Unitech holds $1.5bn QIP issue

Real estate major Unitech Ltd has put on hold a $1.5 billion qualified institutional placement (QIP) issue planned for the first quarter of 2008 in the light of the instability in the domestic stock markets and the global liquidity crunch.The company could place a maximum of 200 million shares in the QIP and dilute up to 12 per cent of shares on a total paid-up share capital of 1,623.37 million shares.

Unitech’s decision follows the cancellation of initial public offers (IPOs) by Emaar MGF, another major property developer, and Wockhardt Hospitals, due to weak response from investors.

Unitech was expected to use the QIP proceeds for its upcoming projects and telecom foray, which it is planning in all 22 telecom circles of the country, for which it has received a licence from the government. According to its annual report for 2006-07, it has 50 million square feet of projects under construction.

The company is also foraying into the Mumbai real estate market with an investment of Rs 4,000 crore and is planning to build 50 malls across the country with an investment of Rs 20,000 crore.

Unitech has collected over Rs 3,100 crore on the Alternative Investment Market (AIM) of the London Stock Exchange through its arm Unitech Corporate Parks Plc (UCP).It has also received approval from the Singapore Stock Exchange for an IPO for Unitech Office Trust, which will acquire its IT/ITeS firms in Noida, Gurgaon and Kolkata. It is expected to raise $700 million (Rs 2,800 crore) through this IPO.

Kubera Fund to seal five deals by year-end

Kubera Cross-Border Fund, a close-ended private equity fund listed on the London Stock Exchange’s Alternative Investment Market (AIM), will seal four to five deals in India by the year-end.

The average size of the investment will be $20-40 million. The fund raised close to $225 million for investment in cross-border companies.

Cross-border companies are those West-based companies that seek to leverage Indian resources for lower cost and talent availability and Indian companies that seek to expand in other global markets through acquisition etc.

The fund has invested $20 million in two companies — Adayana Inc and Kejriwal Stationery. US-based Adayana Inc, an e-learning services company with offshore development operations in Hyderabad, caters to vertical markets including automotive services, defence, food, agriculture and life sciences.On the other hand, Kejriwal Stationery manufactures and distributes stationery products to customers in the US, European and Indian markets.The PE fund is likely to raise another $225 million next year by issuing more shares.

Read more in The Business Standard article.

Shekhar Kapur to raise $500mn in S'pore

Shekhar Kapur, the director of Oscar-nominated film Elizabeth, is in talks to raise a $500 million fund in Singapore to invest in the entertainment industry, including movies and music across Asia.

Investors in Singapore were more willing to bet on businesses that might take a longer period of time to make a profit, unlike hedge funds or private equity firms, the Indian director said in an interview in Singapore.

Kapur aims to capitalise on rapid economic growth in Asia, home to 3.8 billion people, or 60 per cent of the global population. In India, the second-fastest growing major economy after China, he directed Bandit Queen in 1994, a controversial film that gained international attention when it was banned by the Indian government.

Startup companies with innovative ideas and technology needed time to nurture their businesses, said Andrew Craissati, a former investment banker and chief executive officer of the US-based Transpac Media, which advises companies on listing on the London Stock Exchange’s Alternative Investment Market (AIM).

Read more in The Business Standard article.