Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore.The private equity funds made an investment of Rs 190 per share including a premium of Rs 180 per share.
With this investment, the net worth of the bank will go up considerably, according to a release issued by the bank.
The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital.The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore.
The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development.However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%.
Read more in The Business Standard article.
Tuesday, July 31, 2007
Mukand may offer equity stake to Bosch India
The Rahul Bajaj-controlled speciality steel company Mukand is considering making an equity offer to German auto component maker Bosch India that will increase its supplier association with the foreign company, as global auto majors rush to meet India’s demand for small cars.
While the offer of an equity stake in Mukand is still under informal discussion, promoters of the Mumbai-based company are also considering an alternate option that includes hiving off a division into a joint venture company with Bosch India.Mukand chairman Niraj Bajaj however said that there were no such plans.
Sources said that the option to form a joint venture would be by spinning off the bright bar division, which makes the special steel for fuel injection systems.
Read more in The Economic Times article.
While the offer of an equity stake in Mukand is still under informal discussion, promoters of the Mumbai-based company are also considering an alternate option that includes hiving off a division into a joint venture company with Bosch India.Mukand chairman Niraj Bajaj however said that there were no such plans.
Sources said that the option to form a joint venture would be by spinning off the bright bar division, which makes the special steel for fuel injection systems.
Read more in The Economic Times article.
Friday, July 27, 2007
UK-based Hat Pin poaches search firm Executive Access India
UK-based human resources group Hat Pin has bought over search firm Executive Access India for a maximum consideration of £6.9 million in a mixture of cash and shares. The transaction is being part funded by placing of 5,500,000 new Hat Pin shares at 100 pence a share to raise £5.5 million. Of the consideration, £6.5 million is payable on completion, with an additional £0.4 million payable on the basis of Executive Access India's profitability till December 31, 2008.This is Hat Pin's fourth acquisition under CEO Angela Campbell-Noë in the past 19 months and the first in India.
The Hatpin group currently operates globally through its three subsidiary brands – the wholly-owned Akamai Financial Markets and The Talent Business, and the 70%-owned Saxton Bampfylde Hever (formerly known as Kendall Tarrant worldwide). Executive Access India, which operates across the financial services, technology, corporate, academia and not-for-profit sectors is expected to fully complement existing Hat Pin businesses.
Read more in The Economic Times article.
The Hatpin group currently operates globally through its three subsidiary brands – the wholly-owned Akamai Financial Markets and The Talent Business, and the 70%-owned Saxton Bampfylde Hever (formerly known as Kendall Tarrant worldwide). Executive Access India, which operates across the financial services, technology, corporate, academia and not-for-profit sectors is expected to fully complement existing Hat Pin businesses.
Read more in The Economic Times article.
Tatas may be sole bidder for Jaguar, LR
Tata Motors is inching closer to acquiring Jaguar and Land Rover. Sources in the know told DNA Money that the Tatas are the only serious bidder for the Jaguar-Land Rover (JRM) marquee now.According to them, Mahindra & Mahindra is yet to put in a formal bid for the two brands.
Tata Motors is on a good wicket, because the other strong contenders, namely the who’s who of global private-equity firms, named as possible bidders, may also not pass muster.Ford Motor Company, it seems, is keen on selling the two brands to dedicated car companies only.
The Tatas have appointed Morgan Stanley as their merchant banker for the transaction and they may be ready to pay between $1.5-2 billion.
Read more in The DNA Money article.
Carlyle invests $41 mn in Great Offshore
US-based private equity firm Carlyle on Friday said it has invested $41 million in Great Offshore, a city-based service provider engaged in the oil and gas sector.
The investment has come through Carlyle Asia Growth Capital Partners, a $680 million fund."Great Offshore is well poised for a tremendous growth in size and profitability, enabled by a strong management team, a relatively under leveraged balance sheet and a favourable macro environment," Carlyle India Managing Director Shankar Narayanan said.
Carlyle Asia Growth Fund invests in 'high-growth companies' in India, China, Japan and South Korea. It works with ONGC, Reliance, Cairn, British Gas, Shell, British Petroleum, Exxon Mobil and Saudi Aramco in India and the Gulf.
The investment has come through Carlyle Asia Growth Capital Partners, a $680 million fund."Great Offshore is well poised for a tremendous growth in size and profitability, enabled by a strong management team, a relatively under leveraged balance sheet and a favourable macro environment," Carlyle India Managing Director Shankar Narayanan said.
Carlyle Asia Growth Fund invests in 'high-growth companies' in India, China, Japan and South Korea. It works with ONGC, Reliance, Cairn, British Gas, Shell, British Petroleum, Exxon Mobil and Saudi Aramco in India and the Gulf.
Danone may acquire Catch and Aava
French food company Groupe Danone has shortlisted acquisition targets in the Indian bottled water market, including DS Group’s Catch and Sheelpe Enterprises’ Aava.
Danone, which also imports its Evian water brand in India, has been reported to be keen on increasing its presence in the beverages and dairy business in India, which are growing quickly on the back of rising incomes and the expansion of modern trade.
Danone has a stake in India’s top biscuit maker Britannia Industries Ltd.
PepsiCo Inc.’s Aquafina, Mount Everest Mineral Water’s Himalayan and Coca-Cola’s Kinley also compete in the market for bottled water, which is estimated at Rs20 billion.
Baring to acquire 45 pc stake in JRG Securities
Baring India will acquire 44.8 per cent stake in brokerage house JRG Securities for 35 million dollar through a preferential issue.The deal is subject to approvals from the Securities and Exchange Board of India (SEBI), shareholders and other regulatory authorities.
The Board of Directors on Friday approved the investment proposal for further consent of shareholders, JRG Securities said in communique to the Bombay Stock Exchange (BSE). The paid-up share capital of the company would increase to Rs 23.17 crore after the proposed preferential allotment from the existing Rs 12.79 crore.Shares of JRG Securities today closed at Rs 58.70, down 9.97 per cent, on the BSE.
The Board of Directors on Friday approved the investment proposal for further consent of shareholders, JRG Securities said in communique to the Bombay Stock Exchange (BSE). The paid-up share capital of the company would increase to Rs 23.17 crore after the proposed preferential allotment from the existing Rs 12.79 crore.Shares of JRG Securities today closed at Rs 58.70, down 9.97 per cent, on the BSE.
Genpact, 2 others in race for Citi BPO unit
Citigroup has shortlisted three bidders for its business process outsourcing (BPO) unit after the first round of bidding.
The sale of the BPO business, run by Citigroup Global Services (formerly e-Serve), is expected to fetch around Rs 3,200 crore for the group. At this price, it will be the largest deal in the domestic BPO space.
The shortlisted bidders are Firstsource, WNS and Genpact, said sources close to the development. Others who had expressed initial interest, including IBM, Automatic Data Processing (ADS), Infosys, EDS, Capgemini and private equity players such as Blackstone and General Atlantic, are no longer in the race.
The largest major deal in the BPO space so far was when Blackstone recently bought Intelenet from Barclays and HDFC for Rs 840 crore.
Read more in The Business Standard article.
Genpact, 2 others in race for Citi BPO unit
Citigroup has shortlisted three bidders for its business process outsourcing (BPO) unit after the first round of bidding.
The sale of the BPO business, run by Citigroup Global Services (formerly e-Serve), is expected to fetch around Rs 3,200 crore for the group. At this price, it will be the largest deal in the domestic BPO space.
The shortlisted bidders are Firstsource, WNS and Genpact, said sources close to the development. Others who had expressed initial interest, including IBM, Automatic Data Processing (ADS), Infosys, EDS, Capgemini and private equity players such as Blackstone and General Atlantic, are no longer in the race.
The largest major deal in the BPO space so far was when Blackstone recently bought Intelenet from Barclays and HDFC for Rs 840 crore.
Read more in The Business Standard article.
The sale of the BPO business, run by Citigroup Global Services (formerly e-Serve), is expected to fetch around Rs 3,200 crore for the group. At this price, it will be the largest deal in the domestic BPO space.
The shortlisted bidders are Firstsource, WNS and Genpact, said sources close to the development. Others who had expressed initial interest, including IBM, Automatic Data Processing (ADS), Infosys, EDS, Capgemini and private equity players such as Blackstone and General Atlantic, are no longer in the race.
The largest major deal in the BPO space so far was when Blackstone recently bought Intelenet from Barclays and HDFC for Rs 840 crore.
Read more in The Business Standard article.
SRK to buy10% pie in Bag Glamour
Bollywood star Shah Rukh Khan and wife Gauri Khan will buy 10 per cent stake in BAG Glamour, the new entity promoted by Anuradha Prasad. BAG Glamour, which will soon launch channels in the entertainment and lifestyle space, is part of the the parent company BAG Films & Media Ltd.
Sources confirmed the development adding that the actor and his spouse will hold the stake in their personal capacity.
The other investors in BAG Glamour will be India Bulls’ promoter Sameer Gehlaut, who will buy 15 per cent, Kolkata-based private investor High Growth will have 15 per cent, and the remaining 60 per cent will be held by the parent company and promoters such as Anuradha Prasad, Rajiv Shukla among others.
Sources confirmed the development adding that the actor and his spouse will hold the stake in their personal capacity.
The other investors in BAG Glamour will be India Bulls’ promoter Sameer Gehlaut, who will buy 15 per cent, Kolkata-based private investor High Growth will have 15 per cent, and the remaining 60 per cent will be held by the parent company and promoters such as Anuradha Prasad, Rajiv Shukla among others.
Thursday, July 26, 2007
General Atlantic invests $60 mn in IBS Software
Private equity (PE) investor General Atlantic Llc. (GA), headquartered in New York, has stepped up its pace of dealmaking in the country. It has closed three deals worth more than $175 million (about Rs744 crore) in the first seven months of the year, including the $60 million investment in Thiruvananthapuram-based transportation and logistics software firm IBS Software Services that was announced on Wednesday. The change of pace, in terms of the number of deals, is significant when seen in the context of the six deals the $17 billion PE firm had concluded till December 2006, five years after it started investing here in 2002.
IBS marks GA’s ninth investment in India and its fourth in the information technology services sector. The firm has invested more than $700 million in the country till date and its largest investment here has been $250 million in Gurgaon-based business process outsourcing (BPO) firm Genpact Ltd in 2004 for a 30% stake. The BPO, which was spun off from General Electric Co., will make an initial public offering (IPO) on the New York Stock Exchange soon and expects to raise $731 million. GA is expected to partially exit Genpact at the time of the listing.
The PE investor has taken a minority stake in IBS Software Services, but the percentage was not disclosed. IBS Software Services plans to use the funding to boost its sales and marketing teams, increase its business consulting services and make two acquisitions in the US or Europe.
Read more in The Livemint article.
Lyka Labs to raise Rs 6 cr from domestic mkt
Healthcare company Lyka Labs on Thursday said it will raise Rs 5.59 crore through issue of 13 lakh securities in the domestic market.
The shareholders at a meeting on July 20 authorised the board to raise Rs 4.3 crore through issue of 10 lakh equity shares on preferential basis to business associates, domestic body corporates and other investors at a price of Rs 43 per share, the firm said in a filing to the Bombay Stock Exchange (BSE).
The remaining Rs 1.29 crore would be raised by issuing three lakh equity share warrants to business houses and domestic investors at Rs 43 per share, it said.
The shareholders at a meeting on July 20 authorised the board to raise Rs 4.3 crore through issue of 10 lakh equity shares on preferential basis to business associates, domestic body corporates and other investors at a price of Rs 43 per share, the firm said in a filing to the Bombay Stock Exchange (BSE).
The remaining Rs 1.29 crore would be raised by issuing three lakh equity share warrants to business houses and domestic investors at Rs 43 per share, it said.
KPR Mill IPO opens at Rs 225-265
KPR Mill Ltd launched its initial public offering of 5,912,100 equity shares on Thursday. The price band of the 100% book building issue is fixed at Rs 225-265. The issue closes August 7.
At the lower price band, the company would raise Rs 133 crore and the upper price band it would raise Rs 156 crore. The issue would constitute 15.69% of the fully diluted post issue paid-up capital of the company.
KPR Mill, a vertically integrated apparel company, plans to use the proceeds to fund expansion of existing garment facility at Arasur, Coimbatore; setting up a design studio, construction of an additional hostel facility at Arasur, expansion of processing facility at State Industries Promotion Corporation of Tamil Nadu, Perundurai, investment in a new knitting facility at Arasur, addition of balancing equipments for existing spinning facility at Sathyamangalam.
At the lower price band, the company would raise Rs 133 crore and the upper price band it would raise Rs 156 crore. The issue would constitute 15.69% of the fully diluted post issue paid-up capital of the company.
KPR Mill, a vertically integrated apparel company, plans to use the proceeds to fund expansion of existing garment facility at Arasur, Coimbatore; setting up a design studio, construction of an additional hostel facility at Arasur, expansion of processing facility at State Industries Promotion Corporation of Tamil Nadu, Perundurai, investment in a new knitting facility at Arasur, addition of balancing equipments for existing spinning facility at Sathyamangalam.
Nasscom Plans $25 Million Angel Fund
The trade body for Indian IT software and services industry, Nasscom, plans an India Innovation Fund which will provide angel funding to technology start-ups, says a report. The fund will have an initial corpus of Rs 100 crore ($25 million), which could be increased to Rs 150-200 crore ($37.5-50 million) in the next two years.
Nasscom plans to set up the fund through a public-private partnership. It will be managed by professional fund managers, while the government's role will be limited (why government at all when Nasscom can do it alone?). Apparently the fund will allow private investors to acquire stakes in the professionally-managed PPP fund.
Kiran Karnik, president, Nasscom, has been quoted as saying: "We want this fund to concentrate on start-up firms focusing on innovating technologies. We are not looking at stage-B funding for somebody who is already established and looking at further growth."The fund will be raised from contributions from across the industry, financial institutions and companies. Karnik said Nasscom is talking to institutions like ICICI too.
A Boston Consulting Group-Nasscom report on innovation - Indian Innovation Report 2007 - said by focusing on innovations, Indian IT/ITeS firms could target a potential revenue of $175 billion by 2012 against the projected revenue of $124 billion. The industry had registered revenues of $39.6 billion last year.
Read more in The Business Standard article.
Yes Bank Plans To Hive Off Investment Banking; To Sell 6.7% Stake
Yes Bank plans to hive off its investment banking business into a separate subsidiary, Reuters (DNA) reports, quoting the bank's founder and CEO Rana Kapoor. This is likely to happen before March 2009. “We can even do it before that though it will not be until we build up scale and our track record,” Kapoor told the wire agency.
