Jaiprakash Power Ventures to Merge With Group Company – As a precursor to mobilising around Rs 3,000 crore to Rs 4,000 crore through qualified institutional placement (QIP), Jaiprakash Power Venture Ltd, the wholly owned subsidiary of Jaiprakash Associates Ltd, is set to merge with Jaiprakash Hydro Power Ltd, a company listed on the Indian bourses. According to sources, the proposed move is aimed at helping JPVL raise funds though equity routes. Investment bankers have also been appointed for the valuation. Post merger, the company is planning to do a private placement by divesting 15-20% stake for Rs 3,000 – 4,000 crore. (Business Standard)
LIC Likely to Buy More G-Secs in Current Fiscal – State-owned Life Insurance Corporation of India (LIC) might buy more government securities (G-secs) in the current financial year if yields were attractive. India’s largest insurance firm has planned to invest Rs 62,000 crore in G-secs in FY10, as compared to Rs 56,000 crore in the previous year ended March 2009. With fiscal deficit at a record high, the Centre is planning to borrow Rs 3,62,000 crore from the market and this has increased the supply of bonds, putting pressure on bond prices. Lower bond prices increases yield on G-secs, and this would benefit LIC as it would like to increase its fixed income for a longer duration instead of trading on these bonds to make short-term profits. (Business Standard)
Bank of India to Raise Up to Rs 13,000 Crore – Public sector Bank of India (BoI) plans to raise up to Rs 13,006 crore through a mix of instruments such as innovative perpetual debt, preference shares and Tier-II bonds to shore up capital adequacy ratio (CAR). The bank’s board has approved the proposal to raise funds, which is enabling provisions. The bank will raise capital based on credit growth and market conditions. The bank has a headroom to raise up to Rs 6,300 crore via Tier-I bonds and Rs 6,700 crore via Tier-II bonds. (Business Standard)
Srei Equipment to Raise Rs 7.5k Crore – Srei Equipment Finance, the 50:50 joint venture between Srei Infrastructure Finance and BNP Paribas, said it would raise up to Rs 7,500 crore debt in the current financial year to fund the increasing infrastructure demand in the country. The fund will be mobilised through term loans from banks, securitising and bonds. Some quasi-equity would also be raised in the second half of the current financial year. However, the promoters do not plan to infuse any fresh capital in the joint venture at the moment. (Business Standard)
SunGard Mulls Buys in India – Having acquired 160 companies globally since its inception in 1982, Pennsylvania based software and services firm, SunGard has said that it is looking for acquisitions in India as well. The companu has recorded $5.6 billion revenue in 2008, out of which only 2% came form Asia Pacific region. (The Economic Times)
KK Modi Group May Buy Hong Kong Tobacco Company – The KK Modi Group is looking to acquire a Hong Kong based tobacco company for an estimated $15-20 million. The tobacco firm being targeted is primarily into the business of cigars and caters to high end consumer. It also has some cigarette brands in its portfolio. Talks are at an initial stage and the talks may take some time. Senior executives of the KK Modi Group recently visited Hong Kong to discuss the prospects of the acquisition with the firm. (The Economic Times)
DLF to Sell TerraForce to Wallson Services – The DLF Group is set to sell the TerraForce Security Services to Walson Services. The deal size may be around Rs 50-100 crore. According to sources, DLF is looking at focussing on its core business rather than expanding into unrelated segments. The acquisition will help the Swedish company, Walson Services, strengthen its presence in India’s private security services business. DLF has set up TerraForce Security Services to provide security to its offices and malls. (The Economic Times)
Bharti May Rope in E&Y to Advise on MTN Deal – Bharti Airtel may ask Ernst & Young (E&Y) to do a due diligence on South African telecom major MTN, the company with which it is in talks for a complex mutual acquisition of equity to form one of the top telecom conglomerates of the world. MTN is likely to appoint PricewaterhouseCoopers (PwC) to do a due diligence on Bharti Airtel’s books. The due diligence process is expected to begin next week. E&Y is likely to be the sole due diligence advisor for Bharti, India’s largest private sector telecom company. Both E&Y and PwC will get access to virtual data rooms and the due diligence is expected to take up to a month. (The Economic Times)
Adani Power IPO Cleared – Securities and Exchange Board of India (SEBI) has cleared Adani Power Limited’s initial public offer (IPO). The company is expected to hit the capital market by the third week of July. APL, which had postponed its IPO due to bad market condition in September 2008, is now planning to raise over Rs 3,000 crore for financing its 6600 MW power plants at Mundra and Tiroda in Gujarat and Maharashtra. (The Times of India)
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