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News Roundup: PE giants join race for stake in Viom

03 March, 2014

Large private equity (PE) funds have joined the race for a stake in telecom tower company Viom Networks. The buyout PE giants Apollo, Bain Capital and Advent International were interested in getting a significant minority stake in the company. About 45% stake in Viom is held together by Srei Infrastructure and other PE investors. Viom has appointed Credit Suisse and Citi for the fund-raising. The Kanorias of SREI own 18% and control management of the company, majority owned by Tata Teleservices (54%) with the rest owned by IDFC Private Equity, SBI Macquarie, Oman Investment Fund and GIC of Singapore. (Business Standard)

Sequoia plans to sell its 20% stake in GVK Biosciences: Venture Capital fund Sequoia Capital is looking at exiting its seven-year-old investment in GVK Group’s GVK Biosciences, a biotech research and development outsourcing company. The fund has appointed investment bank Avendus to look for buyers for its 20% stake in the company. Sequoia had invested Rs 100 crore ($16 million) in 2007 to purchase around 20% stake in the company. “The fund is looking at earning more than three times returns on its investment in the company. Currently, its stake is being valued at around $50 million (Rs 310 crore). This values the company at around Rs 1,500 crore ($242 million). (Economic Times)

Tata Power board Okays Rs 2,000-cr rights issue: Tata Power Company in a communiqué to the stock exchanges said the board of directors of the company at its meeting held on Thursday approved raising funds up to Rs 2,000 crore ($323 million) by way of a rights issue of equity shares of face value of Rs 1 each, subject to statutory and regulatory approvals. The terms and conditions of the rights issue, including the rights entitlement ratio, the issue price, issue size, record date, timing of the issue and other related matters would be decided subsequently by a duly constituted Committee of the Board, Tata Power said. (Business Line)

Cabinet okays disinvestment in IndianOil Corporation: Shares of IndianOil Corp Ltd (IOC) will be divested at 10% discount. At the current price, this comes to around Rs 220. It will meet again next week to finalize the modalities for selling a 5% stake in Bharat Heavy Electricals Ltd. Disinvestment in both these companies will be done through block deals. The Government is expected to raise at least Rs 6,500 crore ($1 billion) from divestment in these companies, and to complete the process by March 31 to meet the revised divestment target of Rs 16,000 crore ($2.5 billion) for 2013-14. The company expect to raise around Rs 5,300 crore ($856 million) from the IOC stake sale,” Disinvestment Secretary Ravi Mathur said. On Friday, IOC shares closed flat at Rs 248.10. (Business Line)

Wonderla Holidays plans to raise Rs 200 cr via IPO: Wonderla Holidays, which runs two amusement parks in Kerala and Bangalore, plans to hit the primary market soon with Rs 200 crore ($32 million) IPO. The company, promoted by Kochi-based electrical goods maker V-Guard Group, hopes to open the IPO within a few weeks. It is expecting the final go-ahead from the markets watchdog Sebi soon and plans to raise around Rs 200 crore from the IPO. V-Guard Group managing director Mithun Chittilappilly refused to comment citing regulatory issues, while company Wonderla managing director Arun Chittilappilly could not be reached. Edelweiss Financial Services and ICICI Securities are the book-running lead managers to the issue. (Business Standard)

Pai of Manipal Group may pick up stake in GMR Infra: The Manipal Group-headquartered in Bangalore, which runs a chain of hospitals and education institutions, led by billionaire Ranjan Pai reportedly worth Rs 8,000 crore ($1292) , may pick up stake in Bangalore-based publicly-held GMR Infrastructure. Skyron Eco Ventures, a group company of Ranjan Pai, is expected to land close to a 2.5 per cent stake in GMR Infrastructure as and when Skyron decides to convert its CCPS (compulsorily convertible preference shares) in GMR Infrastructure within the next 17-18 months. Skyron Eco Ventures, will be shortly allotted a little over 2 million CCPS worth close to Rs  210 crore ($33.91) and after the conversion, Ranjan Pai will emerge as the second largest private equity investor after Singapore-based sovereign private equity fund Temasek. (Business Standard)

Punjab National Bank raising Rs 10 bn via Basel III Tier II bonds: Punjab National Bank is raising Rs 10 billion ($161.3 million) by placing 10-year Basel III Tier II bonds at 9.65%, two sources with direct knowledge of the deal said. State-run Life insurance Corp of India is the sole investor to the bond sale, said the sources. ICICI Securities Primary Dealership, AK Capital and Trust Capital are the arrangers for the bond sale, the sources added. ($1 = 62.0150 Indian rupees). ()

Courtesy: VCCEdge


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News Roundup: PE giants join race for stake in Viom

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