Yes Bank has been picking up quite a few capital raising initiatives or M&A deals recently. In November 2006, Yes Bank advised United Phosphorus in its $142-million acquisition of Cerexagiri, the crop protection unit of French chemicals company Arkema. Yes Bank was one of the advisors for Suzlon in its acquisition of German wind turbine maker REPower. It also advised Sintex Industries in acquiring the US-based Wausaukee Composites Inc for $20.5 million. Yes Banks' most recent deal was as advisor to InfrasoftTech when the latter secured $25 million funding from Baring Private Equity last fortnight.
Kapoor's logic is this: “We are doing big deals in investment banking and this (spinning the unit off) is the best way to attract better investors. Independent businesses make more sense." He said that the bank "plans to build a niche for itself" by focussing on companies in the knowlege economy and emerging corporates keen on fund raising and acquisition, and in outbound M&A. Yes Bank is also planning an entry into microfinance business. Kapoor also said that Yes Bank is planning a $100 million private equity fund, although details are not available. Yes Bank already has set up an agri business fund, which could have a corpus of $100 million.
Kapoor also said the bank is in "active discussion" with financial investors abroad to raise up to $120 million by diluting 6.7 per cent stake either through private placement of shares or through qualified institutional placement, Reuters reports.
Read more in The DNA Money article.
Wednesday, July 25, 2007
FirstSource in talks to buy MedAssist: Sources
India's seventh largest BPO, FirstSource seems to be on a shopping spree. According to sources, Firstsource is likely to bid for US-based outsourcing firm MedAssist - that provides cash management solutions to the US healthcare industry, reports CNBC-TV18.
MedAssist's financials are not known, as it is a private company. But sources say the deal value could be close to USD 300 million. MedAssist has 1,400 employees and over 900 clients.
For Firstsource, which listed in February this year, the growth strategy seems to be acquisition driven. In the last five years, it has acquired six companies, spending a total of USD 146 million. They are small acquisitions but they have boosted growth. FirstSource revenues have grown an average 82% per year over the last four years.
Read more in The Moneycontrol article.
Infosys in global BPO deal with Philips
Infosys Technologies on Wednesday signed a multi-million dollar outsourcing contract with Netherlands' Royal Philips Electronics. As part of the agreement, Philips will enter into a multi-year contract with Infosys BPO to provide finance & accounting services and the processing of purchasing orders.
Infosys will also acquire three shared service centers located in India, Poland and Thailand from Phillips.
The contract is amongst the largest finance & accounting BPO engagements from India and will expand Infosys' global network, particularly strengthening its European operations, Infosys said in a notice to NSE.
Read more in The Economic Times article.
Google joins hands with Band of Angels
Search engine giant Google is spreading its wings in the Indian investing business. Now the technology giant has joined as one of the institutional members of Delhi's Band of Angels (BOA). Google had recently acquired 30 per cent units of Ventureast TeNet Fund II for Rs 15 crore or $3.75 million. Google had also previously invested as a limited partner in two early stage funds - Erasmic Venture Fund and Seed Fund.
BOA is a network of high networth individuals, experienced entrepreneurs, and top technology executives, who will individually invest in startups selected by the forum. BOA is not a fund, so the members do not make an investment in BOA, they directly put in money in their individual capacity in startups. BOA essentially works as an organised platform in sourcing the deals, due diligence, and in forming an investing syndicate.
It has two kinds of membership - individual and institutional. Among the institutional members, besides Google, there are others like jobs portal Naukri.com, Lightspeed Venture Partners, Punjab Venture Capital and SIDBI Ventures.
By joining BOA, Google will also get access to the proposals that flow into the angel investing forum. It's definitely a nice idea. Band of Angels has some 50 individual members like Saurabh Srivastava of Xansa, Alok Mittal of Canaan Partners, Pramod Bhasin of Genpact, Raman Roy of Quatrro, and Jerry Rao of Mphasis.
BOA has invested in companies such as Knowcross (a hotel management software company), Sanshadow Consultants (IPR consultancy) and DVD rental company Madhouse (which it exited recently), to name a few.
Read more in The Business Standard article.
Kotak Mahindra plans to raise $300 mn
Kotak Mahindra Bank is likely to hit the market with a fresh issue of over $300 million in the third quarter of the current financial year. The move will help the bank bring down the promoter shareholding. The group’s capital market exposure has exceeded the Reserve Bank of India’s mandated 40% of net worth because of the buoyant capital market.
Currently, the promoter shareholding in the bank is at 55.5%. The new issue will see a dilution of around 5% capital. The promoter shareholding, post-issue, would go down to around 52%.The bank could raise the money through a QIP or GDR route. Though the capital market exposure of the bank is only at around 25%, the group exposure is above 40%.
Read more in The Economic Times article.
Allied Digital shares list up 75 pc on debut
Shares of software systems management firm Allied Digital Services Ltd listed up 75 per cent at Rs 332.50 on Wednesday against its issue price of Rs 190 a share.Shares were trading at Rs 369 on the BSE at 9.56 am after hitting a high of Rs 370.50.
The company is raising Rs 858.8 million from its initial offer of 4.52 million shares. The proceeds would be used for setting up a global service delivery centre, expansion in infrastructure and acquisitions.
For the year ending March 31, 2007, the company reported a net profit of Rs 229.3 million on total income of Rs 1.56 billion.
The company is raising Rs 858.8 million from its initial offer of 4.52 million shares. The proceeds would be used for setting up a global service delivery centre, expansion in infrastructure and acquisitions.
For the year ending March 31, 2007, the company reported a net profit of Rs 229.3 million on total income of Rs 1.56 billion.
Tuesday, July 24, 2007
ABG Shipyard, three other firms in race to buy Alcock Ashdown
India’s biggest private sector shipbuilders ABG Shipyard Ltd, Subhash Projects and Marketing Ltd, Zoom Developers Pvt. Ltd and Helicon Engineering Works are in the race to buy shipbuilding firm Alcock Ashdown (Gujarat) Ltd from the Gujarat government.
All four firms confirmed they have qualified to bid for 100% stake in Alcock Ashdown, which has two shipbuilding and repair facilities in Gujarat, one each in Bhavnagar and Chanch. The four qualified bidders have been asked to submit their price bids by 31 July, an official at one of the four shortlisted firms said. He did not want either himself or his firm to be identified.
Alcock Ashdown was originally owned by a British company. When the firm ran into financial trouble, it was taken over by the Indian government in 1975. Subsequently in 1994, the yard was acquired by the Gujarat government.
The Livemint article.
All four firms confirmed they have qualified to bid for 100% stake in Alcock Ashdown, which has two shipbuilding and repair facilities in Gujarat, one each in Bhavnagar and Chanch. The four qualified bidders have been asked to submit their price bids by 31 July, an official at one of the four shortlisted firms said. He did not want either himself or his firm to be identified.
Alcock Ashdown was originally owned by a British company. When the firm ran into financial trouble, it was taken over by the Indian government in 1975. Subsequently in 1994, the yard was acquired by the Gujarat government.
The Livemint article.
NTPC signs MoU for renewable power venture
Indian state-run power firm NTPC Ltd. has signed a memorandum of understanding with Asian Development Bank to set up a joint venture company for renewable power generation, the company said.
NTPC and other government entities will hold up to 50% in the joint venture, to be established with other strategic investors who will hold the remainder.
ADB is expected to acquire 20% at a later stage, NTPC said in a statement late on 23 July. Financial details were not diclosed.Over the next three years, the joint venture company will hold a portfolio of about 500 mw of renewable generation.
Initially, it will focus primarily on wind power and mini and microhydroelectric power projects. It may also include other renewable power generation resources such as solar, geothermal and bio fuel projects, it said.
NTPC and other government entities will hold up to 50% in the joint venture, to be established with other strategic investors who will hold the remainder.
ADB is expected to acquire 20% at a later stage, NTPC said in a statement late on 23 July. Financial details were not diclosed.Over the next three years, the joint venture company will hold a portfolio of about 500 mw of renewable generation.
Initially, it will focus primarily on wind power and mini and microhydroelectric power projects. It may also include other renewable power generation resources such as solar, geothermal and bio fuel projects, it said.
M&M seeks to buy Lokesh Machines
Mahindra & Mahindra, the Rs 18,000 crore auto major, plans to buy Lokesh Machines Ltd, India’s biggest engine-block manufacturer.M&M has approached the management of the Hyderabad-based company with an offer to acquire over 51% equity.
Buying Lokesh, which had a turnover of Rs 113 crore last fiscal, will give M&M an assured and captive supply of cylinder blocks and engine heads for jeeps, tractors and the Scorpio utility vehicle.Lokesh supplies about 2.3 lakh engine blocks for M&M’s vehicles, which constitutes 35% of its business.For M&M, the move would be in line with the sales target set for Systech, its aggressively expanding auto component division — of $1 billion by 2010, or a 33% increase over current revenues.
Read more in The DNA Money article.
Lehman, Warburg, Carlyle eye 20% of Angel Broking
Leading private equity investors Lehman Brothers, Warburg Pincus and Carlyle Group are in talks with Angel Broking to buy a 20% stake in the Mumbai-based retail broking firm.
Angel Broking is the latest to join the PE bandwagon after leading industry players like Motilal Oswal Securities, Edelweiss Capital and India Infoline roped in equity partners in the past. Angel is planning to raise about Rs 200 crore through the placement, pegging the broking firm’s valuation at around Rs 1,000 crore.
Investment banker Rothschild has been given the mandate to find equity partner and the deal is expected to be sewed up by September-end.A 100% retail player, Angel Broking has chalked out an expansion plan under which it has identified 250 new locations in addition to its existing branch network of 70. It offers a range of services like broking, research, investment advisory, wealth management, e-broking and commodities trading to about two lakh clients.Angel Broking records daily business volumes of Rs 1,500 crore and enjoys about 3% market share.
Read more in The Economic Times article.
NDTV may sell 26% ent venture stake to NBC
Media conglomerate NDTV is understood to be in talks with US entertainment major NBC universal for selling 26% stake in its upcoming entertainment business.NDTV Entertainment is a 100% subsidiary of Prannoy Roy promoted New Delhi Television (NDTV) and could be valued at up to $500 million (over Rs 2,000 crore). It is likely to launch its entertainment channel soon.
NDTV and NBC, a venture of GE Group, are understood to have signed a preliminary agreement or term sheet last week for the purpose but the value for the proposed transaction could not be ascertained.
The group would launch three channels under its entertainment venture - NDTV Imagine. First, general entertainment channel in Hindi is expected by the end of this year or early 2008.
NDTV had recently got approval from the Foreign Investment Promotion Board (FIPB) for foreign investment to the tune of Rs 585 crore for its foray into entertainment and lifestyle space.Most of this investment (from Rs 585 crore) will be into NDTV Imagine, the officials had said.
NDTV and NBC, a venture of GE Group, are understood to have signed a preliminary agreement or term sheet last week for the purpose but the value for the proposed transaction could not be ascertained.
The group would launch three channels under its entertainment venture - NDTV Imagine. First, general entertainment channel in Hindi is expected by the end of this year or early 2008.
NDTV had recently got approval from the Foreign Investment Promotion Board (FIPB) for foreign investment to the tune of Rs 585 crore for its foray into entertainment and lifestyle space.Most of this investment (from Rs 585 crore) will be into NDTV Imagine, the officials had said.
Central Bank IPO fully subscribed
The initial public offering of Central Bank of India got fully subscribed just hours after the issue opened.As per the NSE website, the issue was subscribed 1.09 times. It received 8.70 crore bids for the issue size of 8 crore shares. Around 98,040 bids were made at cut-off price.The price band of the issue is fixed at Rs 85-102 per share. The issue closes Friday.
The bank plans to raise Rs 680 crore at the lower price band of Rs 85 and Rs 816 crore at the upper price band of Rs 102 through the issue.The issue proceeds will be utilised to augment the capital base of the bank to meet future capital requirements.
The bank has reserved 60 per cent of the shares for the qualified institutional buyers and 30 per cent of the shares for retail investors.Post issue, the shareholding of the union government in the bank will come down to 80.20 per cent.
The bank plans to raise Rs 680 crore at the lower price band of Rs 85 and Rs 816 crore at the upper price band of Rs 102 through the issue.The issue proceeds will be utilised to augment the capital base of the bank to meet future capital requirements.
The bank has reserved 60 per cent of the shares for the qualified institutional buyers and 30 per cent of the shares for retail investors.Post issue, the shareholding of the union government in the bank will come down to 80.20 per cent.
Monday, July 23, 2007
Matrix open offer, delisting on cards
Mylan Laboratories Inc. has begun preparations for an open offer to mop up the near-24% public shareholding in its Indian subsidiary Matrix Laboratories Ltd, say three people familiar with the matter.
The open offer for Matrix could be a first step in delisting the local company’s scrip from the stock markets, which in turn is expected to give Mylan more flexibility to leverage the Indian drug maker’s manufacturing assets better with little regulatory obligations.
Mylan is the world’s third largest generics pharmaceuticals firm after its May buyout of the non-patented drugs business of Merck KGaA. The intent to delist the scrip of the Hyderabad-based Matrix was confirmed by three people close to the development—two executives of the company and a consultant who works closely with the drug maker.
The public shareholding—nearly 24 %—in Matrix is marginally below the 25% listing requirement that India’s stock market regulator plans to make mandatory by May 2008 (up from the current minimum public holding requirement of 10% in listed companies). If Mylan wants the Matrix scrip to remain listed, it would have to offload some of the Hyderabad firm’s stock or dilute equity capital. Promoter Prasad holds about 5% in the company.
Read more in The Livemint article.
The open offer for Matrix could be a first step in delisting the local company’s scrip from the stock markets, which in turn is expected to give Mylan more flexibility to leverage the Indian drug maker’s manufacturing assets better with little regulatory obligations.
Mylan is the world’s third largest generics pharmaceuticals firm after its May buyout of the non-patented drugs business of Merck KGaA. The intent to delist the scrip of the Hyderabad-based Matrix was confirmed by three people close to the development—two executives of the company and a consultant who works closely with the drug maker.
The public shareholding—nearly 24 %—in Matrix is marginally below the 25% listing requirement that India’s stock market regulator plans to make mandatory by May 2008 (up from the current minimum public holding requirement of 10% in listed companies). If Mylan wants the Matrix scrip to remain listed, it would have to offload some of the Hyderabad firm’s stock or dilute equity capital. Promoter Prasad holds about 5% in the company.
Read more in The Livemint article.
UB likely to put 20% aviation biz on block
United Breweries (Holdings) is planning to sell about 20% stake in its consolidated aviation business—comprising Kingfisher Airlines and Air Deccan—to private equity investors. It hopes to raise around $250 million through the equity dilution. Four private equity giants, including Cerberus Capital, TPG and Blackstone, have initiated talks. Cerberus is believed to be the front-runner.
