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IDFC Private Equity, the private equity investment arm of infrastructure financing firm Infrastructure Development Finance Co. Ltd (IDFC), is raising a $600 million (Rs2,364 crore) fund, its third since it set up operations as the country’s first pure play infrastructure PE investor in 2002. The proposed fund has an upper limit of $700 million on the final corpus and is expected to close fund-raising in March 2008, said a person familiar with the development who did not wish to be named. The firm’s president & CEO Luis Miranda declined to comment. The third fund from IDFC PE comes at a time when pure play infrastructure funds (ones that do not invest in real estate), backed both by domestic and overseas investors, have become popular in the country. In October, UK’s 3i Group Plc. raised $500 million in the first close of its proposed $1 billion 3i India Infrastructure Fund. The fund has already invested $328 million across two deals—Soma Enterprise Ltd and Adani Power Pvt. Ltd. Separately, IDFC PE’s parent, the state-owned IDFC is itself in the process of closing first-round commitments for a mega $5 billion mega infrastructure fund, which includes debt and equity. Co-investors in this fund include Blackstone Group, Citigroup Inc. and the ministry of finance-backed India Infrastructure Finance Co. (IIFC). […]
Private equity firms may not have it going there way always, especially in the equity market space. Blackstone, the world’s largest PE group, which was listed recently, is having a tough time in the stock market. Blackstone was listed on June 22, 2007, at $35. From there it has been one downhill ride. It currently quotes at around $22, down 37% from its listing price. Blackstone’s IPO price was $31, its current share price is around 30% lower. Considering the IPO valuation was around $33.5 billion, investor wealth of around $10 billion appears to have been wiped out from the IPO price. Fortress Investment Group, the only other significant global listed PE player, isn’t doing well either. Fortress shares are down 42% from the date of listing in February 2007, though in Fortress case, the shares had shot up sharply on the listing day. Its current share is around the same as its IPO price of $18.5 per share. This underperformance in share price may not be linked to the company’s performance. Blackstone has delivered over 20% annual returns for around 20 years, which is around twice of the US market returns over the same period. But this just goes to show that even companies in the business of creating investor wealth can’t get it right always. […]
Business conglomerate Essar group is understood to have initiated discussions for acquiring 50% stake in a Kenyan refinery from international oil players as part of its move for a global footprint. The refinery in Mombasa, in which the government of Kenya owns a 50% stake, has an annual production capacity of about 4 million tonne. According to sources close to the development, Essar is looking to buy out the remaining 50% stake held by three global energy giants – Chevron, Royal Dutch and British Petroleum – in Kenyan Refinery and Petroleum. Essar is looking at this potential deal, the announcement for which is expected shortly, in pursuance with its worldwide expansion plans and it would further expand its presence in the African sub-continent. The group already has three exploration and production blocks in Madagascar and one additional block in Nigeria. […]
Volvo, the world's No.2 truck maker, said on Monday it planned to invest $350 million to expand in the fast-growing Indian market through a joint venture with Eicher Motors. Global truck makers are keen for a larger share of a market that is the world's fifth-biggest and is forecast to expand with improving infrastructure and new emission and safety rules. Volvo will buy 8.1 percent in Eicher Motors, India's third-biggest truck maker, giving it 50 percent in the venture, which has not yet been named and which will take on market leaders Tata Motors and Ashok Leyland. “This is doubtless a strategic position in the Indian market,” Nordea analyst Johan Trocme said. “It's not cheap, but I think investors will let that pass today, considering how exciting the investment is.” Nissan Motor Co has firmed up ventures with Ashok Leyland for light trucks, engines and transmissions. Daimler, which recently began assembling some Actros trucks locally, is scheduled to announce a venture partner shortly. Volvo will add its Indian truck sales business, valued at $75 million, and $275 million in cash to the venture. […]
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