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News Roundup: NMDC likely to buy stakes in State-run firms for $745M

30 January, 2013

Indian iron-ore miner NMDC Ltd. is likely to spend INR 40 billion ($745 million) over the next several months for buying shares in other state-owned companies. The plan would come in handy for India’s government, which targets to raise $5.5 billion by selling stakes in state-run companies in the current fiscal year through March. India plans to sell a 10% stake in energy explorer Oil India Ltd., 9.5% of power producer NTPC Ltd. and 9.33% of gold importer MMTC Ltd. The government also plans to sell a 10.82% stake in Steel Authority of India Ltd., 12.5% of Rashtriya Chemicals & Fertilizers Ltd. and 10% of Engineers India Ltd. (The Wall Street Journal)

Sesa’s Agarwal Plans $2.4 Billion Liberia spend: Sesa Goa Ltd. (SESA), plans to invest as much as $2.4 billion (INR 12,887 crore) to develop assets in Liberia in its first overseas expansion after a court-ordered mining ban halted production at home. The company expects to use the money over the next four years on 30 million metric tons of mining capacity in three properties in the western African nation. The first part of the project, scheduled to start by March 2014 with 4 million tons of capacity, will be financed through borrowings. (Bloomberg)

RIL may seek funding from non-bank sources: Reliance Industries Ltd. (RIL), is looking to bring down the proportion of bank debt to its overall borrowings to about half from the current 80%, while increasing its reliance on public market debt and funding from export credit agencies. About 50% of the total bank debt on RIL’s books falls due in the next two-and-a-half years. On Tuesday, RIL raised $800 million through the sale of perpetual bonds carrying an interest rate of 5.875%. Bank of America-Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank AG, JP Morgan Chase and Co., Royal Bank of Scotland Group Plc and Barclays Capital Plc managed the bonds sale. (Live Mint)

SBM to raise INR 70-80Cr via institutional placement: State Bank of Mysore is looking to raise funds through institutional placement programme (IPP) by March 31, to increase minimum public shareholding to 10%. Current public shareholding (non SBI) is 7.67%. The company is looking to offload the balance 2.33% to raise between INR 70-80 crore ($13 million-$14.89 million). The process would be started after getting board approval. (Business Line)

Zao Foods plans to raise funds: Zao Foods Pvt. Ltd. is planning to raise funds through venture capital. The company is also looking to open an outlet in Cyber City, Gurgaon’s business district. Till date, the promoter has invested INR3 million in the target company. (The Economic Times)

IvyCap Ventures receives government nod to invest $36 million in Indian startups: Early to growth stage venture capital firm IvyCap Ventures has received government approval to invest $36 million in Indian startups. The foreign investment proposal was approved by the government’s foreign investment promotion board earlier this month and announced on Monday. The fund, was floated Vikram Gupta, who was the chief executive officer of IndiaVenture Advisors Pvt. Ltd, a Private Equity Fund Management company backed by the Ajay Piramal Group. The fund made its first close of $19 million sometime in July and is in talks to invest $4.5 million each in two Indian companies. (NextBigWhat)

Courtesy: VCCEdge

 


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News Roundup: NMDC likely to buy stakes in State-run firms for $745M

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