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News Roundup: Micromax revives IPO to give PEs partial exit

12 March, 2013

Micromax Informatics is reviving its initial public offer plans to help its private equity investors to sell a part of their stake. The private equity funds Sequoia Capital, Sandstone Capital and Madison India Capital will soon appoint investment banks to complete the issue in 2013 after it was withdrawn in July 2011. Market regulator Sebi had approved Micromax offer to sell 10% stake, or 2.15 crore shares, for 426 through an IPOin 2011 valuing the company at roughly $1 billion. In 2010, PE players Sequoia, Sandstone and Madison India Capital had jointly bought around 6% in the company for INR 200 crore. (The Economic Times)

Steel billionaire to raise $2.2 billion debt: Jindal Steel & Power Ltd. is looking to raise as much as INR 12,000 crore ($2.2 billion) f debt to expand capacities and tap demand arising from federal infrastructure spending. The company controlled by billionaire lawmaker Naveen Jindal would borrow INR 6,000 crore ($1.1 billion) in the year starting April 1 and the remainder in the next fiscal year. The first year’s debt would include $400 million of overseas loans and $300 million of foreign-currency bonds. The debt is part of Jindal Steel’s 200 billion rupee capital expenditure program for the two years ending March 31, 2015. (Bloomberg)

3M India promoter plans stake dilution: The promoter of 3M India Ltd. is looking to offload 1% of its stake through the offer-for-sale option. The stake sale was being done to comply with the minimum public shareholding requirement of 25% for private companies as prescribed by SEBI. Currently, the promoter’s share in the company stands at 76%. (Business Line)

Srei Infra seeks SEBI nod to raise INR 150-cr NCDs: Srei Infrastructure Finance Ltd has sought the Securities and Exchange Board of India approval to raise up to INR 150 crore ($27.60 million) through issue of non-convertible debentures. The company is looking to garner up to INR 75 crore ($13.8 million) through secured, redeemable, NCDs, and would have the option to retain an over-subscription of up to INR 150 crore ($27.60 million). The funds would be used to repay existing loans and for business operations including capital expenditure and working capital requirements. ICICI Securities, A K Capital Services, Trust Capital Investment Advisors and Srei Capital Markets are the managers to the issue. (Business Line)

KKR close to Alliance Tire buyout: Private equity (PE) firm KKR and Co. is in the final stage of talks to buy a stake of as much as 80% in tyre maker Alliance Tire Group, valuing the company at $600 million (around INR 3,260 crore). KKR would buy the entire stake of PE firm Warburg Pincus Llc as well as the minority stake held by some of the other stakeholders, including the promoters. KKR signed the so-called exclusivity agreement with Warburg Pincus on Monday. Warburg Pincus joined hands in 2007 with Indian tyre industry entrepreneur Yogesh Mahansaria to acquire the Israel-based Alliance Tire Co. Ltd for $150 million. In late 2009, the PE firm invested additional capital in the company to fund the acquisition of the off-road tyre assets of US-based GPX Corp. The PE firm is looking to sell its stake of around 70%. (Livemint)

Sebi allows Diageo to sell USL assets after open offer: India’s stock market regulator has approved UK-based Diageo Plc’s proposal to acquire a majority stake in Vijay Mallya-run United Spirits Ltd. for $2 billion (INR 10,860 crore today), with the unusual inclusion of a key clause that would allow the buyer to sell the assets of the company. The Securities and Exchange Board of India (Sebi) approved on 5 February the clause in the open offer document of USL that enables the sale of the company’s assets and investments by Diageo within two years. JM Financial Institutional Securities Pvt. Ltd is the merchant banker to the deal. (Livemint)

Viacom to buy TV18’s residual stake in ETV’s regional play: Viacom, the US media conglomerate that has a 50:50 joint venture with the Raghav Bahl-promoted TV18 Group in India, might buy a 50 per cent stake in ETV’s regional general entertainment channels (R-GECs). TV18 owns 50 per cent stake in these R-GECs, namely, ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya. It had signed the deal last year with ETV for acquiring the 50%, with an option to buy the remaining 50%. It is understood the option is offered to Viacom, which will help getting the channels under Viacom18, which houses the entertainment businesses of TV18. If Viacom buys out the remaining 50% stake, both partners would continue to have equal share in the JV. (Business Standard)

Courtesy: VCCEdge

 


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News Roundup: Micromax revives IPO to give PEs partial exit

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