3i India buys 8% in Adani Power

Global private equity and venture capital player 3i's Indian investment arm 3i India Infrastructure Fund GP has invested Rs 900 crore in Adani group's power venture Adani Power,in what is its first investment.

With the enterprise value of Adani Power being pegged at Rs 10,850 crore, 3i's equity stake in Adani Power works out to nearly 8%. The deal was inked between 3i group chairperson Baroness Hogg and Adani group chairman Gautam Adani. Adani Power, which is a fully-owned subsidiary of Adani group flagship - Adani Enterprises, is currently developing an independent 2,640 MW imported coal-based thermal power plant at Mundra in Gujarat.

Read more in The Times of India article.

Nimbus planning Rs 300 crore IPO

Broadcaster Nimbus Communication, which operates sports channel Neo Sports, is in talks with banks to float an initial public offer (IPO) for nearly Rs 300 crore.Sources said that four domestic banks and three global banks met the management early last week. The IPO is likely to hit the market in 6 months.

Early this year in January, three foreign private equity investors 3i, Cisco and Oman International Fund stuck a private equity investment deal with the broadcaster for Rs 552 crore.The deal is one of the largest private equity investments in the media and entertainment sector.

At that time, Nimbus’ chairman Harish Thawani confirmed that this would be the final round of private equity investment before the company was listed. The investment was through compulsory convertible debentures which was likely to converted before the company’s listing.

Read more in The Business Standard article.

Citi, 3 others lead race for Sharekhan stake

Citigroup’s private equity arm Citigroup Venture Capital International, Baring Private Equity, TPG and 3i are the front-runners to acquire an equity stake in Sharekhan, the retail brokerage arm of the Mumbai-based SSKI group.

Some foreign and domestic banks have also expressed their interest in the brokerage firm, while existing private equity investors General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India, which own about 48 per cent shares in Sharekhan, will look to sell either fully or partially in the current equity sale.

Intel, which owns 5 per cent, and HSBC-advised funds, which own close to 12.5 per cent, have been investors in Sharekhan for long. The other major shareholders are the Morakhias’ (promoters) with 37 per cent stake, while 300 employees together hold another 15 per cent.However, none of the employees would sell their stakes in the current round.

Sharekhan is valued at around Rs.800-850 crore. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.

Read more in The Business Standard article.