Star to buy 20% stake in radio company MBPL

Rupert Murdoch-controlled Star Group will pick up 20% equity in radio company Music Broadcast Private Limited (MBPL) from private equity firm India Value Fund Advisors (IVFA). MBPL runs its radio service under the brand 'Radio City', which is operational in major cities like Mumbai, Delhi, Bangalore, Lucknow, Hyderabad, Chennai and Jaipur. The company also won licenses in the second round of FM radio bidding and has plans to launch services in cities like Nagpur, Surat, Ahmedabad and Baroda.

The two companies had technically approved the deal and now Star would be seeking governmental approval to make the investments. Star will be approaching the Foreign Investment Promotion Board (FIPB) to seek permission for making the investments.

This will be Star's second coming in the Indian FM radio business, after its stint with MBPL earlier where it was responsible for content supply and ad-sales, though without putting in equity. Star did not have any stake in the company at that time as the Government had not opened the sector to FDI. However, with the government allowing 20% equity in private FM radio as well as laying down a favourable policy regime, in the form of a revenue share regime, Star has made a comeback in the segment through equity participation.

Read the article in The Financial Express and The Economic Times.

Evolvence to launch Indian private equity fund

Dubai-based fund-of-funds Evolvence Capital is launching an AIM-listed closed-ended FOF in January which will invest in Indian PE funds. The fund intends to raise $105 mn for the Evolvence India Fund. The FOF will invest in a number of closed-ended PE funds focused on the Indian infrastructure, pharmaceutical and retail sectors. UTI Ventures’ Ascent India Fund, Barings India Private Equity Fund II, IDFC Private Equity Fund II, India Value Fund II, IL&FS’ Leveraged India Fund and New York Life Investment Management India Fund II will be the initial beneficiaries of the fund.

Earlier this year, Evolvence had made direct investments into Emaar-MGF Land Private Limited, Centurion Bank of Punjab, Consolidated Construction Consortium Limited (an engineering and construction contractor) and Eastern Silk Industries Limited (a silk textile manufacturer). Also, sometime in the April – June quarter of 2006-07, Evolvence announced the launch of a $150 mn fund for investing in small- and medium-sized Life Sciences companies in India.

For more details, read the article from Citywire.co.uk.