PE Majors In Fray For Fabindia Stake - Marquee ethnic wear chain Fabindia has invited bids from private equity investors for investing in the company and also buying out the 8% stake held by Wolfensohn Capital Partners. Fabindia wants to raise Rs 200 crore from the deal. At least a dozen private equity funds, including Bain Capital, Temasek, Carlyle, Everstone Capital, New Silk Route, Sequoia, KKR and PremjiInvest have evinced interest and Fabindia will shortlist 4-5 firms to initiate further discussions. The 50-year-old Fabindia, known for its handcrafted jewellery and kurtas, made from handwoven fabric, will use the proceeds to fund domestic expansion. (Economic Times)
VenturEast To Invest Rs 21 Cr In Goli Vada - VenturEast, a southern venture capital firm, has invested $4.7 million, or Rs 21 crore in Goli Vada Pav, a Mumbai-based ethnic food chain that sells the snack. The firm hopes to set up outlets across the country in an attempt to replicate the success enjoyed by Jubilant Foodworks, which acts as a franchisee for Domino's Pizza. Venkatesh Iyer and Shivadas Menon, founders of Goli Vada Pav, set up this firm in 2004 with an investment of Rs 1 crore and now seek funds to expand the chain into smaller towns and cities. (Economic Times)
ADAG May Sell 49% In DTH Business
- The Reliance Anil Dhirubhai Ambani Group is planning to sell up to 49% stake in its DTH venture Reliance Big TV in a deal which could raise Rs 2,000-2,500 crore. The Group is open to selling the stake to one or more investors, domestic or foreign, soon after the imminent hike in foreign direct investment (FDI) cap in DTH to 74%. A team from Comcast has already held talks with Reliance Big TV in Mumbai. (Financial Express)
IDFC In Talks To Buy DLF's SEZs - DLF, India’s largest real estate company, is in talks with IDFC to sell the entire 70% stake it holds in DLF IT Park, Noida. The move is part of the company’s strategy to exit non-core areas and reduce debt. DLF is looking to raise around Rs 950 crore through the sale. The DLF IT park in Noida has a total of 1.3 million sq ft space with Computer Sciences Corporation as the marquee tenant. The building is yet to reach full occupancy. (Financial Express)
SBI To Defer Rights Issue - The finance ministry has agreed to infuse about Rs 3,000 crore into State Bank of India in a compromise solution to meet the bank's immediate capital needs. SBI is now likely to defer its proposed rights issue to later in the year or even next fiscal. The finance ministry was not in favour of State Bank of India raising capital through a rights issue since it would have entailed additional expenditure for the government in what is likely to be a financially difficult year. (Economic Times)
Nadathur Eyes Australian Hotels For Hospitality Play - Nadathur Group’s Silver Needle Hospitality arm is preparing to launch an international $100 million resort and business hotel chain. The Singapore-headquartered firm, has already acquired properties in Bali in Indonesia, Sri Lanka, Bangalore and is now looking at a hotel chain in Australia. The Nadathur Group has over the years quietly built a portfolio worth about $600 million across asset classes and investment life cycles.
NMDC May Complete Legacy Deal By September - Mining company NMDC plans to complete the bidding process for acquiring a 50% stake in Australian mining company Legacy Iron Ore sometime in September. The bid documents were earlier expected to be filed this week. In fact, Legacy had already sought stoppage of trading in its scrip on the Australian Securities Exchange, implying the completion of the deal in a day or two. (DNA)
KS Oils Promoters Eye Stake Sale - The promoters of edible oil company KS Oils are looking to offload their 35.01% stake and are in talks with Ruchi Soya Industries and global majors Archer Daniels Midland (ADM) and Cargill to sell their stake. KS Oils, which sells edible oils under brand names Kalash, Double Sher and KS Gold, has appointed DSP Merrill Lynch as the merchant banker and PricewaterhouseCoopers as the consultant for the stake sale. (Financial Express)
Reliance Life In Talks To Offload Stake To Banks - Reliance Life is in talks to sell a small stake of three to five per cent to banks. The company has recently secured foreign direct investment of $680 million (INR 30.86 billion) by selling 26% stake to Nippon Life Insurance Company. Reliance Life Insurance Company Ltd. (formerly AMP Sanmar Life Insurance Company Ltd.) is a life insurance company that provides various insurance products for individuals and groups. (Business Standard)
