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The Prime Minister’s Economic Advisory Council‘s report is, as these reports tend to be, a methodically compiled snapshot of the Indian economy at a point in time. Its recommendation that private equity flows be treated as portfolio flows though does appear a little odd. The government’s seeming obsession with classification stems from the fact that India’s foreign exchange reserves, in contrast to those of China and the oil rich economies, originates due to capital, and not trade, flows. These, the policymakers fear, are likely to be more volatile. However private equity, which India has been attracting in copious amounts, is hard to classify. In some cases private equity firms such as Blackstone, ICICI Ventures and Actis have taken over companies and are running them. All private equity firms, of course, eventually exit but the time horizons range from three to five years. Plainly, these cannot be characterised as portfolio flows. Even pre-IPO placements to FIIs are subject to one year lock-ins. […]
In a private equity (PE) deal, the State Bank of India (SBI), the largest public sector bank of the country, has picked up 7.79 per cent equity in the Orissa-based ARSS Infrastructure Projects Limited. The deal was for 10 lakh shares out of the company’s total equity base of 1, 25, 54,000 shares of Rs 10 each. Sources said SBI was keen on acquiring more stakes but the company restricted it to 8 per cent as it intended to go for an initial public offer (IPO) soon. “We are planning to file the Red Herring Prospectus (RHP) with the Securities and Exchange Board of India (Sebi) for the IPO before January 30, 2008,” Sunil Agarwal, Director, ARSS Infrastructure, told Business Standard. He, however, did not disclose the value of the deal with SBI, saying it will affect the company’s forthcoming IPO. […]
ICICI Venture, the private equity arm of ICICI Bank, is planning three fund offerings as part of its plans to raise its assets under management to $10 billion by 2010 from $2 billion now. It plans to come out with a $2-billion real estate fund, a diversified equity fund valued at around $1 billion and another $500-million mezzanine fund. Among these, the real estate fund will be one of the largest in the country. Besides these plans, an entry into new asset classes such as hedge funds is also on the cards. ICICI Venture, which has built its portfolio across segments such as pharmaceuticals, media, information technology and logistics, wants to take a greater exposure in infrastructure in this fiscal. It is also looking at the prospect of setting up a hedge fund. Sources said that at a recent presentation before analysts, such a possibility was hinted upon. […]
Consulting and IT services firm Silverline Technologies has acquired 15% stake in a North American Firm specializing in healthcare change and performance management. Ravi Subramanian, chairman of the Board, said, “This investment is a highly significant step towards the company`s plans to be a focused leader in specific industry verticals. “ “This investment is in line with building the technology-enabled service management optimization (TESMO) focused solutions set. It brings in an innovative, patent-pending solution to the practice aimed to deliver major value to adopting hospitals, and to the insurance companies and governments which fund health care. It adds a brand-new third layer to hospital clinical-financial management and sits on top of the first layer of clinical records and financial-accounting systems, and the second layer of patient-cost-accounting systems“, said Titus Sequeira, executive director and chief strategy officer. […]
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