Magma Leasing Limited will make a private placement of $15 mn or around Rs. 65 crores of redeemable preference shares to The Netherlands Development Finance Company (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden - FMO). This follows an earlier investment of Rs. 21 crores by FMO in Magma preference shares in February 2006. The investment will be treated as Tier-2 capital in the company, as per RBI guidelines. The funds raised would be used strengthen the balance-sheet and drive business volume growth.
Magma had received an investment of Rs. 105 crores in August 2006 from the UK-based Cambridge Place Investment Management and following its merger with Kolkata-based Shrachi Infrastructure Finance Limited, Magma now had a branch network at 154 locations and over Rs. 5500 crores worth of assets under management.
Magma finances commercial vehicles, cars, construction equipment, and multi-utility vehicles, and users in semi-urban and rural markets contribute a significant proportion of its business. It also has fee-based businesses like distribution of insurance and personal loan products.
Read the article in Business Standard.
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Local microfinance fund Bellwether gets $2.4 mn from Dutch firm
Wednesday, March 28, 2007
ChrysCapital to invest for $60 mn for 12% in Hathway Cable
Homegrown private equity major ChrysCapital may acquire about 10-12% stake in Rajan Raheja Group-controlled Hathway Cable for $60 mn. If the deal sails through, Raheja’s stake will be reduced to about 62-64%, while Star TV will continue to maintain its 26% holding in the company.
Talks between the two parties are at an advanced stage and the deal is likely to take place shortly. In January, Singapore-based PE fund Temasek Holdings bought 10% stake in Tata Sky, the joint venture between the Tata Group and Star TV, for Rs. 250 crores.
Delhi-based ChrysCapital manages $1 bn across four funds. Its investment portfolio includes Idea Cellular, UTI Bank, Suzlon, Yes Bank, Moser Baer and ING Vysya Bank.
Read the Indiantelevision.com article.
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Temasek Holdings buys 10% in Tata Sky for Rs. 250 crores; values the DTH provider at Rs. 2500 crores
Talks between the two parties are at an advanced stage and the deal is likely to take place shortly. In January, Singapore-based PE fund Temasek Holdings bought 10% stake in Tata Sky, the joint venture between the Tata Group and Star TV, for Rs. 250 crores.
Delhi-based ChrysCapital manages $1 bn across four funds. Its investment portfolio includes Idea Cellular, UTI Bank, Suzlon, Yes Bank, Moser Baer and ING Vysya Bank.
Read the Indiantelevision.com article.
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Temasek Holdings buys 10% in Tata Sky for Rs. 250 crores; values the DTH provider at Rs. 2500 crores
Rain Commodities not to bid anymore for GLC Carbon
Hyderabad-based Rain Commodities’ wholly-owned North American subsidiaries, Rain USA and Rain Canada, have withdrawn as rival bidder to Oxbow's proposal of C$14.00 per unit for acquiring the assets of the Toronto-based Great Lakes Carbon Income Fund. GLC Income Fund is a trust established to indirectly hold the securities of GLC Carbon USA, Inc., the world's largest producer of both anode and industrial grade calcined petroleum coke. Rain Canada would receive a termination fee of C$17 mn (Rs. 64 crores) in cash from the fund prior to it actually entering into an agreement with Oxbow as required under the terms of its agreement with GLC Carbon Fund.
Rain USA stills retains the option to sell its indirect 20.22% stake in GLC Carbon, acquired in March 2006, as the fund is required to ensure that US-based Oxbow makes an offer to each stockholder of GLC Carbon to buy such equity interests.
Read the article in Business Standard.
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Rain, Oxbow bids C$13.50 for GLC Carbon; draws Rain Commodities into bidding war
Rain USA stills retains the option to sell its indirect 20.22% stake in GLC Carbon, acquired in March 2006, as the fund is required to ensure that US-based Oxbow makes an offer to each stockholder of GLC Carbon to buy such equity interests.
Read the article in Business Standard.
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Rain, Oxbow bids C$13.50 for GLC Carbon; draws Rain Commodities into bidding war
Mayfield Ventures to invest $15 mn in domestic i-bank Avendus Advisors
Mumbai-based investment bank Avendus Advisors has received a private equity investment of around $15 mn, for a stake of 20%, from US-based venture capital fund Mayfield Ventures. The fund is being infused as fresh equity, and the term sheets would be signed in a week’s time. Other details of the deal have not been disclosed. Avendus, founded in 1999, has been valued at around Rs. 330 crores. Before the equity sale, the three initial promoters, Ranu Vohra, Gaurav Deepak and Kaushal Aggarwal, and the employees of Avendus held around 70% stake, while Spanish institutional investor Americorp held 20% and entrepreneur-investor from California, Anil Godhwani held the remaining 10%. Once the deal is finalized, there will be corresponding reduction in the stake held by each promoter.
Mayfield has already partnered Avendus to raise a $200 mn offshore fund which would invest in Indian projects, and is expected to be set up by July-August. Avendus has seen a strong growth over last couple of years. Its annual revenues are expected to cross $12 mn in 2006-07. The organisation employs approximately around 40 professionals.
