Following the interests shown in the NSE and the BSE by foreign investors, there is news that foreign stock exchanges are now eyeing equity stake in the Over the Counter Exchange of India (OTCEI). The government wants to position the OTCEI on the lines of London's Alternative Investment Market (AIM) by allowing easier corporate governance norms for the exchange, and is now planning to throw a lifeline to the now defunct bourse for small and medium companies.
Accordingly, the government is likely to encourage foreign stock exchanges to buy a strategic stake in the bourse. Recently, officials from the China Shanghai Stock Exchange visited the OTCEI and it is learnt that the Chinese may be willing to buy 5% in the exchange as permitted under current guidelines. It is also learnt that London's AIM and the South Korean Stock Exchange may be willing to buy stakes in the exchange. In addition to relaxing the listing norms on the OTCEI, the government is also likely to increase the eligibility criteria for companies coming out with IPOs.
The OTCEI was incorporated in early 1991, even before the establishment of the NSE in 1994. The forthcoming Budget is likely to name its exclusivity for listing by small and medium enterprises. The Securities and Exchange Board of India (SEBI) has also appointed a sub-committee to study the revival of the OTCEI.
Read more on this in the Business Standard article.
Thursday, January 18, 2007
Osian's raises Rs. 55 crores via private placement; valued at Rs. 590 crores
Arts and cultural institution Osian’s – Connoisseurs of Art Private Limited has raised Rs. 55 crores through a private equity placement to over five new investors at Rs. 1400 per share. The investors include a major Indian manufacturing company, three investors representing financial institutions and a major Oman-based investor group. The private placement pegs Osian’s valuation at approximately Rs. 590 crores.
In May 2006, when Boston-based investment management firm Venus Capital Management’s 5% stake acquisition for Rs. 11.2 crores at Rs. 560 per share had valued Osian’s at Rs. 224 crores. The latest round of funding will further Osian’s vision to become the first art-cultural institution in the world to go public.
Osian’s list of investors includes famous names such as Shiv Nadar, Kumar Mangalam Birla, Gautam Thapar, Jerry Rao, and Vallabh Bhansali among others. Osian’s was established in 2000 by Neville Tuli, who still holds a majority stake in the company.
The projected PAT for the current financial year is expected to be Rs. 18 crores and Rs. 40 crores for 2007-08. The latest round of fund raising will dilute promoters’ equity by 9.89% and take the capital base of the company to Rs. 4.35 crores.
Osian’s intends to utilize these funds for expansion linked to the Osianama project. The Osianama project involves a complex which will include three film theatres showing the best of cinemas from Asia, the Arab world, Africa and Latin America while making available cutting-edge post-production facilities to the best in the industry, all in the context of a world class museum and archive where its vast art collection will be displayed for the public. Within this growth plan, Osian’s will enter feature film production in the current year.
Read The Economic Times article for more details.
In May 2006, when Boston-based investment management firm Venus Capital Management’s 5% stake acquisition for Rs. 11.2 crores at Rs. 560 per share had valued Osian’s at Rs. 224 crores. The latest round of funding will further Osian’s vision to become the first art-cultural institution in the world to go public.
Osian’s list of investors includes famous names such as Shiv Nadar, Kumar Mangalam Birla, Gautam Thapar, Jerry Rao, and Vallabh Bhansali among others. Osian’s was established in 2000 by Neville Tuli, who still holds a majority stake in the company.
The projected PAT for the current financial year is expected to be Rs. 18 crores and Rs. 40 crores for 2007-08. The latest round of fund raising will dilute promoters’ equity by 9.89% and take the capital base of the company to Rs. 4.35 crores.
Osian’s intends to utilize these funds for expansion linked to the Osianama project. The Osianama project involves a complex which will include three film theatres showing the best of cinemas from Asia, the Arab world, Africa and Latin America while making available cutting-edge post-production facilities to the best in the industry, all in the context of a world class museum and archive where its vast art collection will be displayed for the public. Within this growth plan, Osian’s will enter feature film production in the current year.
Read The Economic Times article for more details.
Indiabulls founder Sameer Gehlaut picks up 25% in BAG Films
Indiabulls co-founder and chairman Sameer Gehlaut has invested in Delhi-based TV and film content company BAG Films. Gehlaut is buying around 25% stake in BAG Films for Rs. 262 mn ($5.7 mn). Gehlaut has been made a preferential allotment of up to 20.25 mn equity shares of Rs. 2 each at a price of Rs. 13 per share. It is now mandatory for Gehlaut to make an offer for a further 20% stake. A fully subscribed open offer would make Gehlaut BAG’s largest shareholder.
The promoters of BAG Films, Rajiv Shukla and Anuradha Prasad own about 37.5% on the expanded equity currently. According to Anuradha Prasad, MD of BAG Films, Gehlaut has come in as a pure financial investor. BAG also plans to invest about Rs. 160 mn in new media and the animation business. Recently, IDBI Bank and Bank of Baroda have picked up 10% each in BAG Films’ radio venture, BAG Infotainment.
For more, refer to the Indiantelevision.com article.
The promoters of BAG Films, Rajiv Shukla and Anuradha Prasad own about 37.5% on the expanded equity currently. According to Anuradha Prasad, MD of BAG Films, Gehlaut has come in as a pure financial investor. BAG also plans to invest about Rs. 160 mn in new media and the animation business. Recently, IDBI Bank and Bank of Baroda have picked up 10% each in BAG Films’ radio venture, BAG Infotainment.
