News Roundup: PE firm TPG eyeing minor stake in Manappuram Finance

16 March, 2016

US-based private equity firm TPG is in talks with the promoter and other large shareholders of India’s largest gold loan company, Manappuram Finance for buying a minority stake, three people with direct knowledge of the talks said. The promoter, VP Nandakumar, owns 31.55% in the company while private equity firms Barings Private Equity Partners India, AA Development and India Equity Partners together hold around 20%. TPG has made an offer for a minority stake, but with governance rights and board seat. The stake sale could be a mix of buying some of the existing investors and a preferential share issue by the company, or through a direct preferential share issue to the PE fund. ()

Natco Pharma plans to raise Rs 150 crore for syringe unit: Natco Pharma Ltd would be raising about Rs 150 crore ($24 million) by end of next month to set up a pre-filled syringe unit. The company has obtained shareholders’ approval for mobilising up to Rs 300 crore ($48 million). The annual general meeting, held on September 28, had authorised the board to mobile funds through a variety of instruments, including qualified institutions placements, fully or partly convertible debentures, non-convertible debentures with warrants and foreign currency convertible bonds. (Business Line)

Dalmia Bharat Refractories eyes mines in China, Vietnam: The refractories business has been sluggish due to poor demand from cement and steel industries and poor availability of raw materials, such as bauxite. Dalmia Bharat Refractories, which imports about 60% of its raw material from China, is, therefore, looking to acquire mines in China and Vietnam. The NSE listed company would invest Rs 350 crore ($57 million) in the next five years for brownfield expansion and to fund its acquisitions in the domestic and international markets. (Business Line)

Jaypee aims to cut Rs 1,000 crore of debt at Grand Prix racetrack unit: Within a month of selling its cement plant in Gujarat to UltraTech Cement Ltd for Rs 3,800 crore, the Jaypee group plans to cut about Rs 1,000 crore of debt on the books of its sports subsidiary, Jaypee Sports International Ltd (JSPI), which hosts the Indian Grand Prix Formula 1 (F1) race. This would be done by clubbing proceeds from the sale of the group’s real estate assets with revenue from the Grand Prix to repay the debt of JSPI, a subsidiary of Jaiprakash Associates Ltd. The land to be sold, located in the vicinity of the Buddh International Race Circuit in Greater Noida on the outskirts of New Delhi, is owned by JSPI and Jaypee Infratech Ltd, another group company. At the same time, JSPI is also seeking Rs 600 crore of working capital from banks to complete real estate projects. Completion of the projects will generate cash flows and enable it to repay its debt faster. (Live Mint)

RIL, IOC, GAIL-OIL to bid for HPL stake on October 7: Reliance Industries, Indian Oil Corp (IOC) and GAIL-OIL combine are likely to bid for buying West Bengal government’s 31% stake in the beleagured Haldia Petrochemicals Ltd (HPL) on October 7. In all probability, the price bid will be opened on the same day itself. Others who who had submitted expression of interest for buying West Bengal government’s stake in HPL are Anil Agarwal-owned Vedanta Resources through its subsidiary Cairn India, state-owned Oil and Natural Gas Corp (ONGC) and Naveen Jindal’s Jindal Steel and Power Ltd. Purnendu Chatterjee-led The Chatterjee Group (TCG), a joint promoter of HPL, will have the right of first refusal to match the highest bidder. TCG, which holds 40.88% stake in HPL, will have 30 days to decide on matching the price quoted by the highest bidder and another month to make the payments. ()

Tatas, Srei Infrastructure look to sell majority stake in Viom Networks: With its plans to launch an IPO failing to take off amidst volatile market conditions, the principal shareholders of Viom Networks- the diversified Tata Group and Srei Infrastructure are exploring options to sell a controlling stake in the joint venture. The company’s board is also in the process of finalising two global investment banks Credit Suisse and Citi as their advisors and formal discussions with buyout private equity funds and other global tower companies have been initiated. The Tatas own 54% in the company through its unlisted and loss making telecom arm Tata Teleservices. Srei promoted by the Kolkata-based Kanoria family own around 18% while the rest is held by four financial investors like IDFC Private Equity, SBI Macquarie, Oman Investment Fund and GIC of Singapore. ()

IDFC plans to raise at least Rs 125 crore via bonds: IDFC Ltd. is planning to raise at least Rs 125 crore ($20 million) via issue of three-year bonds at 9.57%, a source with direct knowledge of the deal said. Axis Bank is the sole arranger to the sale. ()

EXIM bank plans to raise at least Rs 100 crore in bonds: Export-Import Bank of India ( EXIM) plans to raise at least Rs 100 crore ($16.18 million) in one-year bonds at 9.47%, a source with direct knowledge of the matter told. HSBC is the sole arranger for the bond sale. ()

HDFC plans to raise up to Rs 750 crore via bond sale: Housing Development Finance Corp is planning to raise Rs 750 crore ($120.12 million) through the sale of a 1-year bond at 9.80%, two sources with direct knowledge of the matter said. The base size of the issue is Rs 400 crore. Barclays Bank and Deutsche Bank are the arrangers to the deal so far, with more banks likely to join. ()

EXL services eyeing US healthcare acquisitions: Business process outsourcing services company EXL Services is chasing healthcare acquisitions in the United States. A potential deal in this segment could be one of EXL’s largest as its cash balances have swelled to over $100 million. In addition, the company has the ability to borrow another $200 million. ()

TVS plans to merge 2 arms with self: A year after TVS Group said it would restructure Sundaram Clayton Ltd, the holding company of TVS Motor, TVS family scion Gopal Srinivasan is planning to merge two TVS Investments subsidiaries — TVS Capital Funds Ltd and TVS-E Servicetec with itself. TVS Investments and its subsidiaries have filed a company petition with the Madras High Court in this regard. TVS Investments’ net worth is about Rs 100 crore. TVS Capital Funds is the asset management company of TVS Shriram Growth Fund, with assets under management of about Rs 1,150 crore and net worth of about Rs 7 crore. With the merger of TVS Capital Funds with TVS Investments, the promoters were planning to create a strong asset management company for the group, enabling expansion into different fund verticals such as structured finance, wealth management advisory, etc, said a company source. (Business Standard)

busIndia Claims it is Bigger than redBus; Looking to Raise Rs 200 cr PE Funding: Ticketing portal busIndia.com is planning to raise over Rs 200 crore ($32 million) from private equity funds. The Chairman and CEO of busIndia.com’s parent, the Bangalore-based Radiant Info, that the exact amount of funding is being worked out currently though several PE funds have already shown interest in the company. busIndia.com currently sells about 50,000 tickets daily and has revenues of about Rs 100 crore while parent Radiant Info has revenue of about Rs 400 crore. The funds would be used to acquire smaller bus ticketing companies and for setting up operations in other Asian countries as well as in Africa. (Business Line)

Courtesy: VCCEdge


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News Roundup: PE firm TPG eyeing minor stake in Manappuram Finance

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