Bulge-bracket private equity funds General Atlantic Partners and Apax Partners are in talks to buy out 49% stake owned by retail financial services company Destimoney in Punjab National Bank’s housing finance company PNB Housing Finance. Private equity fund New Silk Route (NSR), which owns majority stake in Destimoney, has appointed Morgan Stanley to find a buyer for the PNB stake. In 2009, Punjab National Bank sold 26% stake in PNB Housing to Destimoney for Rs 79.2 crore, and three years later, Destimoney exercised its option to raise its stake to 49% by subscribing to compulsory convertible debentures worth Rs 137.3 crore. (The Economic Times)
Tech Mahindra may buy stake in social business startup: India’s fifth largest IT services company Tech Mahindra is discussing a stake acquisition in social business intelligence startup Simplify360, as part of strategic initiatives to bolster SMAC (social, mobility, analytics and cloud services) offering to clients. TechM could buy a large minority stake initially with a clear roadmap to buy out Simplify360 in the next three years, people familiar with the matter said. German enterprise software giant SAP, Japanese advertising and communications major Dentsu and Adobe had also looked at the transaction, with some of them dropping out after preliminary talks. The company has mandated PwC to help identify a strategic investor. (The Times of India)
Lakshmi Vilas Bank plans Rs 505-cr rights issue: Old private sector lender Lakshmi Vilas Bank plans to raise Rs 505 crore ($84 million) through a rights issue from its existing shareholders. Post market hours, the bank informed the BSE that it has filed a draft letter of offer in connection with the proposed rights issue of equity shares of Rs 10 each, aggregating to Rs 505 crore for cash. Under the rights issue, existing shareholders are entitled to buy additional shares directly from the bank for a fixed time period. The funds would increase the bank’s capital adequacy ratio, which was at 10.46 per cent as on December 31, 2013, according to Basel III requirements. (Business Line)
Indian Hotels board okays Rs 1,000-cr rights issue: Tata Group-promoted Indian Hotels Company Ltd (IHCL) will raise up to Rs. 1,000 crore ($166 million) through a rights issue. In its board meeting held on Thursday, the company considered and approved the rights issue. Accordingly, Indian Hotels’ existing shareholders would be issued compulsorily convertible debentures. The terms and conditions of the rights issue, including the rights entitlement ratio, the issue price, record date, timing and other related matters, shall be decided subsequently by a duly constituted committee of the board. (Business Line)
JP Associates is in talks with Dalmia Cement to sell stake in Bhilai unit: Three independent sources with direct knowledge have said that Manoj Gaur-led JP Associates is in advanced talks with Dalmia Cement to sell it’s 74% stake in the Bhilai cement plant. Deal talks are hovering around Rs 1,500 crore ($249 million) enterprise value, sources suggest. The two companies are engaging in the second transaction after closing the stake sale in the Bokaro cement unit which was announced this week at around Rs 1,150 crore enterprise value. SAIL owns 26% in both the cement units of JP Associates. Sources suggest that Dalmia Bharat’s subsidiary, Dalmia Cement, in which KKR owns 15 percent stake, is conducting a due diligence at JP Associates’ Bhilai-based cement facility. (The Economic Times)
ICICI Bank to raise funds in Australian dollars: India’s largest private sector lender ICICI Bank is raising funds in Australian dollars under its $5 billion (Rs 30,043 crore) global medium-term note or GMTN programme. Global rating company Moody’s Investors Service on Thursday has assigned a ‘Baa2’ with stable outlook to the proposed bonds, which have five-year tenure. In a day or two, the final commitment will come and pricing will be finalised. The money would come in next three-four days,” said a person familiar with the matter. Australia and New Zealand Bank Group or ANZ as well as the Hong Kong and Shanghai Banking Corp or HSBC are the two investment banker bankers to the issue. (The Economic Times)
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State-run Punjab National Bank has sold a 26 percent stake in its fully-owned...
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