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News Roundup: Bhartiya Samruddhi Finance May Go Under

27 July, 2011

Bhartiya Samruddhi Finance May Go Under – Vijay Mahajan-promoted Bhartiya Samruddhi Finance Ltd, India’s oldest microfinance institution (MFI), may collapse in 2-3 months as bad loans are growing and threatening to wipe out its entire net worth and reserves.As of 30 June, BSFL’s net worth was Rs 128 crore, down from Rs 230 crore in September last year, and this will get completely eroded because of accumulated bad loans of Rs 450 crore. Part of the Basix group, BSFL needs a Rs 440 crore equity infusion and a Rs 1,000 crore bank loan. It is backed by private equity and venture funds like Matrix Partners, SIDBI, Aavishkaar, Hivos Triodos Fonds and Lok Capital. (Mint)

Tata Tele To Merge GSM, CDMA Divisions – Tata Teleservices announced in what it described as the “unification” of two divisions offering services based on CDMA and GSM. With this restructuring around 15% of job positions will become redundant, cutting costs. TTSL operates CDMA business under the brand Tata Indicom while offering GSM-based services under the Tata Docomo brand.NTT Docomo, a Japanese telecom company has a 26% stake in TTSL, that currently has 11,000 employees. The Tata Group has most of the remaining 74%. Entrepreneur C Sivasankaran is also a minority shareholder. (Economic Times)

Karbonn To Raise $125M PE Funding – Homegrown mobile handset company Karbonn plans to raise about $125 million in the next few months through private equity (PE) players to fund expansion plans. This will be done through PE investors and Karbonn will finalise plans in the next quarter. The company is looking at the dilution of up to a 15 per cent stake during the process. Karbonn Mobiles is a joint venture between Delhi-based Jaina Group and Bangalore-based UTL Group. (Businessline)

StanChart Promotes Jaisingh To Global co-CEO – Standard Chartered Bank has named Nainesh Jaisingh as the global co-CEO of its private equity business with a specific mandate to spur growth in emerging markets and West Asia. Jaisingh, 44, who spearheaded the India unit for six years, will now helm the $3-billion plus fund’s global operations along with Alastair Morrison. (Times of India)

Franklin Templeton Buys 20% In Kimaya Fashions – US investment firm Franklin Templeton will buy a 20% stake in Kimaya Fashions for about Rs 60 crore, valuing the Mumbai-based designer wear retailer at Rs 300 crore. Franklin Templeton, which has over $735 billion in assets under management globally, will route the investment through its Indian private equity arm Franklin Templeton Private Equity Strategy. Kimaya will issue fresh shares to the private investor. (Economic Times)

Premium Transmission Buys German Firm -Pune-based, Premium Transmission Ltd has announced the acquisition of the entire business of Rexnord Stephan GmbH & CoKG, Germany. The acquisition has been done through Netherlands based SPV- Premium Stephan for an undisclosed sum. Stephan manufactures geared motors, industrial gearboxes, customised solutions and high precision robotic drive systems with current sales of over euro 21million. (Business Standard)

SKS To Raise Rs 900Cr Through QIP – SKS Microfinance Ltd, the microfinance institution, is planning to raise up to Rs 900 crore through a qualified institutional placement (QIP) of equity shares. The company has been evaluating various means of raising capital primarily to meet its growing need for funds. Meanwhile, the company has, as expected, incurred a loss — of about Rs 218.74 crore for the quarter ended June. This is the highest loss SKS has booked in a quarter. (DNA)


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News Roundup: Bhartiya Samruddhi Finance May Go Under

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