The stake, sources said, is being sold in a subsidiary of UB (Holdings), which owns 83% of Kingfisher Airlines and 100% of Kingfisher Radio. Kingfisher Radio, in turn, holds 26% in Deccan Aviation, the parent of the low-cost airline. The proposed open offer, if successful, will take Kingfisher Radio’s stake in Deccan Aviation to 46%.
Read more in The Economic Times article.
The stake, sources said, is being sold in a subsidiary of UB (Holdings), which owns 83% of Kingfisher Airlines and 100% of Kingfisher Radio. Kingfisher Radio, in turn, holds 26% in Deccan Aviation, the parent of the low-cost airline. The proposed open offer, if successful, will take Kingfisher Radio’s stake in Deccan Aviation to 46%.
Read more in The Economic Times article.
Parsvnath may go public for SEZ funding
With the Centre’s nod for its bio-technology and pharma special economic zone (SEZ) in Hyderabad, the Delhi-based realty major Parsvnath Developers Ltd (PDL) is upbeat about its SEZ business.
The company has already set aside funds of around Rs 40,000 crore for at least 12 of its 15 proposed SEZs. However, the company is now mulling other options to fund the projects.
Although, PDL has a history of funding its projects mostly through internal accruals, its managing director Sanjeev Jain doesn’t rule out the possibility of getting PDL’s subsidiary Parsvnath SEZ listed to fund the SEZ projects.
Parsvnath has received a formal approval for four of its SEZs and in-principle approval to other eight. Apart from the Kancheepuram multi-product SEZ, all other SEZs would be product-specific.
Read more in The Business Standard article.
The company has already set aside funds of around Rs 40,000 crore for at least 12 of its 15 proposed SEZs. However, the company is now mulling other options to fund the projects.
Although, PDL has a history of funding its projects mostly through internal accruals, its managing director Sanjeev Jain doesn’t rule out the possibility of getting PDL’s subsidiary Parsvnath SEZ listed to fund the SEZ projects.
Parsvnath has received a formal approval for four of its SEZs and in-principle approval to other eight. Apart from the Kancheepuram multi-product SEZ, all other SEZs would be product-specific.
Read more in The Business Standard article.
Skyline Cons to invest Rs 200cr in Mangalore
Bangalore-based Skyline Constructions and Housing is planning to invest Rs 200 crore in Mangalore, a tier II city in Karnataka, through a mix of internal accruals and borrowings.
According to Avinash Prabhu, managing director of the company, investment in tier II city in Karnataka will be in real estate verticals like residential and commercial (malls and office spaces).The company recently launched its premium residential project, Blueberry Hill in Mangalore.
Skyline Construction and Housing, is a 125 years old family owned enterprise having strong roots in coffee plantation. In 1983, the family forayed into property development and since then has developed properties in Bangalore and Mysore.
According to Avinash Prabhu, managing director of the company, investment in tier II city in Karnataka will be in real estate verticals like residential and commercial (malls and office spaces).The company recently launched its premium residential project, Blueberry Hill in Mangalore.
Skyline Construction and Housing, is a 125 years old family owned enterprise having strong roots in coffee plantation. In 1983, the family forayed into property development and since then has developed properties in Bangalore and Mysore.
ICICI may offer stake in holding company
With the government yet to approve foreign holding in ICICI Financial Services, ICICI Bank may look at options to rope in domestic investors in the holding company. An application for offering a slice of the holding company’s equity to overseas investors is stuck with the Foreign Investment Promotion Board (FIPB).
Sources said the bank had sensed interest among local institutional proprietary investors in the holding company. The bank had applied to the FIPB to get 24% foreign investment in ICICI Financial. It is also looking at listing this entity in the future. ICICI Bank had also received firm commitments of Rs 2,650 crore ($650 million) for a 5.9% stake in ICICI Financial. This put the holding company’s valuation at $10.94 billion. The investors, who have agreed to pick up stakes, include Goldman Sachs, Swiss Re and Nomura, along with two more overseas investors. Of this, Goldman Sachs has agreed to pick up a 2.02% stake. Over 70% of the value of ICICI Holdings is expected to come on account of ICICI Prudential — the largest private life insurance company in India. Although it’s yet to show profits, the high growth in the insurancebusiness and a 7% market share have helped in the valuation of the holding company. The holding company will own ICICI Bank’s stake in insurance and mutual fund JVs.
Read more in The Economic Times article.
Sources said the bank had sensed interest among local institutional proprietary investors in the holding company. The bank had applied to the FIPB to get 24% foreign investment in ICICI Financial. It is also looking at listing this entity in the future. ICICI Bank had also received firm commitments of Rs 2,650 crore ($650 million) for a 5.9% stake in ICICI Financial. This put the holding company’s valuation at $10.94 billion. The investors, who have agreed to pick up stakes, include Goldman Sachs, Swiss Re and Nomura, along with two more overseas investors. Of this, Goldman Sachs has agreed to pick up a 2.02% stake. Over 70% of the value of ICICI Holdings is expected to come on account of ICICI Prudential — the largest private life insurance company in India. Although it’s yet to show profits, the high growth in the insurancebusiness and a 7% market share have helped in the valuation of the holding company. The holding company will own ICICI Bank’s stake in insurance and mutual fund JVs.
Read more in The Economic Times article.
BoM to raise Rs 200 cr from bonds
Bank of Maharashtra (BoM) on Monday said it will raise up to Rs 200 crore from Tier II bonds to augment its capital adequacy requirements.It would be unsecured, non-convertible redeemable subordinated Upper Tier II bonds in the nature of promissory notes, BoM informed the Bombay Stock Exchange.
The bonds will carry coupon rate of 10.35 per cent per annum for a period of first 10 years with a step-up coupon rate of 10.85 per cent annualy for the remaining 5 years if call option is not exercised at the end of 10th year from the date of allotment, it said.
The issue opens for subscription tomorrow and closes on July 23. The deemed date for allotment is July 25.
The bonds will carry coupon rate of 10.35 per cent per annum for a period of first 10 years with a step-up coupon rate of 10.85 per cent annualy for the remaining 5 years if call option is not exercised at the end of 10th year from the date of allotment, it said.
The issue opens for subscription tomorrow and closes on July 23. The deemed date for allotment is July 25.
Friday, July 20, 2007
Omaxe IPO over subscribed 35 times
The initial public offer of real estate developer Omaxe, expected to raise about Rs 550 crore, got subscribed by more than 35 times today.
The IPO received bids for 63.09 crore shares against 1.77 crore shares on offer, getting subscribed 35.45 times, according to the latest data available on the bourses.
The price band of the offer, which opened on July 17 and closes with the working hours today, has been fixed at Rs 265-310 per share.The issue received good response from Qualified Institutional Buyers and non-institutional investors.
Of the total issue, about 1.75 crore equity shares are meant for the public, while the balance 2.96 lakh shares have been reserved for eligible employees. There is also a greenshoe option of 17.5 lakh equity shares.
The issue would constitute 11.20 per cent of fully diluted post-issue paid-up capital of the company if the greenshoe option is exercised and, 10.30 per cent if the option is not exercised.
The IPO received bids for 63.09 crore shares against 1.77 crore shares on offer, getting subscribed 35.45 times, according to the latest data available on the bourses.
The price band of the offer, which opened on July 17 and closes with the working hours today, has been fixed at Rs 265-310 per share.The issue received good response from Qualified Institutional Buyers and non-institutional investors.
Of the total issue, about 1.75 crore equity shares are meant for the public, while the balance 2.96 lakh shares have been reserved for eligible employees. There is also a greenshoe option of 17.5 lakh equity shares.
The issue would constitute 11.20 per cent of fully diluted post-issue paid-up capital of the company if the greenshoe option is exercised and, 10.30 per cent if the option is not exercised.
Thursday, July 19, 2007
Vijaya Bank to raise Rs 2K cr via bonds
Vijaya Bank plans to raise Rs 2 billion through a bond sale, which opens on Friday, a merchant banker associated with the issue, said.
Following are the terms and conditions of the issue Borrower Vijaya Bank Coupon 9.50 per cent, payable annually Maturity 10 years Issue amount 2 billion rupees Opening date July 20 Closing date July 25 Arrangers UTI Bank, A.K Capital Services, SPA Merchant Bankers, ICICI Securities, ICICI Bank, Citigroup.
Following are the terms and conditions of the issue Borrower Vijaya Bank Coupon 9.50 per cent, payable annually Maturity 10 years Issue amount 2 billion rupees Opening date July 20 Closing date July 25 Arrangers UTI Bank, A.K Capital Services, SPA Merchant Bankers, ICICI Securities, ICICI Bank, Citigroup.
RCom sells 5% stake in tower biz -Video
Anil Ambani, chairman, Reliance Communications, today announced unlocking value of the tower company, Reliance Telecom Infrastructure, by selling 5% stake based on a valuation of Rs 27,000 crore.
The value of the tower business has been pegged at Rs 135 per share, Ambani said.The transaction will result in a cash inflow of Rs 1,400 crore.Ambani said that more infrastrcture was needed to keep adding over seven million customers per month.
The company would have 100,000 tenancy rights by March 2008, he added.
The value of the tower business has been pegged at Rs 135 per share, Ambani said.The transaction will result in a cash inflow of Rs 1,400 crore.Ambani said that more infrastrcture was needed to keep adding over seven million customers per month.
The company would have 100,000 tenancy rights by March 2008, he added.
UB raises debt for Deccan buy
UB Group has raised Rs 550 crore as debt financing from IDFC, HDFC and IL&FS for its stake buy in Air Deccan.These institutions could pour in more debt as the group company UB Holdings is set to make an open offer for additional 20% stake in Deccan Aviation, the parent of the low-cost airline, shortly.
On May 31, UB Holdings bought 26% stake in Deccan Aviation for Rs 550 crore, and announced plans for a mandatory open offer. At the time of the acquisition, UB indicated that it could rope in financial investors for de-leveraging the acquisition partially, as it had received several expressions of interest from PE funds. But with debt financing clinched, UB is not likely to divest stake for de-leveraging.
UB has tied up debt financing from IDFC and HDFC for over Rs 400 crore. “The debt financing has been arranged for funding most of the 26% purchase,” a top UB official said, without divulging the name of the institutions. IL&FS is believed to have pumped in the remaining Rs 150 crore.
Read more in The Economic Times article
On May 31, UB Holdings bought 26% stake in Deccan Aviation for Rs 550 crore, and announced plans for a mandatory open offer. At the time of the acquisition, UB indicated that it could rope in financial investors for de-leveraging the acquisition partially, as it had received several expressions of interest from PE funds. But with debt financing clinched, UB is not likely to divest stake for de-leveraging.
UB has tied up debt financing from IDFC and HDFC for over Rs 400 crore. “The debt financing has been arranged for funding most of the 26% purchase,” a top UB official said, without divulging the name of the institutions. IL&FS is believed to have pumped in the remaining Rs 150 crore.
Read more in The Economic Times article
Hindalco snaps up entire Alcan stake in Utkal
Aditya Birla Group flagship Hindalco Industries on Wednesday completed its bid to own Utkal Alumina, a joint venture it had with Alcan, when it agreed to buy out the Canadian company’s 45% equity stake in the venture for an undisclosed amount. The acquisition of Utkal Alumina would give Hindalco ownership of 195 million tonnes of high grade bauxite, that is a key raw material for making aluminium metal.
Although Hindalco officials declined to specify the amount they will spend to buy out Alcan’s stake, it has been learnt that an alumina plant of 1.5 million tonnes capacity will cost Rs 5,000 crore to build. The acquisition of Utkal Alumina also gives the Birlas complete ownership of high grade alumina which could be used to feed the group’s forthcoming aluminium projects. Once all projects are completed, the group will have ownership of about 5.2 million tonnes of alumina.
Alcan, which is at present the target of a friendly $38-billion takeover offer from British mining major Rio Tinto, had in April announced its plan to exit the joint venture. Hindalco held the remaining 55% stake and the first right of refusal for its partner’s stake.
Read more in The Economic Times article.
Although Hindalco officials declined to specify the amount they will spend to buy out Alcan’s stake, it has been learnt that an alumina plant of 1.5 million tonnes capacity will cost Rs 5,000 crore to build. The acquisition of Utkal Alumina also gives the Birlas complete ownership of high grade alumina which could be used to feed the group’s forthcoming aluminium projects. Once all projects are completed, the group will have ownership of about 5.2 million tonnes of alumina.
Alcan, which is at present the target of a friendly $38-billion takeover offer from British mining major Rio Tinto, had in April announced its plan to exit the joint venture. Hindalco held the remaining 55% stake and the first right of refusal for its partner’s stake.
Read more in The Economic Times article.
Wednesday, July 18, 2007
RCOM to offload stake in Flag Telecom
Reliance Communications (RCOM), the country’s second-largest wireless company, will adopt a three-pronged approach to unlock value for its shareholders.
RCOM will adopt a three-pronged approach to unlock value for shareholders and will also increase dividend payments to shareholders steadily.The company is in an advanced stage of selling a minority stake in Reliance Telecom Infrastructure India Ltd, its towers unit, to financial investors.
The company also plans to list the telecom tower unit on the local bourses. In the past four years, it has set up 14,000 towers and targeted 23,000 towers by the end of current calendar year.
Read more in The DNA Money article.
RCOM will adopt a three-pronged approach to unlock value for shareholders and will also increase dividend payments to shareholders steadily.The company is in an advanced stage of selling a minority stake in Reliance Telecom Infrastructure India Ltd, its towers unit, to financial investors.
The company also plans to list the telecom tower unit on the local bourses. In the past four years, it has set up 14,000 towers and targeted 23,000 towers by the end of current calendar year.
Read more in The DNA Money article.
Gemini Communication close to SE Asia acquisition
Network services firm Gemini Communication Ltd. is close to making an acquisition in South-East Asia, a top company official said on Wednesday.
"We are in serious talks with a company in South-East Asia and we will shortly be closing out a deal," Chairman and Managing Director R. Vijaykumar told the media.
The company has set aside 4.5 million euros for the acquisition. The acquisition would be either in the wireless networking or radio frequency identification space, he said.
Recently the company raised 15 million euros from Merrill Lynch International through issue of convertible bonds, which would give the foreign fund a stake of 15 per cent in Gemini upon conversion.
"We are in serious talks with a company in South-East Asia and we will shortly be closing out a deal," Chairman and Managing Director R. Vijaykumar told the media.
The company has set aside 4.5 million euros for the acquisition. The acquisition would be either in the wireless networking or radio frequency identification space, he said.
Recently the company raised 15 million euros from Merrill Lynch International through issue of convertible bonds, which would give the foreign fund a stake of 15 per cent in Gemini upon conversion.
