Saturday, January 27, 2007

Citigroup VC may invest $15 mn in AnandRathi

Citigroup Venture Capital (CVC) is in talks to acquire 10-15% stake in Mumbai-based securities and wealth management firm AnandRathi Securities for around Rs. 70 crores ($15 mn). AnandRathi proposes to come out with a public issue in the next financial year. CVC is in the fray along with a couple of more private equity funds and the deal is expected to be closed within the end of the current fiscal.

This is the first time in 12 years since its establishment that AnandRathi is expected to receive private equity funding. The company offers the entire gamut of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage and distribution of equities, commodities, mutual funds and insurance. Besides having a pan-India presence with 300 offices, it has international presence through its offices in Dubai and Bangkok. AnandRathi also runs a Rs. 150-crore realty fund focusing on partnering with developers in Tier-II cities to cater to the growing demand for quality residential space in these cities and also earmark some investments in rental income yielding office properties. AnandRathi is also planning to launch an overseas $75 mn fund.

Read the Business Standard article.

Sasken Technologies, Tata company form auto electronics JV

The Economic Times reports that Tata AutoComp Systems Limited (TACO), a Tata Group company, and Bangalore-based embedded communications solutions firm Sasken Communication Technologies Limited has announced a JV partnership to design, develop and market automotive electronics products for the global market. The JV, TACO Sasken Automotive Electronics Private Limited, would address both OEMs and aftermarket It will initially focus on automotive electronics products in the areas of telematics, infotainment and occupant convenience. The company will start its operations from a state-of-the-art product development centre in Bangalore.

Sintex to buy European firm for €40 mn

Plastics and textiles company Sintex Industries is close to acquiring a European company for €40 mn before March-end. The Company has declined to divulge the name of the company citing the confidentiality the company has to maintain till the deal is concluded. The company is unlisted and is into the electrical engineering and auto ancillary capabilities having multiple locations in Europe having manufacturing facilities in Italy, Germany and France. Sintex is also in talks with four other firms, three in Europe and one in the US. The acquisition is a strategic move as the foreign firm has a pan-Europe presence with good clientele, many of whom are from Fortune 500 companies.

Sintex is also looking out in the domestic market and is in the process of acquiring electric engineering and auto ancillary based companies. The company seems to be now interested in picking up some local companies to fuel its growth. In its recently declared third quarter result, the company has seen an increase in its net income earning by 35%, while registering net income of Rs. 284.6 crores for the Q3 FY06-07 compared to Rs. 210.3 crores in the year-ago period. The net profit rose by 27% from Rs. 20.4 crores in last Q3FY05-06 to Rs. 25.9 crores in current Q3FY06-07.

Read the article in Business Standard.

Bennett Coleman buys 15% in Kanpur-based UPTEC for Rs. 5 crores

Bennett, Coleman & Company Limited has invested Rs 5 crore at Rs 1,714 a share for a 15% stake in UP-based IT company UPTEC. UPTEC was established in 1993. Since then it gave dividends regularly till 2003, after which it skipped paying for three years, ploughing back the profits in the company. It resumed paying dividends this year. Its turnover is likely to cross Rs. 30 crores this year with revenue coming from IT training, hardware & networking solutions, content development, and software services. Its current student strength is about 10,000 and 50,000 students have passed out of its ten centres in Lucknow, Kanpur, Allahabad, Varanasi and Noida. The latest offering from UPTEC is e-learning and e-testing. The company is testing its interactive e-learning software developed in-house, and it will be launched this summer in at least three subjects. All the company’s courses have won the ISO 901-2000 certificate for all education centres and allied services, including management education.

Read the article in Business Standard.

Sabre Capital to acquire a company each in IT, engineering sectors

Sabre Abraaj Private Equity, the 50:50 JV between Sabre Capital Worldwide and Abraaj Capital, is in the process of acquiring two firms in the IT and engineering products space that would be finalized in the next two months. The firm has declined to name the investee companies. Sabre Abraaj Capital has recently launched the $300 mn Sabre Abraaj India Private Equity Fund I and invested around $16 mn in Hyderabad-based Ramky Infrastructure (See Related Post). The fund is scouting for turnaround opportunities; it is a stated strategy of the fund to first acquire the companies and then work out the strategy to achieve turnaround. The fund is targeting sectors like infrastructure, retail, auto components, leisure and entertainment and medical devices as potential sectors for venture fund investments.

Read the article in The Economic Times.

Scandent to sell stake in Cambridge Solutions; Apollo, Fidelity, EDS approached

The Economic Times reports that the Scandent Group is selling its majority stake in Cambridge Solutions. Investment bank Lehman Brothers is scouting for buyers for Cambridge which has a large BPO operation in the US. Some US-based funds such as Apollo, Fidelity and strategic players like global IT major EDS have been approached. An information memorandum has also been drafted for the prospective buyers. Cambridge is expected to fetch a valuation of anything above $300 mn, making it the second largest domestic deal in the BPO industry, after the $500 mn sale by General Electric of its 60 % stake in India’s biggest BPO outfit Genpact to Oak Hill Partners and General Atlantic in 2004. At present, the group of original promoters-this include serial entrepreneur Ramesh Vangal, former Pepsico CEO Christopher Sinclair, McKinsey honcho Rajat Gupta, US-Canadian Bronfman family of Seagram fame, the Chanderia family and current CEO Satyan Patel-holds 59.15% stake in Cambridge.