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Packaging firm Ess Dee Aluminium Ltd said on Wednesday it has acquired a majority stake in ailing India Foils Ltd , a Vedanta Group firm. Ess Dee, which makes packaging products for drugmakers and fast moving consumer goods, said it has invested about 1.2 billion rupees in India Foils for a 85-90 percent stake. “It will be reasonable to expect that whatever Ess Dee's turnover is in 2008/09, you should see (that) more than doubling next year,” Ess Dee's director Debdeep Bhattacharya said at a media briefing. For 2008/09, the company would maintain the kind of growth seen in the last quarter, he added. For July-September, Ess Dee's net profit grew 56 percent to 229.3 million rupees, while revenue surged 70 percent to 1.24 billion rupees. […]
Suzlon Energy will buy the 22.48% stake in Germany-based REpower through a combination of cash and debt. The acquisition will be completed by May next year, reports Business Standard. Suzlon Energy agreed to buy the equity stake from Martifier for Euro 270 million. Currently, Suzlon holds 66% stake in REpower. Suzlon set aside a USD 360 million rights issue as markets and sentiments across the world fell, in the previous month. The company had planned to use the earnings from the issue to partly fund the acquisition of Martifier`s stake in REpower.(My Iris) […]
The economic slump may have slowed down the overall private equity investments scenario, but relatively more PE deals are being struck in the emerging businesses space. In the third quarter, including mergers & acquisitions, private equity and venture capital deals were on a decline. However, over 40% of the total deals happened in the emerging companies (SMEs and midcaps). The percentage of the same was only 25% in the last quarter. Interestingly, of the total 12 PE deals in October, six (50%) can be categorised as emerging companies. According to figures obtained from Grant Thornton, the announced value of all the 12 deals stood at $372 million. […]
Start-up health care and drug technology firms are struggling to attract funding as venture capital and private equity firms shy away from high-risk projects with long gestation periods in the wake of the global economic downturn. The early exits in June of Citigroup Venture Capital International and ICICI Venture Funds Management Co. Ltd from Perlecan Pharma Pvt. Ltd, the drug discovery and development company of Dr Reddy’s Laboratories Ltd, due to risk apprehensions were just the beginning, industry experts say. In October, Piramal Life Sciences Ltd, the newly constituted drug research firm of Piramal Healthcare Ltd, had to put on hold its plan to raise funds from private equity firms as it could not attract investments at the valuation it had anticipated. […]
Private equity (PE) investments in India have declined by 72 per cent to $9.67 billion till October, largely due to global financial turmoil. The total number of PE deals during the first 10 months of 2008 stands at 274, with an announced value of $9.67 billion as against 328 deals amounting to $13.43 billion during the corresponding period in 2007, global consulting major Grant Thornton said. “Private equity investments in India are showing some amount of slowdown, considering that a considerable amount of investments have been coming from international funds, which are in turn funded by international banks or investment banks,” Specialist Advisory Services Partner CG Srividya said. […]
Temasek Holdings, the investment arm of Singapore government, which has 9.9 per cent stake in Tata Teleservices, today said it is looking at all options, including exiting the telecom company in the wake of Japanese firm NTT Do Como picking up 26 per cent stake in the firm. “As of now, we remain an investor and we are always looking at all options. When the option is available we will look at it,” Temasek Holdings India Senior Managing Director Manish Kejriwal told reporters here on the sidelines of India Economic Summit here. He was responding to query if the Singaporean company is looking to exit from TTSL with the entering of a new shareholder NTT Do Como in the company. […]
Kingfisher Airlines is discussing with international carriers a possible sale of stake up to 25%, the Economic Times reported. The move follows the centre's proposal of policy change to allow foreign airlines to invest in domestic carriers with a cap of just below 26%. The discussions are reportedly with British Airways, Singapore Airlines and Virgin as the investment is expected to fetch a higher valuation compared with the Private Equity investors. There remains uncertainty on when the government would permit foreign airlines to hold equity in Indian companies. The civil aviation ministry met the airlines on October 30 to discuss key policy changes including allowing foreign airlines to pick up stake in domestic carriers. […]
India's private carrier Jet Airways has bagged a loan of INR10 billion from the Mubadala Development Co, an Abu Dhabi-based investment company. The financial terms of the deal were not disclosed. Jet Airways has said that the loan will help fund the working capital needs and expansion plans of the company. The influx of funds is expected to aid the airline which is seeking additional funds to tide over the financial constraints caused by overdues to the state-owned oil marketers, airport authorities and operators. […]
The Foreign Investment Promotion Board (FIPB) has ruled that foreign investment can flow into private equity funds registered as trusts. The move opens up another window of funds for private equity players and venture capital funds registered as trusts. The department of industrial policy & promotion (Dipp) was opposed to FDI in trusts, but FIPB has overruled the argument. This can lead to a new channel of investment for India Inc, especially start-ups. The FIPB’s view is that FDI can be permitted in trusts which intend to carry out PE investments, provided they register themselves as VC funds. Following the FIPB ruling, Dipp is now planning to introduce guidelines for allowing FDI in trusts that invest in companies, especially start-ups, with the aim of long term capital gains. Apart from mandatory registration with capital market regulator Sebi, the foreign investor will also have to comply with the know-your-customer (KYC) guidelines, a Dipp source said. […]
A double whammy of adverse market conditions and a depreciating rupee is expected to hasten the consolidation process within the private equity (PE) and venture capital (VC) space, say industry watchers. Many foreign players are likely to exit their investments altogether in the country, they point out. Alok Aggarwal, chairman and founder of Evalueserve, a firm that tracks PE and VC firms, expects nearly 20% of foreign PE and VC firms to pull out. “Out of 370 PE and VC firms active in India, about 260 are foreign players. With the financial market meltdown and rupee depreciation having dealt major blows to the PE industry, we expect 60 to 70 of them to exit the country within next 12 months,” he told ET. […]
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