Mumbai-based securities firm, UTI Securities, is witnessing major people exits, particularly in its investment banking division, with six senior and middle level executives resigning from the organization in the past one month. The list includes Head of Investment Banking, K Srinivas, company VP, Jinesh Mehta, VP of Broking, Sunil Nair, and VP – IPO and MF Distribution, Nirmal Rewaria.
Their resignations may prompt more junior executives to take the same route amid concerns over the prospects of the organization in the absence of top executives. Factors like lack of both focus and flexibility in decision making are cited as a few major reasons behind their leaving the organization.
Originally promoted by UTI, UTI Securities is now a subsidiary of Securities Trading Corporation of India (STCI). UTI Securities was incorporated as UTI’s 100% subsidiary in 1994. On repealing of the UTI Act, the management of the firm was transferred to the Administrator of the Specified Undertaking of UTI (UTI-I). In April 2006, the broking firm was sold to STCI for Rs. 265 crores.
UTI Securities recently completed Rs. 157 crore-IPO of Essdee Aluminium. Some of the forthcoming IPOs managed by the merchant banker include Pophiraju Industries (Rs. 38 crores), SMS Pharmaceuticals (approximately Rs. 100 crores) and Euro Ceramics (Rs. 90-100 crores).
Read more on this news in The Economic Times.
Related Post: Key senior people exit Avendus Advisors to float boutique investment bank
Wednesday, January 17, 2007
Redington India to hit the capital markets, to raise Rs. 125-150 crores
Redington India is planning to come out with a public offering of around 13 mn equity shares of Rs. 10 each in the price band of Rs. 95-113 through a 100% book building process to raise around Rs. 125-150 crores. The issue comprises 16.99% of the fully diluted post-issue capital of the company. The issue opens on January 22 and closes on January 25.
Redington India is a leading distributor of IT products. Redington proposes to utilize funds to establish four automated distribution centres (ADCs) and 68 service and repair centres (SRCs) in India, set up an ADC in Dubai and install an enterprise resource planning (ERP) system for operations in the Middle East and Africa through investment in its wholly-owned subsidiaries, Redington Gulf FZE and Cadensworth (India).
The company’s standalone net profit from its India operations has increased from Rs. 14.92 crores in 2003-04 to Rs. 29.12 crores in 2005-06 with a CAGR of 39.72%. In India, Redington has 10,474 partners, 35 sales office, 53 warehouses, 43 service centres and 40 partner centres. It has presence in 16 countries with channel strength of 2755.
Read the article from Business Standard.
Redington India is a leading distributor of IT products. Redington proposes to utilize funds to establish four automated distribution centres (ADCs) and 68 service and repair centres (SRCs) in India, set up an ADC in Dubai and install an enterprise resource planning (ERP) system for operations in the Middle East and Africa through investment in its wholly-owned subsidiaries, Redington Gulf FZE and Cadensworth (India).
The company’s standalone net profit from its India operations has increased from Rs. 14.92 crores in 2003-04 to Rs. 29.12 crores in 2005-06 with a CAGR of 39.72%. In India, Redington has 10,474 partners, 35 sales office, 53 warehouses, 43 service centres and 40 partner centres. It has presence in 16 countries with channel strength of 2755.
Read the article from Business Standard.
International Tractors to divest 5% equity
International Tractors (ITL), makers of the Sonalika brand of tractors, is in for a fourth tranche of private placement by selling a 5% stake in the company to an undisclosed financial investor. This follows ITL privately placing 5% equity with JM Financial for around Rs. 125-150 crores. In March 2006, it placed 10% stake each in two group companies – ITL and utility-vehicle maker International Cars & Motors (ICML) – with UK-based private equity firm 3i for an estimated Rs. 300 crores. The 10% ITL stake netted around Rs. 200 crores for Sonalika, the balance coming from the 10% ICML stake. Before 3i, Citigroup and Yanmar had also bought stake in the group. The company had sold 10% stake in ITL and 20% in ICML to Citigroup in 2005.
Read the article in The Economic Times.
Read the article in The Economic Times.
Friday, January 12, 2007
Reliance ARC to receive funding from George Soros’ fund, Blue Ridge Capital
Cyprus-based Dacecroft, a wholly-owned entity of Quantum Endowment Fund backed by billionaire investor George Soros and New York-based investment firm Blue Ridge Capital are picking 21% equity stake in Anil Dhirubhai Ambani Group’s Reliance Asset Reconstruction Company (Reliance ARC).
While Dacecroft, which would pick 11% stake, would come on board as the sole foreign sponsor of the company, Blue Ridge would be putting in its money as another investor. Dacecroft would invest Rs. 11 crores in the company. Blue Ridge would invest Rs. 10 crores through two arms: Blue Ridge Limited Partnership would pick 6.2% stake and Blue Ridge Offshore Master Partnership would hold 3.8% in Reliance ARC.
The second largest investor in Reliance ARC, Corporation Bank, which holds 20.76%, will hold 10% after the induction of foreign investors. The holding of General Insurance Company (GIC) would also come down from 17.65% to 10%.
Read the article in The Economic Times.
While Dacecroft, which would pick 11% stake, would come on board as the sole foreign sponsor of the company, Blue Ridge would be putting in its money as another investor. Dacecroft would invest Rs. 11 crores in the company. Blue Ridge would invest Rs. 10 crores through two arms: Blue Ridge Limited Partnership would pick 6.2% stake and Blue Ridge Offshore Master Partnership would hold 3.8% in Reliance ARC.