For more, refer to the Indiantelevision.com article.
ACC’s 40% stake in JV acquired by Almatis
Germany-based Almatis GmbH is acquiring 40% stake of cement major ACC in their JV Almatis ACC for an undisclosed price. The Kolkata-based joint venture company would now become a wholly-owned subsidiary of Almatis. Almatis is owned by private equity firm Rhone Capital and Teacher’s Merchant Bank and is the leading global supplier of specialty alumina and its products are used in industries from steel production to electronics. The JV was formed for the first time in 1995 between Alcoa’s aluminium refining business and ACC to produce ceramic and refractory raw materials. Located in Falta in Eastern India, Almatis ACC processes tabular alumina from Europe for the Indian refractory market.
Read The Economic Times article.
Read The Economic Times article.
Emaar-MGF to raise Rs. 13,000 crores in IPO
Emaar-MGF, the real estate JV between Dubai-based Emaar Properties and Delhi’s MGF Developments, is planning to follow in the footsteps of peer real estate major DLF. The company is set to raise around Rs. 13,000 crores from the capital markets to fund its rapidly growing property development business in India. The Emaar-MGF IPO is expected to hit the markets in the second half of 2007.
Emaar-MGF has projects in over 30 cities in residential, commercial, infrastructure, hospitality sectors and special economic zones across India. According to company estimates, it would require $4 bn to fund these projects, of which $1 bn was brought in through foreign direct investment last year. The company is hoping to raise the rest of the capital through the IPO and private placement.
Read the Business Standard article.
Emaar-MGF has projects in over 30 cities in residential, commercial, infrastructure, hospitality sectors and special economic zones across India. According to company estimates, it would require $4 bn to fund these projects, of which $1 bn was brought in through foreign direct investment last year. The company is hoping to raise the rest of the capital through the IPO and private placement.
Read the Business Standard article.
Wednesday, January 17, 2007
MCX may divest stake to Dubai Multi Commodities Centre
The Dubai government-owned Dubai Multi Commodities Centre (DMCC) may buy stake in Multi Commodity Exchange (MCX). DMCC would initially pick up a minor ownership in the MCX and later increase it following MCX’s initial public offering (IPO).
MCX is planning an IPO to raise about Rs. 300 crores. US-based New York Mercantile Exchange was reportedly eying a 9% stake in MCX for about $60 mn. In early 2006, foreign institutional investor Fidelity International had picked up more than 9% in MCX for $49 mn. Currently, the major shareholders of MCX, other than its promoter Financial Technologies, are State Bank of India, NABARD, the National Stock Exchange, Union Bank, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank and SBI Life Insurance.
DMCC, MCX and Financial Technologies had together set up the Dubai Gold and Commodity Exchange, which had commenced trading more than a year back. Recently, the New York Stock Exchange Group, General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund bought 5% each in the National Stock Exchange (See Related Post).
Read more on this in DNA Money.
MCX is planning an IPO to raise about Rs. 300 crores. US-based New York Mercantile Exchange was reportedly eying a 9% stake in MCX for about $60 mn. In early 2006, foreign institutional investor Fidelity International had picked up more than 9% in MCX for $49 mn. Currently, the major shareholders of MCX, other than its promoter Financial Technologies, are State Bank of India, NABARD, the National Stock Exchange, Union Bank, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank and SBI Life Insurance.
DMCC, MCX and Financial Technologies had together set up the Dubai Gold and Commodity Exchange, which had commenced trading more than a year back. Recently, the New York Stock Exchange Group, General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund bought 5% each in the National Stock Exchange (See Related Post).
Read more on this in DNA Money.
EBRD invests Rs. 40 crores for a 15% stake in SREI’s Russian unit
SREI Infrastructure & Finance Limited is diluting a 15% stake in its Russian arm Zao SREI Leasing to The European Bank for Reconstruction & Development (EBRD) for a consideration of around Rs. 40 crores. Zao SREI Leasing is the wholly owned Russian subsidiary of Kolkata-based SREI Group and is held through the group’s German arm, IIS GmbH.
SREI has set up Zao SREI in 2005, and is involved in construction equipment leasing in Russia and CIS countries. It recently structured and financed work-over rigs to be deployed in West Siberia. SREI said its immediate plan was to extend presence from the capital Moscow to St. Petersburg and other regions in Russia. Apart from EBRD, few other strategic investors are also interested in picking up stake in the Russian arm of SREI. However, Zao SREI Leasing will continue to be a subsidiary of the SREI Group. In future, Zao SREI may participate in PPP projects like its parent company in India.
Read the Business Standard and The Economic Times articles.
SREI has set up Zao SREI in 2005, and is involved in construction equipment leasing in Russia and CIS countries. It recently structured and financed work-over rigs to be deployed in West Siberia. SREI said its immediate plan was to extend presence from the capital Moscow to St. Petersburg and other regions in Russia. Apart from EBRD, few other strategic investors are also interested in picking up stake in the Russian arm of SREI. However, Zao SREI Leasing will continue to be a subsidiary of the SREI Group. In future, Zao SREI may participate in PPP projects like its parent company in India.
Read the Business Standard and The Economic Times articles.
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