News Roundup: Investors plan to sell LPO firm UnitedLex for $200M

21 March, 2016

Financial investors have moved the market for a potential sale of Gurgaon-based legal process outsourcing (LPO) firm UnitedLex Corp for $200 million (Rs 1,220 crore). Venture capital firms Canaan Partners, Helion Venture Partners and Sequoia Capital have mandated Credit Suisse to look for a buyer for the company with a hybrid offshoring model, people familiar with the matter said. Investment bankers have approached strategic buyers like Nasdaq-listed Huron Consulting, Moody’s-owned Copal Partners and private equity buyout funds with the sale offer, sources mentioned earlier said. VC firms Canaan and Helion were early backers of UnitedLex founder Ajay Agarwal. Sequoia Capital joined the list of investors three years ago and the three investors bought out Agarwal’s stake, giving them a major interest in the company. (The Times of India) 

Raymond adds ready-to-wear line, initiates plan to cut debt: Textile company Raymond Group has initiated a number of measures, including the introduction of a ready-to-wear line and stake sales in two group companies, as it prepares to grow faster and reduce its borrowings. The Rs 5,000 crore ($818 million) company promoted by the Singhania family will look to take on rival brands such as Louis Philippe, Arrow, Van Heusen, Peter England and John Miller with its new line, which will be introduced under its Raymond brand that’s known more for its suitings fabric range. Raymond is also selling equity in its engineering arm JK Files Ltd and its fast-moving consumer goods (FMCG) business JK Helene Curtis Ltd to pare its debt of Rs 1,550 crore ($254 million). It considers these non-core businesses. The company has initiated talks to sell stake in JK Files to strategic investors and has mandated Mumbai-based investment bank Avendus Capital for the transaction. (Live Mint) 

L&T to reduce stake in NBFC arm: Larsen and Toubro Ltd (L&T), India’s largest engineering and construction company, will sell as many as 83.3 million shares in its non-banking finance company L&T Finance Holdings Ltd through a qualified institutional placement on Friday, a term sheet released on Thursday showed. The share sale will happen at Rs 70 per share, a 11.6% discount to the company’s closing price of Rs.79.2 a share on Thursday. The company which owns 81.50% in the NBFC, will own 76.6% stake in the company after the sale. L&T will raise a minimum of Rs 390 crore ($64 million), which could go up to a maximum of Rs 580 crore ($95 million), the term sheet said. Credit Suisse AG is the banker to the sale. (Live Mint) 

HDFC Ltd plans to raise at least Rs 500 crore via bonds: Housing Development Finance Corp, country’s biggest mortgage lender, is planning to raise at least Rs 500 crore ($82 million) through three-year bonds with a put option at the end of 13th month at 9.70%, two sources with direct knowledge of the matter said. ICICI Bank and Yes Bank are the arrangers to the bond sale, said the sources. ()

MOIL eyes overseas acquisition; earmarks Rs 500 crore: Country’s largest manganese ore producer MOIL Ltd has earmarked Rs 500 crore ($82 million) for mining assets’ buy abroad. The company is also ramping up its domestic capacity to meet the growing need from the local steel industry with an estimated investment of Rs 1,200 crore ($196 million) in phases. The firm is looking to acquire assets in various geographies, including Australia and New Zealand. (Business Standard) 

India plans to sell stake in HAL after general election: India is likely to push through its plan to divest a minority stake in state-controlled military aerospace manufacturer Hindustan Aeronautics Limited (HAL) after the country’s general election, which will be held over nine phases starting in early April. An official in India’s Ministry of Finance (MoF), who has direct knowledge of the matter, told that the planned sale of a 10% stake in HAL is “in process” and that it is likely to be concluded after the formation of a new government. () 

Courtesy: VCCEdge


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News Roundup: Investors plan to sell LPO firm UnitedLex for $200M

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