Global private equity fund New Silk Route-backed pharmaceutical maker Nectar Lifesciences has been put on the block, and IDFC investment bank has been appointed to look for buyers, three people with knowledge of the development said. The promoters, Sanjiv Goyal and family, are planning to sell their 44.35% stake in the company along with NSR’s 11.59%, these people said. “The promoters are looking at a 20-25% premium to the current market rate,” an investment banker with knowledge of the development said. The company’s current market cap is around Rs 650 crore ($110 million). In 2010, New Silk Route had invested around Rs 250 crore for roughly 30% stake in the New-Delhi-based company. The fund came on board with a combination of preferential shares and Global Depository Receipts (GDR) through this investment. (The Economic Times)
Massive Restaurants plans to raise Rs 50 crore: Massive Restaurants, which owns and operates a chain of premium dining establishments, is in talks to raise up to Rs 50 crore ($8.48 million) in equity funding, a development that underscores the attraction of the country’s food and beverage sector for risk capital. The Gurgaon-based company, which runs the Indian-themed Masala Library, Made in Punjab and Farzi Cafe chain of restaurants and cafes, has appointed leading Mumbai-based investment bank Lodha Capital Markets to run the mandate and is believed to be in discussions with a number of marquee private equity (PE) firms. (The Economic Times)
United Bank expects to raise Rs 575 crore by June: Public sector lender United Bank of India expects to shore up its capital adequacy ratio by raising Rs 575-crore ($97.5 million) worth capital by this quarter-end through converting perpetual non-cumulative preference shares into common equity in favour of the government and allotting equity shares to LIC on a preferential basis. The bank said the process of raising Rs 275 crore through conversion of perpetual non-cumulative preference shares (PNCPS) that the government holds into common equity, along with issuing equity shares to public sector LIC on preferential allotment basis in order to raise additional Rs 300 crore is likely to complete by June-end. (Financial Express)
Many suitors for Vasan Healthcare: More suitors are queuing for Chennai-based Vasan Healthcare. Sources said South Africa’s largest private hospital chain, Net Care, was talking to private equity (PE) investors and promoters in Vasan for a majority stake. In a deal expected to be Rs 4,500-5,000 crore ($763 million – $848 million), PE investors such as the Singapore government’s sovereign wealth fund, GIC, Sequoia Capital and WestBridge Capital will exit Vasan. In 2012, GIC invested $100 million in the company in one of the largest health care deals by a PE investor in India. Apart from Net Care, Malaysian hospital management company Integrated Healthcare Holdings has also evinced interest, sources said. Sources said Chennai’s Spark Capital has been given the mandate to scout for buyers. Though the shareholding in Vasan is not clear, sources said the promoter has 55%, GIC 20% and Sequoia and WestBridge together 25%. (Business Standard)
Junk loan firm Arcil up for sale; big banks, FIIs plan to offload their stakes: MUMBAI: India’s largest junk loan firm Arcil is up for sale. Some of the high-street banks and foreign investors which own the company are planning to offload their stakes, two sources familiar with the decision told ET. These Arcil shareholders are in touch with some of the leading investment banks to sense the investor appetite. Among the main stakeholders, State Bank and IDBI, hold 19% each in the asset reconstruction company, while ICICI and Punjab National Bank and Lathe Investments a subsidiary of the Government of Singapore Investment Corporation hold 13%, 10% and 9.9%, respectively. According to another source, some of the shareholders thought of paring their stake after the Singapore firm hinted that it could exit. The stake sale may help banks to book some profit and focus on core banking business and add capital to meet Basel III requirement. (The Economic Times)
Piramal plans to invest Rs 5,000 cr in infrastructure projects: Piramal Enterprises Ltd is looking for investment opportunities in infrastructure and expects to finalize some deals in the next four months, a top official said. The company is looking at road, power and renewable energy projects, with focus on road assets. About Rs 5,000 crore ($848 million) will be invested by 2016, said Jayesh Desai, co-head of structured investments group at Piramal Capital, the financial services arm of billionaire Ajay Piramal’s Piramal Enterprises. In April 2013, Piramal Enterprises invested Rs 425 crore in Hyderabad-based Navayuga Road Projects Pvt. Ltd and Rs 500 crore in Green Infra Ltd, a renewable energy firm promoted by IDFC Alternatives Ltd. (live Mint)
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