ICRA, Indian Bank in ratings tie-up
ICRA Ltd and Indian Bank have signed a memorandum of understanding under which the former will rate the bank's loans and other exposures under the standardised approach of RBI's New Capital Adequacy Framework for Basel-II and also to small scale industries and small and medium enterprises.
ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable the bank to assess the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI's above guideline.
The SSI ratings will be carried out under the National Small Industries Corporation-ICRA Performance and Credit Rating Scheme for SSIs. The SME ratings, on the other hand, will be assigned under the ICRA-SME Rating Scale.
ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable the bank to assess the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI's above guideline.
The SSI ratings will be carried out under the National Small Industries Corporation-ICRA Performance and Credit Rating Scheme for SSIs. The SME ratings, on the other hand, will be assigned under the ICRA-SME Rating Scale.
Dividend, profitability norms eased for IDRs
In a bid to infuse life into the Indian depository receipts (IDR) market --which is yet to see a single float-- the government today eased several stringent clauses for foreign companies to raise funds by selling shares to Indian investors.
However, the new regulations, issued by the ministry of corporate affairs, also put a rider that foreign companies should have a three-year trading track record in the stock exchanges of their respective home countries to qualify for IDR issuances. This is to ensure that issuer is a known entity with a trading track record in a capital market.
Under the new rules, net worth and market capitalisation have been provided as the eligibility condition for IDR issuers, instead of the earlier net worth and turnover-based ceilings.
The earlier eligibility condition requiring the issuer to be making profits for at least five preceding years has been aligned with the Companies Act, 1956 and brought at par with the condition in this regard for domestic issues.
The new condition provides that issuer should have a track record of distributable profits in terms of Section 205 of the Companies Act, 1956, for at least three out of immediately preceding five years.
The earlier requirement of declaration of a minimum rate of dividend for last five years and a minimum 2:1 debt equity ratio have been omitted.
The government felt that these conditions, being specific to individual companies which may have adopted different dividend policies as permissible under their respective jurisdictions, can not be applied across the board.
The procedure in respect of approval by Sebi on IDR Applications has been restructured and made time bound.
The new easier norms come after no foreign companies tapped the IDR market, even after nearly three years of the IDR rules first coming into place.
With these amendments, the idea is to attract foreign companies who wish to tap Indian markets, Prem Chand Gupta, minister of corporate affairs told Business Standard.
The amendments in the rules come after the ministry of corporate affairs receiving requests from the Sebi and some market participants to review certain stringent requirements in the IDR regulations.
The ministry also took comments from the economic affairs, various industry chambers and professional institutes (ICAI, ICSI and ICWAI) before finalising the final easier rules for IDRs.
On stipulating net worth and market cap ceilings instead of earlier net worth and turnover-based ceilings, an official release said, the change was made with a view to facilitate better reflection of the financial sustainability/liquidity of the securities to be issued.
It has been provided that number of underlying equity shares offered in a financial year through IDR offerings shall not exceed 25 per cent of the post issue number of equity shares of the company. Earlier the condition in this regard was that IDRs issued in any financial year shall not exceed 15 per cent of its paid-up capital and free reserves.
The requirement in respect of continuous disclosure, which earlier provided that the quarterly audited financial results should be prepared and published in newspapers in the manner specified by the listing conditions, has been reviewed in light of the position that auditing regulation in various jurisdictions do not provide for quarterly audited financial results.
However, the new regulations, issued by the ministry of corporate affairs, also put a rider that foreign companies should have a three-year trading track record in the stock exchanges of their respective home countries to qualify for IDR issuances. This is to ensure that issuer is a known entity with a trading track record in a capital market.
Under the new rules, net worth and market capitalisation have been provided as the eligibility condition for IDR issuers, instead of the earlier net worth and turnover-based ceilings.
The earlier eligibility condition requiring the issuer to be making profits for at least five preceding years has been aligned with the Companies Act, 1956 and brought at par with the condition in this regard for domestic issues.
The new condition provides that issuer should have a track record of distributable profits in terms of Section 205 of the Companies Act, 1956, for at least three out of immediately preceding five years.
The earlier requirement of declaration of a minimum rate of dividend for last five years and a minimum 2:1 debt equity ratio have been omitted.
The government felt that these conditions, being specific to individual companies which may have adopted different dividend policies as permissible under their respective jurisdictions, can not be applied across the board.
The procedure in respect of approval by Sebi on IDR Applications has been restructured and made time bound.
The new easier norms come after no foreign companies tapped the IDR market, even after nearly three years of the IDR rules first coming into place.
With these amendments, the idea is to attract foreign companies who wish to tap Indian markets, Prem Chand Gupta, minister of corporate affairs told Business Standard.
The amendments in the rules come after the ministry of corporate affairs receiving requests from the Sebi and some market participants to review certain stringent requirements in the IDR regulations.
The ministry also took comments from the economic affairs, various industry chambers and professional institutes (ICAI, ICSI and ICWAI) before finalising the final easier rules for IDRs.
On stipulating net worth and market cap ceilings instead of earlier net worth and turnover-based ceilings, an official release said, the change was made with a view to facilitate better reflection of the financial sustainability/liquidity of the securities to be issued.
It has been provided that number of underlying equity shares offered in a financial year through IDR offerings shall not exceed 25 per cent of the post issue number of equity shares of the company. Earlier the condition in this regard was that IDRs issued in any financial year shall not exceed 15 per cent of its paid-up capital and free reserves.
The requirement in respect of continuous disclosure, which earlier provided that the quarterly audited financial results should be prepared and published in newspapers in the manner specified by the listing conditions, has been reviewed in light of the position that auditing regulation in various jurisdictions do not provide for quarterly audited financial results.
Biocon to sell enzymes unit to Danish firm
Biocon, a Bangalore-based biotech major, is planning to sell its enzymes business to Novozymes, a Denmark-based global enzymes company, for an undisclosed sum.According to sources, the company is planning to hive off its enzymes business into a separate entity and then sell it to the Danish company.This way, Biocon is planning to exit the enzymes business completely. The Bangalore-based company, however, did not respond to queries in this regard.
According to an investment banker, Biocon may be valued 1.5 to 2 times its enzymes revenues, which were around Rs 95 crore in 2006-07. This can work out to around Rs 150 crore.
The company is taking this hard decision as revenues from the enzymes business have been declining as a percentage of the total revenue for several years - from 20.9 per cent of the total sale in 2004 to 11.5 per cent in 2007. With the growing importance of statins and biopharma, enzymes have become a secondary business.
Read more in The Business Standard article.
According to an investment banker, Biocon may be valued 1.5 to 2 times its enzymes revenues, which were around Rs 95 crore in 2006-07. This can work out to around Rs 150 crore.
The company is taking this hard decision as revenues from the enzymes business have been declining as a percentage of the total revenue for several years - from 20.9 per cent of the total sale in 2004 to 11.5 per cent in 2007. With the growing importance of statins and biopharma, enzymes have become a secondary business.
Read more in The Business Standard article.
Avesthagen buys US company for $11 mn
Avestha Gengraine Technologies (Avesthagen), a Bangalore-based integrated systems biology company, has acquired Renaissance Herbs (RHI), a US dietary supplement company, for $11 million.
The acquisition will support Avesthagen’s bio-nutritional business strategy through vertical integration and provide access to key markets.
RHI is a Delaware-based company, which is a global supplier of proprietary nutritional products. The company also sources its raw materials from India and South East Asia for processing in its contract facilities outside Bangalore.
According to Villoo Morawala Patell, managing director of Avesthagen, RHI will be merged into Avesthagen and the transaction is expected to be completed by the end of July.
Read more in The Business Standard article.
The acquisition will support Avesthagen’s bio-nutritional business strategy through vertical integration and provide access to key markets.
RHI is a Delaware-based company, which is a global supplier of proprietary nutritional products. The company also sources its raw materials from India and South East Asia for processing in its contract facilities outside Bangalore.
According to Villoo Morawala Patell, managing director of Avesthagen, RHI will be merged into Avesthagen and the transaction is expected to be completed by the end of July.
Read more in The Business Standard article.
RPG group to invest Rs 12000 cr in power
The RPG group has earmarked an investment of Rs 12,000 crore for power and Rs 450 crore for carbon black as two of its thrust business focus areas over the next 2-3 year.
The investment of Rs 450-crore has been earmarked for its carbon black business and has identified three states where it is assessing the project’s prospects.
Asked whether the group was considering a gas-based power project, he said non-availability of gas precluded such a project. “I would love to set up a gas-based project, but then, where is the gas?” he asked.The group was also expanding capacity at its CESC plant whose efficiency, he said, had reached new highs since the group took it over.
Read more in The Business Standard article.
The investment of Rs 450-crore has been earmarked for its carbon black business and has identified three states where it is assessing the project’s prospects.
Asked whether the group was considering a gas-based power project, he said non-availability of gas precluded such a project. “I would love to set up a gas-based project, but then, where is the gas?” he asked.The group was also expanding capacity at its CESC plant whose efficiency, he said, had reached new highs since the group took it over.
Read more in The Business Standard article.
Yahoo! buys minor stake in PR firm
Yahoo! Inc has acquired 35% stake in Gurgaon-based Tyroo Media, an advertising and public relations company, for an undisclosed amount.
The move comes as part of Yahoo's strategy to invest aggresively in technology and sales networks through small and medium-sized advertisers and publishers in India.
George Zacharias, managing director, Yahoo! India said: "Through this investment, Yahoo! will act as a catalyst for the entire ad-network industry, which is still in a nascent stage, in India." The investment gives Yahoo Inc a representation on the Tyroo board.
The move comes as part of Yahoo's strategy to invest aggresively in technology and sales networks through small and medium-sized advertisers and publishers in India.
George Zacharias, managing director, Yahoo! India said: "Through this investment, Yahoo! will act as a catalyst for the entire ad-network industry, which is still in a nascent stage, in India." The investment gives Yahoo Inc a representation on the Tyroo board.
FT, Liberty in race to buy DSE stake
Financial Technologies India Ltd, media house TV18 and Liberty Shoes are among the seven bidders interested in buying a stake in Delhi Stock Exchange as the defunct bourse gets ready to restart operations.
"So far we have received seven bids including Financial Technologies for 51 per cent brokers' stake in the exchange... trading can start within four months from now," B B Sahny, DSE Director and chairman of the de-mutualisation committee, said.
Two foreign entities Kuwait-based Noor Investments Ltd and US-based Horizon Assets Management Company, domestic footwear manufacturer Liberty Shoes and a group company of TV18 have also bid for picking up stake in the bourse.Few others are also expected to join the board, he said, adding, "two Asian exchanges are also in talks with us".
Sahny said the bids have been received at an enterprise value in between Rs 400 crore-500 crore. At this value, the share price comes about Rs 130-165 apiece, he added.
The de-mutualisation process would be completed by the August 28 deadline set by market regulator SEBI, he said, adding, it will take another 100 days to resume operations.
"So far we have received seven bids including Financial Technologies for 51 per cent brokers' stake in the exchange... trading can start within four months from now," B B Sahny, DSE Director and chairman of the de-mutualisation committee, said.
Two foreign entities Kuwait-based Noor Investments Ltd and US-based Horizon Assets Management Company, domestic footwear manufacturer Liberty Shoes and a group company of TV18 have also bid for picking up stake in the bourse.Few others are also expected to join the board, he said, adding, "two Asian exchanges are also in talks with us".
Sahny said the bids have been received at an enterprise value in between Rs 400 crore-500 crore. At this value, the share price comes about Rs 130-165 apiece, he added.
The de-mutualisation process would be completed by the August 28 deadline set by market regulator SEBI, he said, adding, it will take another 100 days to resume operations.
HDFC Bank raises $ 607 mn
India's private sector lender HDFC Bank Ltd. has raised $607 million after pricing the issue of 6.6 million American Depository Shares (ADSs) at $92.10 each.
The offering of New York Stock Exchange-listed shares has an over allotment option of $91 million. HDFC Bank, valued at $10 billion, said each ADS represents three equity shares of the bank.
It said the offer price was equivalent to a price of 1,235.06 rupees per equity share, 3 percent above Tuesday's closing price of HDFC Bank's shares on the Mumbai exchange.
"Gross proceeds from the offering are expected to be approximately $607 million and will be used to strengthen the bank's capital base to support future growth," it said in a statement.
Read more in The Economic Times article.
The offering of New York Stock Exchange-listed shares has an over allotment option of $91 million. HDFC Bank, valued at $10 billion, said each ADS represents three equity shares of the bank.
It said the offer price was equivalent to a price of 1,235.06 rupees per equity share, 3 percent above Tuesday's closing price of HDFC Bank's shares on the Mumbai exchange.
"Gross proceeds from the offering are expected to be approximately $607 million and will be used to strengthen the bank's capital base to support future growth," it said in a statement.
Read more in The Economic Times article.
Tata Motors may bid for Ford's Jaguar, Land Rover
Tata Motors, India's biggest automobile company, is understood to be in early stages of evaluating a bid for acquiring the Jaguar and Land Rover marques from Ford Motor, British media reports said.
Tata Motors is understood to have instructed advisers in the past fortnight to begin evaluating the merits of a joint offer for Jaguar and Land Rover, which have been earmarked for disposal by struggling American car giant Ford, 'The Daily Telegraph' said.
If successful, it would rank among India's biggest overseas takeover deals, the report said, citing unidentified sources.The report also said Tata Motors is understood to have signed a confidentiality agreement with Ford in recent days.
Besides Tata, other car makers may be interested in bidding, while a formal auction would also be likely to attract private equity firms, it added.
Read more in The Economic Times article.
Tata Motors is understood to have instructed advisers in the past fortnight to begin evaluating the merits of a joint offer for Jaguar and Land Rover, which have been earmarked for disposal by struggling American car giant Ford, 'The Daily Telegraph' said.
If successful, it would rank among India's biggest overseas takeover deals, the report said, citing unidentified sources.The report also said Tata Motors is understood to have signed a confidentiality agreement with Ford in recent days.
Besides Tata, other car makers may be interested in bidding, while a formal auction would also be likely to attract private equity firms, it added.
Read more in The Economic Times article.
Tuesday, July 17, 2007
Infosys to buy Philips Global's finance BPO
IT major Infosys Technologies is set to acquire Philips Global’s finance and accounts BPO for an assured revenue of $200 million spread over five years.Infosys will be taking over the subsidiary along with all the costs in the similar manner that TCS had acquired the operations of the Pearl Group in the UK.
According to informed sources, once the takeover is completed, Infosys will bring down costs and restructure operations to make it a paying proposition.This will be Infosys’ second acquisition in its 25-year history, after it had acquired Expert Information Services in Australia for around Rs 104 crore ($22.9 million) in 2003.
