Everstone Capital would buy a 15% stake in Hinduja Leyland Finance as investments in non-banking finance companies generate better than market returns fuelled by good exposure to India’s growing commercial vehicle financing market. The private equity fund, promoted by former Goldman Sachs bankers Sameer Sain and Atul Kapur, would pay INR 200 crore ($36.5 million) for the stake, valuing the vehicle financing company at INR 1,000 crore. Legal firm Crawford Bayley has drafted the final document and the deal will be announced shortly. (The Economic Times)
ABG, Tano Capital to sell Italian company for INR 300 Cr: India’s private sector ship builder ABG and Tano Capital, a private investment fund of former Franklin Templeton president Chuck Johnson, are selling unlisted Italian electric motor maker Cemp for about INR 300 crore ($55 million). A strategic European buyer is in final stages of due diligence to buyout the asset. Rishi Agarwal-led ABG along with Tano acquired Cemp, which manufactures flameproof and non- sparking motors for risky applications, in 2007. The two partners floated ABG Motors which acquired the company, with plants in Milan and Bangalore, for $37 million. ABG held 55% leaving the rest with Tano in the JV. (The Times Of India)
M&M to sell stake in Mahindra Holidays: Mahindra & Mahindra Ltd, promoter of Mahindra Holidays & Resorts India Ltd., is looking to sell 4.02% stake or 3.4 million shares of the target company. The sale will be exclusively through a separate window provided by the stock exchanges for this purpose. The sale will commence on March 7 at 9.15 a.m. and close on the same day at 3.30 p.m. The decision apparently is to meet the SEBI norm on public shareholding in listed companies of a minimum of 25%, which the companies should meet by June this year. (Business Line)
JSPL to secure funds for 2nd phase of Odisha unit next fiscal: Weeks ahead of commissioning of the 2-million tonnes Odisha unit in the first phase, Jindal Steel and Power Ltd (JSPL) is looking to start the process of financial closure for the remaining 4 mt second phase shortly. The Jindals signed a memorandum of understanding with Odisha way back in 2005 for the INR 22,500-crore, 6 mt steel plant. The company is looking at 60:40 debt-equity ratio for the 4 mt expansion. (Business Line)
Tata Steel plans to raise $1 bn via global bond issue: Tata Steel Ltd. is looking to raise $1 billion (INR 5,477 crore) through global bond issuance by the end of March. The bond issuance is expected to have tenure of 10 years at the rate of 5-6%. Banks like Deutsche Bank, BNP Paribas, Standard Chartered are said to be the advisors to the fund raising plan. Tata Steel is expected to use a part of the funds raised to finance the Odisha steel project. The total project cost is estimated to be around INR 35,000 crores. (The Economic Times)
HDFC plans to raise INR 11.5 bn through bond sales: Housing Development Finance Corp. is looking to raise INR 1,150 crore (INR 209.68 million) through two separate bond deals. The company would raise INR 500 crore ($91.17 million) through 1-year 1-day bonds at 9.50%. HSBC was the sole arranger to the bond sale. The firm is also raising up to INR 650 crore ($118.67 million) through 14-month papers. The company would pay a coupon of 9.50% with an annualised yield of 9.43% and Credit Suisse is an investor in the deal.
ISE to sell broking arm: The Inter-connected Stock Exchange of India (ISE), an exchange promoted by a dozen regional exchanges, is looking to sell its broking arm, ISE Securities & Services Ltd. The exchange has invited bids from interested parties till March 22. The stated sale was to meet regulatory requirements. “Sebi (of Securities and Exchange Board of India, the capital markets regulator) has given a nod to start operations, subject to sale of the subsidiary. (Business Standard)
Allied Blenders close to raising $100M: Kishore Chhabria-owned Allied Blenders & Distillers (ABD) is in the final stages of charting its $100- million (INR 547.7 crore) expansion plans and these should be in place by the first quarter of 2013-14. The resources would be channelled towards setting up a distillery in west India, strengthening its network and investing in emerging brands. Of the $100 million, ABD would raise $50 million (INR 273.8 crore) through the private equity route, while the rest would be accounted for by debt. Ambit Capital has been mandated to manage the fund-raising. (Business Standard)