Grapevine: Zomato to invest in Grofers; Buyers shortlisted for govt stake in SCI
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Food delivery unicorn Zomato is looking to invest about $100 million (Rs 736 crore) in Grofers as the online grocery store is expected to scrap its Nasdaq IPO (initial public offering) plan after discussions of a merger between the two fell through last year, two people told The Economic Times

Zomato’s investment will probably be part of a larger financing round that may value the company at around $1 billion, sources said. 

The development comes on the heels of Tata Digital receiving a nod from the competition watchdog to acquire a majority stake in Grofers' largest rival Bigbasket for about $1 billion.  

Shipping Corporation of India 

US-based Safesea, Megha Engineering and Infrastructure, and a consortium led by NRI businessman Ravi Mehrotra have been shortlisted as potential buyers for the government’s stake in Shipping Corporation of India (SCI), people told The Economic Times.  

Notably, a consortium of private equity firm Bain Capital and shipping company JM Baxi could not qualify after facing a technical issue with its application, the sources said.  

The government is selling its 63.75% stake in SCI. The successful acquirer will also have to make an open offer for a further 26% in the company held by public shareholders. A potential acquisition could cost the winning bidder about Rs 4,813 crore ($653 million). 

SBI Life Insurance 

US-based private equity firm Carlyle is looking to sell 3.5% stake in SBI Life Insurance worth $447 million or Rs 3,308 crore, The Economic Times said citing a term sheet. 

After the sale, Carlyle will hold 2.5% stake in the company. 

The private equity firm had acquired a 9% stake in March 2019 for about $652 million from BNP Paribas Cardif SA.  

Fincare Small Finance Bank 

Bengaluru-based Fincare Small Finance Bank will file its draft papers for an initial public offering (IPO) of up to Rs 1,400 crore ($190 million) this week, sources told The Economic Times. 

The issue will comprise of primary and secondary share sales. Fincare is backed by investors such as True North, TA Associates, Tata Opportunities Fund and Sidbi (Small Industries Development Bank of India). 

ICICI Securities, Axis Capital, and Ambit Capital are the book-running lead managers for the issue. 

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