The acquisition of Philips will bolster the capabilities and reach of Infosys’ BPO, enabling it to deliver round-the-clock. Philips’ F&A captive has operations in Chennai, Warsaw (Poland) and Bangkok. The global staff strength of the captive is around 1,500 with 500 employees working out of the Chennai centre, which was set up in 2004.
Read more in The Business Standard article.
According to informed sources, once the takeover is completed, Infosys will bring down costs and restructure operations to make it a paying proposition.This will be Infosys’ second acquisition in its 25-year history, after it had acquired Expert Information Services in Australia for around Rs 104 crore ($22.9 million) in 2003.
The acquisition of Philips will bolster the capabilities and reach of Infosys’ BPO, enabling it to deliver round-the-clock. Philips’ F&A captive has operations in Chennai, Warsaw (Poland) and Bangkok. The global staff strength of the captive is around 1,500 with 500 employees working out of the Chennai centre, which was set up in 2004.
Read more in The Business Standard article.
Monday, July 16, 2007
Flag Telecom buys US-based Yipes for $300mn
Flag Telecom, an Anil Dhirubhai Ambani Group company, has signed a definitive agreement to buy US-based Yipes Communcations for $300 million.
This was announced by Anil Ambani, chairman of the R-ADAG group in Mumbai a short while ago.Ambani said Flag will leverage its reach globally, and extend the reach of Yipes across the world.
This was announced by Anil Ambani, chairman of the R-ADAG group in Mumbai a short while ago.Ambani said Flag will leverage its reach globally, and extend the reach of Yipes across the world.
Ashok Leyland, Siemens VDO to float 50:50 JV
Ashok Leyland and Siemens VDO Automotive AG, Germany, have signed an agreement for a 50:50 joint venture to design, develop and adapt infotronics products and services for the transportation sector.
According to a release issued by Ashok Leyland to the BSE today, the agreement was signed by managing director R Seshasayee and Christoph Maximilian Eisenhardt, CEO (global commercial vehicles business), Siemens VDO in Chennai today.
"Our customer insight, engineering capabilities and competitiveness together with the technology strengths of a global leader such as Siemens VDO will be a unique combination that will fuel the growth of this JV in what is undeniably the emerging big opportunity in the transportation sector,” R Seshasayee, MD, Ashok Leyland, said.
The two companies are consortium members in the Chennai metropolitan bus terminus project to be launched later this year.
Read more in The Business Standard article.
According to a release issued by Ashok Leyland to the BSE today, the agreement was signed by managing director R Seshasayee and Christoph Maximilian Eisenhardt, CEO (global commercial vehicles business), Siemens VDO in Chennai today.
"Our customer insight, engineering capabilities and competitiveness together with the technology strengths of a global leader such as Siemens VDO will be a unique combination that will fuel the growth of this JV in what is undeniably the emerging big opportunity in the transportation sector,” R Seshasayee, MD, Ashok Leyland, said.
The two companies are consortium members in the Chennai metropolitan bus terminus project to be launched later this year.
Read more in The Business Standard article.
IVR Prime IPO in Rs 510-600/shr band
Real estate firm IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructures & Projects, a Hyderabad-based construction company, has set a price band of Rs 510-600 per share for its initial public offering of 1.41 crore shares. The company will raise Rs 719 crore to Rs 846 crore through the IPO.IVRCL holds 80% in IVR Prime and its holding will come down to 62.35% after the IPO.
IVR Prime Urban Developers, is investing Rs 300 crore in setting up a mall and an IT Park at Gachibowli, Hyderabad. The project will be funded through a mix of internal accruals and debt and is estimated to be completed in 36 months. The company has appointed Bentel & Bentel, a South African architect firm, for designing the project, and Old Mutual of South Africa has been appointed for advising on property and lease management. The mall is proposed to have a multiplex, food courts and an entertainment plaza.
IVR Prime Urban Developers, is investing Rs 300 crore in setting up a mall and an IT Park at Gachibowli, Hyderabad. The project will be funded through a mix of internal accruals and debt and is estimated to be completed in 36 months. The company has appointed Bentel & Bentel, a South African architect firm, for designing the project, and Old Mutual of South Africa has been appointed for advising on property and lease management. The mall is proposed to have a multiplex, food courts and an entertainment plaza.
Friday, July 13, 2007
India Infoline to dilute 40% in retail finance firm
India Infoline, one of the leading retail brokerage houses, is venturing into the consumer finance business in a big way.The company is looking for private equity funding or a strategic partner for its new venture, India Infoline Finance Holding (IIFH). The newly formed holding company for retail financing business will be valued at Rs 800-1000 crore.
India Infoline will infuse around Rs 200 crore into IIFH directly, and around $100 million would be raised either through private equity or stake dilution to the extent of 30-40 per cent.
Sources close to the development said that negotiations are in an advanced stages with prospective investors. The company is banking on a huge network of 540 branches across the country and a ready retail clientele.
Indiainfoline has called off its partnership with DSP Merrill Lynch, which was holding equity in India Infoline. Senior employees of Citi Financial Group, who had joined DSP are now with India Infoline.
Read more in The Business Standard article.
India Infoline will infuse around Rs 200 crore into IIFH directly, and around $100 million would be raised either through private equity or stake dilution to the extent of 30-40 per cent.
Sources close to the development said that negotiations are in an advanced stages with prospective investors. The company is banking on a huge network of 540 branches across the country and a ready retail clientele.
Indiainfoline has called off its partnership with DSP Merrill Lynch, which was holding equity in India Infoline. Senior employees of Citi Financial Group, who had joined DSP are now with India Infoline.
Read more in The Business Standard article.
Omnitech Info IPO at Rs 90-105/share
Omnitech InfoSolutions Ltd will hit the capital markets on July 19 with its initial public offering aggregating Rs 35 crore.
The company has fixed the price band of the issue at Rs 90- Rs 105 per share of Rs 10 each. The issue closes July 25.
Omnitech offers IT solutions and products such as business availability services, business continuity services, systems integration solutions, framework solutions and products.
The company plans to utilise the IPO proceeds to fund acquisitions and strategic investments, to alternatively set up new technology center, set up overseas offices for business expansion and enhance existing facilities.Omnitech acquired business assets of EDVenture Systems Inc last August.
UTI Bank is the book running lead manager and India Infoline the co-manager to the issue.
The company has fixed the price band of the issue at Rs 90- Rs 105 per share of Rs 10 each. The issue closes July 25.
Omnitech offers IT solutions and products such as business availability services, business continuity services, systems integration solutions, framework solutions and products.
The company plans to utilise the IPO proceeds to fund acquisitions and strategic investments, to alternatively set up new technology center, set up overseas offices for business expansion and enhance existing facilities.Omnitech acquired business assets of EDVenture Systems Inc last August.
UTI Bank is the book running lead manager and India Infoline the co-manager to the issue.
Omaxe seeks Rs 600 crore in IPO
Real-estate developer Omaxe Ltd plans to raise as much as Rs 600 crore ($148 million) selling shares for the first time to finance land acquisition and repay loans.
The company will sell 17.8 million new shares of Rs 10 face value at Rs 265 to Rs 310 apiece, starting July 17. The price will be decided based on demand from investors after the sale ends on July 20, the New Delhi-based company said in a statement on Thursday.
Omaxe founder Guild Builder Pvt may offer an additional 1.75 million shares on demand, taking the total offer to 19.5 million shares, the company said. The company has reserved 296,520 shares for employees.
Omaxe hired DSP Merrill Lynch Ltd, Citigroup Global Markets India Pvt, UBS Securities India Pvt, JM Financial Consultants Pvt and ICICI Securities Ltd to arrange the sale.
If all 19.5 million shares are sold, they will account for 11.2 per cent of the company's fully diluted, post-issue capital, Omaxe said.
Read more in The Economic Times article.
The company will sell 17.8 million new shares of Rs 10 face value at Rs 265 to Rs 310 apiece, starting July 17. The price will be decided based on demand from investors after the sale ends on July 20, the New Delhi-based company said in a statement on Thursday.
Omaxe founder Guild Builder Pvt may offer an additional 1.75 million shares on demand, taking the total offer to 19.5 million shares, the company said. The company has reserved 296,520 shares for employees.
Omaxe hired DSP Merrill Lynch Ltd, Citigroup Global Markets India Pvt, UBS Securities India Pvt, JM Financial Consultants Pvt and ICICI Securities Ltd to arrange the sale.
If all 19.5 million shares are sold, they will account for 11.2 per cent of the company's fully diluted, post-issue capital, Omaxe said.
Read more in The Economic Times article.
UTI set to open its $1 bn-plus issue
UTI Bank will hit the market next week with a $1 billion-plus equity issue. The bank will raise the money from a mix of preferential issue to promoters and fresh issues to qualified institutional buyers and GDR investors.
The bank’s capital raising plans were approved by the board, which met here on Thursday to consider the results for the first quarter and also decide on the equity expansion. Buoyed by a 70.7% growth in non-interest income, the bank announced a 45.2% rise in net profit to Rs 175 crore for the first quarter ended June 30, 2007.
The bank also decided to have a uniform price for all issues. Sources said the issue is likely to be priced at around Rs 650 per share. The bank will issue 3.19 crore shares to promoters. At Rs 650, UTI Bank will raise around Rs 2,075 crore from the preferential issue. The Special Undertaking of the Unit Trust of India (SUUTI) and Life Insurance Corporation of India have agreed to subscribe to the issue. However, some smaller subsidiaries of the General Insurance Corporation (GIC) may not subscribe to the preferential issue. The bank’s scrip closed at Rs 641.1 on the BSE on Thursday.
Read more in The Economic Times article.
The bank’s capital raising plans were approved by the board, which met here on Thursday to consider the results for the first quarter and also decide on the equity expansion. Buoyed by a 70.7% growth in non-interest income, the bank announced a 45.2% rise in net profit to Rs 175 crore for the first quarter ended June 30, 2007.
The bank also decided to have a uniform price for all issues. Sources said the issue is likely to be priced at around Rs 650 per share. The bank will issue 3.19 crore shares to promoters. At Rs 650, UTI Bank will raise around Rs 2,075 crore from the preferential issue. The Special Undertaking of the Unit Trust of India (SUUTI) and Life Insurance Corporation of India have agreed to subscribe to the issue. However, some smaller subsidiaries of the General Insurance Corporation (GIC) may not subscribe to the preferential issue. The bank’s scrip closed at Rs 641.1 on the BSE on Thursday.
Read more in The Economic Times article.
Dubai firm buys 2.87% stake in ICICI Bank
Dubai International Capital (DIC), the investment arm of Dubai Holding, has bought 2.87% stake in ICICI Bank, the country's second largest bank.The Dubai firm may have paid $717 million for the stake acquired via an American depository receipts (ADR) issue open to foreign investors.
Dubai International Capital's investment in the Indian bank follows its recent purchase of 3.12% stake in European Aeronautic Defence and Space Company EADS, the parent company of aircraft manufacturer Airbus.
Singapore government investors held about 9.7% stake in ICICI before the latest share offering and had the approval to raise their stakes substantially.DIC aims to have assets worth $25 billion in the next two years.
Dubai International Capital's investment in the Indian bank follows its recent purchase of 3.12% stake in European Aeronautic Defence and Space Company EADS, the parent company of aircraft manufacturer Airbus.
Singapore government investors held about 9.7% stake in ICICI before the latest share offering and had the approval to raise their stakes substantially.DIC aims to have assets worth $25 billion in the next two years.
Dena Bank to enter non-life insurance business
Dena Bank is in the process of forming a joint venture to foray into the non-life insurance sector along with other partners, chairman and managing director P L Gairola said on Friday.
The idea was at a conceptualisation stage and was yet to get approval of the board, Gairola told reporters on the sidelines of the Banking Conclave organised by FICCI (eastern region) here.
Dena Bank would hold 26 per cent stake in the proposed JV, he said, adding besides Dena Bank, there would be other domestic and foreign players.At present, the bank is selling products of LIC for life and Oriental Insurance for non-life.
During the current fiscal, the bank was eyeing a credit growth of 22 per cent and deposit growth of 23 per cent as compared to 27 per cent and 18 per cent respectively in the last financial year.
Gairola said that the bank was keen to maintain a capital adequacy ratio of 11 per cent during the year which at present was at 11.52 per cent.He said the bank did have headroom to raise Rs 8000 crore both in Tier I and Tier II.The bank was also in talks with State Bank of India to launch credit cards.
The idea was at a conceptualisation stage and was yet to get approval of the board, Gairola told reporters on the sidelines of the Banking Conclave organised by FICCI (eastern region) here.
Dena Bank would hold 26 per cent stake in the proposed JV, he said, adding besides Dena Bank, there would be other domestic and foreign players.At present, the bank is selling products of LIC for life and Oriental Insurance for non-life.
During the current fiscal, the bank was eyeing a credit growth of 22 per cent and deposit growth of 23 per cent as compared to 27 per cent and 18 per cent respectively in the last financial year.
Gairola said that the bank was keen to maintain a capital adequacy ratio of 11 per cent during the year which at present was at 11.52 per cent.He said the bank did have headroom to raise Rs 8000 crore both in Tier I and Tier II.The bank was also in talks with State Bank of India to launch credit cards.
Thursday, July 12, 2007
Allahabad bank ties up with Franklin Templeton
Allahabad Bank, a leading public sector bank has signed an MoU with Franklin Templeton Investments (India), for distributing its mutual fund products through its 2107 branches across the country.
Mr Vivek Kudva, President, Franklin Templeton India and Mr AC Mahajan, CMD, Allahabad Bank, signed the MoU and reaffirmed their commitment towards creating a basket of services that could enable their valued customers to make holistic financial solutions.
Templeton India aims to reach out to a larger number of retail investors and this tie-up offers the way forward for the Indian mutual fund industry to attain the critical mass necessary for growth.
He is convinced that the coming months will see a larger proportion of household savings finding their way into mutual funds. He hopes to develop a new user base of customers who were so far not accessing their investment products.
Mr Vivek Kudva, President, Franklin Templeton India and Mr AC Mahajan, CMD, Allahabad Bank, signed the MoU and reaffirmed their commitment towards creating a basket of services that could enable their valued customers to make holistic financial solutions.
Templeton India aims to reach out to a larger number of retail investors and this tie-up offers the way forward for the Indian mutual fund industry to attain the critical mass necessary for growth.
He is convinced that the coming months will see a larger proportion of household savings finding their way into mutual funds. He hopes to develop a new user base of customers who were so far not accessing their investment products.
