News Roundup: HDFC, Kotak Eye Banking Acquisitions


  • 08 Jul 2010

Former CSIR Chief To Head Mukesh Ambani's PE Firm - Raghunath A Mashelkar, a leading scientist and for many years chief of the Council of Scientific and Industrial Research (CSIR), will lead a private equity initiative of Mukesh Ambani. The Reliance Industries chairman is likely to get involved in the project in his personal capacity. Reliance Life Sciences had in April 2007 teamed with MPM Capital, one of the world’s largest healthcare funds. (Business Standard)

IDFC Raises Rs 840Cr From Khaznah, Actis - Infrastructure finance company IDFC will sell convertible securities to Khazanah, the investment holding arm of the Malaysian government, and private equity fund Actis at Rs 176 a share to raise Rs 840 crore. IDFC recently placed shares at Rs 168.25 with qualified institutional investors to raise Rs 2,654 crore. Khazanah will retain its shareholding at around 9% while Actis will hold 1.7%. (Economic Times)

Investor Group Buys Wachovia's Stake in Realty Firm - WDC Ventures Ltd, an investment arm of Wachovia Bank of the US, has recently sold its 49% stake in Mumbai-based Vijay Associates (Wadhwa) Constructions Pvt. Ltd for Rs185 crore. WDC Ventures’ stake was bought back by Vijay Associates in a deal structured by India Infoline Ltd and funded by some wealthy individuals, clients of India Infoline Private Wealth Management Ltd. (Mint)


HDFC, Kotak Eye Banking Acquisitions - HDFC Bank Ltd, Kotak Mahindra Bank Ltd and IndusInd Bank Ltd have set their eyes on acquisitions. HDFC recently said that it would look for a merger with a bank in the southern part of the country. Kotak Mahindra also raised $296 million by way of a stake sale to Sumitomo Mitsui Financial Group Inc and is sniffing around for acquisitions. IndusInd Bank too is actively looking at some proposals. Investment bankers are closely tracking some old private banks, such as City Union Bank Ltd, Karnataka Bank Ltd, Federal Bank Ltd, Karur Vysya Bank Ltd, South Indian Bank Ltd and the unlisted Catholic Syrian Bank Ltd. (Mint)

John Distilleries To Raise Rs 75Cr From PE - Bangalore-based John Distilleries Ltd is in talks with PE firms to raise around Rs 75 crore to fund expansion of manufacturing facilities. There will a dilution of 10 -15% cent of promoter’s stake after the equity infusion which will be issued as convertible debentures. The company aims to achieve a revenue growth of around 30% to Rs 600 crore this fiscal. (BS)

Religare Appoints Two Board Members - Religare Enterprises has inducted two global financial sector experts on its board as independent directors. The financial services firm inducted Stuart Pearce and Kathryn Matthews to its board on Tuesday, shortly after its promoters — Malvinder Singh and Shivinder Singh — decided to step down from the board of REL.(BS)


PTC Financial Services To Get Listed - PTC Financial Services Ltd (PFS), the investing arm of Power Trading Corporation (PTC), is likely to list on the bourses between September and November. The company, which has started working on the draft red herring prospectus, wants to raise Rs 600-700 crore this year. PTC, the country’s largest power trader, has a 77% stake in PFS and plans to retain a 51% holding after the sale. Goldman Sachs and Macquarie currently hold 11.5% each in PFS. (DNA)

NMDC Eyes Russia Coal Mines - NMDC, India’s biggest iron ore producer, is seeking to buy coal mines in Russia. The company is believed to be in talks with Russian billionaire Mikhail Prokhorov to acquire four coking coal mines.The assets, called Kolmar mines, located in Siberia’s Yakutia region, are estimated to have reserves of 400 million tonnes. (DNA)

Hindustan Media IPO Oversubscribed 5.43 Times -  The Rs 270-crore maiden public offer from Hindustan Media Ventures generated good demand on the final day of the issue and was oversubscribed 5.43 times, with retail investors fully subscribing their portion. The IPO got bids for over 7.50 crore shares, out of a total of 1.38 crore equities on offer. Fund houses like Canara Robeco, Reliance Capital, SBI, Birla Sun Life and Lloyd George Investment made bids for the issue.


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