Shriram Transport Finance to borrow up to INR 3,000 cr via NCDs: Shriram Transport Finance Ltd plans to borrow up to INR 3,000 crore ($499.2 million) through non-convertible debentures (NCDs) to support its financing activities. The company has filed a draft offer document for the public issue of 3 crore secured redeemable NCDs of face value of INR 1,000 each, it said. The proceeds of the issue will be used for financing activities such as lending and investments, for repaying loans and for business operations, including capital expenditure and working capital requirements. JM Financial Institutional Securities, A K Capital Services, Edelweiss Financial Services and ICICI Securities are the lead managers of the issue. NCDs are bonds issued by a company that cannot be converted into stock and usually offer a higher interest rate than convertible debentures. Shriram Transport Finance, a part of the Shriram group of companies, is into commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance and mutual funds. (Business Standard)
Rehan Yar Khan setting up INR 300-500 crore fund: Not content with investing in 19 companies over the past seven years, of which many were hits, serial investor Rehan Yar Khan is setting up a INR 300-500 crore fund. For the 42-year-old, who has been a investing in companies in his individual capacity, this is his first formal fund. The new fund Orios Venture Partners will be launched within the next 60 days and will invest mainly in Indian software product companies. The fund will be registered with SEBI under the Alternative Investment Funds Category-I. “This is to largely continue what I have been doing, investing in software product companies and helping them foray into foreign markets. The domestic fund will be largely raised from friends and family, and high net worth individuals,” Khan told Business Line. (Business Line)
Divestment: Narendra Modi govt may sell 5 pct stake in SAIL, say sources: India’s new government could sell a 5 percent stake in state-run Steel Authority of India Ltd (SAIL), with a final decision expected next week, two sources directly involved in the process told Reuters.
Prime Minister Narendra Modi, who won a landslide election victory last month largely on his promise of economic growth, is expected to speed divestment to bolster revenue generation at a time of weak economic growth. Former Finance Minister P. Chidambaram had set a target of raising $8.5 billion from share sales in the current fiscal year ending March 31, though that figure is not binding on the new government. India’s disinvest department under the Finance Ministry will hold a meeting with Steel Ministry and SAIL officials on June 23 to discuss the sale, a top Steel Ministry official and a top SAIL official said on Tuesday. A five percent stake in SAIL would fetch more than $330 million based on the company’s current share price of 97 rupees. The stock has risen about 13 percent over the past month against a 4.6 percent rise in the broad Indian stock index. (Financial Express)
Indian Energy Exchange plans to go public: Indian Energy Exchange Ltd (IEX) is gearing up to go public, three people close to the development said on condition of anonymity. The listing is likely to provide an exit option to PTC India Ltd and Financial Technologies (India) Ltd, or FTIL. Founded in 2008, IEX is an electricity bourse in the country. Since its inception, the exchange has launched several products such as renewable energy certificates, energy saving certificates and day-ahead market among others. An IEX official confirmed the development. “The timing and IPO (initial public offer) size, however, is yet to be decided,” he said. A committee has been formed to prepare for the energy exchange’s listing, another person aware of the development said. The exchange is in advanced talks to hire bankers to manage the share sale, according to two bankers. Investment bankers estimate IEX to be valued at INR 700 crore. Spokespersons at IEX were unavailable for comment. PTC India clarified to the BSE that it is unaware of any such development. (LiveMint)
Domino’s Pizza expansion drives Gati unit stake sale: The cold-chain unit of Gati Ltd, India’s biggest goods mover by market share, plans to sell a minority stake to fund its expansion as Domino’s Pizza Inc. to Nestle SA drive demand for refrigerated storage. “Gati Kausar is in talks to partner with overseas investors as it seeks to raise Rs.1,200 crore to build 10 warehouses across the South Asian country over the next three years,” vice-president Manish Agarwal said. “There isn’t much scope to boost sales and profitability if a company just does trucking,” Agarwal said in an interview in Mumbai. “There’s a lot of synergy when a company has both transportation and warehousing.” (LiveMint)
Microsoft Ventures may invest in Hyderabad startup NowFloats for India foray: Microsoft Ventures is in talks with a Hyderabad-based startup NowFloats, which if successful will mark the first investment in India by the early stage investment arm of the global software maker. The deal could see an investment of up to $ 2,50,000 in the two-year old company according to three people with knowledge of the developments. NowFloats focuses on helping small and medium enterprises (SMEs) to create and maintain a digital presence through a basic text message without the need for a smartphone. The company, incubated at Microsoft’s Bangalore-based accelerator, has also launched a mobile app, which allows users to discover businesses and deals, based on their location. The transaction is expected to be completed by end-August, according to sources privy to the talks. In an email response to a query by ET, a spokeswoman for Microsoft Ventures said the seed fund has not invested in a startup in India. In an earlier conversation with ET, Mukund Mohan, director, Microsoft Ventures, had said that the accelerator would look to make between three and five investments in early-stage ventures by the end of its financial year ending June 30, 2014. (Economic Times)
Financial services firm Vakrangee looking to raise INR 650 crore from capital market: Vakrangee is looking to raise between INR 600 crore and INR 650 crore ($100-110 million) by selling shares to institutional investors after its talks with private equity (PE) funds failed due to valuation mismatches, three people with direct knowledge of the matter said. “The company now wants to take advantage of the resurgence in the capital markets and is in discussions with a clutch of investment bankers for the share sale,” these people said. A spokesperson for Vakrangee did not respond to an emailed query. Vakrangee will use the capital to expand services. Nandwana and his family own a 38.8% stake, while institutional investors hold around 31.7%. “The company is expecting long-term global institutional investors to invest through this QIP, where it will sell the stock at a discount to the market price,” said another person involved in the discussions. (Economic Times)
Adani Group to raise $2.5 bn through QIP, foreign loans: In its biggest fund-raising excercise, Adani Group is set to raise $2.5 billion (INR 15,000 crore) from investors in India and abroad. Within a quarter, the group will raise $1 billion (INR 6,000 crore) by selling new shares of Adani Enterprises, the group’s flagship firm, and an additional $1.5 billion (INR 9,000 crore) from banks abroad to fund various projects. Of its $1.5-billion foreign loan, the group has already raised $500 million (INR 3,000 crore) to refinance the loans it had taken to acquire a coal and port project in Australian. The group is raising funds for its $15.5-billion coal mining project in Australia, as well as its ports and power projects in India. Adani Group also needs funds for its INR 5,500-crore takeover of Dhamra port from Larsen & Toubro and Tata Steel. Insiders say the fund-raising will help Adani Enterprises and other group companies to expand operations. (Business Standard)
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