One of India’s leading theatre chains, Cinemax India Limited, is coming out with an Initial Public Offering (IPO) with an issue of 8.92 mn shares of Rs. 10 each at a price band of Rs. 135 – Rs. 155 per share. The issue comprises a fresh issue of 7 mn shares and an offer for sale of 1.92 mn shares by existing shareholders. The net issue will constitute 31.86% of the fully diluted equity share capital of Cinemax India Limited.
The capital raised from the issue will be deployed to set up several theatres in various locations across India. As a part of their expansion plans, over the next two years, they propose to set up 19 theatres at identified key locations in which a total seating capacity of approximately 15,864 seats will be created.
Enam Financial Consultants Private Limited, JM Morgan Stanley Private Limited, Edelweiss Capital Limited and Ambit Corporate Finance Private Limited are the Book Running Lead Managers to the IPO. The shares will be listed on The Bombay Stock Exchange and The National Stock Exchange of India.
Read the press release here.
Thursday, January 11, 2007
Deutsche Borse, Singapore Stock Exchange in race to acquire BSE interest
The Singapore Stock Exchange (SGX) and Deutsche Borse are two of some of the leading stock exchanges that may get to buy a stake in Bombay Stock Exchange (BSE).
The London Stock Exchange (LSE) and NASDAQ are two other exchanges that seem to be interested in acquiring a stake in BSE. At one point of time, even NYSE was considering an investment in BSE and was said to have done a due diligence. This was before the government had stipulated a 5% limit for a foreign investor in stock exchanges. NYSE has now invested $115 mn in the National Stock Exchange for a 5% stake (See Related Post).
BSE seems to be in a hurry to find a strategic partner as soon as possible as it wants to complete its IPO before May 2007. A strategic partner is expected to give BSE a higher valuation. Going by the valuation that has NSE received for its stake sale to NYSE and other three foreign entities, it seems that BSE will get anywhere between $750 mn and $1 bn.
Currently, BSE senior management and merchant bankers are busy in fulfilling formalities related to finding a partner and filing a draft prospectus. BSE will also have to increase its capital base from the present Rs. 70 lakhs and is considering a bonus to meet the minimum capital requirements.
Read the article in Business Standard.
The London Stock Exchange (LSE) and NASDAQ are two other exchanges that seem to be interested in acquiring a stake in BSE. At one point of time, even NYSE was considering an investment in BSE and was said to have done a due diligence. This was before the government had stipulated a 5% limit for a foreign investor in stock exchanges. NYSE has now invested $115 mn in the National Stock Exchange for a 5% stake (See Related Post).
BSE seems to be in a hurry to find a strategic partner as soon as possible as it wants to complete its IPO before May 2007. A strategic partner is expected to give BSE a higher valuation. Going by the valuation that has NSE received for its stake sale to NYSE and other three foreign entities, it seems that BSE will get anywhere between $750 mn and $1 bn.
Currently, BSE senior management and merchant bankers are busy in fulfilling formalities related to finding a partner and filing a draft prospectus. BSE will also have to increase its capital base from the present Rs. 70 lakhs and is considering a bonus to meet the minimum capital requirements.
Read the article in Business Standard.
Texas Pacific pulls out of investing in SpiceJet
Private equity giant Texas Pacific Group is pulling out of its $30 mn investment in low-cost airline SpiceJet. Reasons cited are as varied as differences over valuation to the US-based fund having expressed its inability to participate in this round of fund-raising by the low-cost carrier as its top management was busy with an ongoing $11 bn deal for buying out Australian airline, Qantas, by a consortium of private equity players.
In its current round of fund raising, SpiceJet has raised around Rs. 300 crores by divesting around 25% stake, giving the company a valuation of around Rs. 1200 crores. The Tata Group, through two of its investment arms, is picking up 7% stake for Rs. 75 crores. Existing shareholder, Istithmar, Dubai government’s private equity arm, is putting in another $25 mn for increasing its stake from 3% to 11%. BNP Paribas will invest $15 mn for a 4% equity stake, while Goldman Sachs is picking up 1.5% stake for around $5 mn. A clutch of small investors will hold another 4% stake between them.
The company is holding its EGM on Thursday to ratify the preferential allotments. The shares were offered at an average price of Rs. 51.36 per share. After this round of dilution, the stake of the promoters including those of the UK-based Kansagra family, director Ajay Singh and associates, will come down from around 18% to 15%.
Read more in The Economic Times article.
In its current round of fund raising, SpiceJet has raised around Rs. 300 crores by divesting around 25% stake, giving the company a valuation of around Rs. 1200 crores. The Tata Group, through two of its investment arms, is picking up 7% stake for Rs. 75 crores. Existing shareholder, Istithmar, Dubai government’s private equity arm, is putting in another $25 mn for increasing its stake from 3% to 11%. BNP Paribas will invest $15 mn for a 4% equity stake, while Goldman Sachs is picking up 1.5% stake for around $5 mn. A clutch of small investors will hold another 4% stake between them.
