Celkon Mobiles, is planning to go for private equity (PE) after it reaches a turnover of Rs 1,000-1,200 crore. “We have been doubling our turnover in the last few years. We target to reach Rs 1,200 crore by the end of this financial year. We will seek PE funds after that as we explore export opportunities,” Y. Guru, Chairman and Managing Director of Celkon Mobiles, said. “We have been approached by 2-3 PE funds. But we don’t need funds for now. We might look for a non-PE investment too,” he said. An industry source has said the company might go for Rs 300-500 crore from one or more PE players. Guru, however, has not confirmed or denied this figure, saying the company would take a call after reaching the targeted turnover and finalising expansion plans. ()

CIL might buy stake in Australian coal assets: State-owned miner Coal India Ltd (CIL), which plans to invest Rs 6,000 crore in foreign acquisitions in FY14, is evaluating buying stakes in three coal assets in Australia to bridge the shortfall in its domestic production, sources said. "We had signed non-disclosure agreements with three companies in Australia in April. The three mines have a combined production of 25 million tonnes (mt) per annum currently," said a top CIL executive. He added the equity participation being sought by the miner varies between 25 per cent and 50 per cent in the ventures. CIL may have to shell out around $375 million for the deal, assuming the miner takes up at least 25 per cent stake in each of the three mines, an average of 30 year life of the mines and the current average coal asset valuation of $2 per tonne in the international market. This puts the combined worth of the three properties at $1.5 billion on a reserve base of 750 mt. (Business Standard)

Punj Lloyd to convert Rs 1,400 crore debt into dollar loans: Engineering major Punj Lloyd plans to refinance up to Rs 1,400 crore of debt into dollar loans over the next six months to cut costs and soften the impact of a falling rupee, a senior company official has said. The mismatch has led to a steep rise in finance costs for the company due to high interest rate regime in India and has made a big dent in its profitability. In the last five years, Punj Lloyd’s interest outgo has risen by more than three and half times to Rs 780.76 crore in 2012-13. It stood at Rs 220.76 crore in 2008-09. “Once that (converting rupee debt into dollar loans) happens on Rs 1,400 crore debt, there is straightaway Rs 50-60 crore savings a year. If there is a 4 per cent savings in interest rates, that will go straight to the bottomline,” Punj Lloyd’s Director (Corporate Affairs), Luv Chhabra said, adding that Punj Lloyd has no plans to go to Corporate Debt Restructuring cell for recasting its loans. (Business Line)

Jet Airways makes progress on debt: Jet Airways, the country’s largest air carrier, expects its debt burden to decline to Rs 8,250 crore by the end of this financial year, a fall of nearly 50 per cent from the corresponding figure at the end of 2011-12. The process has got an impetus from the proposed equity infusion by Etihad Airways of Abu Dhabi. “The infusion from Etihad will help Jet to repay most of its working capital loan. The company will then be left with only debt related to aircraft acquisition that it can service comfortably,” says Jasdeep Walia, aviation analyst at Kotak Institutional Equity. Etihad is to invest around Rs 2,100 crore for a 24 per cent equity stake in the company. It is to also take 50.1 per cent in Jet Privilege, the customer loyalty programme, for around Rs 850 crore. (Business Standard)

Courtesy: VCCEdge

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