Integrated townships seem to be the preferred investment option for private equity (PE) players in India. In fact, a Cushman and Wakefield (C&W) report finds that 28% of PE investors favour investment through this route in the real estate market.
Integrated townships — as a low risk investment avenue due to their diversification benefits and low entry cost — are a highly attractive option. Agrees Sandeep Singh, national head, capital markets, C&W, “In today’s high land price scenario, integrated townships offer higher value creation opportunities due to low entry costs for land and synergies created by mixed-use development within them.
Industry players also feel that it is only natural for investors to look at this asset class as a lucrative option. “Only integrated townships have the capacity to absorb a significant amount of capital that is raised ...this also means that in the years to come, this asset class is bound to grow by leaps and bounds,” feels V Hari Krishna, CIO, Kotak Real Estate Fund. Moreover, a mix of various services in these townships such as hospitals, recreation, education etc makes them win an edge over the other models.
The report also finds that investments in the market have spread rather evenly over three broad investment vehicles. While majority of the investment still remains either at the portfolio and SPV level partnership, at 40% and 36% respectively, the number of entity level partnerships formed 26% of the total investment in the sector.
Source: Economic Times
Monday, December 10, 2007
UBS India Investment Banking is stepping on the gas
UBS will nearly double its investment banking staff in India to up to 180 (from 100 now) in the next year as it prepares to offer more services and retain its share of the increasingly competitive business, the head of UBS in India said.
UBS tops the merger and advisory table so far this year, up from seventh spot last year, data from Thomson Financial showed, leapfrogging rivals including Morgan Stanley , Citigroup , JPMorgan and Merrill Lynch.
Our challenge and our desire is to remain among the top three investment banks in India," Manisha Girotra, managing director and chairperson for UBS India, told the Reuters India Investment Summit on Thursday. The competition extended to staffing. Hiring and retention of talent were the biggest challenges, Girotra said, and took up 30-40 percent of her time.
UBS, the world's largest wealth manager, is also awaiting regulatory approval to offer additional services including fixed income, wealth management and high-end retail banking in India.
Globally, UBS has had a turbulent year. It closed Dillon Read Capital Management in May and in October announced its first group quarterly loss in five years. But it has said its wealth management business was poised for strong growth.
Source: Reuters
UBS tops the merger and advisory table so far this year, up from seventh spot last year, data from Thomson Financial showed, leapfrogging rivals including Morgan Stanley , Citigroup , JPMorgan and Merrill Lynch.
Our challenge and our desire is to remain among the top three investment banks in India," Manisha Girotra, managing director and chairperson for UBS India, told the Reuters India Investment Summit on Thursday. The competition extended to staffing. Hiring and retention of talent were the biggest challenges, Girotra said, and took up 30-40 percent of her time.
UBS, the world's largest wealth manager, is also awaiting regulatory approval to offer additional services including fixed income, wealth management and high-end retail banking in India.
Globally, UBS has had a turbulent year. It closed Dillon Read Capital Management in May and in October announced its first group quarterly loss in five years. But it has said its wealth management business was poised for strong growth.
Source: Reuters
Its raining M&A's
The volume of overseas mergers and acquisitions (M&As) by India Inc has grown phenomenally in the first half of the current fiscal and is likely to reach further heights over the next one year.
In the fiscal year 2006, the outbound M&As from India had an aggregate value of $13.97 billion spread over 480 deals. However, the M&As in the first half of the current fiscal surpassed this figure and stood at $25.58 billion, according to the data available with KPMG.
“The average ticket size of these outbound M&A deals from India had also been growing from $25 million in 2005 to $39 million in 2006,” Mr Preet Mohan Singh, Director (Corporate Finance), KPMG India Pvt Ltd
The key drivers behind this growth are increasing global consolidation, cost of production and valuation arbitrage, customs/skill set acquisition.
Source: Business Line
In the fiscal year 2006, the outbound M&As from India had an aggregate value of $13.97 billion spread over 480 deals. However, the M&As in the first half of the current fiscal surpassed this figure and stood at $25.58 billion, according to the data available with KPMG.
“The average ticket size of these outbound M&A deals from India had also been growing from $25 million in 2005 to $39 million in 2006,” Mr Preet Mohan Singh, Director (Corporate Finance), KPMG India Pvt Ltd
The key drivers behind this growth are increasing global consolidation, cost of production and valuation arbitrage, customs/skill set acquisition.
Source: Business Line
400 PE, M&A deals under CBDT scanner
The spill-over effect of Vodafone’s battle with Indian tax authorities may prove costly for several other deal makers. The Central Board of Direct Taxes (CBDT) has reopened about 400 cases of big and mid-sized transactions that took place during the past six to seven years.
According to sources close to the development, the cases include foreign corporates and PE firms selling stakes of companies based in India, and not paying any capital gains tax. One of the first such cases that the tax department is currently probing is Montreal-based Alcan Inc’s selling of the controlling stake in Indian Aluminium Company (Indal) to Hindalco Industries seven years ago, sources in the finance ministry told SundayET.
Significantly, there were around 300 PE deals clocked in India in 2006 alone. The tax department had earlier slapped a notice on Vodafone Essar, demanding $2 billion as capital gains tax over its $1-billion acquisition of a majority stake in Hutchison Essar, India’s fourth largest mobile telephone company. The case is now locked in the Bombay High Court.
