Bhushan Power and Steel, a Delhi-based unlisted company has raised financing from Baring Private Equity Asia. The private equity player has invested Rs 150 crore (around $33 mn) for little less than 10% stake in the company. Sanjay Singal, CMD, Bhushan Power and Steel, has said that funds received from Baring will be invested in an integrated steel complex, being set up in Orissa. Post commissioning, the company will become a 1.2 million tonne integrated steel company. The company may go for an IPO by 2007 – end around the time when the work for the Orissa plant gets over. This is the first investment by Baring from its recently raised $500 million Asia-dedicated fund.
Read article from The Economic Times.
Friday, December 15, 2006
Private equity investments touch $5.5 bn in India
India is turning out to be a real big opportunity for private equity players. The country has seen investments worth $5.4 bn in the first nine months itself for 2006, as against $2.2 bn in the whole of 2005, an increase of a whopping 145 percent, says a recent study conducted by PriceWaterhouse Coopers.
As many as 246 deals were cracked this year versus 169 deals in 2005.
Some of the major investments of the year were Kolhberg Kravis Roberts’ $900 mn in Flextronics Software, Temasek’s $360 mn in Tata Teleservices, Farallon Capital's $143 mn in Indiabulls Financial, among others.
Growing consumer spending leading to the emergence of a high-demand, fast-growing market, and an increasing recognition of India as a high-quality, low-cost production and R&D destination are reasons cited for attracting private equity capital to the country.
However, as against conventional seed / growth funding provided by venture capitalists in the US and the Europe, the Indian market saw more investments in the late-stage funding opportunities, particularly in the pre-IPO and PIPE (private investments in public enterprises) spaces.
Also, unlike the technology boom of the late 1990s and early 2000, investments are now being made across a variety of sectors such as auto components, real estate, infrastructure, pharma etc, indicating a shift in focus from IT / ITeS sectors.
The report also mentions a slate of PE firms, both domestic and international, that have made huge commitments to the India growth story.
Read the article from The Economic Times.
Read the article from The Telegraph, Calcutta.
As many as 246 deals were cracked this year versus 169 deals in 2005.
Some of the major investments of the year were Kolhberg Kravis Roberts’ $900 mn in Flextronics Software, Temasek’s $360 mn in Tata Teleservices, Farallon Capital's $143 mn in Indiabulls Financial, among others.
Growing consumer spending leading to the emergence of a high-demand, fast-growing market, and an increasing recognition of India as a high-quality, low-cost production and R&D destination are reasons cited for attracting private equity capital to the country.
However, as against conventional seed / growth funding provided by venture capitalists in the US and the Europe, the Indian market saw more investments in the late-stage funding opportunities, particularly in the pre-IPO and PIPE (private investments in public enterprises) spaces.
Also, unlike the technology boom of the late 1990s and early 2000, investments are now being made across a variety of sectors such as auto components, real estate, infrastructure, pharma etc, indicating a shift in focus from IT / ITeS sectors.
The report also mentions a slate of PE firms, both domestic and international, that have made huge commitments to the India growth story.
Read the article from The Economic Times.
Read the article from The Telegraph, Calcutta.
Nikko, Ambit form AMC JV
Japan-headquartered Nikko and the Ambit group have agreed to form an asset management joint venture in India. Nikko Asset Management has assets of about $90.7 bn under management. It has been an active participant in the offshore Indian asset management market for over a decade now and was one of the earlier foreign institutional investors in India via the group's regional base in Singapore. Since 2004, Nikko Asset Management has invested in additional offshore infrastructure, most notably by establishing a regulated group company in Mauritius and a dedicated India fund management team in Singapore that has enabled the group to expand its Indian investment management capacity rapidly, in particular by facilitating the successful launch of the Nikko BRICs Equity Fund in March 2006.
Ambit is one of the leading financial services group in India. Its primary interests lie in investment banking, private equity, stock broking and consulting. It was established in Mumbai as a boutique investment bank in 1997 by Managing Director Ashok Wadhwa, a former Managing Partner of Arthur Andersen in India.
With respect to the deal, Nikko intends to acquire a 74.9% of the JV while Ambit will hold the remaining portion. The two firms have already agreed to many of the key terms of their cooperation and anticipate entering into a definitive agreement in early 2007. The JV plans to commence the formal licensing process with the Indian financial regulators and plans to beef up infrastructure in anticipation of the formal launch of investment activities.
Ambit has just recently announced a JV with TV18 and the Centurion Bank of Punjab for providing an online broking platform to retail clients.
Credit Suisse, UBS, Aviva, Korea`s Mirae Asset, AXA (with the Bharti group) and Pioneer, are some of the other big-ticket names that are planning to enter the booming Indian mutual fund business.
Read the article from domain-b.com.
Read the article from myiris.com.
Ambit is one of the leading financial services group in India. Its primary interests lie in investment banking, private equity, stock broking and consulting. It was established in Mumbai as a boutique investment bank in 1997 by Managing Director Ashok Wadhwa, a former Managing Partner of Arthur Andersen in India.
With respect to the deal, Nikko intends to acquire a 74.9% of the JV while Ambit will hold the remaining portion. The two firms have already agreed to many of the key terms of their cooperation and anticipate entering into a definitive agreement in early 2007. The JV plans to commence the formal licensing process with the Indian financial regulators and plans to beef up infrastructure in anticipation of the formal launch of investment activities.
Ambit has just recently announced a JV with TV18 and the Centurion Bank of Punjab for providing an online broking platform to retail clients.
Credit Suisse, UBS, Aviva, Korea`s Mirae Asset, AXA (with the Bharti group) and Pioneer, are some of the other big-ticket names that are planning to enter the booming Indian mutual fund business.
Read the article from domain-b.com.
Read the article from myiris.com.
The Hutch stake: Game on
Hutchison’s 52% stake in Hutchison Essar Ltd. seems to be gathering a high level of interest amongst the telecom players and equally with PE funds. The Ruias are believed to be looking at buying their partners stake, for which they plan to approach a few banks, as reported by Business Standard.
The race is already on with a number of players lining up for the stake including Reliance Communications in tie up with a few PE funds, Egyptian telecom giant Orascom and
The Anil Ambani groups Reliance Commnications has reportedly tied up with four American private equity funds -- Blackstone, Texas Pacific Group, KKR and Carlyle, who collectively have equity investments of $100 billion. Reliance Communications would endeavor to be the majority domestic partner if the bid comes through reported the Economic Times.
Orascom, which has over 19 per cent stake in Hong Kong-based HTIL is understood to have appointed Deutsche Bank as their adviser while Standard Chartered is supposedly advising
Goldman Sachs is the advisor to Hutchison and will evaluate all the bids
Go to article from The Economic Times
Go to article from Business Standard
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