Domestic investment bank Avendus Advisors will invest in the outsourcing sector in knowledge-oriented and outsourcing companies in the areas of legal processes, financial services and equity research. The boutique bank will invest out of its $200 mn fund which was formed in December 2006 in association with US-based venture capitalist Mayfield Fund. Avendus is still tying up the finances.
Investments will be done in companies with revenues of Rs. 80 crores to Rs. 100 crores and with a track record of 3-5 years.
Avendus is also advising on mergers and acquisitions for software technology and auto component companies. It has recently announced a tie-up with European investment bank and management consulting outfit goetzpartners (See Related Post).
Read The Financial Express article.
Friday, February 9, 2007
AK Capital Services wins India Bond Award 2006 from IFR
AK Capital Services has won International Financing Review (IFR) Asia’s India Bond Award for the year 2006. AK Capital has won the award for structuring and placing Rs. 1500 crores worth of perpetual bond issuance from UCO Bank in March 2006.
The UCO Bank transaction was India’s first perpetual bond issuance, after Reserve Bank of India issuing guidelines for same. These instruments are eligible for inclusion as Tier-I capital of banks. AK Capital, one of India’s leading debt arrangers, received this award in Hong Kong on February 5, 2007.
The Rs. 1500 crore-bonds of UCO Bank, rated ‘AA’ by CRISIL and ’AA-‘ by CARE, were perpetual in nature with a call option at par at the end of 10th year from the Deemed Date of Allotment. The bonds carried an interest rate of 9.50% pa, payable semi-annually, for the first 10 years and step-up coupon rate of 10.00% pa, payable semi-annually for all the subsequent years if call option is not exercised by the Bank at the end of 10th Year from the Deemed Date of Allotment. The bonds listed on the WDM segment of National Stock Exchange were reckoned as a part of Tier-I Capital of UCO Bank.
Read the release on Moneycontrol.com.
The UCO Bank transaction was India’s first perpetual bond issuance, after Reserve Bank of India issuing guidelines for same. These instruments are eligible for inclusion as Tier-I capital of banks. AK Capital, one of India’s leading debt arrangers, received this award in Hong Kong on February 5, 2007.
The Rs. 1500 crore-bonds of UCO Bank, rated ‘AA’ by CRISIL and ’AA-‘ by CARE, were perpetual in nature with a call option at par at the end of 10th year from the Deemed Date of Allotment. The bonds carried an interest rate of 9.50% pa, payable semi-annually, for the first 10 years and step-up coupon rate of 10.00% pa, payable semi-annually for all the subsequent years if call option is not exercised by the Bank at the end of 10th Year from the Deemed Date of Allotment. The bonds listed on the WDM segment of National Stock Exchange were reckoned as a part of Tier-I Capital of UCO Bank.
Read the release on Moneycontrol.com.
Tatas offload 0.84% in TCS for Rs. 1000 crores
Tata Sons, the holding company of the Tata Group, has raised more than Rs. 1000 crores by selling 0.84% of its equity stake in group company and software major Tata Consultancy Services (TCS). This has taken the total amount raised so far to about Rs. 2800 crores (about $622 mn). It is believed that the proceeds could be used for part-funding Tata Steel’s $12.1 bn-acquisition of Corus.
Tata Sons has sold about 8.1 mn equity shares of the software company to an undisclosed buyer. This is the third time in three months that the holding company has diluted its equity stake in TCS, which on December 31, 2006, stood at 78.3%. On February 6, Tata Sons sold 6.9 mn equity shares raising Rs. 900 crores. In a similar transaction in November 2006, Tata Sons raised another Rs. 900 crores by diluting 0.86% of its stake in TCS. A bulk of it was sold to Mauritius-based HSBC Global Investment Fund.
Read the article in The Economic Times.
Tata Sons has sold about 8.1 mn equity shares of the software company to an undisclosed buyer. This is the third time in three months that the holding company has diluted its equity stake in TCS, which on December 31, 2006, stood at 78.3%. On February 6, Tata Sons sold 6.9 mn equity shares raising Rs. 900 crores. In a similar transaction in November 2006, Tata Sons raised another Rs. 900 crores by diluting 0.86% of its stake in TCS. A bulk of it was sold to Mauritius-based HSBC Global Investment Fund.
Read the article in The Economic Times.
Rain Calcining to merge with Rain Commodities
Hyderabad-based Rain Commodities will merge Rain Calcining with itself in an effort to bring together the group’s calcined petroleum coke (CPC) and cement businesses for better viability. The merger, effective April 1, will create the world’s largest CPC making company with assets in India, Kuwait, the US and Argentina. It will enjoy nearly 28% of the total CPC sales in the Western World.
Under the merger plan, Rain Industries’ cement business will be transferred to Rain Commodities, while Rain Calcining’s CPC and power generation businesses will be transferred to Rain Industries. Rain Industries is the cement making unit of Rain Commodities. Rain Commodities will appoint financial and legal advisors for determining the share exchange ratio. The merger decision is a reversal of an earlier proposal to amalgamate Rain Industries with Rain Commodities.
