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It may still be early days for buyouts in India, but 3i Group Plc., the global private equity fund that has £9.79 billion (around Rs78,614 crore) under management, has begun to look for acquisitions. In a buyout, a private equity firm acquires an entire company or a controlling stake in it. The private equity firm could encounter competition from strategic investors Saurabh Shah, who co-headed 3i India Pvt. Ltd’s growth capital division along with Mahesh Chhabria, has been chosen to head buyouts for the local unit. Growth capital involves private equity firms providing companies with funds in exchange for a minority stake in them. “We’re not expecting to do 10 buyouts (in India) a year,” says Shah, matter-of-factly. […]
Ispat Industries is set to pick up 40 per cent stake in iron ore and coking coal mining companies in Brazil, Columbia and Mozambique through the joint venture route. Speaking on the sidelines of the company’s annual general meeting, Pramod Mittal, chairman, said that it was too premature to comment on the iron ore reserves. The Brazilian mines have iron ore reserves of 300-500 million tonnes, while the Columbia and Mozambique mines have coking coal deposits in the range of 60-70 million tonnes. Ispat would have access to the mining output in proportion to its shareholding in the JVs. When asked whether the foreign mining assets would cater to Ispat Industries or Global Steel Holdings, which is the holding company for foreign steel operations, Mittal said, “We will try to maximize value.” […]
Indian software firm, Tech Mahindra on Thursday said that it would acquire a stake of 17.28% in European systems integrator, Servista for an undisclosed amount and would be the latter’s delivery arm for a period of three years. Private equity firms HarbourVest Partners and Arts Alliance hold major stake of the privately held company, Servista. It is headquartered in London and provides managed IT services on an offshore basis with core offerings in operating and business systems such as CRM, billing, operational workflow, IT systems transformation and testing. […]
The hanging uncertainty in the capital markets and the ensuing fall in company valuations have triggered an influx of private equity (PE) funds. But a likely overcrowding could stretch valuations, experts say. The 30% fall in stock markets, from January, has led to a greater appetite for PE funds, but many deals were stuck over high valuations. Now, with promoters seeing a prolonged stability in the market at the current levels, and with no immediate upswings in sight, the time is again ripe for PE. The BSE Sensex, which had touched 21,000 in early January, is now languishing over the 14,000-mark. “Valuations have cooled off in the deal space, leading to the entry of new PE players into the segment,” says Deepesh Garg, a director with O3 Capital, an investment banking and financial services firm. […]
Tata Steel Global Holding Pte Ltd, the Singapore-based subsidiary that owns the international steel and mining assets of Tata Steel Ltd, the country’s largest steel maker, is in talks to raise at least $1 billion (about Rs4,400 crore) through private equity (PE) transactions or a private placement of shares with institutional investors, and likely use the money to fund the purchase of a coal or iron ore mine or part of one. In the wake of a sharp surge in raw material prices, Tata Steel and other Indian steel makers are looking to acquire iron ore, limestone and coal mines abroad. The private equity deal could be in exchange for an 8-10% stake in Tata Steel Global, said a senior transaction adviser at a multinational investment bank operating in India who is familiar with the development. […]
The Indian power sector has emerged as the new darling of global private equity players. Following in the footsteps of Farallon Capital, L N Mittal Group, Lehman Brothers and TPG Growth, Actis and New Silk Route are in the race to invest around Rs 300 crore in Hyderabad-based Ind-Bharat Power. This investment comes close on the heels of the Rs 300 crore that Ind-Bharat raised from Citigroup Ventures and UTI Ventures. According to the information available, Motilal Oswal is running the mandate to secure this round of investment. Ind-Bharat Power focuses on the development of power projects of various capacities using different kinds of fuel and technology. […]
At least four companies have expressed interest in buying stake in the proposed commodity exchange promoted by Indiabulls Financial Services Ltd, a senior official said on Thursday. The firms, which are all Indian, include banks, government bodies and private companies, Gagan Banga, director, told Reuters adding all of them have applied to the Reserve Bank of India for the necessary approval. He declined to name the companies. Indiabulls has also applied to the Forward Markets Commission (FMC), commodity futures market regulator, for permission to sell its stake, he said. […]
India’s INX Media, one of the country’s new broadcasters aiming to cash in on growth of digital TV, wants to raise up to US$150 million in a second round of funding and is looking for an international strategic investor. Most of the other entertainment broadcasters in India already have global firms on board, including NBC Universal’s 26% in NDTV, Walt Disney’s recent purchase of a 15% stake in UTV Global Broadcasting, and Viacom’s joint venture with TV18, Viacom18. Peter Mukerjea, the ex-CEO of Star India who along with his wife owns 45% of INX Media and chairs the company, said that he was in discussions with new investors about a cash injection. Around 50% of INX is currently owned by private equity firms including Singapore’s Temasek Holdings. […]
The real estate fund is likely to be in place by March 2009. Walton Street Capital India, the Indian arm of the US-based private equity (PE) real estate investment company, Walton Street Capital, is in the process of raising a country-specific, realty-focused India fund. The fund, whose corpus is expected to be close to $1 billion, is likely to close by March next year, with the first closure expected within the next couple of months. The global PE fund is raising an India-specific, real estate fund for the first time. Walton Street, which had earlier raised a $2.5-billion global fund, had invested a significant part of it in India. Walton Street has investing in the US, Mexico, the EU and India. It has real estate assets worth $14 billion across the globe. […]
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