Jindal Power Defers Rs 7,200Cr IPO – Jindal Power has deferred its plan to raise Rs 7,200 crore through initial public offer (IPO) because of a weak market sentiment and rise in cost of capital and raw material. The valuations have also been hit by the sharp fall in tariff for merchant power dropped significantly. The Navin Jindal-led Jindal Power had received Sebi approval in May 2010 and was planning to divest around 11-12%. The transaction would have valued the company at over 60,000 crore. (Economic Times)
JM Financial Fund Buys PVR Property – PVR on Thursday sold its multiplex property at Phoenix Mills, Mumbai, to JM Financial’s newly-launched Real Estate Income Fund for Rs 100 crore. After the transaction is completed, PVR will continue to operate the multiplex property on a long-term lease arrangement basis. This is an attempt by PVR to become an asset light company. Real estate consulting firm GenReal Property Advisers were advisers to the transaction. (Economic Times)
GMR To Consolidate Airport Biz – Bangalore based GMR group is in the process of consolidating its airport business with parent company transferring its stake in the Delhi International Airport Limited & Hyderabad Airport to its airport subsidiary. The GMR parent company is selling 24% stake in Delhi International Airport Limited (DIAL) for Rs 660 crore and 63% stake in the Hyderabad Airport for Rs 240 crore to the airport holding company. GMR holds 54% stake in DIAL. Recently GMR had raised $350 million through private equity firms through its airport business. (Economic Times)
Shalimar Paints Promoters Eye Stake Sale – The promoters of Shalimar Paints Ltd, a Mumbai-based paint manufacturing company, are looking to divest a part of their stake. The company has appointed investment bank Avendus Capital Pvt. Ltd to scout for suitable buyers, including a strategic player or a private equity (PE) firm. The promoters of the company are the Ratan Jindal Group and the Jhunjhunwala Group, a Hong-Kong based non-resident Indian group with interests in real estate and hospitality. At the end of March 2010, the promoters held a 62.8% stake in the company.
TCG-Vornado Fund Closes Two Deals Worth Rs 270Cr – India Property Fund, managed by NRI investor Purnendu Chatterjee’s TCG Real Estate and US-based Vornado Realty Trust, is in the final stages of investing Rs 270 crore in two residential developments in national capital region and Mumbai.. The fund will invest Rs 150 crore and Rs 120 crore in housing projects in Mumbai and Noida, respectively, and pick up 40-45%in each of the projects. The $400 million fund is also looks at investing in related sectors such as construction, mortgage financing and infrastructure. (Business Standard)
Vikram Solar To Hit Capital Markets In 2012 – Vikram Solar Ltd, an arm of Kolkata-based Vikram Group, is planning to hit the capital markets through an initial public offering (IPO) in 2012 to fund its expansion plans. The company would invest about Rs 1,700 crore in solar power business in next five years. The company has entered into a tie up with Spanish solar company Proener Renovables to take up engineering, construction and procurement (EPC) contracts of large solar power projects. The newly-formed joint venture company Vikram-Proener project will have a 51%, while Proener will hold the rest 49%. (Business Standard)
Spandana Sphoorty CDR Stuck – Doubt remains over the Rs 2,300-crore debt recast programme of Spandana Sphoorty Financial, a Hyderabad-based microfinance institution, as banks refuse to relent on their demand for personal guarantees from the promoters. The cash-strapped micro lender requires an additional loan to redeem commercial papers that it issued earlier to banks and financial institutions, including Bank of India, Syndicate Bank and UCO Bank. This loan will also be a part of the total debt, proposed to be restructured. (Business Standard)
Zenotech Promoter Offers To Buy Daiichi Stake For Rs 300Cr – Giving a new twist to the Zenotech-Ranbaxy saga, the founder-promoter of Zenotech Laboratories, Jayaram Chigurupati, has moved the Company Law Board (CLB), asking it to allow a buyback of shares from Daiichi. Currently, Daiichi and Ranbaxy together hold about 67% of Zenotech. Chigurupati holds another 26%. According to Chigurupati, he would buy back the entire 67% from Daiichi at Rs 130 per share. (DNA)