments in warehousing, fleet upgradation and expansion, shipping and IT systems. TCI intends to raise another Rs 60-70 crore through sale of equity in the following year. “Our plan was to raise almost Rs 120 crore in two stages through equity dilution. The first stage has been completed. We will raise another Rs 70 crore within six to nine months,” said Mr Agarwal. The company claims it has already invested Rs 100 crore for expansion in FY07 and would be looking at investing another Rs 200 crore in the current fiscal. […]
India Debt Management (IDM), part of the the Hong Kong-based ADM Capital (ADM), is picking up a 14% stake in Mehtas-controlled Saurashtra Cement through the conversion of debentures into equity. Saurashtra's board will meet on August 16 to consider allotment of shares to equity warrants and convertible debentures at a conversion price of Rs 35 per share. Saurashtra Cement will allot shares worth 74.5 lakh equity shares of Rs 10 each to IDM by converting a part of the convertible debentures at a price of Rs 35 per share. This will translate into 14% equity stake for IDM. The company's shares were trading at Rs 58.35, down 0.09 per cent, on the Bombay Stock Exchange on Friday, when the benchmark Sensex dipped 231.9 points to close at 14,868.25. Mehtas, which own close to 78 per cent in the company, will see their stake coming down proportionately post conversion. IDM had invested close to Rs 93 crore in the company through the preferential allotment route. A significant part of this investment is now being converted into equity. […]
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