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ICICI Prudential AMC plans $400 mn realty platform; Hindalco eyes overseas buys

04 September, 2017

ICICI Prudential Asset Management Co. Ltd plans to tie up with overseas companies for raising a corpus of about $400 million to invest in the real estate sector, the Mint reported citing two people aware of the development.

The asset management joint venture of ICICI Bank Ltd and UK’s Prudential Plc is in talks with at least a couple of overseas asset managers for the new business, the report said.

The platform will invest via equity and debt instruments in residential projects, the report added.

ICICI Prudential AMC currently manages more than Rs 3,700 crore in its real estate business. It has so far made over 55 real estate investments, of which it has sold around 20, returning more than Rs 3,000 crore to investors. It has so far raised five funds for residential projects and one for commercial projects.

In another report, the Mint said that the diversified Aditya Birla Group has earmarked at least $3 billion for acquisitions in its aluminium business Hindalco Industries Ltd. Citing two people aware of the development, the report said that the group will look for assets in the value-added product segment—in a shift from its midstream business.

“The company has already started scouting for assets in developed markets such as Europe and the US. They could end up spending around $3-5 billion if they find the right assets,” the report cited one person as saying.

Earlier this year, Hindalco’s aluminium rolling and recycling unit Novelis Inc agreed to sell a 50% stake in South Korean facility to Japanese steelmaker Kobe Steel for $315 million. Hindalco had acquired Novelis $6 billion in 2007.

Separately, the Mint reported that rooftop solar energy company Amplus Energy Solutions Pvt. Ltd is in talks to raise as much as $100 million. The company has been in talks with investors, both financial and strategic. The funds will help the company grow beyond its current portfolio of under 100 megawatt of distributed generation assets, added the report.

In June 2016, Amplus had acquired bankrupt US solar company SunEdison Inc.’s roof-top solar power assets of around 7 MW.

Meanwhile, Business Standard reported that GlaxoSmithKline Pharmaceuticals Ltd is scouting for acquisitions in India for the first time since it started its operations in the country 93 years ago. Citing a top company executive, it said that the change in strategy comes at a time when the government’ increasing price control over branded generic medicines has affected its profitability.

“So far, our inorganic growth in India has primarily been driven by global acquisition strategy. “It is only in the recent past that we have built a team in India to evaluate inorganic growth opportunities in the domestic market,” said Annaswamy Vaidheesh, managing director of GSK Pharmaceuticals.

The company has appointed Subesh Williams, senior vice-president for global corporate developments, as director on the domestic company’s board to oversee business development, including inorganic growth efforts, the report added.

The Press Trust of India reported that Mumbai-based Cigna TTK Health Insurance Company Ltd has filed an application with the Insurance Regulatory and Development Authority for a change in partnership from the TTK Group to the Manipal Group.

“Manipal Group will buy out 51% stake of TTK Group. We expect the transition to take place before the end of this calendar year,” said Sandeep Patel, chief executive officer and managing director of Cigna TTK Health Insurance.

In August, Cigna TTK Health Insurance had filed an application with the regulator to increase Cigna’s stake in the joint venture from 26% to 49%.

Cigna TTK Health Insurance is a joint venture between US-based global health service provider Cigna Corporation and Indian conglomerate TTK Group. It launched its operations in February 2014.

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ICICI Prudential AMC plans $400 mn realty platform; Hindalco eyes overseas buys

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