DNA Money reports that Ahmedabad-based contract research organization (CRO) Synchron Research Services Private Limited has taken over Innovance, a local start-up CRO. The financial details of the transaction, which was facilitated by Deloitte, have not been disclosed. The acquisition is touted as a first-of-its-kind in the Indian CRO space.
Innovance has been co-promoted by Dr. BB Lohray, the former head of research at Zydus Cadila who was in the headlines recently for being fired by the company for alleged embezzlement of funds. The promoters of Innovance wanted to sell off the firm and had approached Synchron 4-5 months ago.
The deal will help Synchron hike its bed capacity to nearly 200 from the 90 and catapult it to the league of Asia’s largest CROs. However, the company is not planning a halt in its inorganic growth strategy anytime soon. It is looking for more acquisitions in India and even in other parts of Asia to increase its Asian footprint, as per company officials.
Tuesday, April 3, 2007
Q1 2007: M&As – $42 bn; VC / PE – $2.4 bn
The first quarter of Jan-Mar for the calendar year 2007 has seen mergers and acquisitions (M&As) touch a figure of a whopping $42 bn. This has resulted in the M&A / GDP ratio standing at around 18%, against the global average of 8.8%. Out of the total deals announced by India Inc during the quarter, $38.9 bn represent strategic M&As including the big ticket Tata-Corus, Hindalco-Novelis and Vodafone-Hutch deals. In March there were 54 M&A deals announced worth $2.14 bn. The big ones last month were Tata Power’s $1.1 bn deal for a strategic stake in coal assets in Indonesia and Havell’s $300 mn deal to acquire German lighting company SLI Sylvania.
With the spurt in M&A transactions in the Jan-Mar quarter, venture capital (VC) / private equity (PE) investments in India also seem to be riding on a crest. The first quarter of 2007 has seen VC / PE investments almost double to about $2.4 bn across 78 deals compared with $1.4 bn across 69 deals in the same period last year. The figure of $2.4 bn doesn’t include real estate investments made in the first three months of the year. IT, manufacturing, financial services, engineering and construction, transport and logistics are the happening segments, going by investments in these sectors in this quarter. However, there has been a flat growth in VC investments, which accounted for only about $100 mn in Q1 across 15 deals. The figure includes 11 deals in the sub-$10 mn category.
Some of the big deals announced in the first quarter include a combined deal of about $500 mn for stake in National Stock Exchange by New York Stock Exchange, Goldman Sachs, Softbank and General Atlantic; Nimbus Communications received funding of about $125 mn from British PE firm 3i, Cisco Systems and Oman International Fund in January; Khazanah Nasional Berhad, the investment arm of the Malaysian government, hiking its stake in IDFC to 9.95% by paying around Rs. 820 crores in March; Kotak Mahindra Bank’s Private Equity Group investment of Rs. 100 crores in DRS Logistics, a logistics and transportation service provider based out of Hyderabad; ADM, an HK-based fund, invested $82 mn for a 10% stake in SKNL; Ramky Infrastructure, a Hyderabad-based construction company, raised Rs. 125 crores from IL&FS Investment Managers and UAE based Sabre-Abraaj PE Fund.
Read The Economic Times articles – 1 & 2.
With the spurt in M&A transactions in the Jan-Mar quarter, venture capital (VC) / private equity (PE) investments in India also seem to be riding on a crest. The first quarter of 2007 has seen VC / PE investments almost double to about $2.4 bn across 78 deals compared with $1.4 bn across 69 deals in the same period last year. The figure of $2.4 bn doesn’t include real estate investments made in the first three months of the year. IT, manufacturing, financial services, engineering and construction, transport and logistics are the happening segments, going by investments in these sectors in this quarter. However, there has been a flat growth in VC investments, which accounted for only about $100 mn in Q1 across 15 deals. The figure includes 11 deals in the sub-$10 mn category.
Some of the big deals announced in the first quarter include a combined deal of about $500 mn for stake in National Stock Exchange by New York Stock Exchange, Goldman Sachs, Softbank and General Atlantic; Nimbus Communications received funding of about $125 mn from British PE firm 3i, Cisco Systems and Oman International Fund in January; Khazanah Nasional Berhad, the investment arm of the Malaysian government, hiking its stake in IDFC to 9.95% by paying around Rs. 820 crores in March; Kotak Mahindra Bank’s Private Equity Group investment of Rs. 100 crores in DRS Logistics, a logistics and transportation service provider based out of Hyderabad; ADM, an HK-based fund, invested $82 mn for a 10% stake in SKNL; Ramky Infrastructure, a Hyderabad-based construction company, raised Rs. 125 crores from IL&FS Investment Managers and UAE based Sabre-Abraaj PE Fund.
Read The Economic Times articles – 1 & 2.
Indian Hotels to acquire US-based Hotel Campton Place for $60 mn
Indian hospitality major Indian Hotels, which manages the Taj Group of Hotels, Resorts and Palaces is acquiring US-based Hotel Campton Place for around $60 mn (Rs. 264 crores). Union Square, San Francisco-based Hotel Campton Place is a 110-room luxury boutique hotel situated on the west coast of the US.
The acquisition cost includes estimated transaction costs and the hotel is intended to be acquired in partnership with financial investors. The board of directors of the Indian Hotels company have approved of the acquisition subject to necessary statutory regulations. The sale-purchase agreement was signed yesterday and the transaction is scheduled to be completed on April 30, 2007.
Indian Hotels has been very active on the acquisition front with regards to its American business strategy. Last year, Indian Hotels had signed an agreement to purchase the Ritz-Carlton Boston for $170 mn. Besides, in 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue at a lease price of $5 mn a year.
