GVK Group may sell part of its Bangalore airport stake: GVK Group, the majority shareholder in both Mumbai and Bangalore airports, is planning to sell a part of its 43% stake in the profitable Bangalore Airport to strategic investors or sovereign wealth funds, two people with direct knowledge of the development said. The move is aimed at bringing down the company’s heavy debt and expand its capacity. The group, owned by billionaire GVK Reddy, has appointed investment bank Kotak Mahindra Capital Company to scout for buyers. Malaysian Airport Holdings Berhad and some Middle East sovereign wealth funds have shown preliminary interest in the stake offered by GVK Group. GVK Group, which owns 50.5% stake in Mumbai airport, purchased a 12% stake in BIAL in November 2009 for Rs484.6 crore, as part of expanding its airport business and a year later raised it to 43% by investing additional INR 1,300 crore. (Times of India)
Muthoot plans new NCD issue: Encouraged by a strong response to its recent NCD issue, Muthoot Finance will tap the market with a similar debt offering. In November, the gold loan company had mobilized INR 300 crore ($45 million) through a non-convertible debenture issue. The company is now looking at an issue size of INR 250 crore ($37.5 million) with a green shoe option of INR 250 crore ($37.5 million) for the upcoming NCD issue, likely to open on December 16. This would be the third debt issue by the company this fiscal, with the first one hitting the market in September to mop up about INR 300 crore. (Business Line)
Bandhan plans to raise INR 100 cr through NCDs: West Bengal-based Bandhan, India’s microfinance provider in terms of loan disbursements, is planning to raise nearly INR 100 crore ($15 million) via NCDs in the current financial year. This would help to expand operations in newer geographies. At present, Bandhan has 4,862,117 borrowers with loan outstanding of INR 7,674 crore, spread over 20 states and accounting for 22% of the MFI market in the country. Earlier, the Reserve Bank of India (RBI) had allowed MFIs to draw external commercial borrowings of up to $10 million. In September this year, Ujjivan Financial Services, had raised INR 50 crore of debt capital through NCDs, subscribed by Oikocredit, an international cooperative and social investor.(Business Standard)
Dongfang is in talks to buy Trichy-based power firm: Chinese firm Dongfang is in talks to take over Trichy-based power equipment manufacturer Cethar. The acquisition would help the Chinese company have presence in India. It would also help Dongfang control its costs as well as comply with the localisation norms in India. The valuation of this company comes to around INR 500-600 crore. Cethar was founded by K Subburaj, who started it in Trichy as a sub-contractor to Bharat Heavy Electicals. (Business Standard)
Coal India eyes mine acquisitions in Indonesia: Pursuing its overseas expansion strategy, state-owned Coal India Ltd (CIL) is looking at five proposals for acquisition of mines in Indonesia. The company in September had said that it invited an expression of interest inviting global companies to offer overseas assets. CIL’s foreign plans come at a time when the company is facing flak for acute shortages of coal, which is hurting country’s key sectors including power and fertilizer. (Business Standard)
KFC venture capital fund plans to back startups in India: The Kerala Financial Corporation (KFC) is launching a venture capital fund to support startups, Finance Minister K.M. Mani said. He said the corporation had already started funding tech projects at the Start-Up Village, Technopark Incubation Centre, and professional and institution-based incubation centers. The funding activities were done under the Kerala State Entrepreneurship Development Mission. (VCPost)
Tata Sons plans to raise at least INR 3 billion via bonds: Tata Sons, the holding company of Tata Group, plans to raise at least INR 3 billion ($49 million) via two separate bond deals, a source with direct knowledge of the matter said. The firm will issue 5-year bonds at 9.76% and 10-year bonds at 9.71%. ICICI Securities Primary Dealership is the arranger to the deal. ()
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