Tata Steel to raise $2.5 bn to fund Corus buy
Tata Steel, which acquired Anglo-Dutch steel maker Corus in January, will raise over Rs10,000 crore ($2.5 billion) through issue of securities in domestic and overseas market to part finance the acquisition.
The company, in a notice to shareholders, said it would come out with a rights issue of ordinary shares and cumulative convertible preference (CCP) shares, besides issue of securities in the domestic or international markets.
While the company plans to raise Rs3,655 crore through the rights issue, another Rs4,350 crore would be raised through issue of CCP shares. Existing shareholders would get one share at Rs300 for every five ordinary shares held.It would also raise additional funds up to to $500 million (Rs2,042 crore) from the domestic and international markets.
Tata Steel said to facilitate issue of CCP shares, the authorised share capital would have to be raised from Rs2,000 crore to Rs8,000 crore.Tata Steel had paid $4.1 billion towards the $12.9 billion acquisition of Corus
The company, in a notice to shareholders, said it would come out with a rights issue of ordinary shares and cumulative convertible preference (CCP) shares, besides issue of securities in the domestic or international markets.
While the company plans to raise Rs3,655 crore through the rights issue, another Rs4,350 crore would be raised through issue of CCP shares. Existing shareholders would get one share at Rs300 for every five ordinary shares held.It would also raise additional funds up to to $500 million (Rs2,042 crore) from the domestic and international markets.
Tata Steel said to facilitate issue of CCP shares, the authorised share capital would have to be raised from Rs2,000 crore to Rs8,000 crore.Tata Steel had paid $4.1 billion towards the $12.9 billion acquisition of Corus
Unilever scrip up on Colgate merger buzz
Shares of Unilever climbed to their highest in more than eight years on speculation that the world’s second-largest maker of food and detergents may combine with Colgate-Palmolive Co.
A message left for Colgate spokeswoman Bina Thompson wasn’t immediately returned, while Rotterdam-based Unilever spokesman Tanno Massar declined to comment.Some analysts said Unilever would be the more likely acquirer. The Anglo-Dutch company has a market value of about ¤75 billion ($103.1 billion), about three times that of New York-based Colgate, which makes Softsoap and Irish Spring. Unilever’s personal-care products, such as Dove soap, account for about a quarter of its sales.
Unilever stock rose as much as 4.9 per cent in Amsterdam and was trading at ¤24.06 at 2.26 pm local time, set for its highest close since 1999. Its London-listed shares gained as much as 75 pence, or 4.6 per cent, to 1,722 pence. Shares of Colgate-Palmolive slipped 80 cents to $64.97 in Germany.
Read more in The Business Standard article.
A message left for Colgate spokeswoman Bina Thompson wasn’t immediately returned, while Rotterdam-based Unilever spokesman Tanno Massar declined to comment.Some analysts said Unilever would be the more likely acquirer. The Anglo-Dutch company has a market value of about ¤75 billion ($103.1 billion), about three times that of New York-based Colgate, which makes Softsoap and Irish Spring. Unilever’s personal-care products, such as Dove soap, account for about a quarter of its sales.
Unilever stock rose as much as 4.9 per cent in Amsterdam and was trading at ¤24.06 at 2.26 pm local time, set for its highest close since 1999. Its London-listed shares gained as much as 75 pence, or 4.6 per cent, to 1,722 pence. Shares of Colgate-Palmolive slipped 80 cents to $64.97 in Germany.
Read more in The Business Standard article.
Geojit Fin board okays JV with BNP Paribas
The board of Geojit Financial Services has at its meeting held today approved the forming of a 50:50 joint venture (JV) with BNP Paribas Securities Asia to serve foreign institutional clients in India.According to an official release issued by the company to the BSE today, the board approved an investment of up to $2 million in the project.
It has also cleared an investment of Saudi Rial (SR) 28 million (approx. Rs 30.05 crore) in Aloula Geojit Brokerage Company, Saudi Arabia for taking 28% of the proposed paid up share capital of SR 100 million. Geojit will be the single largest shareholder in Aloula Geojit Brokerage, which has got the Saudi Capital Market Authority (CMA) licence to start domestic brokerage business, the release said.
The proposal to form a JV in Dubai to deal in UAE listed shares in the Dubai financial market, IPOs and distribution of home grown funds in UAE and to make an initial investment of UAE Dirham (AED) 14.70 million (approx. Rs 161 million) for taking up 49% of the proposed paid up share capital of AED 30 million, also got the board's approval today, the release added.
It has also cleared an investment of Saudi Rial (SR) 28 million (approx. Rs 30.05 crore) in Aloula Geojit Brokerage Company, Saudi Arabia for taking 28% of the proposed paid up share capital of SR 100 million. Geojit will be the single largest shareholder in Aloula Geojit Brokerage, which has got the Saudi Capital Market Authority (CMA) licence to start domestic brokerage business, the release said.
The proposal to form a JV in Dubai to deal in UAE listed shares in the Dubai financial market, IPOs and distribution of home grown funds in UAE and to make an initial investment of UAE Dirham (AED) 14.70 million (approx. Rs 161 million) for taking up 49% of the proposed paid up share capital of AED 30 million, also got the board's approval today, the release added.
Wednesday, July 11, 2007
Gammon Infrastructure to sell 10% stake through IPO
Gammon Infrastructure Projects, a unit of construction firm Gammon India Ltd, will offload 20% equity through an initial public offer (IPO) and a foreign convertibles issue.
“We will be filing red herring prospectus for an IPO in the next 45 days,” company Managing Director Parvez Umrigar said, adding the offer will comprise 10% stake sale.
Gammon Infrastructure had earlier planned an IPO for 205 stake sale. The company will now exercise the option of raising money through issue of foreign convertibles as well.
This move follows an interim order by Securities Appellate Tribunal (SAT) directing SEBI to process Gammon Infrastructure’s draft red herring prospectus expeditiously.
Gammon Infrastructure is presently valued at Rs280 crore and proposes to take the value to Rs1,000 crore, almost the same value of its holding company Gammon India.The debt-free company had diluted 12.5% to US-based fund Ochziff two years ago.
“We will be filing red herring prospectus for an IPO in the next 45 days,” company Managing Director Parvez Umrigar said, adding the offer will comprise 10% stake sale.
Gammon Infrastructure had earlier planned an IPO for 205 stake sale. The company will now exercise the option of raising money through issue of foreign convertibles as well.
This move follows an interim order by Securities Appellate Tribunal (SAT) directing SEBI to process Gammon Infrastructure’s draft red herring prospectus expeditiously.
Gammon Infrastructure is presently valued at Rs280 crore and proposes to take the value to Rs1,000 crore, almost the same value of its holding company Gammon India.The debt-free company had diluted 12.5% to US-based fund Ochziff two years ago.
Sebi bans Patni Shares from trading in capital market for 2 years
Market regulator Securities and Exchange Board of India (Sebi) prohibited Patni Shares and Derivatives and its two managers from dealing in securities market for a period of two years.
The regulator on 11 July issued the ban orders against Patni Shares and its managers Ashish Patni and Ujwal Patni for acting as unregistered sub-broker in contravention of the Sebi regulations.
The regulator passed the order on a complaint filed by Sarju Prasad Mandal, who alleged that he did not receive any payments from Patni Shares nor his accounts were settled by the stock broking firm. Mandal had traded in F&O and Cash Segment through Patni Shares, a franchise of Apollo Singhoori Capital Investment.
The regulator on 11 July issued the ban orders against Patni Shares and its managers Ashish Patni and Ujwal Patni for acting as unregistered sub-broker in contravention of the Sebi regulations.
The regulator passed the order on a complaint filed by Sarju Prasad Mandal, who alleged that he did not receive any payments from Patni Shares nor his accounts were settled by the stock broking firm. Mandal had traded in F&O and Cash Segment through Patni Shares, a franchise of Apollo Singhoori Capital Investment.
Tatas to pick up 4.6% in DCB
The Tata group will pick up to 4.6 per cent stake in Development Credit Bank (DCB) through its newly-formed subsidiary Tata Capital.
The board of DCB today approved raising up to Rs 310 crore by issuing preferential shares to five investors, including Tata Capital, at Rs 105 per share. This would form 16.6 per cent of the post-issue capital of the bank.
The other investors who will pick up up to 4.6 per cent stake in the Aga Khan Fund for Economic Development (Akfed) promoted bank are UAE-based Al Bateen Investment Co, GRA Finance Corp, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.
DCB Investments is a special purpose vehicle floated by Schroders, a UK-based asset management company, to invest in the private sector bank. The preferential allotment is subject to the approval of the bank’s shareholders and the Reserve Bank of India (RBI).
If the RBI approval is not received for any of the proposed investor(s), the board of the private sector bank will have the power to identify and negotiate with one or more investors or with other interested investors for selling the stake and will secure the RBI’s special approval for the same, said the bank.
Read more in The Business Standard article.
The board of DCB today approved raising up to Rs 310 crore by issuing preferential shares to five investors, including Tata Capital, at Rs 105 per share. This would form 16.6 per cent of the post-issue capital of the bank.
The other investors who will pick up up to 4.6 per cent stake in the Aga Khan Fund for Economic Development (Akfed) promoted bank are UAE-based Al Bateen Investment Co, GRA Finance Corp, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.
DCB Investments is a special purpose vehicle floated by Schroders, a UK-based asset management company, to invest in the private sector bank. The preferential allotment is subject to the approval of the bank’s shareholders and the Reserve Bank of India (RBI).
If the RBI approval is not received for any of the proposed investor(s), the board of the private sector bank will have the power to identify and negotiate with one or more investors or with other interested investors for selling the stake and will secure the RBI’s special approval for the same, said the bank.
Read more in The Business Standard article.
Blackstone to buy stake in Nagarjuna Const
Private equity investor Blackstone is in talks to pick up stake in the Hyderabad-based Nagarjuna Constructions.Sources close to the development said the Rs 2,871 crore firm plans to raise up to $180 million (Rs 730 crore) through the sale of fresh shares to a few financial institutions including Blackstone.
They added that the deal would take place at a premium to the ruling market price of Rs 202, which was the closing price on the BSE on Tuesday. Nagarjuna Constructions declined to comment on the matter. Blackstone CEO said the company did not comment on speculation.
The proposed issue of fresh shares follows the company’s plan to raise funds through the qualified institutional placement (QIP) route, for which Nagarjuna had received shareholder’s approval earlier this year.
In March 2007, the company had informed the BSE that it would be doing a placement to institutional shareholders at a premium of Rs 215 per share of Rs 2 paid-up value.However, the placement did not take place possibly because the company’s stock price took a sharp dip subsequently, falling from Rs 220 levels in January to less than Rs 150 in April. The stock price recovered only in July to around Rs 188 and further to around Rs 200.
The company had simultaneously taken the approval of shareholders for an issue of 25 lakh warrants to an investment company, AVSR Holdings, belonging to the promoters, also at the same price of Rs 217.
Read more in The Business Standard article.
They added that the deal would take place at a premium to the ruling market price of Rs 202, which was the closing price on the BSE on Tuesday. Nagarjuna Constructions declined to comment on the matter. Blackstone CEO said the company did not comment on speculation.
The proposed issue of fresh shares follows the company’s plan to raise funds through the qualified institutional placement (QIP) route, for which Nagarjuna had received shareholder’s approval earlier this year.
In March 2007, the company had informed the BSE that it would be doing a placement to institutional shareholders at a premium of Rs 215 per share of Rs 2 paid-up value.However, the placement did not take place possibly because the company’s stock price took a sharp dip subsequently, falling from Rs 220 levels in January to less than Rs 150 in April. The stock price recovered only in July to around Rs 188 and further to around Rs 200.
The company had simultaneously taken the approval of shareholders for an issue of 25 lakh warrants to an investment company, AVSR Holdings, belonging to the promoters, also at the same price of Rs 217.
Read more in The Business Standard article.
Megasoft to buy Boston Comm for $65mn
Chennai-based Megasoft Limited and US-based Boston Communications Group Inc (bcgi) today announced a definitive agreement, whereby Megasoft will acquire the Nasdaq-listed company for around $65 million (around Rs 260 crore) -- $3.60 per share of bcgi common stock that works out to 83% of the total equity shares of the entity. The offer price includes a premium of 80% when compared with traded value of $2 per share on Saturday.
The two companies are into products and services, including real time charging, billing, prepaid products and managed services catering to the wireless telecom space. Besides recommending the shareholders to tender their shares into the tender offer, the members of the bcgi board has also agreed to tender their shares into the offer, according to GV Kumar,managing director and chief executive officer of Megasoft.
Kumar said bcgi would become a 100% subsidiary of Megasoft after the acquisition process is completed. The tender offer is expected to commence on or before August 1, 2007, and will expire on the 20th business day.
Read more in The Business Standard article.
The two companies are into products and services, including real time charging, billing, prepaid products and managed services catering to the wireless telecom space. Besides recommending the shareholders to tender their shares into the tender offer, the members of the bcgi board has also agreed to tender their shares into the offer, according to GV Kumar,managing director and chief executive officer of Megasoft.
Kumar said bcgi would become a 100% subsidiary of Megasoft after the acquisition process is completed. The tender offer is expected to commence on or before August 1, 2007, and will expire on the 20th business day.
Read more in The Business Standard article.
Dabur to merge foods biz with FMCG
Homegrown FMCG major Dabur India Limited (DIL) on Wednesday said it will merge its wholly-owned subsidiary Dabur Foods Limited (DFL) with itself.The Board of Directors of DIL approved the merger with retrospective effect from April 1, a company statement said.
"We believe this merger is a unique opportunity to combine the strengths of a foods company with those of a growing and profitable FMCG business to create an extraordinarily strong and rapidly growing global competitor in the health and wellness space," Dabur India CEO Sunil Duggal said.
He said DFL is an intrinsic part of DIL's growth strategy and has been one of the fastest growing businesses, reporting a 35 per cent CAGR for the past five years.Through the merger, DIL is looking to extract synergies and unlock operational efficiencies for DFL sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space, it added.
"We believe this merger is a unique opportunity to combine the strengths of a foods company with those of a growing and profitable FMCG business to create an extraordinarily strong and rapidly growing global competitor in the health and wellness space," Dabur India CEO Sunil Duggal said.
He said DFL is an intrinsic part of DIL's growth strategy and has been one of the fastest growing businesses, reporting a 35 per cent CAGR for the past five years.Through the merger, DIL is looking to extract synergies and unlock operational efficiencies for DFL sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space, it added.
NTPC to invest up to Rs 1000 cr in its JV
State-run National Thermal Power Corporation Ltd has approved the plan to invest up to Rs 1000 crore in its joint venture company, Aravali Power Company Pvt Ltd.
Aravali Power is a joint venture firm of NTPC, Indraprastha Power Generation Corporation Ltd and Haryana Power Generation Corporation Ltd.
