Grapevine: Investors may double Dream11 valuation; IL&FS likely to set up InvIT
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Several investors in fantasy sports platform Dream11 are in talks to undertake a secondary transaction that may value it at $2.25 billion (around Rs 16,100 crore at current exchange rate), according to a report in The Economic Times.

A deal could see a $100 million secondary transaction taking place between existing and new investors in the Mumbai-based platform run by Sporta Technologies Pvt. Ltd, along with a $20 million primary infusion. This could more than double Dream11’s existing valuation of $1.1 billion.

The investors in talks for this transaction include homegrown private equity firm ChrysCapital and Facebook co-founder Eduardo Saverin’s B Capital, the report said, citing people aware of the developments.

Further, there are at least two more entities that are in talks to pick up stakes in Dream11 from three existing backers – Vani Kola-led Kalaari Capital, Renuka Ramnath-headed Multiples Alternate Asset Management and San Francisco-based Think Investments.

The development comes just weeks after reports suggested that New York-based Tiger Global was looking to lead a $500 million (around Rs 3,571 crore) round in Dream11. In March last year, reports said that Hong Kong-based hedge fund Steadview Capital was set to bet more than $100 million (around Rs 710 crore) on the fantasy gaming platform.

That development was reported after Chinese conglomerate Tencent Holdings had led a Series D investment of $100 million in Dream11. Kalaari Capital and Multiples had participated in that round.

Meanwhile, beleaguered Infrastructure Leasing and Financial Services (IL&FS) group may create an infrastructure investment trust (InvIT) to hold its road assets and pay back lenders, going by The Economic Times.

Citing people familiar with the proposal, the report said that the InvIT will be created under IL&FS Transportation Networks, which will own 15% of the units. The remaining 85% will be allotted to other IL&FS group companies that in turn will give them to lenders on the basis of their exposure.

If the group receives approvals for its proposals, it could see its overall debt being pared by Rs 10,000-11,000 crore.

The development comes after the board of IL&FS Transportation Networks Ltd in November approved the setting up of a new arm to manage a proposed InvIT. The company’s board also granted in-principle approval to transfer its shareholding in nine special purpose vehicles to the proposed Infra InvIT.

The overall group has been struggling since 2018 after it defaulted on its debt. The defaults prompted the government to replace its entire board. IL&FS is now selling its assets to pay off its debt. The firm and its units owed Rs 99,354 crore at the end of September 2018.

In January, it was reported that IL&FS was planning to sell its real estate assets worth Rs 3,500 crore ($490.53 million) and also its stake in Gujarat International Finance Tec-City (Gift City) for about Rs 1,200 crore ($168 million).

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