BNP Paribas is planning to raise its stake in its Indian retail broking joint venture Geojit BNP Paribas by 4% to 37.58%, a person with direct knowledge of the plan said. The Paris-based bank has applied to the Foreign Investment Promotion Board (FIPB) for approval. The French bank can buy the shares from the market and bring down its cost of acquisition as the rupee had depreciated 11% against the euro since April. George along with his Kerala State Industrial Development Corporation own 33% stake in the company and is classified as promoters. Geojit BNP Paribas has a market value of around Rs 500 crore ($92 million) and at this value BNP Paribas will have to pay Rs 20 crore (3.66 million). (The Economic Times)

Government to select among 10 merchant bankers for NHPC stake sale: The government will tomorrow finalise merchant bankers for managing the disinvestment of hydel power producer NHPC, which is expected to fetch over Rs 2,200 crore ($404 million) to the exchequer. As many as 10 merchant bankers, including Credit Suisse, ICICI Securities, SBI Cap and HSBC have evinced interest in managing the stake sale. The bankers are scheduled to make their presentation before the disinvestment department tomorrow. The government plans to sell 11.36% of its stake, or its 120 crore shares of NHPC through Offer For Sale (OFS) in the domestic market. Government currently holds 86.36% stake in NHPC. (The Economic Times)

Century Real Estate redeems Rs 100-crore NCDs: Bangalore-based realtor Century Real Estate has redeemed Rs 100-crore non-convertible debentures (NCDs) that it raised through Kotak Mahindra Prime. In 2010, the builder had raised funds by selling 80% of the book to high net worth individuals (HNIs), corporate investors and Kotak Mahindra Prime, a nonbanking finance company. The fund is being used to develop seven new projects with a built-up area of 1.7 million sq ft. Over the past two years, the company had raised Rs 410 crore in four tranches through NCDs from Anil Ambani-owned Reliance Capital, JM Financial and Kotak Realty Fund. The firm had also raised $125 million from Goldman Sachs in 2008-09, and is looking to exit the investment. (The Economic Times)

Aptech eyes buyouts to push growth in career education business: Mumbai-based education company, Aptech Ltd. is open to acquisition opportunities that are adjunct to career education. The 26-year-old company, which metamorphasised itself from being a computer education firm to a career education company, had in January 2010, acquired Maya Academy of Advanced Cinematics (MAAC) for Rs 76 crore. The company is entering the African market aggressively and has signed up in Rwanda and Ghana recently. (Business Standard)

CTIL plans for acquisition: CTIL Ltd. is planning to acquire 100% equity shares in ECG Technology, LLC, which in turn holds 30% of the equity shares of a US operating company in the Liner Board Paper industry. The foregoing investment had been previously approved on May 25, 2012 and being reconsidered by the Board as there have been certain changes in the structure of such an acquisition. The company is also looking to raise up to $300 million (Rs 1,626 crore) for acquiring the above interests through issue of global depository receipts or foreign currency convertible bonds. (BSE)

Scouting for global acquisitions of brands, companies: Drug major Lupin is looking to acquire companies and brands globally, including in the US, Japan and China, to expand its global footprint. The Mumbai-based firm is adopting a three-pronged approach in its acquisition strategy, which also includes the domestic market. While it would scout for brands to acquire, in some geographies, it would look to take over companies which can provide it new technology or market access. In the US in particular, the company is looking at brands for acquisition. (Business Standard)

Courtesy: VCCEdge

Leave Your Comment(s)