The board of directors took a decision in this regard at its meeting held on July 3, the thermal power major today said in a communique to the Bombay Stock Exchange.
The investment has been approved to enable the JV company to implement 1500 MW Aravali Super Thermal Power Project at Jhajjar, it said.
NTPC's board gave its nod to invest the company's equity in the JV up to Rs 1000 crore, which includes equity contribution already made by it.
Aravali Power is a joint venture firm of NTPC, Indraprastha Power Generation Corporation Ltd and Haryana Power Generation Corporation Ltd.
The board of directors took a decision in this regard at its meeting held on July 3, the thermal power major today said in a communique to the Bombay Stock Exchange.
The investment has been approved to enable the JV company to implement 1500 MW Aravali Super Thermal Power Project at Jhajjar, it said.
NTPC's board gave its nod to invest the company's equity in the JV up to Rs 1000 crore, which includes equity contribution already made by it.
Barclays in tie-up with Metlife
Barclays, the global giant in financial services, and Metlife India Insurance Company on Wednesday announced their bancassurance tie-up in the country that will enable the insurance company to sell its products through the banking channel of the Barclays.
Speaking about the partnership, Metlife Managing Director Rajesh Relan said," Considering a combined experience of both groups in financial services, we are confident on making a difference in the hugely promising market."
He said through other partnerships with Jammu and Kashmir Bank, UTI Bank, Karnataka Bank and Dhanalakshmi Bank, Metlife's products are currently available at over 500 bank branches in the country.
Barclays, which has been in India for nearly 30 years, more recently through Barclays Capital, has retail and commercial banking set up in Mumbai, Kanchipuram and Neelamangala near Bangalore.
Speaking about the partnership, Metlife Managing Director Rajesh Relan said," Considering a combined experience of both groups in financial services, we are confident on making a difference in the hugely promising market."
He said through other partnerships with Jammu and Kashmir Bank, UTI Bank, Karnataka Bank and Dhanalakshmi Bank, Metlife's products are currently available at over 500 bank branches in the country.
Barclays, which has been in India for nearly 30 years, more recently through Barclays Capital, has retail and commercial banking set up in Mumbai, Kanchipuram and Neelamangala near Bangalore.
Tuesday, July 10, 2007
HireRight sees IPO at $15-$17/shr
HireRight Inc, which provides on-demand employment screening solutions, said it expects its initial public offering of 4.4 million shares to be priced between $15 and $17 per share.
In a regulatory filing, the company said it plans to use the net proceeds for working capital and other general corporate purposes, including expansion of sales and marketing activities, developing new service offerings and expanding international operations.
In a regulatory filing, the company said it plans to use the net proceeds for working capital and other general corporate purposes, including expansion of sales and marketing activities, developing new service offerings and expanding international operations.
Swiss Re, Munich Re in talks with SBI for JV
The UK-based Lloyd’s, the world’s leading provider of specialist insurance services, and leading global reinsurers, Germany’s Munich Re Group and Switzerland’s Swiss Re, are in talks with the State Bank of India (SBI), the country’s largest bank, for partnering in its general insurance foray. The partner is likely to be finalised in the next two months.
A senior SBI official said, “We will be partnering with a foreign reinsurer for our non-life insurance business and discussions are currently on with the world’s leading reinsurers.”
The bank is in the process of appointing an advisor to zero in on a foreign partner, according to sources within. The plans for venturing into general insurance come at a time when the bank is planning to hive off stakes in its life insurance and asset management companies to a separate holding company.
SBI holds 74 per cent stake in its life insurance venture, with Cardif SA of France owning the rest. The life insurance venture would require incremental capital of Rs 600 crore every year.
Read more in The Business Standard article.
A senior SBI official said, “We will be partnering with a foreign reinsurer for our non-life insurance business and discussions are currently on with the world’s leading reinsurers.”
The bank is in the process of appointing an advisor to zero in on a foreign partner, according to sources within. The plans for venturing into general insurance come at a time when the bank is planning to hive off stakes in its life insurance and asset management companies to a separate holding company.
SBI holds 74 per cent stake in its life insurance venture, with Cardif SA of France owning the rest. The life insurance venture would require incremental capital of Rs 600 crore every year.
Read more in The Business Standard article.
DCB to issue shares at Rs 105, raise Rs 310cr
The board of directors of Development Credit Bank (DCB), which met today, approved a proposal to raise up to Rs 310 crore by issuing preferential shares at Rs 105 per share.
According to a release issued by the bank to the BSE today, the preferential issue would constitute 16.60% of the post-issue share capital.The investors would include Tata Capital (with a post-issue shareholding of up to 4.60%), Al Bateen Investment Co. L.L.C., U.A.E, GRA Finance Corporation, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.
"If the RBI approval is not received wholly or partly for any of the proposed investor(s), the board shall have the power to identify and negotiate with one or more investors or with other interested investors and procure specific approval of the RBI," the release added.
According to a release issued by the bank to the BSE today, the preferential issue would constitute 16.60% of the post-issue share capital.The investors would include Tata Capital (with a post-issue shareholding of up to 4.60%), Al Bateen Investment Co. L.L.C., U.A.E, GRA Finance Corporation, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.
"If the RBI approval is not received wholly or partly for any of the proposed investor(s), the board shall have the power to identify and negotiate with one or more investors or with other interested investors and procure specific approval of the RBI," the release added.
Omaxe IPO to raise Rs550 cr
Real estate developer Omaxe Ltd is expecting to raise about Rs550 crore through its initial public offer (IPO), for which the price band has been fixed at Rs265-310 per share.
Omaxe’s IPO will come close on the heels of successful IPOs of real estate giant DLF and HDIL. The company had received market regulator Sebi’s approval for its IPO on 22 May. It had filed the draft red herring prospectus (DRHP) with Sebi in December last. Omaxe proposes to enter the capital market with a public issue of about 1.78 crore equity shares of Rs10 each through 100% book-building process.
About 1.75 crore equity shares are for the public, while balance 296,000 shares are reserved for eligible employees. Additionally, there would be a green shoe option of 17.5 lakh equity shares.The issue would constitute 11.20% of the fully diluted post-issue paid-up capital of the company if the green shoe option is exercised and 10.30% otherwise.
The company will raise about Rs550 crore at the upper band, much lower from its earlier target of Rs 1,400 crore.
Omaxe’s IPO will come close on the heels of successful IPOs of real estate giant DLF and HDIL. The company had received market regulator Sebi’s approval for its IPO on 22 May. It had filed the draft red herring prospectus (DRHP) with Sebi in December last. Omaxe proposes to enter the capital market with a public issue of about 1.78 crore equity shares of Rs10 each through 100% book-building process.
About 1.75 crore equity shares are for the public, while balance 296,000 shares are reserved for eligible employees. Additionally, there would be a green shoe option of 17.5 lakh equity shares.The issue would constitute 11.20% of the fully diluted post-issue paid-up capital of the company if the green shoe option is exercised and 10.30% otherwise.
The company will raise about Rs550 crore at the upper band, much lower from its earlier target of Rs 1,400 crore.
JM Financial invests in Spandana
Private equity fund JM Financial India, co-promoted by JM Financial group and Citigroup’s Old Lane, has invested about Rs 40 crore in Hyderabad-based microfinance company Spandana, which will enable the non-banking finance company to expand its capital base and geographical reach.
The $225-million corpus JM Financial India is also close to deciding on increasing its investment in Genesis Colors, a lifestyle company, where the fund had initially invested about $5 million with an option to invest another $10 million.
“Apart from an equity stake in the microfinance company, the investment also gives us affirmative rights and the chance to bring in management professionals into the organisation,” said JM Financial MD Dilip Kothari. Although he declined to specify details, it is reliably learnt that the fund will get a 20% to 30% equity stake in Spandana.
Spandana is a southern India-oriented microfinance company that is currently planning to expand its reach to other countries. “We look forward to working with JM Financial’s team to expand our customer base and grow our distribution network,” said promoter and MD Padmaja Reddy.
Read more in The Economic Tims article.
The $225-million corpus JM Financial India is also close to deciding on increasing its investment in Genesis Colors, a lifestyle company, where the fund had initially invested about $5 million with an option to invest another $10 million.
“Apart from an equity stake in the microfinance company, the investment also gives us affirmative rights and the chance to bring in management professionals into the organisation,” said JM Financial MD Dilip Kothari. Although he declined to specify details, it is reliably learnt that the fund will get a 20% to 30% equity stake in Spandana.
Spandana is a southern India-oriented microfinance company that is currently planning to expand its reach to other countries. “We look forward to working with JM Financial’s team to expand our customer base and grow our distribution network,” said promoter and MD Padmaja Reddy.
Read more in The Economic Tims article.
Dynamatic Tech buys UK's Sauer-Danfoss
In yet another Indian acquisition of a British company, the Swindon-based engineering company Sauer-Danfoss has been purchased by the Bangalore-based Dynamatic Technologies Ltd.
Sauer-Danfoss was based in Swindon for the last 50 years. It was formally Plessey Hydraulics Ltd before becoming Sundstrand Hydratec Ltd and then Sauer-Sundstrand. It has been manufacturing hydraulic gear pumps and valves mainly for the off highway mobile equipment industry.
Dynamatic Technologies Ltd has six manufacturing plants, three in Bangalore and three in Chennai, and manufactures highly engineered products in the automotive and defence sectors as well as the agricultural and construction equipment industries.
The acquisition of the Swindon business will increase the number of employees in Dynamatic to approximately 2,000 worldwide. The official completion of the sale took place with an unveiling ceremony and celebration with employees and suppliers at the Cheney Manor site in Swindon recently.
Sauer-Danfoss was based in Swindon for the last 50 years. It was formally Plessey Hydraulics Ltd before becoming Sundstrand Hydratec Ltd and then Sauer-Sundstrand. It has been manufacturing hydraulic gear pumps and valves mainly for the off highway mobile equipment industry.
Dynamatic Technologies Ltd has six manufacturing plants, three in Bangalore and three in Chennai, and manufactures highly engineered products in the automotive and defence sectors as well as the agricultural and construction equipment industries.
The acquisition of the Swindon business will increase the number of employees in Dynamatic to approximately 2,000 worldwide. The official completion of the sale took place with an unveiling ceremony and celebration with employees and suppliers at the Cheney Manor site in Swindon recently.
France Telecom buys GTL IT biz
France Telecom has re-entered the Indian market through the acquisition of enterprise and managed services division of GTL for around Rs 250 crore. The acquisition will be made through France Telecom’s group company, Orange Business Services.This marks the re-entry of France Telecom to Indian shores, which it exited in 2003 after selling a 26% stake in BPL Mobile, offering services in Mumbai circle.
“British Telecom was the other serious bidder for the business,” said a source familiar with the deal. While there were other bidders earlier on, the BT and France Telecom were the serious players who were eventually in the race to acquire it.
The ITeS business of GTL, a network service provider, was put on the block last fiscal as the company is keen to focus on the network services business, which is expected to bring in Rs 1,500 crore revenues this fiscal.
Read more in The Economic Times article.
“British Telecom was the other serious bidder for the business,” said a source familiar with the deal. While there were other bidders earlier on, the BT and France Telecom were the serious players who were eventually in the race to acquire it.
The ITeS business of GTL, a network service provider, was put on the block last fiscal as the company is keen to focus on the network services business, which is expected to bring in Rs 1,500 crore revenues this fiscal.
Read more in The Economic Times article.
Nalco looks for JV partners
Aluminium major National Aluminium (Nalco) has decided to diversify into cement manufacturing and is looking for global joint venture partners to float a medium to large sized cement plant. Nalco’s proposed cement venture is part of its decision to use fly ash generated at its captive power plant at Angul in Orissa and convert it into sale-able products.
Nalco is primarily looking at the possibility of manufacturing Pozzo-lana Portland Cement (PPC). A byproduct of coal-fired power plants, fly ash can replace a proportion of the clinker used in cement plants. However, the company is also open to any other form of utilisation of fly ash in the JV.
The company is also seeking JV partners for classification and marketing of cementitious applications in the domestic and export markets. Cementitious products have cement-like, cementing, or bonding type properties. As the largest state owned producer of aluminium, Bhubaneswar-based Nalco operates alumina-aluminium complex along with a captive power plant, and has embarked on a major expansion programme to raise metal capacity.
Read more in The Economic Times article.
Nalco is primarily looking at the possibility of manufacturing Pozzo-lana Portland Cement (PPC). A byproduct of coal-fired power plants, fly ash can replace a proportion of the clinker used in cement plants. However, the company is also open to any other form of utilisation of fly ash in the JV.
The company is also seeking JV partners for classification and marketing of cementitious applications in the domestic and export markets. Cementitious products have cement-like, cementing, or bonding type properties. As the largest state owned producer of aluminium, Bhubaneswar-based Nalco operates alumina-aluminium complex along with a captive power plant, and has embarked on a major expansion programme to raise metal capacity.
Read more in The Economic Times article.
Simplex Projects IPO open; price band Rs 170-185/share
Simplex Projects Ltd’s initial public offering of 30 lakh equity shares through 100% book building route opened on Tuesday. The company has priced the Rs 10 share in the Rs 170-185 range. The issue closes July 13.
The company is into construction business, providing integrated engineering, procurement and construction services for civil and structural construction and infrastructure projects.
The net issue will constitute 25% of the fully diluted post-issue paid-up capital. UTI Securities is the book running lead manager and Cameo Corporate Services the registrar.The equity shares will be listed on BSE and NSE.
The IPO proceeds are mainly for long term working capital, to acquire plant and machinery, and invest in subsidiary Simpark Infrastructure Pvt Ltd.
Read more in The Economic Times article.
The company is into construction business, providing integrated engineering, procurement and construction services for civil and structural construction and infrastructure projects.
The net issue will constitute 25% of the fully diluted post-issue paid-up capital. UTI Securities is the book running lead manager and Cameo Corporate Services the registrar.The equity shares will be listed on BSE and NSE.
The IPO proceeds are mainly for long term working capital, to acquire plant and machinery, and invest in subsidiary Simpark Infrastructure Pvt Ltd.
Read more in The Economic Times article.
Berggruen Holdings lines up $300 m investment for India over next three years
New York-based fund, Berggruen Holdings, which manages proprietary capital worth over $1.5 billion, plans to invest over $300 million in India over the next three years in hospitality, real estate, education, car rental, construction equipment leasing and logistics businesses.
Of this, the bulk—around $200 million—would go into real estate projects spread across commercial, residential and retail spaces, while the remaining would be for setting up 40 budget hotels across the country. The fund also made a foray into equipment rental business by picking up around 90% stake in a Mumbai-based company for around $10 million. It also invested a similar amount for its car rental business.