The company is holding its EGM on Thursday to ratify the preferential allotments. The shares were offered at an average price of Rs. 51.36 per share. After this round of dilution, the stake of the promoters including those of the UK-based Kansagra family, director Ajay Singh and associates, will come down from around 18% to 15%.
Read more in The Economic Times article.
California-based company invests in Indian design firm CG CoreEL
The Economic Times reports that California-based Xilinx, Inc., the world’s largest programmable logic services company is investing in CG CoreEL. CG CoreEL is a Noida-based design firm providing embedded systems design services.
Xilinx seems to be following the ‘corporate venturing’ strategy of private equity and is investing out of its $75-million corporate venture capital fund called the Asia Pacific Technology Fund. CG CoreEL is the first recipient of its funding activities and is currently negotiating terms with Xilinx. The deal size would be disclosed later. Xilinx is also in talks with few other companies in India for investment, all of which are at an early stage.
Xilinx seems to be following the ‘corporate venturing’ strategy of private equity and is investing out of its $75-million corporate venture capital fund called the Asia Pacific Technology Fund. CG CoreEL is the first recipient of its funding activities and is currently negotiating terms with Xilinx. The deal size would be disclosed later. Xilinx is also in talks with few other companies in India for investment, all of which are at an early stage.
Avendus Advisors to divest 20% stake to Old Lane and Mayfield Ventures
Hedge fund Old Lane Partners and venture capital firm Mayfield Ventures may buy around 20% stake in leading boutique investment bank Avendus Advisors for a sum of Rs. 80 crores. This puts the valuation of the bank at around Rs. 400 crores. Avendus is expected to gross annual revenues of $12 mn in 2006-07. The organization has grown from 16 professionals to 40 in 2006.
Avendus was founded in 1999 by Ranu Vohra, Gaurav Deepak and Kaushal Aggarwal. They and employees of Avendus hold around 70% of the bank’s equity stake. Americorp, a Spanish institutional investor, holds 20% and the rest is held by Californian entrepreneur-investor Anil Godhwani. A minority stake earlier held by Infinity Venture, a venture capital fund, had been bought back by promoters around 2 years back.
Recently, Avendus has inducted two senior officials as vice presidents. Kishore Srinivasan, former joint GM and Head, Closely Monitored Assets (CMA) at ICICI Bank, joined Avendus as vice president and is now heading its corporate debt services. Also, Rajiv Shukla, former director, business development, at Pfizer, has joined Avendus as vice president, heading its life science vertical. Mr. Shukla is known to have played a leadership role on 5 acquisitions at Pfizer totaling $63 bn. Just a couple of days ago, Avendus was in the news for the exit of some of its high-profile employees, notably, Deepesh Garg, Assistant Vice-President, Consumer Products and Services Team, and Shiraz Bugwadia, Assistant Vice-President, Pharmaceuticals and Healthcare.
Avendus focuses on wealth management, institutional broking and debt solutions. It offers private equity syndication, mergers & acquisitions (M&A), and strategic advisory services to corporates and funds. Currently, it is in the process of expanding its operations abroad by opening offices in New York and Munich.
Read The Economic Times article.
Related Post: Key senior people exit Avendus Advisors to float boutique investment bank
Avendus was founded in 1999 by Ranu Vohra, Gaurav Deepak and Kaushal Aggarwal. They and employees of Avendus hold around 70% of the bank’s equity stake. Americorp, a Spanish institutional investor, holds 20% and the rest is held by Californian entrepreneur-investor Anil Godhwani. A minority stake earlier held by Infinity Venture, a venture capital fund, had been bought back by promoters around 2 years back.
Recently, Avendus has inducted two senior officials as vice presidents. Kishore Srinivasan, former joint GM and Head, Closely Monitored Assets (CMA) at ICICI Bank, joined Avendus as vice president and is now heading its corporate debt services. Also, Rajiv Shukla, former director, business development, at Pfizer, has joined Avendus as vice president, heading its life science vertical. Mr. Shukla is known to have played a leadership role on 5 acquisitions at Pfizer totaling $63 bn. Just a couple of days ago, Avendus was in the news for the exit of some of its high-profile employees, notably, Deepesh Garg, Assistant Vice-President, Consumer Products and Services Team, and Shiraz Bugwadia, Assistant Vice-President, Pharmaceuticals and Healthcare.
Avendus focuses on wealth management, institutional broking and debt solutions. It offers private equity syndication, mergers & acquisitions (M&A), and strategic advisory services to corporates and funds. Currently, it is in the process of expanding its operations abroad by opening offices in New York and Munich.
