The Chennai-based Shriram Group, a financial services conglomerate is in advanced talks with global private equity (PE) majors Citigroup Venture Capital and Blackstone to raise INR 538 crore ($100 million) for its cement business, Sree Jayajothi Cements. Besides talking to PE funds, Shriram group might also have had discussions with global cement majors such as Italcementi Group, Holcim and CRH for a strategic partnership. (Business Standard)
Tata Steel to raise INR 13,000cr in 6 mths for projects: Tata Steel is looking to raise up to INR 13,000 ($2.4 billion) within next six months for the first phase of its upcoming 6 million tonnes new steel mill in Odisha's Kalinganagar. In phase I, the company would raise INR 12,000 – INR 13,000 crore on debt and then, after completing phase I tat steel would raise funds for phase II. The project is being funded at 50:50 debt-equity ratio. The company is looking at only rupee loans but may go for foreign borrowings at a later stage. (Moneycontrol.com)
Tata Power may launch IPO or rope in partner for renewable biz: Tata Power Company Ltd has carved out a special purpose vehicle to build a robust renewables portfolio. The company plans to invest up to INR 4,500 crore ($837.3 million) in the next three years in the SPV. The special purpose vehicle Tata Power Renewable Energy Ltd may launch an initial public offer (IPO) or rope in an equity partner in the next three-five years. All new renewable capacity additions by Tata Power would be done under the SPV, while the existing projects would continue to remain with the parent firm. (Business Line)
CSB Bank plans to mobilise over INR 200 crore through rights issue: Catholic Syrian Bank Ltd. would mobiles over INR 200 crore ($37.21 million) by way of rights issue of shares as directed by RBI. The company has tentatively fixed a premium of Rs 150 per share on a face value of Rs 10 each and the ratio of issue would be 1:2. The process would be completed this fiscal itself. The Abu Dhabi based industrialist M A Yusuff Ali had sought permission from the RBI to purchase 4.99% of the shares held by the Bangkok-based Siam Vidhya Group (SVG) headed by Sura Chansrichawla. (The Economic Times)
Lands End Properties to raise INR 5.21 billion via zero coupon bonds: Lands End Properties, a company belonging to Tata Group, plans to raise INR 521 crore ($96.61 million) in three-year zero coupon bonds that would yield 10% at maturity. The bonds have a call option at the end of the first and second years. HSBC, HDFC Bank and Standard Chartered are the arrangers to the deal.
IVRCL to exit from all BOT projects: Hyderabad-based infrastructure company IVRCL Limited has decided to exit from all its build, operate and transfer (BOT) projects and focus on engineering, procurement and construction (EPC) activities. At present, the company has 11 BOT projects of which, one is water and 10 are road projects. Of the 10 road projects, three projects are under operation and three more are expected to come under operation in the next five months, while the remaining four are still in a virgin stage. The amount realised from the sale of the six assets could be utilised for the companies EPC segment which has an order book of INR 26,000 crore at present. The firm would sell the three projects, which are in operations first, while the other three projects which are under construction will be offered for sale after they are completed. (Business Standard)
Multiples plans to buy stake in Milltec: Private equity specialist Renuka Ramnath spearheaded Multiples Asset Management is set to buy 49% stake in Bangalore based agri machine maker Milltec Machinery Pvt. Ltd. Multiples would pay Rs 182 crore ($ 33.86 million) for the large minority stake. The investor is in the financial stages of due diligence before clinching the deal. Investment bank o3 Capital is advisor to the transaction. (The Times Of India)
Lanco plans to Sell Stake in 3 Power Units for 2.5kcr: Lanco Infratech is in talks with strategic and financial investors to sell stake in three power projects separately to raise over INR 2,500 crore (465.17 million) after attempts to sell stake in its arm that owns all the units failed. The shift in strategy comes after almost a year of attempts by Lanco to raise up to INR 4,150 crore by selling a minority stake in its power holding company to private equity funds or strategic investors. The company is looking to raise over INR 1,500 crore ($279.1 million) by selling 50- 75% stake in its 1,200 mw coal-fired Udupi power plant. The firm also in talks to investors to sell stake in its operational 600-mw Amarkantak and under-construction 1,320-mw Babandh power projects to raise a total of INR 1,000 crore ($186 million). (The Times Of India)