Berggruen Holdings is a private company, with interests in private equity, stocks and bonds, hedge funds, art and real estate, which manages funds of the Berggruen family,.
Read more in The Economic Times article.
Of this, the bulk—around $200 million—would go into real estate projects spread across commercial, residential and retail spaces, while the remaining would be for setting up 40 budget hotels across the country. The fund also made a foray into equipment rental business by picking up around 90% stake in a Mumbai-based company for around $10 million. It also invested a similar amount for its car rental business.
Berggruen Holdings is a private company, with interests in private equity, stocks and bonds, hedge funds, art and real estate, which manages funds of the Berggruen family,.
Read more in The Economic Times article.
Monday, July 9, 2007
Amul in Catch-22 situation over foreign JVs
The top brass at Indian co-operative dairy heavyweight, Anand-based Gujarat Co-operative Milk Marketing Federation (GCMMF), better known by its iconic brand Amul, has been deliberating over a critical issue in recent times.
Pressure is mounting on the 13-member board to improve profits at the hands of farmers at a time when their input costs (for corn products, cattle-feed and de-oiled cakes) are up by 25-50% in the last one year. The board is mulling over the feasibility of entertaining joint ventures to tap global markets without hurting Amul’s brand equity or growth in India.
Though global food majors such as Mars, Kraft Foods, Danone and LandoLakes visited India recently, GCMMF is clearly unwilling to help the growth of competing brands at the cost of is own brand. Most of the global brands are courting GCMMF to leverage its distribution strength for their brands in the attractive Indian market and build India as a hub for low-cost milk supplies.
Amul's interest in a JV with a global partner is to gain a foot hold in new markets and ensure higher profit margins at the farm gate. But the interest in improving farm profits by tapping the massive growth opportunities in foreign shores comes with the worry about protecting brand Amul.
Read more in The Economic Times article.
Pressure is mounting on the 13-member board to improve profits at the hands of farmers at a time when their input costs (for corn products, cattle-feed and de-oiled cakes) are up by 25-50% in the last one year. The board is mulling over the feasibility of entertaining joint ventures to tap global markets without hurting Amul’s brand equity or growth in India.
Though global food majors such as Mars, Kraft Foods, Danone and LandoLakes visited India recently, GCMMF is clearly unwilling to help the growth of competing brands at the cost of is own brand. Most of the global brands are courting GCMMF to leverage its distribution strength for their brands in the attractive Indian market and build India as a hub for low-cost milk supplies.
Amul's interest in a JV with a global partner is to gain a foot hold in new markets and ensure higher profit margins at the farm gate. But the interest in improving farm profits by tapping the massive growth opportunities in foreign shores comes with the worry about protecting brand Amul.
Read more in The Economic Times article.
Wolfensohn's private fund picks 6% in Fabindia
John Bissell's export house of 1958 – better known as Fabindia today –has an unusual backer. Former World Bank president James Wolfensohn's private investment fund has picked up 6% stake in the country's marquee Indian ethnic wear company for $11 million. This puts the valuation of Fabindia at around Rs 750 crore.
Even though the Indian government does not allow foreign investment in multibrand retail, the policy was partially relaxed recently and FDI up to 51% allowed in single brand retail. Following this, several luxury brands such LVMH, Chritian Dior and Hermes began converting their franchisee agreements into joint ventures.
However, in Fabindia, WCP Mauritius Holding (the investment vehicle promoted by Wolfensohn & Company LLC) has taken a minority stake and there is no clause which allows WCP to hike its stake.
Fabindia has extensive expansion plans and intends to grow the number of stores from 61 to over 200 in the next four years. The money raised will be used to strengthen its supply chain. Fabindia is setting up community-owned joint ventures in the rural areas with artisans and craftspersons as shareholders.
Read more in The Economic Times article.
Even though the Indian government does not allow foreign investment in multibrand retail, the policy was partially relaxed recently and FDI up to 51% allowed in single brand retail. Following this, several luxury brands such LVMH, Chritian Dior and Hermes began converting their franchisee agreements into joint ventures.
However, in Fabindia, WCP Mauritius Holding (the investment vehicle promoted by Wolfensohn & Company LLC) has taken a minority stake and there is no clause which allows WCP to hike its stake.
Fabindia has extensive expansion plans and intends to grow the number of stores from 61 to over 200 in the next four years. The money raised will be used to strengthen its supply chain. Fabindia is setting up community-owned joint ventures in the rural areas with artisans and craftspersons as shareholders.
Read more in The Economic Times article.
Roman Tarmat shares rise 69% on debut
Shares in construction firm Roman Tarmat Ltd made their debut at Rs 295 on Monday, 69 per cent higher than their initial offer price of Rs 175 each.
The shares were trading at Rs 335.10 at 9:57 am on the BSE, after touching a high of Rs 376. The Mumbai-based road construction firm raised Rs 507.5 million through the IPO.
The proceeds would be used to buy equipment and fund working capital. The company operates a ready-mix concrete plant and crushing units near Mumbai.
The shares were trading at Rs 335.10 at 9:57 am on the BSE, after touching a high of Rs 376. The Mumbai-based road construction firm raised Rs 507.5 million through the IPO.
The proceeds would be used to buy equipment and fund working capital. The company operates a ready-mix concrete plant and crushing units near Mumbai.
Friday, July 6, 2007
Rolta buys Canada-based Orion Technology
Mumbai-based Rolta today announced the signing of an agreement to acquire Orion Technology, a Canadian software and integration company specialising in enterprise web-GIS (geographical information systems) solutions.
While the deal size was not disclosed, Rolta expects to generate around $100 million (around Rs 410 crore) over the next three to five years by integrating the acquired technologies.
K K Singh, chairman and CEO of the Rolta group, said: "With this acquisition, we have significantly expanded our capabilities to provide state-of-the-art products and services. We will now be able to provide unique solutions that offer high returns on customers' investments in GIS. This intellectual property also gives us an exceptional platform to develop new solutions for a clientele well beyond the segments traditionally served by Rolta and Orion, such as for mobile applications".
Read more in The Business Standard article.
While the deal size was not disclosed, Rolta expects to generate around $100 million (around Rs 410 crore) over the next three to five years by integrating the acquired technologies.
K K Singh, chairman and CEO of the Rolta group, said: "With this acquisition, we have significantly expanded our capabilities to provide state-of-the-art products and services. We will now be able to provide unique solutions that offer high returns on customers' investments in GIS. This intellectual property also gives us an exceptional platform to develop new solutions for a clientele well beyond the segments traditionally served by Rolta and Orion, such as for mobile applications".
Read more in The Business Standard article.
Lehman seen close to buying 51% in Brics Sec
Lehman Brothers, one of the biggest global financial services providers, is in advanced stages of picking up a 51% controlling stake in local securities firm Brics Securities.
The Wall Street major will scale up its stake in the Mumbai-based brokerage firm to 100% over the next three years, if the deal goes through, according to sources close to the development. They said Lehman is picking up a stake in Brics Securities which is the financial services arm of the JV Gokal Group. It was created in October 2003, following the acquisition and rechristening of Birla Sun Life Securities — joint venture between the Aditya Birla Group and Sunlife Group of Canada.
The Mumbai-based brokerage has a retail and private client business. It offers portfolio management services, besides distributing third-party products. It also has an NBFC licence, which currently does lending against shares, albeit in a small way and a commodities broking business.
The Wall Street major will scale up its stake in the Mumbai-based brokerage firm to 100% over the next three years, if the deal goes through, according to sources close to the development. They said Lehman is picking up a stake in Brics Securities which is the financial services arm of the JV Gokal Group. It was created in October 2003, following the acquisition and rechristening of Birla Sun Life Securities — joint venture between the Aditya Birla Group and Sunlife Group of Canada.
The Mumbai-based brokerage has a retail and private client business. It offers portfolio management services, besides distributing third-party products. It also has an NBFC licence, which currently does lending against shares, albeit in a small way and a commodities broking business.
IDFC takes QIP route to raise Rs 2,100 crore
Infrastructure Development Finance Company (IDFC) said that it has successfully placed its qualified institutional placement (QIP) offering of Rs 2,100 crore through issue of 16.53-crore shares at Rs 127 per share.
The issue generated significant interest from a number of high quality institutional investors across Asia, Europe and the US. A company statement to the exchange said that the proceeds of the offering would be used to augment the company’s capital base, enhance the strength of its balance sheet for its lending operations, provide seed capital to some of the funds that the company manages, to explore opportunities in principal investments and for general corporate purposes.
The 10-year old institution was promoted by the government during Chidambaram’s earlier tenure in the finance ministry. In recent years, the institution has shown ambitions of growing its business mix. In April, IDFC bought one-third stake in privately-held stockbroking firm SSKI. Last month, the company hiked its equity stake to 66.67%.
Read more in The Economic Times article.
The issue generated significant interest from a number of high quality institutional investors across Asia, Europe and the US. A company statement to the exchange said that the proceeds of the offering would be used to augment the company’s capital base, enhance the strength of its balance sheet for its lending operations, provide seed capital to some of the funds that the company manages, to explore opportunities in principal investments and for general corporate purposes.
The 10-year old institution was promoted by the government during Chidambaram’s earlier tenure in the finance ministry. In recent years, the institution has shown ambitions of growing its business mix. In April, IDFC bought one-third stake in privately-held stockbroking firm SSKI. Last month, the company hiked its equity stake to 66.67%.
Read more in The Economic Times article.
ICICI Bank seeks $1.5 bn in biggest borrowing
ICICI Bank Ltd, which raised $5 billion last month in India's biggest share sale, is borrowing a record $1.5 billion to fund growth in demand for credit, said Chief Financial Officer Vishakha Mulye.
ICICI is seeking the biggest loan by an Indian bank to meet credit expansion of as much as 30 per cent in the fastest-growing major economy after China. The amount is almost twice the syndicated borrowings of Indian banks this year and shy of the $1.86 billion total loans Mumbai-based ICICI took out in 2006.
The loan will take the amount of money ICICI has raised this year to $10.5 billion, enabling it to boost lending to Indian companies and its swelling middle class. The bank has sold $4 billion of bonds this year.
ICICI's borrowing ``is required to feed the growing demand for loans in the country,'' said Sudhindra Ballal who helps manage $150 million of Asian assets, including Indian equities, at Daiwa Asset Management in Singapore. ``There is a lot of potential.''
ICICI is seeking the biggest loan by an Indian bank to meet credit expansion of as much as 30 per cent in the fastest-growing major economy after China. The amount is almost twice the syndicated borrowings of Indian banks this year and shy of the $1.86 billion total loans Mumbai-based ICICI took out in 2006.
The loan will take the amount of money ICICI has raised this year to $10.5 billion, enabling it to boost lending to Indian companies and its swelling middle class. The bank has sold $4 billion of bonds this year.
ICICI's borrowing ``is required to feed the growing demand for loans in the country,'' said Sudhindra Ballal who helps manage $150 million of Asian assets, including Indian equities, at Daiwa Asset Management in Singapore. ``There is a lot of potential.''
Wipro buys Singapore's Unza for $246 mn
India's third-largest software services exporter, Wipro Ltd, has acquired Singapore's Unza Holdings Ltd for about $246 million in cash, the company said on Friday.
New York-listed Wipro, which also has interests in consumer care and lightings, expects to complete the 100 per cent acquisition by end-July, it said in a statement. Unza is a maker of personal care products with operations in over 40 countries.
It has manufacturing plants in Malaysia, Vietnam, China and Indonesia. Wipro, which gets a bulk of its revenue by providing IT solutions and services such as systems integration, software application development and maintenance, has been buying up firms to accelerate growth.In October last year its Wipro Infotech unit said it was acquiring 3D Networks Pte and Planet PSG, part of Malaysia-based Planel One.
Wipro's engineering arm bought Swedish hydraulic components maker Hydrauto Group AB for $31 million in all cash deal in September. Wipro, which counts telecoms gear makers Cisco and Nortel, among key clients, is scheduled to announce its June quarter earnings on July 19.
New York-listed Wipro, which also has interests in consumer care and lightings, expects to complete the 100 per cent acquisition by end-July, it said in a statement. Unza is a maker of personal care products with operations in over 40 countries.
It has manufacturing plants in Malaysia, Vietnam, China and Indonesia. Wipro, which gets a bulk of its revenue by providing IT solutions and services such as systems integration, software application development and maintenance, has been buying up firms to accelerate growth.In October last year its Wipro Infotech unit said it was acquiring 3D Networks Pte and Planet PSG, part of Malaysia-based Planel One.
Wipro's engineering arm bought Swedish hydraulic components maker Hydrauto Group AB for $31 million in all cash deal in September. Wipro, which counts telecoms gear makers Cisco and Nortel, among key clients, is scheduled to announce its June quarter earnings on July 19.
Thursday, July 5, 2007
DLF shares rise 11%; 8th most valued firm
Shares of DLF Ltd jumped 10.85 per cent in the real estate major's second coming to the capital market, making it the eighth most valued firm on the bourses in terms of market capitalisation.
The scrip listed at Rs 582 on the Bombay Stock Exchange against the issue price of Rs 525 and soared to a high of Rs 714.25, briefly propelling the market value to over Rs 100,000 crore.
Billionaire KP Singh-promoted DLF, which had delisted from Bombay Stock Exchange in 1982, was ahead of ICICI Bank and State Bank of India in terms of market cap. Only Reliance Industries, ONGC, Bharti Airtel, NTPC, Infosys, TCS and Reliance Communications had higher market value on BSE.
In the first 15 minutes of trade, the scrip reported turnover of around Rs 330 crore as around 60 lakh shares changed hands on the BSE.The company had offered 17.5 crore equity shares through 100 per cent book-building process. The proceeds of the issue, which got oversubscribed 3.5 times, would be deployed to meet costs of construction, land acquisition and repayment of debt.
Read more in The DNA Money article.
The scrip listed at Rs 582 on the Bombay Stock Exchange against the issue price of Rs 525 and soared to a high of Rs 714.25, briefly propelling the market value to over Rs 100,000 crore.
Billionaire KP Singh-promoted DLF, which had delisted from Bombay Stock Exchange in 1982, was ahead of ICICI Bank and State Bank of India in terms of market cap. Only Reliance Industries, ONGC, Bharti Airtel, NTPC, Infosys, TCS and Reliance Communications had higher market value on BSE.
In the first 15 minutes of trade, the scrip reported turnover of around Rs 330 crore as around 60 lakh shares changed hands on the BSE.The company had offered 17.5 crore equity shares through 100 per cent book-building process. The proceeds of the issue, which got oversubscribed 3.5 times, would be deployed to meet costs of construction, land acquisition and repayment of debt.
Read more in The DNA Money article.
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