Tata Capital Plans to Raise Rs 500 Crore for its PE Business - Non banking financial company, Tata Capital will raise $ 500 million from international and domestic investors for the first corpus of its private equity venture. Tata capital is also leveraging its tie ups with the Japanese firm Mizuho Securities in raising the fund for its PE business. The NBFC has developed a book size of Rs 7,000 crore. While till now the company focused on corporate and retail finance, it is now focusing on the expansion of its other businesses too. (Business Standard)
SE Picks 26% stake in Omnesys - National Stock Exchange (NSE) has picked up 26 % stake in Bangalore-based front-end technology provider Omnesys Technologies. Omnesys is among the few vendors that got the application programming interface (API) from NSE for its currency futures segment. In fact Omnesys made a fresh allotment of shares on June 26, which was approved in a general meeting held on June 30. It was at this time that Dotex International, a wholly-owned subsidiary of NSE, along with several other individuals picked up shares of Omnesys. (The Economic Times)
Govt. Considers Tax Exemptions for VC Funds in Clean Tech - Govt. plans to look at proposals to extend tax exemptions to venture capital funds in the energy efficient technologies also called the clean technologies. This consideration comes at a time when the international oil prices have dropped drastically to less than $50 (Rs2,365) per barrel, which has been acting as a disincentive to invest in alternative technology. (Live Mint)
FIPB Clears Ralf Schneider Proposal Despite L&T Objection - A proposal by German plastic moulding major, Ralf Schneider, to set up a wholly-owned subsidiary in India has been cleared by FIPB (Foreign Investment Promotion Board) despite the objections raised by its former Indian partner Larsen & Toubro (L&T) under Press Note 1 of the Foreign Direct Investment (FDI) policy. L&T and Ralf Schneider had entered into a technical partnership in 1992, which expired in 20007. Few months back, L&T invoked Press Note 1 blocking Ralf Schneider’s entry in India on grounds that the German company’s plans would hamper L&T’s growth in India. L&T cited that one of its business units makes the same equipment that Ralf Schneider intends to make in India.This is the second time that the FIPB has struck down an objection by an Indian partner. (Business Standard)
IDBI Short Lists 7 Potential Buyers for IDBI Home Finance - IDBI bank has short listed seven players as the potential buyers of its Pune based, wholly owned home loan subsidiary, which it plans to sell by mid January. The bank had received 12 proposals for the subsidiary. IDBI capital has been appointed as the advisor by the bank for the deal. IDBI bank decided to sell its subsidiary, IDBI Home Finance because it did not want to offer the same home loan products from the bank as well as the separate unit. (Business Standard)
3i to Relocate China Staff to Beijing - 3i Group, the British private equity firm will relocate its China dealmakers to Beijing to save costs and focus more on mainland Chinese deals. 3i also aims at closing around 3 china deals before the end of March, including a deal that would mark 3i’s first investment in China’s Healthcare sector. Earlier this month, 3i announced a 15% reduction in its global headcount owing to the tough market conditions. Though the PE firm will close its offices in Hong Kong and Shanghai, it will keep its offices in India and Singapore. (PEHUB)
Cadila Buys Remaining 30% Stake In Zydus Pharmaceuticals - Cadila Healthcare Ltd. bought the remaining 30% shares in its U.S based joint venture Zydus Pharmaceuticals from its partners for an undisclosed amount. Zydus Pharmaceuticals is a joint venture of Cadila through its Irish subsidiary, in which it already held 70% stake. Post the deal, the U.S based subsidiary has become a 100% subsidiary of Cadila Healthcare. (The Economic Times)
Wockhardt May Opt For Fresh Overseas Borrowing to Repay FCCB Holders - Indian drug major, Wockhardt’s attempts sell assets have failed to generate interest among buyers and now it may opt for fresh foreign borrowings to repay FCCB (foreign currency convertible bonds) holders. Wockhardt is not only considering raising fresh bonds to repay earlier FCCB holders but might also sell assets for the same. The company can not afford to raise debt overseas because the debt on its books is almost twice that of its equity. Wockhardt's $140 million (Rs 665 crore) FCCB will mature on October 25, 2009. The conversion price was originally set at Rs 486 a share, while Wockhardt's share price in today's trading ended at Rs 102.15. (Business Standard)
HSCI Defers Expansion Plans for Rajasthan unit - The Indian subsidiary of the Japanese giant Honda Motor Co., Honda Siel Cars India (HSCI) has postponed the capacity enhancement and assembly operations at its new plant in Rajasthan owing to weak domestic demand for cars. The capacity addition had been scheduled for the fourth quarter of the current fiscal year. HSCI will also reduce production at its primary plant in Greater Noida, Uttar Pradesh, in an effort of maintaining lean operations. However, despite the drop in demand for cars, HSCI will go ahead with its plans of launching the premium hatchback Jazz by mid-2009. (Business Standard)
Geojit and Jhunjhunwala Set Up Commodities Broking Firm
C J George, founder of Geojit Financial Services and Rakesh Jhunjhunwala of Rare Enterprises are jointly setting up a commodities broking firm, Geojit Comtrade. Its is expected to go live next week. According to reports George and his family control 60% stake in the firm while the rest is controlled by Jhunjhunwala. Geojit comtrade will have a pan India presence and will offer its services to retail, corporate and high net worth individual clients. (The Economic Times)
Hyatt Plans to Open 10 More Hotels in India in Next Five Years - The hospitality giant, Global Hyatt Corporation plans to triple the number of Hotels in India in the next five years. The firm currently operates five hotels in India under the Hyatt Regency, Park Hyatt and Grand Hyatt brands in Mumbai, New Delhi, Goa and Kolkata. It will also introduce 2-3 more brands in the country. Currently, Hyatt, along with DB Hospitality, the hospitality arm of Mumbai-based real estate company DB Realty, is building a 70-storyed luxury hotel in south Mumbai at a cost of more than Rs 1,000 crore. (Business Standard)
Zee Learn To Invest Rs 350 Crore in 300 Schools - The education division of media giant Essel Group will invest Rs 350 crore towards setting up 300 schools across the country by 2013. The expansion will be funded through internal accruals and external funding. Essel group is already running play schools under the Kidzee brand and high schools under the Zee Schools brand. (Business Standard)
