News Roundup: Govt plans $1B VC fund to boost telecom manufacturing

12 March, 2014

In a boost to telecom manufacturing in India, the government plans to set up a $1-billion (Rs 6,200-crore) venture capital (VC) fund, which will take into account the technology and not return on capital as a measure of success. The draft note, proposed by the National Manufacturing Competitiveness Council (NMCC) and the Department of Telecommunications (DoT), will soon be sent to Prime Minister Manmohan Singh for his approval. The fund will invite proposals to select a few consortia, pre-dominantly of Indian-origin scientists and technologists, for providing funding. It will provide 85% of the equity without management control and the remaining 15% as sweat equity. (Hindustan Times) 

Poddar back in race to buy Mangalore Chemicals: Saroj Poddar-controlled Zuari Fertilisers and Chemicals, which holds a 16.43% stake in Mangalore Chemicals & Fertilizers Ltd (MCF), is back in the race to acquire the UB group firm. Poddar, who had earlier said he would sell his stake in the company, apparently changed his mind after UB Group chairman Vijay Mallya dropped his plan to buyout other stakeholders, according to people aware of the development. Sailesh Mehta-run Deepak Fertilisers and Petrochemicals Corporation Ltd, which holds a 24.46% stake in MCF, is also in the race to take control of the fertiliser maker. Mallya owns a 22% stake in MCF through United Breweries Holdings Ltd (UBHL). Around 10% shares are pledged with lenders. (Business Line) 

NCMSL to get Rs 130-crore funding from Nabard: The National Bank for Agriculture and Rural Development will lend Rs 130 crore ($21 million)  for the first time to a private sector company National Collateral and Management Services (NCMSL) through its Rural Infrastructure Development Fund. Sanjay Kaul, Managing Director, NCMSL, said it is for the first time that Nabard, which generally lends only to Government-owned warehousing entities, has utilised the special window opened by the Centre to fund established private sector warehousing companies like NCMSL. The firm has proposed to utilize the fund to set up warehouses at 40 locations, as part of its ongoing project. It recently acquired 216 acres in tier-II and tier-III cities across 12 States to construct its own warehouses. (Business Line) 

REC plans to raise more funds from Germany’s KfW: Rural Electrification Corp (REC) is in talks with Germany’s KfW for raising money to provide funding for renewable energy projects. Both companies are in talks regarding funds that would be utilised by REC for financing renewable energy projects. Among others, REC had earlier received about 100 million euros loan from KfW, a leading development bank based in Germany. (Money Control) 

Cigniti Tech to raise Rs 48 cr to fuel growth plans: Cigniti Technologies Ltd., a Hyderabad-based independent software testing company, is in the process of raising about Rs 48 crore ($7.87 million) through preferential allotment of shares to fund its organic and inorganic growth plans, said Sriram Rajaram, president. The company is also actively looking at making an acquisition in the specialised testing space either in the UK or Australia for between $5 million and $20 million (Rs 30 crore – Rs 122 crore). The firm expects to close a deal in the next six to nine months. In 2011, Chakkilam Infotech had acquired US-based Cigniti Inc in an all-stock deal. Post the merger process, it rebranded itself as Cigniti Technologies Limited. In 2013, the company acquired Gallop Solutions Inc, a US-based specialised software testing services firm, for an undisclosed sum. (Business Standard)

Courtesy: VCCEdge

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Battle to acquire management control of Mangalore Chemicals heats up; Zuari Fertilisers-led group makes counter offer

Battle to acquire management control of Mangalore Chemicals heats up; Zuari Fertilisers-led group makes counter offer

Anuradha Verma 3 years ago
Saroj Poddar-controlled Zuari Fertilisers and Chemicals has joined hands with United Breweries (Holdings) Ltd and its associates Kingfisher Finvest India Ltd and McDowell Holdings Ltd...
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Deepak Fertilisers makes open offer to hike stake in Mangalore Chemicals

Deepak Fertilisers makes open offer to hike stake in Mangalore Chemicals

Anuradha Verma 3 years ago
Deepak Fertilisers and Petrochemicals Corp. Ltd (DFP), along with its subsidiary SCM Soilfert Ltd, has made an unsolicited open offer to acquire additional 26 per...
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News Roundup: Govt plans $1B VC fund to boost telecom manufacturing

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