Rain Calcining makes 480,000 tonnes of anode and industrial grade CPC per annum. CPC is a key process input used in the aluminium and steel industries. Earlier this week, Rain Commodities said it would acquire assets of Toronto-based Great Lakes Carbon Income Fund’s wholly-owned subsidiary Carbon Canada, Inc. for Canadian $ 437 mn (See Related Post).
Read article in Business Standard.
Under the merger plan, Rain Industries’ cement business will be transferred to Rain Commodities, while Rain Calcining’s CPC and power generation businesses will be transferred to Rain Industries. Rain Industries is the cement making unit of Rain Commodities. Rain Commodities will appoint financial and legal advisors for determining the share exchange ratio. The merger decision is a reversal of an earlier proposal to amalgamate Rain Industries with Rain Commodities.
Rain Calcining makes 480,000 tonnes of anode and industrial grade CPC per annum. CPC is a key process input used in the aluminium and steel industries. Earlier this week, Rain Commodities said it would acquire assets of Toronto-based Great Lakes Carbon Income Fund’s wholly-owned subsidiary Carbon Canada, Inc. for Canadian $ 437 mn (See Related Post).
Read article in Business Standard.
L&T, EADS form JV to tap aerospace & defence markets
Larsen & Toubro (L&T) and European aerospace and defence group EADS have formed a JV for joint exploration of business opportunities in defence and aerospace.L&T and EADS have signed a Memorandum of Understanding (MoU) to establish a “long-term, profitable and stable relationship” to better address the needs of the aerospace and defence markets in India and around the world. The signing took place at the Aero India 2007 exhibition in Bangalore.
Read the Business Standard article.
Read the Business Standard article.
India emerges as the most favoured PE destination, as per AVCJ
With investments worth $1.23 bn in the first moth of the year itself, India has emerged as the most favoured private equity destination, according to a report by Asian Venture Capital Journal (AVCJ). India ranks top in terms of PE investments in January-February following Asian giants like China at $609 mn and Japan at $980 mn.
The report was on Asia-Pacific emerging as the most attractive region for private equity investment and says that the total Asian private equity capital under management rose by almost 30% in 2006 to $158 bn as compared to $122 bn in 2005.
India is also among the top 10 PE destinations last year, with the country witnessing a whopping growth of 252% with investment as high as $7 bn for 2006 as against just $1.9 bn in 2005.
The top 10 PE destinations in the Asia-Pacific includes Australia with $24.9 bn worth investments, China $7.7 bn and Japan at $10.35 bn. Fund raising for Australia rose 88.9% during the year followed by China at 72.1%. India posted decent increase of 37.6%.
Read The Times of India article.
The report was on Asia-Pacific emerging as the most attractive region for private equity investment and says that the total Asian private equity capital under management rose by almost 30% in 2006 to $158 bn as compared to $122 bn in 2005.
India is also among the top 10 PE destinations last year, with the country witnessing a whopping growth of 252% with investment as high as $7 bn for 2006 as against just $1.9 bn in 2005.
The top 10 PE destinations in the Asia-Pacific includes Australia with $24.9 bn worth investments, China $7.7 bn and Japan at $10.35 bn. Fund raising for Australia rose 88.9% during the year followed by China at 72.1%. India posted decent increase of 37.6%.
Read The Times of India article.
GHCL eyeing second soda ash acquisition in Romania
GHCL is considering acquisition of Romanian soda ash maker Uzinele Sodice Govora (USG). This transaction, once materialized, will be GHCL’s second buyout in that country after its takeover of a 300,000 tonne soda ash company SC Bega Upsom SA in December 2005. USG is a 200,000 tonne soda ash producer. It has mortgaged its assets with GHCL to tide over its financial crisis. The proposed acquisition is part of the company’s target to quadruple its capacity to 4 mn tonnes by next year.
The company is also in talks with soda ash companies in China and the US which are likely to be over by June. In addition to soda ash, GHCL is also eyeing acquisition of home textile retail chains in Europe and the US to become an integrated home textiles company with presence across spinning, weaving, designing, sourcing and distribution.
In the last one-and-a half years, GHCL has spent about $165 mn (Rs. 730 crores) on foreign buyouts. The list includes UK-based largest home textile retail chain company Rosebys with 300 stores, and the US-based textiles company Dan River.
Read the article in Business Standard.
The company is also in talks with soda ash companies in China and the US which are likely to be over by June. In addition to soda ash, GHCL is also eyeing acquisition of home textile retail chains in Europe and the US to become an integrated home textiles company with presence across spinning, weaving, designing, sourcing and distribution.
In the last one-and-a half years, GHCL has spent about $165 mn (Rs. 730 crores) on foreign buyouts. The list includes UK-based largest home textile retail chain company Rosebys with 300 stores, and the US-based textiles company Dan River.
Read the article in Business Standard.
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