A number of non-banking financial companies (NBFC), including Warburg Pincus-backed Capital First, are selling a part of their retail loan portfolios to Canara Bank to free up their balance sheet, as well as to share profits. Other public sector banks are also talking to various NBFCs for similar deals. Canara Bank is in talks with a number of NBFCs, including Capital First, Bajaj Finserv and Indiabulls Finance, to buy a part of their retail loan portfolio. The talks are currently on to buy another tranche of Rs 500 crore from Capital First. The bank already bought Rs 500 crore worth of the loan book a few months ago. The bank is also in touch with Bajaj Finserv and Indiabulls to buy loan books of Rs 500 crore each. (Business Standard)
ICICI Venture to buy Anand Rathi’s stake in Global Hospital: ICICI Venture is set to acquire Anand Rathi’s stake in Hyderabad-based Global Hospitals as the private equity arm of India’s private bank by assets joins Sabre Capital and International Finance Corporation in closing about Rs 300 crore of investments into the healthcare network. Financial services firm Anand Rathi holds under 10% stake in the hospital chain, which will be bought out by ICICI Venture. IFC and Sabre will subscribe to fresh shares in the company, valued at over Rs 1,000 crore. India-focused private equity investor Everstone Capital is already a large existing investor. The three new investors will together hold just under a 24% stake, while Everstone retains about 32%. The promoters led by Dr Ravindranath will keep 45% shares and management control. The incoming investor group is currently in the process of putting together the documentation and hopes to close the transaction soon. (The Times Of India)
Jaypee Group plans to sell assets to cut debt by Rs 15,000 crore: Jaypee Group, owner of India’s most indebted cement maker, plans to sell some of its plants and real estate in a bid to cut liabilities by about 25%. The builder of India’s only Formula One (F1) racing track seeks to reduce debt by Rs 15,000 crore by selling its cement plants in southern and western India, some of its power generation units and property in a year. The flagship Jaiprakash Associates Ltd has $10 billion of total debt. (Live Mint)
Indian Oil to raise $500 mn via syndicated loan by August-end: State refiner Indian Oil Corp will raise $500 million through a syndicated loan by the end of August. The proceeds would be used for working capital requirements. As per Reserve Bank of India guidelines, the company can raise $750 million for capital expenditure, and $1 billion for working capital requirements. Earlier, the firm raised $500 million in July by way of senior unsecured notes. (The Economic Times)
Hotel Leelaventure board approves raising of Rs 1,000 crore: Hotel Leelaventure is planning to raise funds of up to Rs 1,000 crore ($187.22 million) in one or more tranches through various instruments. The hospitality chain also said the board has given its nod to issue of equity shares on preferential basis to a promoter group company to raise up to Rs 100 crore. The funds could be raised through issue of equity shares, convertible debentures, GDRs, ADRs and such other securities either through preferential issue, qualified institutional placement and private placement, in one or more tranches at an appropriate time. (The Economic Times)
Aban Offshore plans to raise about Rs 4,900 crore: Aban Offshore Ltd, an offshore drilling company, is seeking shareholder approval to raise about Rs 4,900 crore ($917 million) through the sale of shares and bonds to help it reduce some of its debt. The Chennai-based company wants to raise as much as $400 million through global depositary bonds, American depositary bonds or foreign currency bonds. The firm is also looking to raise another Rs 2,500 crore ($468 million) by selling shares to qualified institutional buyers. (Live Mint)
IDBI Bank plans to auction four Deccan Chronicle titles: IDBI Bank on Tuesday made another announcement for auctioning four newspaper titles owned by debt-ridden media firm Deccan Chronicle Holdings Ltd (DCHL). The public sector lender stated it would transfer the titles of Deccan Chronicle, Andhra Bhoomi, The Asian Age and Financial Chronicle to the highest bidder. The final date for bids is August 27. As security for the financial assistance granted by IDBI Bank, DCHL, along with the other co-owners, has created a charge by way of hypothecation on their trademarks. The bank had given a term loan of Rs 250 crore to DCHL. (Business Standard)
Promoters of Shree Kartik Papers plans to sell stake: M.S. Velu, the promoter of Shree Kartik Papers Ltd. is planning to sell 11,00,000 equity shares representing 5.756% of the equity share capital of the company on the separate window provided by the BSE Ltd for this purpose. The Sale shall take place on a separate window of the Stock Exchange and shall commence on August 14, 2013 at 9:15 a.m. and shall close on the same date at 3:30 p.m. ISE Securities and Services Ltd. is the manager to the issue. (Business Standard)
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