Article in Zee News.
The acquisition cost includes estimated transaction costs and the hotel is intended to be acquired in partnership with financial investors. The board of directors of the Indian Hotels company have approved of the acquisition subject to necessary statutory regulations. The sale-purchase agreement was signed yesterday and the transaction is scheduled to be completed on April 30, 2007.
Indian Hotels has been very active on the acquisition front with regards to its American business strategy. Last year, Indian Hotels had signed an agreement to purchase the Ritz-Carlton Boston for $170 mn. Besides, in 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue at a lease price of $5 mn a year.
Article in Zee News.
SEBI propose 2-year lock-in to hedge funds wanting to invest in India
Hedge funds interested in participating in the Indian stock markets have been asked by The Securities and Exchange Board of India (SEBI) to agree to a lock-in period of two years as a cushion against sudden withdrawal under adverse circumstances. Some hedge funds, both new and existing, already have agreed to the lock-in stipulation, as per SEBI officials.
Some of these are already invested in the Indian market through participatory notes (PNs), and may want to register directly with SEBI and invest with a two-year lock-in. SEBI chairman M Damodaran is trying to persuade many other new hedge fund applicants to provide a lock-in undertaking. The regulator also wants to ensure that hedge funds registering directly with it are regulated in the country of their origin. This information is being gathered by SEBI within 24 hours from a multilateral body of global regulators. Once the hedge fund comes upfront, SEBI is able to determine whether it is regulated in the home country. Having ensured this, the other comfort being sought is whether the fund will agree to a two-year lock in period. Sources said those who agree to this will get a preference in entering the Indian stock market.
In the past, SEBI had considered allowing hedge funds as it felt that they could be an additional source of liquidity besides diversifying the pool of foreign investments in the local market. As part of policy options, it was suggested three years ago that hedge funds could be allowed in the Indian market subject to certain conditions such as ensuring that at least 20% of the corpus should be contributed by investors such as university funds, charitable trusts, endowments, insurance firms, banks and pension funds.
Read more in The Economic Times article.
Some of these are already invested in the Indian market through participatory notes (PNs), and may want to register directly with SEBI and invest with a two-year lock-in. SEBI chairman M Damodaran is trying to persuade many other new hedge fund applicants to provide a lock-in undertaking. The regulator also wants to ensure that hedge funds registering directly with it are regulated in the country of their origin. This information is being gathered by SEBI within 24 hours from a multilateral body of global regulators. Once the hedge fund comes upfront, SEBI is able to determine whether it is regulated in the home country. Having ensured this, the other comfort being sought is whether the fund will agree to a two-year lock in period. Sources said those who agree to this will get a preference in entering the Indian stock market.
In the past, SEBI had considered allowing hedge funds as it felt that they could be an additional source of liquidity besides diversifying the pool of foreign investments in the local market. As part of policy options, it was suggested three years ago that hedge funds could be allowed in the Indian market subject to certain conditions such as ensuring that at least 20% of the corpus should be contributed by investors such as university funds, charitable trusts, endowments, insurance firms, banks and pension funds.
Read more in The Economic Times article.
ChrysCapital picks up 15% stake in telecom firm Spanco Telesystems
Networking and system integration company Spanco Telesystems has diluted a stake of 15% stake to private equity firm ChrysCapital. The financial details of the deal have not been disclosed.
Spanco expects to benefit from the domestic IT spend by telecom service providers, defence, state governments as they roll out networks, including SWANs for e governance initiatives. The company has grown revenues and profits at a CAGR of 60% and 108%, respectively over the previous three years and is well positioned to continue on its growth path paved with new initiatives in the arenas of RFiD and enhanced presence in the European and Middle Eastern markets. It has recently been awarded a 10-year, nation-wide outsourcing contract from Indian Railways.
Read The Economic Times article.
Spanco expects to benefit from the domestic IT spend by telecom service providers, defence, state governments as they roll out networks, including SWANs for e governance initiatives. The company has grown revenues and profits at a CAGR of 60% and 108%, respectively over the previous three years and is well positioned to continue on its growth path paved with new initiatives in the arenas of RFiD and enhanced presence in the European and Middle Eastern markets. It has recently been awarded a 10-year, nation-wide outsourcing contract from Indian Railways.
Read The Economic Times article.
Bennett Coleman buys stake in online merchandising company eYantra
Bennett, Coleman & Company has acquired a stake in Hyderabad-based eYantra Industries, a corporate brand merchandising company. Established in 2001 by ex-PriceWaterhouseCoopers consultants, eYantra offers a range of 5000 products across 150 categories. It is headquartered in Hyderabad and has various offices in Mumbai, Delhi, Chennai and Bangalore. More than 15 corporates have partnered with eYantra for their online brand stores, and 100 such online stores are expected to be hosted by the end of this year. eYantra has entered into long term exclusive merchandising contracts with several industry majors like Tech Mahindra, TCS, Accenture, Sasken, HCL, Genpact and ING Vysya Life Insurance.
The company has been growing at a CAGR of 73%. It has now forayed into internet- and intranet-based customized online brand stores. Named eTail, this new SBU will synchronize and energize its online brand store vertical across the globe.
Read more in The Economic Times article.
The company has been growing at a CAGR of 73%. It has now forayed into internet- and intranet-based customized online brand stores. Named eTail, this new SBU will synchronize and energize its online brand store vertical across the globe.
Read more in The Economic Times article.
Subscribe to:
Posts (Atom)