Infrastructure firm GVK Power and Infrastructure is looking to sell stake in two key road projects. The company is hoping to raise as much as Rs 1,200 crore ($190 million), as it looks to reduce its staggering Rs 18,000 plus ($2.85 billion) of debt on books. The firm is looking to sell stake in the Jaipur-Kishangarh project and the Bagodara- Vasad project. Private equity firms, SBI-Macquarie one of them, have shown interest in the two projects. (Money Control)

IDFC Alternatives unveils two real estate funds: Sensing a healthy appetite from the real estate industry, IDFC Alternatives, the private equity arm of infrastructure finance company IDFC Ltd, is raising two funds for the sector. The firm is raising a domestic mezzanine debt fund of about $100 million (Rs 620 crore) and a foreign rental yield fund of $300 million (Rs 1,860 crore). The firm expects to announce the first close in the next 45 days and the final close in the next three to four months. The company intends to raise the proceeds from domestic investors, such as family offices and high networth individuals and invest in real estate projects across the seven Indian major cities, including the metros. IDFC Alternatives is also raising a foreign rental yield fund of “maybe $300 million” and expects to tie up funds by July. This would be a foreign joint venture club-structure rental yield fund, for which the PE firm is in talks with “strategic players.”  (Business Line) 

Zydus Cadila exits Japanese market, 7 years after entry: Seven years since Gujarat-based Cadila Pharma announced its decision to enter Japan; the pharma company has decided its time to move out of the second largest pharma market in the world. On Monday Zydus Cadila said that it has decided to exit Japan, without divulging any further detail. The company has recently completed portfolio and strategy review of its business and has decided to exit from its business in Japan, which is through 100% subsidiary company" In April 2007, Zydus had picked up 100% stake in Japan's Nippon Universal Pharmaceutical Ltd. At the time of the acquisition Cadila had said that the buyout will provide it critical access to a ready manufacturing and marketing bases as well as a strong distribution reach. (The Economic Times)  

L&T Infrastructure Finance plans to raise Rs 1 bn via sub debt at 9.73%: Non-banking finance company L&T Infrastructure Finance is planning to raise Rs 100 crore ($16 million) through an issue of 10-year subordinated bonds at 9.73%, a source with direct knowledge of the deal said. The bonds are rated AA+ by Care and ICRA. Darashaw is the sole arranger for the sale, said the source. ()   

Mesco Steel plans to raise $400 mn through ECBs for capacity expansion: Mideast Integrated Steel Ltd (MISL), a Mesco Steel Group firm, plans to raise $400 million (Rs 2,515 crore) through external commercial borrowings (ECBs) to expand its steelmaking capacity at Kalinganagar from 1.2 mtpa at present to 3.5 million tonne per annum (mtpa). The company is now planning to increase the steel-making capacity of the plant to 3.5 mtp in two phases, for which we have an option to raise foreign debts as some banks are willing to pay the amount,” said Rita Singh, chairperson and managing director, MISL. The firm is also going for a credit rating before raising funds to meet its working capital requirement. (Business Standard) 

Kotak Private Equity plans to buy 19% in Samson Maritime for Rs 150 crore: Kotak Private Equity is buying out IFC and JM Financial's 19% stake in Samson Maritime, an offshore logistics support services firm catering to the oil and gas sector for Rs 150 crore ($24 million), two people with direct knowledge of the development said. In 2008, the private equity arm of JM Financial invested around $14 million in the company. Subsequently, in 2013, IFC invested around $11 million to part-finance the debt that it took to purchase of a new Anchor Handling Tug Supply Vessel (AHTS). The founders own 81% in the company, while JM Financial and IFC hold 11.7% and 7.3%, respectively, of the equity capital of the company.  (The Economic Times)   

Courtesy: VCCEdge

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