The second largest investor in Reliance ARC, Corporation Bank, which holds 20.76%, will hold 10% after the induction of foreign investors. The holding of General Insurance Company (GIC) would also come down from 17.65% to 10%.
Read the article in The Economic Times.
IFC, DEG planning to acquire a stake in SICOM
The private equity arm of the World Bank, the International Finance Corporation (IFC), and Germany-based DEG, one of the largest European development finance institutions, are eyeing a stake in the State Industrial Corporation of Maharashtra (SICOM), the investment arm of Maharashtra government. Standard Chartered Private Equity (SCPE), Lehman Brothers, Temasek and a couple of hedge funds may also be interested in picking up stake in SICOM.
Existing shareholder in SICOM, the Specified Undertaking of Unit Trust of India (SU-UTI) is planning to fully divest its 36.5% in SICOM. Both IFC and DEG have approached the investment banker appointed by SU-UTI for the divestment. UTI AMC holds another 3.5% in the corporation.
SICOM offers advisory services to the government of Maharashtra, Maharashtra Electricity Regulatory Commission as well as other corporates. It also gives investment facilitation services to MNCs as well as Indian companies who wish to setup their manufacturing units in Maharashtra. The company is launching a second venture fund and would be soon offering merchant banking, treasury management of state PSUs, real estate development through subsidiary or joint ventures.
Read the article in Business Standard.
Existing shareholder in SICOM, the Specified Undertaking of Unit Trust of India (SU-UTI) is planning to fully divest its 36.5% in SICOM. Both IFC and DEG have approached the investment banker appointed by SU-UTI for the divestment. UTI AMC holds another 3.5% in the corporation.
SICOM offers advisory services to the government of Maharashtra, Maharashtra Electricity Regulatory Commission as well as other corporates. It also gives investment facilitation services to MNCs as well as Indian companies who wish to setup their manufacturing units in Maharashtra. The company is launching a second venture fund and would be soon offering merchant banking, treasury management of state PSUs, real estate development through subsidiary or joint ventures.
Read the article in Business Standard.
Videocon to now bid on a non-exclusive basis for Daewoo Electronics
It looks like that Videocon will not give up on Daewoo Electronics so easily. The Economic Times reports that Videocon Industries has got UBS and Citigroup, its investment bankers, to put forth a completely separate bid for troubled consumer durables maker Daewoo Electronics after recently losing its ‘preferred bidder’ status. The company will now compete on a non-exclusive basis with MBK Partners, a South Korea-based private equity fund which was selected as the secondary bidder for the deal.
The promoters of Videocon, the Dhoots, are visiting Korea early next week to renew discussions with the Korean durable company. Videocon had earlier insisted on a 15% reduction in the original purchase bid of $730 mn. Videocon is now hoping to win the bid on the premise that the second sole bidder is an equity fund without the capabilities and expertise to manage Daewoo’s durable business. However, Videocon may stand to lose the bid in case a new bidder enters the fray, offering a more attractive valuation.
Read more on this in The Economic Times.
Related Posts:
Daewoo creditors call off deal with Videocon
Videocon may agree to a less than 10% cut in bid price for Daewoo Electronics; budges from earlier demand of a 15% cut
Videocon’s Daewoo acquisition in jeopardy
The promoters of Videocon, the Dhoots, are visiting Korea early next week to renew discussions with the Korean durable company. Videocon had earlier insisted on a 15% reduction in the original purchase bid of $730 mn. Videocon is now hoping to win the bid on the premise that the second sole bidder is an equity fund without the capabilities and expertise to manage Daewoo’s durable business. However, Videocon may stand to lose the bid in case a new bidder enters the fray, offering a more attractive valuation.
Read more on this in The Economic Times.
Related Posts:
Daewoo creditors call off deal with Videocon
Videocon may agree to a less than 10% cut in bid price for Daewoo Electronics; budges from earlier demand of a 15% cut
Videocon’s Daewoo acquisition in jeopardy
3i invests $22 mn in digital theatre chain UFO Moviez
Private equity firm 3i has invested $22 mn in UFO Moviez, a digital cinema chain. It has an option of investing another $3 mn later.
UFO Moviez plans to utilize the money to part finance its expansion plans. It intends to invest in hardware to expand its presence in India and overseas in markets like the Middle East, South-East Asia and Africa by January ’07. UFO plans to scale up its Indian operations from 600 to 2000 screens and plans to reach 3000 digital cinema houses worldwide by 2008.
This is the second investment by 3i in the media space, the earlier being in Nimbus Communications, which holds the BCCI global media rights till 2010. Apollo group’s Onkar Singh Kanwar owns 60% in UFO, while about 15% is held by the Singapore-based DG2L Technologies. The remaining stake is held by its CEO Sanjay Gaikwad.
Read the article in The Economic Times.
UFO Moviez plans to utilize the money to part finance its expansion plans. It intends to invest in hardware to expand its presence in India and overseas in markets like the Middle East, South-East Asia and Africa by January ’07. UFO plans to scale up its Indian operations from 600 to 2000 screens and plans to reach 3000 digital cinema houses worldwide by 2008.
This is the second investment by 3i in the media space, the earlier being in Nimbus Communications, which holds the BCCI global media rights till 2010. Apollo group’s Onkar Singh Kanwar owns 60% in UFO, while about 15% is held by the Singapore-based DG2L Technologies. The remaining stake is held by its CEO Sanjay Gaikwad.
Read the article in The Economic Times.
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