Apax Partners In Talks To Invest In Madura – Kumar Mangalam Birla is mulling a value unlocking move in his privately held group company Madura Fashion & Lifestyle, formerly Madura Garments, after private equity funds approached with stake buy offers. Apax Partners has signaled its interest in a buyout but Birla has stated that he would consider only a stake sale under 26%. PE funds have indicated valuations of around $800 million, while Aditya Birla Group is seeking $1 billion. Madura reported turnover of around Rs 1,600 crore in FY11, up from Rs 1,103 crore in the previous year. (Times of India)
Biyani To Sell Pantaloon Stake In FCH – The country’s leading retailer, Pantaloon Retail, will sell its stake in the financial services arm Future Capital Holdings. Pantaloon has hired investment bank Morgan Stanley to find a buyer for its 54% equity in Future Capital Holdings (FCH), a non-banking finance company with assets worth Rs 3,000 crore, comprising retail, wholesale and mortgage loans. (Economic Times)
PE Trio Buy 65% In Newgen Imaging – Private equity investors Franklin Templeton Private Equity Strategy, a fund managed by Franklin Templeton Asset Management (India) Pvt. Ltd; Aureos South Asia Fund and ePlanet Capital have bought a majority stake in Newgen Imaging Systems Pvt. Ltd, a Chennai-based unlisted e-publishing outsourcing firm. The buyers have purchased a 60% stake in Newgen for around Rs.100 crore from Carlyle Asia Venture Partners II, which invested $10 million in 2004 and increased its stake by investing later in 2006.
StaChart’s Neeraj Swaroop Heading To Southeast Asia – Neeraj Swaroop, regional chief executive officer, India and South Asia of Standard Chartered Bank, will soon take over as regional chief executive, South-East Asia, and relocate to Singapore. He will take over from Ray Ferguson who is currently chief executive for South-East Asia, that covers 10 markets.Swaroop may take up the assignment in the next three months and the new India head will probably be appointed from among the existing senior executives of the bank working in India.
REC Plans Private Equity Fund – State-run Rural Electrification Corporation is planning to invest in equities that could offer returns of up to 30%, as part of efforts to boost stakeholders’ value.
REC, which offers financing for power sector, is also looking at the possibility of having private equity fund to make investments in projects. (Economic Times)
Bhorukha Power Plans IPO Next Fiscal – Mid-sized Bhoruka Power Corporation Ltd (BPCL), a green energy company, is planning an IPO next fiscal. The company wants to raise up to Rs 400 crore as additional equity. Bhoruka has the licence to add 150 MW to its wind power module and is planning projects for about Rs 1,300 crore, including wind power projects, a 5-MW photovoltaic solar power project in North Karnataka and a 10-MW, biomass-based power project in South Karnataka. BPCL is also looking at buying hydel power plants in Himachal Pradesh and Karnataka. (Business Line)
Aditya Birla Retail, Others In Talks To Buy Varkeys – A prominent Middle-East based non-resident Indian and Aditya Birla Retail are in the race to buy Kerala-based supermarket chain Varkeys. Both the suitors have completed the due diligence process and a deal will be finalised within two weeks. Varkeys, started as a single store in 1926, is one of the largest retail chains in Kerala with 2 lakh square feet of retail space spread over 59 stores under two brands, Verkeys Bakery & Supermarkets and V Mart discount hypermarkets. It reported a turnover of close to Rs 175 crore last financial year. (Economic Times)
Macquarie SBI Fund Qualifies For Road Projects – Macquarie SBI Infrastructure Investment Pte Ltd, the $3-billion (Rs 13,500 crore) fund focused on the core sector, has qualified to participate in the construction of any highway project that costs up to Rs 9,200 crore.The National Highways Authority of India (NHAI), which on Saturday issued a list of 97 companies pre-qualified for highway projects, listed the SBI-promoted entity as one of the largest eligible players for the current year. (Times of India)
KLG Systel Heads For CDR – Gurgaon-based KLG Systel, provider of energy management solutions, seems to be heading for corporate debt restructuring (CDR) due to deteriorating financial health. The company has investment from Intel Capital, the venture capital arm of global chip maker Intel, and the total debt being considered for restructuring is Rs 332 crore. The lenders include State Bank of India, ICICI Bank and IDBI Bank. KLG posted a loss of Rs 54 crore for 2010-11 as against net profit of Rs 18.2 crore in 2009-10. Net sales fell sharply to Rs 99.4 crore in 2010-11 from Rs 242 crore a year before. (Business Standard)