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India Glycols acquired a controlling stake of 96.56% in Shakumbari Sugar & Allied Industries, located in Uttar Pradesh. The company acquired the majority stake at a consolidated price of Rs 470 million. India GlycolsCompany has acquired 3,17,24,200 shares of Rs 10 each of Shakumbari Sugar and Allied Industries. Shakumbari Sugar & Allied Industries has a crushing capacity of 3,200 tons per day (TCD) along with a modern distillery of 40 kilo litres per day (KLPD).(My Iris) […] Monginis Foods, an over 100-year-old bakery products brand which was acquired by the Khorakiwalas in 1970, is attracting the attention of investors. It is learnt that Motilal Oswal Financial Services (MOFSL) and a few private equity players had made some overtures towards picking up a stake in Monginis Foods. The Khorakiwalas though seem to be unwilling to dilute their holding at this point in time. When contacted, Monginis Foods CMD Zoher Khorakiwala said: “We do not intend to dilute our stake in the near future.” Motilal Oswal, chairman, MOFSL declined to comment. The move comes at a time when Monginis Foods is chalking out a fresh business strategy to take the company beyond brand 'Monginis'. For instance, the firm has forayed into the premium chocolate gifting segment with a new brand called 'Swiza'. Swiza, which has already opened an outlet in the western suburbs of Mumbai, is on the lines of chocolate boutiques such as Fantasie. Being synonymous with 'celebrations' and 'gifting', Swiza is like an extension of the company's cakes business. […] Engineering and construction giant Larsen & Toubro (L&T), Infrastructure Development and Finance Company (IDFC), Lehman Brothers and Singapore-based private equity (PE) firm Amansa Capital together have picked up a 7% stake in Hyderabad-based construction firm B Seenaiah & Company Projects (BSCPL) for Rs 152 crore. B Seenaiah seems to have trebled its valuation since its last stake sale 18-20 months ago when it sold around 19% stake to two foreign investors, New Vernon Private Equity Fund and Tiger Veda for Rs 150 crore. Sources said L&T has routed its investment through two of its group companies, L&T Infrastructure Finance and L&T Capital. This is the second round of PE funding in BSCPL. BSCPL is one of the leading construction firms in road and irrigation projects in India. BSCPL, which has a significant overseas presence, has already completed seven road projects in Afghanistan. IDFC SSKI acted as exclusive financial advisor to BSCPL for the deal. IDFC was also the company’s advisor during its first round of PE funding. […] Private equity (PE) investments into India have surged during the current year; the announced value of deals has crossed $15 billion during the year-to-date, nearly double the $8 billion received in 2006. PE flows confer a number of benefits. At the macro level these include widening the availability and source of capital, increasing the accuracy of company valuations (factoring in their growth potential), enhancing the efficiency of corporate capital structures and facilitating corporate development. At a micro level, benefits include avoidance of bankruptcy or other legal restructuring up to and possibly including governmental intervention or, more positively, providing financing and executive skills lacking in current management. However, for regulators, charged with the multiple objectives of protecting investors, ensuring that markets are fair, efficient and transparent and reducing systemic risk, rise of PE during the past few years poses a number of ticklish issues. A recent paper (comments invited) of the technical committee of the International Organisation of Securities Commissions (IOSCO) has identified six such broad issues. […] |