The $40-billion Aditya Birla Group is close to selling its Bangalore-based business process outsourcing (BPO) firm Minacs to a private equity consortium structured by tech entrepreneur-turned-investor Sanjay Chakrabarty for about $270 million, or around Rs 1,600 crore, said people directly familiar with the matter. This would mark the Kumar Mangalam Birla-led group’s exit from ITeS sector, where most of the traditional Indian business conglomerates have struggled to manage large operations. The bid values the company at six to seven times its operating profit even though Birla’s asking price was slightly higher. ()
Kwality eyes stake sale to raise Rs 500cr: Kwality (KDIL), a large New Delhi-based dairy foods company, is selling stake to raise around Rs 500 crore ($81.3 million) to expand its footprint globally and across the country. The company, with portfolio comprising dairy products sold under the Dairy Best brand, is in talks with Rabo Equity Advisors to offload 14-15% of its stake, said people familiar with the matter. The firm will launch a range of new dairy products, including butter, and revamp its existing line-up, according to sources. Additional funds from a stake sale would help it gain a strong foothold in the Rs 3.6-lakh-crore Indian dairy market, of which 80% is largely unorganized. ()
Air India seeks up to $230 million loan for Dreamliner buy: Air India Ltd is seeking a bridge loan of up to $230 million (Rs 1,410 crore) for taking delivery of two Boeing 787 Dreamliner aircraft from an ongoing order, according to a tender document on the carrier’s website. The company which is due to take delivery of two 787 aircraft in February and March, has invited offers from banks or financial institutions to arrange the bridge financing for a period of six months to one year. (The Times of India)
Air Works India plans to raise another funding round: Air Works India (Engineering) Pvt. Ltd, which provides aircraft maintenance services, is looking at raising another round of funding of about Rs 150 crore ($24.4 million), according to three people close to the development. There is going to be a part primary (direct stake sale by the company) and part secondary (stake offloading by existing investors) stake sale, said one of the three people. The firm has asked JM Financial Institutional Securities Ltd, an investment bank, to advice it, according to Ravi S. Menon, executive director at Air Works. The existing shareholders may look at bringing some funds via a rights issue or other instruments,” Menon said. (Live Mint)
Stemcor plans to open bids for India asset sale in Feb: London-based Stemcor Holdings will open bids to sell its iron assets in Odisha in the first week of February. Once the financial bids are submitted on Monday, we will be getting into detailed discussions with bidders and negotiate with them for the next two weeks, the spokesperson said. Goldman Sachs is managing the auction. (Business Standard)
Cabinet approves sale of govt’s residual stake in Hindustan Zinc: After years of dallying, the government on Monday paved way for sale of its 29.5% residual stake in Hindustan Zinc Ltd (HZL), the world’s second-largest zinc producer that is controlled by Anil Agarwal’s Vedanta Group. The Cabinet Committee on Economic Affairs (CCEA) on Monday approved the sale of residual stake; the modalities will now be finalised by the Department of Disinvestment. The PM had last month favoured sale of stake in HZL and Balco through an open auction and asked the mines ministry to seek the attorney-general’s opinion. Vedanta had earlier offered Rs 17,000 crore to buy out the government’s stake in both HZL and Balco (where the government holds a 49% stake). (Business Standard)
Comstar Auto owners are in talks with Mitsubishi to sell company: The owners of Chennai-based component maker Comstar Automobile Technologies are in advanced talks with Japanese conglomerate Mitsubishi Group to sell the company which is valued at Rs 400-450 crore ($65 million – $73 million). Hong Kong-based hedge funds Comcraft Group and Argyle Street Management are looking to exit their equal stakes in Comstar, three people with direct knowledge of the development said. The owners have mandated local investment bank Kotak Mahindra Capital Company to scout for buyers for Comstar. (The Economic Times)
L&T Infotech eyeing stake in NCDEX: In yet another indicator of the growing interest of I.T majors in commodity exchanges , L&T Infotech, the I.T services arm of engineering conglomerate Larsen and Toubro is evaluating options for a possible stake buy in multi-commodity exchange NCDEX, two sources familiar with the development told. The company is examining documents relating to the performance of NCDEX. The exchange is valued at around Rs 1000 crore ($163 million) based on recent exits and under the current norms, L&T Infotech can pick up a maximum of 10% stake. A stake buy would boost the crucial BFSI ( banking,financial services and insurance) vertical of L&T Infotech, but these are early stages and it may or may not fructify in a deal. (The Economic Times)
Liqvid e-Learning seeks up to $10 million venture capital funding: Educational software maker Liqvid e-Learning Services is seeking a second round of equity funding and has begun talks with a number of venture capital funds as investors show renewed interest in India’s education services sector. The company is looking to raise up to $10 million (Rs 61.5 crore), and has held earlystage discussions with Matrix Partners India and Nexus Venture Partners, among others, according to people with direct knowledge of the negotiations. A successful deal could value the company at about $50 million (Rs 307.4 crore). The company expects to use the funding to expand into international markets, including South-East Asia, Eastern Europe and Latin America as well as build its mobile business. (The Economic Times)
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