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With the market for new share issues still comatose, Qualified institutional placements, or QIPs, have replaced IPOs as the chosen method in corporate India for raising money. A steady stream of companies have used the QIP route, under which securities are placed with institutions much like private placements, to raise thousands of crores in recent weeks. And the flood is only set to increase in the coming weeks. About 30 more QIPs with an estimated value of Rs 40,000 crore could hit the Indian market this year, according to estimates by Thomson Reuters, a leading provider of business information. The biggest QIPs expected to take place are likely to be of Essar Oil (Rs 10,000 crore) and Cairn India (Rs 5,000 crore). […]
ICICI Venture Funds Management Company today said it has sold the animal healthcare division of RFCL, Vetnex, to Pfizer Animal Health for an undisclosed sum. The sale is expected to close by August 2009, ICICI said in a release. Terms of the agreement were not disclosed. “RFCL is a classic ICICI Venture buyout, involving the divestiture of a non-core business of a large corporate along with participation from the managerment team of the business,” ICICI Venture MD & CEO Vishakha Mulye said in a release. […]
Pantaloon Retail, the country's largest retailer, today said it plans to raise as much as Rs 1,000 crore by selling shares to investors. The company board gave its approval for the fund raising plans today. Pantaloon is expected to go for a private placement of its shares with private equity companies within the next 45 days, company sources said. Already, the company is in talks with leading PE firms such as Carlyle, Blackstone, Bain Capital, KKR and Goldman Sachs to raise funds, sources added. […]
Founders of direct-to-home firm Dish TV have sold 5.8 per cent stake in the company to raise about Rs 270 crore, following which the shares plunged over 16 per cent on the Bombay Stock Exchange. “The founders have sold about 5.8 per cent of the stake in the company to fund their share of the rights issue. The second tranche of the rights issue is due. So, the funds will be deployed back into the company for its payment,” Dish TV Managing Director Jawahar Goel told media. The company has sold about 5.51 crore shares at a price of Rs 49 a piece, aggregating to Rs 270 crore, through block deal counter of the stock exchanges. […]
US-based venture capital firm Trident Capital is planning to raise its next global fund worth between $350-400 million. The company said a significant focus of the new fund would be on India. This will be the firm’s seventh such global fund. It is at present investing out of its sixth fund worth $430 million. Venetia Kontogouris, managing director of Trident Capital, told Financial Chronicle, “We hope India will be a big growth story for us.’’ The firm has recruited a venture person on ground in India, its first such initiative outside the US. The venture firm is looking at non-technology areas for investments, for it feels that technology has become commoditised. According to Kontogouris, Trident is looking to invest in areas such as clean technology, bill payments and security products. […]
After launching an infrastructure fund in collaboration with Macquaire and IFC, State Bank of India is in the process of setting up 'several' other funds to cash in on the area, which is gaining importance as an alternate asset class. “The bank is at an advanced stage in setting up a general purpose private equity fund jointly with sovereign entities in Oman. The Indian Government has designated the bank as the operationalising agency for a similar sovereign fund with Qatar. Several other funds are at various stages of formation,” SBI said in its latest annual report. SBI has already set up an infrastructure fund in association with Macquarie of Australia and IFC Washington primarily aimed at investing in India's infrastructure space. […]
MCX Stock Exchange announced divestment of 6.48% equity to Union Bank of India and Bank of India through primary offering at Rs 10 per share (Face Value Re 1/- per share) involving total investment of Rs 87.5 crores in the Company. The exchange is also expecting on further 11.52% equity divestment to other banks. This disinvestment is in line with the regulatory requirements of SEBI and subject to further compliances, if any. Total 18% equity will be divested with the top Indian public and private sector banks as strategic investors in the first round. These banks have been long term partners and have earlier invested in MCX, the parent exchange which is also India's largest commodity derivative exchange. MCX Stock Exchange is the new national level stock exchange recognized under section 4 of Securities Contract (Regulation) Act, 1956 by SEBI. Its currency market segment has been valued by Emst and Young at Rs.1390 crores. The Central Board of Direct Taxes (CBDT) has notified MCX Stock Exchange Ltd. as a recognized stock exchange under the Rule 6 DDA of the Income Tax Act in its official gazette. […]
Private equity fund Standard Chartered IL&FS Asia Infrastructure Growth Fund has bought a minority stake of less than 5% in Ramky Enviro Engineers Ltd (REEL), a waste management company belonging to the Rs2,500 crore Ramky Group, by investing Rs200 crore. REEL, which posted revenue of around Rs300 crore for the fiscal year ended March, is engaged in industrial, municipal and biomedical waste management, and has 12 subsidiaries across 28 locations in India, West Asia and Singapore. StanChart IL&FS Fund invests in the infrastructure sector, including transportation, energy, power, water, environment, telecom and urban infrastructure. The fund has a primary focus on the rapidly growing Indian market. Hyderabad-based Ramky Group chairman A. Ayodhya Rami Reddy said the waste management company is currently executing some Rs4,000 crore worth of projects over the next 30 months. […]
Mumbai-based real estate company, Akruti City said on Friday that the company plans to raise up to $500 million through the qualified institutional placement (QIP) route. It is gathered that the funds raised through the proposed QIP would be used for Akruti’s projects in Mumbai that are currently under construction. The company, like many other real estate companies, was facing a liquidity crunch for a while now and had gone slow on many of its projects. Akruti is yet to announce its results for the year ended March 31, 2009, and the debt on its balance sheet at the end of March 2008 stood at Rs 625 crore. When asked about the debt position, Vimal Shah, managing director, Akruti City, said it was minimal. […]
Venture capitalists and private equity players are now working overtime when it comes to new investments. Due diligence is taking more time than before. Anywhere between $5 to $ 8 billion is waiting to be pumped into the Indian market in the form of private equity. Slowdown-free sectors like healthcare and education are hot picks, besides those catering to domestic consumption. “Right now, we are evaluating proposals in diagnostics, logistics and energy saving,” says Srini Raju, co-founder of Peepul Capital. His fund has a war chest of $220 million of which $150 million has been invested in telecom and manufacturing companies. […]
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