Hong Kong-based private equity firm ADM Capital is investing $107 mn into textiles firm S Kumar's Nationwide Limited and its retail arm Brandhouse Retail. ADM will invest $82 mn to acquire a 10% stake in S Kumar's and $25 mn will be invested in Brandhouse Retail for another 10% stake in the company. S Kumar's will issue convertible warrants to ADM Capital. The deal values the S Kumar's share at Rs. 82.5, while the Brandhouse Retail share has been valued at Rs. 85. S Kumar's will utilize $30 mn to repay lenders, while $52 mn will be used to fund capital expenditure plans.
S Kumar's is a Mumbai-based Rs. 1000-crore textiles and apparel conglomerate. It operates in the worsted, ready-to-wear, consumer textiles, home textiles segments. Brandhouse Retail, which was de-merged from S Kumars, will utilize the entire $25 mn to fuel growth plans. It is also expected to be listed on the exchanges as a separate entity by August. Brandhouse will invest Rs. 400 crores to open 1000 stores across the country over the next three years. It owns and operates S Kumar's apparel and textile showrooms and manages international brands such as Dunhill, Escada and Stephens Brothers.
Read more in the DNA Money article.
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Showing posts with label ADM Capital. Show all posts
Showing posts with label ADM Capital. Show all posts
Monday, March 26, 2007
Wednesday, February 28, 2007
Hong Kong-based ADM Capital to invest Rs. 80 crores in Rama Pulp and Papers
ADM Capital, a Hong Kong-based distressed debt fund will invest about Rs. 80 crores in mid-sized paper company Rama Pulp & Papers, which will use the funds for capex and for future programmes, including an acquisition (See Related Post). ADM is learnt to have been selected from players like Bank of America, Actis and DBZ.
ADM Capital joins a growing list of foreign private equity firms such as Citigroup, Standard Chartered, WL Ross, Clearwater and Eight Capital that have been cherry picking underperforming companies in India that they think have the potential to grow and churn profits in the next 4-5 years.
Formed in 1996, ADM Capital advises investment funds that make principal investments in distressed companies and special investment opportunities. ADM Capital had earlier joined Asian Development Bank to raise a $138mn fund to rehabilitate distressed companies in Asia. India’s distressed assets are estimated at $55 bn (about Rs. 253,000 crores). Distressed debt funds typically focus on companies that have either filed for bankruptcy or are likely to do so in the near future. The fund gets involved in restructuring to pull the company out from bankruptcy. Distressed debt firms often forgive the debt obligations of the company in return for equity.
Read the article in The Economic Times.
ADM Capital joins a growing list of foreign private equity firms such as Citigroup, Standard Chartered, WL Ross, Clearwater and Eight Capital that have been cherry picking underperforming companies in India that they think have the potential to grow and churn profits in the next 4-5 years.
Formed in 1996, ADM Capital advises investment funds that make principal investments in distressed companies and special investment opportunities. ADM Capital had earlier joined Asian Development Bank to raise a $138mn fund to rehabilitate distressed companies in Asia. India’s distressed assets are estimated at $55 bn (about Rs. 253,000 crores). Distressed debt funds typically focus on companies that have either filed for bankruptcy or are likely to do so in the near future. The fund gets involved in restructuring to pull the company out from bankruptcy. Distressed debt firms often forgive the debt obligations of the company in return for equity.
Read the article in The Economic Times.
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