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News Roundup: Krishnapatnam Port looks to sell up to 6% stake to PEs for Rs 1,200Cr

02 August, 2013

Krishnapatnam Port Company (KPCL), which owns the largest private port on the East Coast, is in talks with private equity funds Morgan Stanley Infrastructure Fund and SBI Macquarie to sell up to 6% stake and raise Rs 1,200 crore ($197.16 million) for its expansion. The company, promoted by the CVR Group, has mandated Mumbai-based investment bank JM Financial to spearhead the transaction. While the company is yet to shortlist the prospective buyers, some private equity funds have signed the non-disclosure agreement ahead of starting the due-diligence. Global private equity firm 3i Group Plc, which had picked up 9.2% in KPCL by investing $161 million (around Rs 800 crore) in 2009, valuing the company at around Rs 9,000 crore, is also looking to sell its stake as part of its global strategy to exit India investments. ()

Govt okays 10% stake sale in IOC: The government on Thursday cleared the proposal to sell 10% of its stake in flagship refiner-marketer IndianOil Corporation with the aim of mopping up Rs 3,750 crore ($616 million) at the current market price. Currently, the government holds 78.92% in the company. The disinvestment department has already selected five merchant bankers Citibank, HSBC, UBS Securities, SBI Capital and J M Financial to manage the stake sale of the oil major. (The Times Of India)

Essar Steel to raise $2-b export finance: Essar Steel plans to raise $2 billion (about Rs 12,000 crore) pre-export finance (which is done against the export order it has bagged) to pre-pay its existing rupee debt. The company has already received the necessary approvals. The export advance funding would be done by foreign banks and Indian bank branches abroad. In June, the company raised $1 billion (Rs 6,000 crore) through the External Commercial Borrowing route that has resulted in an annual saving of Rs 450 crore. The company would be saving Rs 1,300 crore a year by prepaying some of the rupee loan. This exercise will extend the loan maturity period to 6.5 years from 3.5 years. (Business Line)

NTPC open to buying distressed power units: India’s largest power generator NTPC is exploring acquisition of distressed power projects to supplement its capacity growth. The company is open to acquiring a distresses project if the valuations look good and allowed to examine the equipment of the plant. The firm has cash of Rs 18,738 crore ($3 billion) which can be used for funding acquisitions. ()

Reliance, ONGC, Cairn in race for Myanmar blocks: Reliance Industries, ONGC Videsh and Cairn India are vying with global energy giants Shell, ConocoPhillips and ExxonMobil for 30 offshore oil and gas blocks that Myanmar has put on offer. In all, 61 companies have been pre-qualified to bid for 11 shallow water and 19 deepwater blocks in an international tender. The shortlisted companies from India include RIL, ONGC Videsh (the overseas arm of state-owned Oil and Natural Gas Corp), Oil India Ltd, Cairn India, gas utility GAIL India and Jubilant Offshore Drilling (JODPL). For the shallow water blocks, companies would have to team up with at least one Myanmar owned company, while for the deepwater blocks, bidders would be expected to invest directly without any local participation. ()

L&T explores business trust model for IDPL’s road portfolio to raise Rs 2500 crore: Engineering major Larsen & Toubro is exploring an option to raise between Rs 2000 crore – Rs 2500 crore ($328.6 million – $410.76 million) by clubbing operational road projects of its infrastructure development arm L&T IDPL into a separate entity which could be listed overseas through a business trust model. The proposal was separately mooted by a European as well as a Japanese bank to the company. Currently L&T IDPL has a portfolio of 18 roads, 10 of which are operational. All the projects are housed under individual special purpose vehicles (SPVs). The total project outlay for the road projects is Rs 21,600 crore. The trust proposal has come at a time when L&T IDPL is already in advanced negotiations with a clutch of sovereign wealth funds, pension funds and long only investors to raise up to $500 million by diluting 15-20% at an initial equity valuation in excess of $2 billion. Abu Dhabi-headquartered Mubadala Development Corporation and Khazannah, the investment vehicle of the government of Malaysia and a global pension fund are among the potential suitors. Morgan Stanley has already been advising L&T IDPL in those live negotiations. ()

Government plans to sell stake in STCIL: The President of India, acting through and represented by the Ministry of Commerce & Industry Government of India is planning to sell 6,13,600 equity shares, aggregating to 1.02% of the total paid up equity share capital of the company on August 02, 2013. The Sale Shall be undertaken exclusively through Seller’s Brokers’ on the separate window provided by the BSE Ltd & NSE Ltd. IDBI Capital Market Services Ltd. is the manager to the issue. ()

 

GOVT plans to sell stake in ITDC: The President of India, acting through and represented by the Ministry of Commerce & Industry Government of India is planning to sell 42,88,470 equity shares, aggregating to approximately 5% of the total paid-up equity share capital of the company as on August 02, 2013. The Sale Shall be undertaken exclusively through Seller’s Brokers’ on the separate window provided by the BSE Ltd & NSE Ltd. IDBI Capital Market Services Ltd. is the manager to the issue. (<)

Courtesy: VCCEdge


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News Roundup: Krishnapatnam Port looks to sell up to 6% stake to PEs for Rs 1,200Cr

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