Billionaire Ajay Piramal would purchase a 10% stake in Shriram Capital, the holding company of Shriram Group’s financial services business and an aspirant for a banking licence, for a consideration expected to be between Rs 650 crore – Rs 700 crore ($109 million – $117.5 million). The company is looking for a valuation of Rs 6,500 crore. Shriram Capital was valued at Rs 5,000 crore when TPG Capital purchased a 11% stake in 2009, implying an almost 20% rise in valuation if the deal is struck in the range of INR 650-700 per share. Ajay Piramal can buy stake from TPG Capital or can invest through fresh issue. (The Economic Times)
M&M first to issue plain vanilla 50 year bonds: Mahindra & Mahindra (M&M), has become first corporate entity in India to issue 50-year, plain vanilla rupee-denominated bonds. The company plans to raise Rs 500 crore ($84 million) through the bond issue at a coupon of 9.55% payable annually. The issue proceeds would be used for capital expenditure and to repay loans. The bond deal will pave the way for more such borrowings by the company, Parthasarathy said. CRISIL Ratings, which has assigned AA+ rating to the bonds. (DNA)
Housing finance regulator to back HDFC application for $500-m ECB: National Housing Bank (NHB), the housing finance regulator, is favourably disposed to HDFC’s application for a $500-million (Rs 2,978 crore) external commercial borrowing (ECB) for affordable housing projects in India. NHB would soon recommend HDFC’s application to the Reserve Bank of India for the latter’s approval. (Business Line)
Texas-based Waste Management may Invest Rs 208 Cr in Attero Recycling: Electronic waste recycling company Attero Recycling is at an advanced stage of discussions with a number of global investors for fresh capital to fund its overseas expansion plans. Texas-based Waste Management is a leading contender to invest in Attero which expects to raise up to Rs 208 crore ($35 million) in this round of funding, according to a person involved in the negotiations. Along with Waste Management, a number of global clean technology-focused private equity funds are also in talks with Attero. The company has received up to Rs 89.2 crore in equity and convertible debt over two previous rounds of funding from a clutch of investors, including Draper Fisher Jurvetson, Indo-US Venture, Granite Hill Capital Partners and IFC, the investment arm of the World Bank. The existing investors are also expected to participate in this round of investment. (The Economic Times)
Manpasand to quench PE majors’ thirst: Manpasand Beverages, the Vadodara-based juice manufacturing and marketing firm, has received interest from private equity funds to acquire a minority stake in it. According to sources, US-based PE company Warburg Pincus and Everstone Capital are in discussion with the management of Manpasand to acquire a 10-15% stake. The deal size would be in the range of Rs 100-150 crore ($ 16.78 million – $25.18 million). Another PE firm, SAIF Partners, already owns a minority stake in Manpasand with an investment worth $10 million (Rs 60 crore). Deloitte and IDFC Capital are advising Manpasand to find a suitable buyer, said sources. (Business Standard)
ShopClues plans to raise $50 million: ShopClues.com, is looking to raise $30-50 million (Rs 180-Rs 300 crore) in private equity investments. The Gurgaon-based company is understood to have initiated talks with private equity players such as Warburg Pincus, SoftBank, Digital Sky Technologies and Goldman Sachs for this round of fund-raising, which is expected to be closed by year-end. In January this year, ShopClues had raised $10 million in a round which saw participation from Helion Venture Partners, Nexus Partners and Japanese business group Netprice.com. So far, the company has raised $16 million, including the angel round. The company is also looking to go for an initial public offering in 2016. (Business Standard)
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