Source: Economic Times
According to sources close to the development, the cases include foreign corporates and PE firms selling stakes of companies based in India, and not paying any capital gains tax. One of the first such cases that the tax department is currently probing is Montreal-based Alcan Inc’s selling of the controlling stake in Indian Aluminium Company (Indal) to Hindalco Industries seven years ago, sources in the finance ministry told SundayET.
Significantly, there were around 300 PE deals clocked in India in 2006 alone. The tax department had earlier slapped a notice on Vodafone Essar, demanding $2 billion as capital gains tax over its $1-billion acquisition of a majority stake in Hutchison Essar, India’s fourth largest mobile telephone company. The case is now locked in the Bombay High Court.
Source: Economic Times
Bharti, Idea and Vodafone Essar come together to form a tower company
GSM mobile operators Vodafone, Bharti and Idea Cellular will jointly set up an independent tower company, Indus Towers, to share passive infrastructure with all telecom players to enable lower cost and a more competitive operating environment .
Bharti and Vodafone will own 42 per cent stake each in the tower company, with Idea will hold the balance 16 per cent. Indus Towers will be an independently managed and operated company.
The mobile phone companies will merge their existing assets, and the new infrastructure company will have 70,000 sites, which will be shared in 16 circles. In addition to telecom companies, service providers such as broadcasters and broadband service providers would also share the infrastructure, Vodafone said in a statement.
"Indus Towers will enable optimisation of future tower rollout and enhanced operational efficiency leading to operational expenses and capital expenses savings for its customers," it said in the statement.
Source: domain - b
Bharti and Vodafone will own 42 per cent stake each in the tower company, with Idea will hold the balance 16 per cent. Indus Towers will be an independently managed and operated company.
The mobile phone companies will merge their existing assets, and the new infrastructure company will have 70,000 sites, which will be shared in 16 circles. In addition to telecom companies, service providers such as broadcasters and broadband service providers would also share the infrastructure, Vodafone said in a statement.
"Indus Towers will enable optimisation of future tower rollout and enhanced operational efficiency leading to operational expenses and capital expenses savings for its customers," it said in the statement.
Source: domain - b
Wednesday, July 25, 2007
General Atlantic takes minority stake in IBS software for $60 mn
Private equity firm General Atlantic has paid $60 million for a minority stake in India's IBS Software Services, reported Reuters.
IBS, which provides services for the travel, transport and logistics industries, has two development centres in India.
Edelweiss Capital was the financial adviser to IBS.
Related Posts:
NYSE, Goldman Sachs, General Atlantic, SAIF to buy 26% in NSE
IBS, which provides services for the travel, transport and logistics industries, has two development centres in India.
Edelweiss Capital was the financial adviser to IBS.
Related Posts:
NYSE, Goldman Sachs, General Atlantic, SAIF to buy 26% in NSE
TechTribe gets funding from 3 PE funds including Canaan Partners
Canaan Partners, a $2.4 billion global venture capital firm, today announced it has led a joint investment with The Entrepreneur's Funds and Miven Venture Partners in techTribe, India's leading career networking portal as reported by PRWeb.
techTribe is a software company that enables current and future Indian technology professionals to enhance their careers through social networking. The investment will be used to expand techTribe's sales and marketing infrastructure in India and to drive new revenue growth. Alok Mittal, Canaan's managing director in India, will be named to the techTribe board of directors.
The Indian career networking market for middle- and senior-level executives is worth $400 million, according to techTribe, which has operations in San Francisco and New Delhi.
Canaan Partners is a leading global venture capital firm specializing in early-stage information technology and life sciences investments. Founded in 1987, Canaan Partners has $2.4 billion capital under management and has invested in more than 240 companies, completed 63 mergers and acquisitions, and brought over 50 companies public.
The Entrepreneurs' Fund III (TEF3) is a Silicon Valley based, early stage venture fund focused on Software and Healthcare startups. Miven Venture Partners, founded in 2005, is a multi-stage venture capital firm with a primary focus on investing in consumer related technology companies.
Related Articles:
Canaan Partners to invest in 3 companies; deals to close by year-end
techTribe is a software company that enables current and future Indian technology professionals to enhance their careers through social networking. The investment will be used to expand techTribe's sales and marketing infrastructure in India and to drive new revenue growth. Alok Mittal, Canaan's managing director in India, will be named to the techTribe board of directors.
The Indian career networking market for middle- and senior-level executives is worth $400 million, according to techTribe, which has operations in San Francisco and New Delhi.
Canaan Partners is a leading global venture capital firm specializing in early-stage information technology and life sciences investments. Founded in 1987, Canaan Partners has $2.4 billion capital under management and has invested in more than 240 companies, completed 63 mergers and acquisitions, and brought over 50 companies public.
The Entrepreneurs' Fund III (TEF3) is a Silicon Valley based, early stage venture fund focused on Software and Healthcare startups. Miven Venture Partners, founded in 2005, is a multi-stage venture capital firm with a primary focus on investing in consumer related technology companies.
Related Articles:
Canaan Partners to invest in 3 companies; deals to close by year-end
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