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As part of the growth strategy for the Sugar business, EID Parry India Limited, has acquired 76% stake in the equity of M/s Sadashiva Sugars Limited based in Bangalore with its factory at Bagalkot, Karnataka. EID Parry is a leading manufacturer of sugar in Tamil Nadu and Puducherry with 5 factories having sugarcane crushing capacity of 19000 TCD and a Cogen capacity of 84.5 MW. It also operated two distilleries with a capacity of 135 klpd. This acquisition will be EID Parry Sugar Division's first entry into Karnataka. […]
Western drug makers are stepping up the hunt for emerging market “tigers” in India. UK-based GlaxoSmithKline Plc has emerged as frontrunner for a phased buy-in of Dr Reddy’s Laboratories Ltd, people familiar with the matter said. A deal could spark a fresh wave of foreign deals in India’s drugs sector after the troubled purchase of Ranbaxy Laboratories Ltd by Daiichi Sankyo Co. Ltd last year. While nothing is finalized, one possibility is that Glaxo will take a 20% stake in Dr Reddy’s Holdings, a family vehicle that in turn owns 23.2% of the drug maker. This would give Glaxo a stake of just under 5%, worth around $165 million (around Rs764 crore). But the British firm could also get right of first refusal on the family’s remaining holding, the sources said. Officials at both firms declined to comment. […]
Global buyout giants such as Warburg Pincus and the Carlyle Group may have to wait a decade or more for Indian family business cultures to change before they can make big buyout deals, finance industry executives said. Meanwhile, growth capital funds have seen better opportunities in India finding bargains by taking stakes in new, fast-growing sectors such as education, healthcare, logistics and consumer-driven business, a private equity conference was told on Wednesday. “Private equity deals in India are mostly growth-led rather than leveraged buyout, as in the West,” said Deepak Parekh, chairman of Housing Development Finance Corp, India's top mortgage lender. […]
Ansal Properties and Infrastructure (API) is in talks with at least two private equity (PE) players, including Red Fort India Real Estate Fund and Bahrain-based Investate Realty, to raise up to $100 million through equity stake sale in its two projects, according to two people close to the development. A spokesperson of the Delhi-based company said that API was looking for PE investments in its projects, but declined to comment on whether it was in talks with Red Fort and Investate Realty. Red Fort declined to comment, while Investate didn’t respond to an email query. According to people close to the situation, the two PE players are separately in negotiations with Ansal to buy at least 26% in the two proposed townships in Lucknow and Dadri near Delhi. […]
The Infrastructure Development Finance Company (IDFC) and the IDFC Project Equity Company, which manages the India Infrastructure Fund (IIF), have taken a 20 per cent equity stake in GMR Kamalanga Energy, a special purpose vehicle (SPV) set up by Indian infrastructure developer GMR Group to implement a thermal power plant. IIF is to hold 15 per cent of the SPV, while IDFC will take five per cent. The goal of the Kamalanga project is to install a 1,0505MW coal-powered thermal power plant in the Dhenkanal District, Orissa, at an estimated cost of INR45.4bn ($978.7m). The project has a dedicated coal allotment and secure fuel linkage, and already has a large portion of its output allocated to various long-term power purchase agreements, according to IDFC. […]
The government has blocked the proposed merger between Etisalat DB Telecom (earlier Swan) and Allianz Infratech citing the three-year lock-in requirement under the current rules. The two players, which entered the local telecom market as recently as last year, had moved the Department of Telecommunications (DoT) in April this year seeking approval for a merger. The DoT has informed the two vide a letter dated October 7, that the merger “cannot be permitted before the lock-in period of three years”. […]
Indiareit Fund, a real estate captial fund promoted by Piramal Enterprises, today launched a close- ended domestic venture captial fund scheme focused on investing in Indian real estate market. “The investment objective of the fund is to make investments in projects within the gambit of real estate focusing on long-term capital appreciation,” Indareit CEO and MD Ramesh Jogani told reporters here. He said the fund would participate by means of equity instruments of unlisted companies (special purpose vehicles for specific projects identified by the fund for investment) engaged in real estate. […]
Fitness One is looking at a PE infusion of around Rs 25 crore to fund its expansion. The Chennai-based company has been actively scouting for private equity in the last few months. The 75-outlet strong fitness chain is open to diluting 15-20% equity to fund growth, Fitness One promoter and MD Vivek Anand confirmed to ET. The chain hopes to add 30-40 outlets in the next 18 months, “three-fourths of which would be company-owned, with the rest being franchisee-run,” he said. It is learnt from sources that it was close to signing a deal with TVS Capital, but talks fell through over valuation issues. The company has now mandated one of the big four consulting firms to look for the right partner. […]
Several private equity (PE) firms are reviewing whether to continue operations in India even as the domestic economy is showing clear signs of recovery. Around half a dozen PE firms are said to be in the process of shutting shop including Candover, a UK-based buyout specialist, which has recently closed shop in India and Strategic Value Partners (SVP) which is close to winding up operations in the country. Although there has been some improvement in PE dealmaking over the last few months, the transactions are well below the level which was reported prior to September 2008 when investment bank Lehman Brothers declared bankruptcy. Analysts tracking the sector said that investments in the near future are unlikely to witness a big boom. […]
Private equity (PE) funds are shying away from making a wrong call on fresh investments. Instead, they are ramping up investments in their portfolio companies in order to help them weather the downturn. With the slowdown affecting economies across the world, PE deal flow has came down substantially from its peak in 2007. As a result, PE funds are now looking at incremental funding in their portfolio companies as one of the ways to deploy cash and report better returns to their limited partners (LPs). Market players said that one of the reasons behind incremental funding having picked up in recent weeks was that valuation continues to be an issue for deal closures. “The risk appetite has certainly gone down. Capital has become expensive and LPs are far more liquidity conscious now,” said the managing director of a large domestic institution-backed PE fund. […]
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