The investment bank focuses on wealth management, institutional broking and debt solutions. It is also offering private equity syndication, advice on M&As, and strategic advisory services to corporates and funds. It is now in the process of expanding its operations abroad by opening offices in New York and Munich. Avendus focuses on industries where Indian companies have a strategic growth advantage including IT services, IT-enabled services, pharmaceuticals and healthcare, media and consumer products and services. The most recent deal cracked by Avendus was to help AnandRathi Securities to dilute around 20% stake in favour of CVC International, for around Rs. 100 crores (See Related Post).
Read The Economic Times article.
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Avendus Advisors to divest 20% stake to Old Lane and Mayfield Ventures
Avendus Advisors forms $200 mn PE fund with Mayfield Fund; to invest in the outsourcing sector
Mayfield has already partnered Avendus to raise a $200 mn offshore fund which would invest in Indian projects, and is expected to be set up by July-August. Avendus has seen a strong growth over last couple of years. Its annual revenues are expected to cross $12 mn in 2006-07. The organisation employs approximately around 40 professionals.
The investment bank focuses on wealth management, institutional broking and debt solutions. It is also offering private equity syndication, advice on M&As, and strategic advisory services to corporates and funds. It is now in the process of expanding its operations abroad by opening offices in New York and Munich. Avendus focuses on industries where Indian companies have a strategic growth advantage including IT services, IT-enabled services, pharmaceuticals and healthcare, media and consumer products and services. The most recent deal cracked by Avendus was to help AnandRathi Securities to dilute around 20% stake in favour of CVC International, for around Rs. 100 crores (See Related Post).
Read The Economic Times article.
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Avendus Advisors to divest 20% stake to Old Lane and Mayfield Ventures
Avendus Advisors forms $200 mn PE fund with Mayfield Fund; to invest in the outsourcing sector
Tuesday, March 27, 2007
SEBI, RBI conduct studies for regulating PE funds
If media reports are to be believed, then private equity funds are in for a tough time ahead in the Indian markets. PE funds may come under the regulatory scanner in India, and though the ultimate regulator has not been decided upon, both Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI) have formed study groups to analyze the structure and impact of such funds on the investors, the companies in which they invest in and their effect on corporate governance.
The issue has gained importance as a working group of International Organisation of Securities Commission (IOSCO) has been set up to study the impact of private equity funds on emerging markets. The Indian market regulator is the chairman of IOSCO’s emerging market committee, and will also have consultative discussions with other regulators during the 32nd annual conference of IOSCO to be hosted by SEBI in India this year.
Based on the joint findings of the study, the regulators may issue guidelines for listing and registration of such funds, for ensuring better monitoring. The purpose of the study is to ascertain if the actual investors in a private equity fund are loosing out during leveraged buyouts, de-listing and re-listing of the company.
Read more in the Business Standard article.
The issue has gained importance as a working group of International Organisation of Securities Commission (IOSCO) has been set up to study the impact of private equity funds on emerging markets. The Indian market regulator is the chairman of IOSCO’s emerging market committee, and will also have consultative discussions with other regulators during the 32nd annual conference of IOSCO to be hosted by SEBI in India this year.
Based on the joint findings of the study, the regulators may issue guidelines for listing and registration of such funds, for ensuring better monitoring. The purpose of the study is to ascertain if the actual investors in a private equity fund are loosing out during leveraged buyouts, de-listing and re-listing of the company.
Read more in the Business Standard article.
TCS sells 40% stake Sitel India to JV partner Sitel for $17.73 mn
Business Standard reports that Tata Consultancy Services has divested its 40% stake in the BPO firm Sitel India to US-based Sitel Corporation for $17.732 mn. Sitel India is a joint venture between the Tata Group and Sitel Corporation, formed in 2000, with both parties holding 50% of the equity. Tata International, which holds 10% stake in the JV, has also agreed to sell its stake. The joint venture company provides voice-based contact centre BPO services from India. With over 4000 professionals, the JV is a provider of fully integrated customer care and back office processing services operating from five centers in Mumbai, Hyderabad, Chennai and Gurgaon.
Marwadi Shares raises second round of funding from UK-based Caledonia Investments
Rajkot-based equity broking house Marwadi Shares & Finance Limited has completed a second round of private equity placement from another UK-based Caledonia Investments Plc, after its first phase of investment from India Capital Growth Fund Limited in December 2006. Caledonia Investments has picked up a 19.67% stake in Marwadi Shares for around Rs. 42 crores. Marwadi Shares and Finance is a decade-old financial services group offering stock broking and commodity broking firm on the NSE, BSE, NCDEX and MCX.
Marwadi Shares has emerged as the fifth broking house in the country and the first broking house from Gujarat to have private equity placement from a foreign player. It had initially planned a route into the capital markets and raise about Rs. 60 crores through and initial public offering, but postponed the plan and instead decided to raise funds through private equity placement. The company has now revised its equity raising pattern from Rs. 60 crores to Rs. 73.5 crores and has managed to disburse a 33% stake.
Read the article in Business Standard.
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Rajkot-based broking house gets PE funding from UK-based India Capital Growth Fund
Marwadi Shares has emerged as the fifth broking house in the country and the first broking house from Gujarat to have private equity placement from a foreign player. It had initially planned a route into the capital markets and raise about Rs. 60 crores through and initial public offering, but postponed the plan and instead decided to raise funds through private equity placement. The company has now revised its equity raising pattern from Rs. 60 crores to Rs. 73.5 crores and has managed to disburse a 33% stake.
Read the article in Business Standard.
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Rajkot-based broking house gets PE funding from UK-based India Capital Growth Fund
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