Read The Economic Times article.
Related Post: Key senior people exit Avendus Advisors to float boutique investment bank
Wednesday, January 10, 2007
NYSE, Goldman Sachs, General Atlantic, SAIF to buy 26% in NSE
The New York Stock Exchange (NYSE) and US-based global investment banking giant Goldman Sachs are among a group of institutional investors who are about to buy around a 5% stake each in National Stock Exchange (NSE), India’s biggest bourse. The NYSE, Goldman Sachs, General Atlantic Partners and Softbank Asian Infrastructure Fund have entered into an agreement with ICICI Bank, IFCI, IL&FS, PNB and GIC for the purchase.
NSE shareholders IL&FS and IFCI are selling 5% each of their holdings in the exchange to Goldman Sachs and NYSE in two separate deals expected to be signed soon. The two shareholders currently hold 7.1% each in the exchange. IDBI and ICICI Bank, the two other institutional promoters, are also expected to offload part of their holdings in the exchange in subsequent deals. The valuation of the NSE is expected to be over $2 billion.
Earlier, Fidelity had bought around 9% in MCX; later, Goldman acquired over 7% in NCDEX, the other online commodity exchange.
The proposed sale of stakes comes close on the heels of guidelines issued by the RBI on foreign investment in Indian stock exchanges. The RBI has allowed foreign investment up to 49% in stock exchanges, fixing foreign direct investment (FDI) cap at 26% and FII limit at 23%. Securities and Exchange Board of India (SEBI) has stipulated investment limit for single foreign investor at 5% beyond which an FII or any other investor like foreign stock exchange will not raise its stake in stock exchanges.
NSE has 21 promoters: an assorted medley of public sector banks, LIC, ICICI Bank, IL&FS and IDFC. ICICI holds 12.5% and IL&FS has 7.1%. NSE is an extremely profitable entity. In FY06, it had a net profit of Rs. 206 crores on revenues of Rs. 472 crores. In FY07 it is expected to report a profit of Rs. 250 crores. It has 70% share of all stock transactions in India.
Read more about the deal in The Economic Times and IndiaInfoline.com.
NSE shareholders IL&FS and IFCI are selling 5% each of their holdings in the exchange to Goldman Sachs and NYSE in two separate deals expected to be signed soon. The two shareholders currently hold 7.1% each in the exchange. IDBI and ICICI Bank, the two other institutional promoters, are also expected to offload part of their holdings in the exchange in subsequent deals. The valuation of the NSE is expected to be over $2 billion.
Earlier, Fidelity had bought around 9% in MCX; later, Goldman acquired over 7% in NCDEX, the other online commodity exchange.
The proposed sale of stakes comes close on the heels of guidelines issued by the RBI on foreign investment in Indian stock exchanges. The RBI has allowed foreign investment up to 49% in stock exchanges, fixing foreign direct investment (FDI) cap at 26% and FII limit at 23%. Securities and Exchange Board of India (SEBI) has stipulated investment limit for single foreign investor at 5% beyond which an FII or any other investor like foreign stock exchange will not raise its stake in stock exchanges.
NSE has 21 promoters: an assorted medley of public sector banks, LIC, ICICI Bank, IL&FS and IDFC. ICICI holds 12.5% and IL&FS has 7.1%. NSE is an extremely profitable entity. In FY06, it had a net profit of Rs. 206 crores on revenues of Rs. 472 crores. In FY07 it is expected to report a profit of Rs. 250 crores. It has 70% share of all stock transactions in India.
Read more about the deal in The Economic Times and IndiaInfoline.com.
The Pawar family may buy 49% in UB Group winery
Union Agriculture Minister Sharad Pawar’s family could take up to 49% stake in the UB Group’s Four Seasons winery in Baramati, Maharashtra. The Pawar family will also have a strong boardroom presence in the UB Group’s first wine venture in the country. United Spirits, the spirits flagship of UB Group, will directly hold at least 51% stake in Four Seasons. The Pawar family and a few other local stakeholders will own the rest. The Pawar family is expected to keep a significant minority stake in the venture. The seven-member company board, headed by Mr. Vijay Mallya, is likely to have three Pawar family members on it.
The winery will have a five mn-litre capacity (7 mn bottles) and would attract investments of over Rs. 70 crores, when completed. Four Seasons is likely to hit the market with its first premium offering in October this year even though an economy range could be launched earlier.
Read the complete article in The Economic Times.
The winery will have a five mn-litre capacity (7 mn bottles) and would attract investments of over Rs. 70 crores, when completed. Four Seasons is likely to hit the market with its first premium offering in October this year even though an economy range could be launched earlier.
Read the complete article in The Economic Times.
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