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Private equity (PE) deals in India may further slow down in 2009 as raising funds is getting tougher and marginal players are feeling the pressure of exits. According to Grant Thornton, the global accountancy firm, the value of PE deals is expected to shrink over 40 per cent during 2008. Between January and December 15, 2008 the value of PE deals was estimated at $10.42 billion, as against $19.03 billion in 2007. […] The city’s cooling real estate market has witnessed two major transactions recently. Kumar Builders, a leading city-based developer, has received Rs 139 crore investment for its one building — part of a three-tower development — from IL&FS Milestone Group, a private equity fund. Additionally, the developer-builder has received private equity funding of Rs 100 crore for its 124-acre development at Hinjewadi from Sanjay Dalmia’s Landmark Holdings, giving the latter a 10% stake for the investment. Analysts said this was part of the emerging trend — of builders bringing in investors to take completed projects off their hands. […] Wind power equipment maker Suzlon Energy, after having negotiated a revised payment schedule with the Martifer Group of Portugal to acquire its 22.4-per cent stake in Germany's REpower Systems AG , is now trying to raise $500 million to fund this stake by selling a 10-15 per cent stake in itself, to potential suitors like the Carlyle Group and TPG Capital. According to media reports quoting bankers close to the deal, said that the Carlyle Group and TPG Capital may be interested in acquiring 10 to 15 per cent stake in Sulzon Energy for approx $300 million and the wind power equipment maker, would be raising an additional $200 million by way of debt offering or selling stakes from its other units. […] Morgan Stanley's private equity unit has invested $37.5 million (25.2 million pounds) in an unlisted firm in its first transaction in India, and a top official said the firm expected a busy 2009 as the need for capital drives deals. Morgan Stanley Private Equity Asia took a “significant minority” stake in Indian castor oil maker Biotor and was focusing on healthcare, education, financial services and consumer products, said Srinavasa Rao Aluri, managing director of its India PE unit. “We have the dry powder, a good team in place and a healthy pipeline, which makes the coming year look interesting,” he told Reuters. “I do hope the activity will be feverish for us next year.” […] In a move that can well send out a signal to the industry about the state of the affairs in the captive delivery centres of global banking giants in India, Wipro Technologies, the flagship business of consumer care to IT major Wipro, has announced to acquire Citi Technology Services, the captive delivery centre of IT services and solutions centre of Citigroup in India, for a consideration of $127 million (around Rs 609 crore) in an all cash deal. This is Citigroup's second India-based asset which is being sold out to one of its service provider, after the company recently sold its captive BPO arm Citigroup Global Services to TCS for about $505 million. While acquiring Citi Technology Services along with 1,650 odd employees working across its four delivery centres in Mumbai and Chennai, Wipro has managed to get a revenue commitment of about $500 million over the next six years, what Citi's Global Technology Head Jagdish Rao termed as 'minimum commitment' to the buyer. […] |