Nikhil Gandhi’s SKIL Group, Iceland’s Askar Capital To Form $500 Million PE Fund
Nikhil Gandhi’s SKIL Group, better known for its Pipavav Port, is joining hands with the Iceland-based investment bank, Askar Capital, for a $500 million private equity fund. Both Askar Capital and SKIL will hold 50 per cent stake each in the fund (see ET and DNA).
Askar Capital CEO, Tryggvi Herbertsson, said the fund would look at a diverse range of investment opportunities in India and the larger South-East Asian Region. It will have a multi-sector focus and will aggressively look at small-and medium-sized enterprises. Both Askar Capital and SKIL will manage the private equity investments. Pavan Bakshi is the managing director of Askar Capital in india.
Indian business houses are slowly tending towards forming private equity funds by using their reserve cash. Recently Deepak Fertilisers is another Indian business house that has promoted a $200 million private equity fund called Crossover Advisors. They have raised $200 million to invest in Indian ventures. Delhi-based Dabur family also has private equity activities. They used to invest along with Actis (for instance, Punjab Tractors), and now has partnered with UK based Promethean Investments. We can probably see more Indian ventures using their spare cash for private equity activities. Delhi-based mining-cum-beverage concern Sun Group has a private equity fund of their own besides being a limited partner in WestBridge Capital Partners.
12/3/07, 7:44 AM |
The increased action by Indian business houses in the PE space, is a double edged sword.
On one hand it gives much needed capital injection and on other a legitimate way to convert their ‘black money’ parked in overseas location into ‘white’.
Exploiting the loop holes in the Govt.’s policy towards PE source of money, most are making the most of it.
01/31/08, 12:02 PM |
Dear Readers,
It is indeed a double edge sword, but given the investment scenario the better way to divert the Hedge Funds & the Forward Funds which get easy entry into the bourses and flee the moment Uncle Sam sneezes thereby pushing the retail investors faith to the dogs.
It is the RBI & SEBI which have to decide the machinery & implement the laws to arrest illegitimate money flowing into the system. As far as Private Equity goes, it is a great way of increasing valuation of specially the unquoted companies.
Regards
Abhishek