Tata Group-owned private equity fund Tata Capital has begun talks with deGustibus Hospitality, the company which owns Indigo chain of restaurants, to acquire a significant minority stake by investing Rs 50 crore to help open new restaurants in metro cities. Tata Capital has given a term sheet to deGustibus Hospitality to buy a stake between 20% and 25% which valued the company at Rs 200 crore. In M&A parlance, term sheet refers to the intention of both the buyer and seller to enter into serious negotiations to finalise the price and equity stake. ()
Saroj Poddar plans to sell stake in MCF if Mallya does not decide by Dec: Saroj Poddar will sell his 16% stake in Mangalore Chemicals and Fertilisers to the highest bidder after December, if Vijay Mallya does not divest his 21% to him or share management control. The decision is an aftermath of his last round of discussions with Mallya in New Delhi in August. Vijay has changed his mind and appears unwilling to divest now. Poddar has an agreement with Mallya. The agreement provides for first right for refusal to Poddar in case Mallya is divesting his stake and control in MCF. MCF’s Articles of Association provides that the current promoters have the right to appoint three directors if they hold 15% or more. (Business Line)
HUDCO to raise up to Rs 4,810 crore via tax-free bonds: State-owned Housing and Urban Development Corporation (HUDCO) will hit market on September 17 to raise up to Rs 4,810 crore ($724 million) through public issue of tax free bonds. The funds would be used for lending to low-cost housing and urban infrastructure projects. The finance ministry has allowed HUDCO to raise Rs 5,000 crore through bonds during this fiscal, of which Rs 190.8 crore has been raised last month through private placement to institutional investors. The issue would close on October 14. ()
AAI mulls Rs 500 crore bond issue next year to fund expansion: State-run Airports Authority of India (AAI) may take the bond route to fund its on-going projects if it does not receive its around Rs 1,400 crore dues from the debt-ridden Air India, a source said. The AAI has around Rs 800 crore still in its kitty to keep going. Currently, AAI is upgrading and modernising 35 non metro airports at an investment of Rs 4,565 crore. While most of them have been completed, work on the rest is underway. ()
HCL Infosystems may merge system integration & services business with HCL Technologies: Sales teams at HCL Technologies and HCL Infosystems, owned by Shiv Nadar-promoted HCL Corporation, have started working more closely than ever before and pitching jointly for new technology service contracts in India and the Middle East, reviving talk of a possible integration. At least three people familiar with the development told ET that HCL Infosystems is working towards the goal of merging its system integration and services business with HCL Technologies. Client details have been shared and the sales teams at HCL Technologies are reaching out to HCL Infosystems’ clients, presenting as one integrated entity. Earlier this year, HCL Infosystems separated its hardware sales-linked system integration business, pure services, hardware distribution and education sector businesses and hived them off into separate subsidiaries. ()
OIPL plans to conduct bidding for Odisha UMPP: The Odisha Integrated Power Ltd (OIPL), a fully owned subsidiary of Power Finance Corporation (PFC), will conduct the bidding process for selecting the developer for the first 4000 Mw ultra mega power plant (UMPP) proposed at Bhedabahal in Sundargarh district. OIPL, a special purpose vehicle (SPV) formed for implementing the UMPP, has been authorized by the Odisha government to take all necessary decision that may be required for selection of the developer. State owned power trading firm Gridco Ltd has been appointed as the lead utility among all the utilities which will be allocated power from the Bhedabhal UMPP. The Government of India recently scrapped the initial bids received from 20 power companies for setting up this UMPP since the bids were invited as per the previous standard bidding documents (SBDs). Bigwigs in the power sector like NTPC, Tata Power, Adani Power, JSW Energy and Jindal Steel & Power Ltd (JSPL) have evinced interest in developing the UMPP. (Business Standard)
NMDC for third party in pipeline, pellet plant JV with RINL: Iron-ore miner NMDC is in favour of inducting a third partner with operational expertise in its Rs 2,200-crore joint venture with Rashtriya Ispat Nigam (RINL) for setting up a 450-km slurry pipeline and a pellet plant. The slurry pipeline would be used to transport iron ore. The two state-run firms, under the administrative control of the Steel Ministry, had signed an MoU for the venture in May, last year. NMDC wants to induct a third partner which could be entrusted with the job of operating the project and give it some equity stake. The issue of the induction of a new partner would require the approval of the Steel Ministry. While NMDC has written to the Ministry expressing its intention, RINL might take the matter to its next Board meeting for further deliberations. (Business Standard)
Jignesh Shah is selling FT stake, allege NSEL investors: The National Spot Exchange Ltd (NSEL) investors’ forum on Friday alleged Financial Technologies founder Jignesh Shah was in advanced discussions to sell a substantial part of his holding in Financial Technologies, the exchange’s promoter. Arun Dalmiya, secretary of the investors’ forum, wrote to Shah, saying the association wouldn’t allow any move to sell stake. The forum said it wouldn’t allow NSEL promoters to fritter away their assets, as these could be used to pay investors. Jignesh Shah holds 48% stake in Financial Technologies. The NSEL investors’ forum has held Shah responsible for the NSEL crisis. The letter stated if investors weren’t paid or if Financial Technologies assets were sold, the forum would take legal action. (Business Standard)
Tata Capital plans $300 mn Africa PE fund: Salt-to-software conglomerate Tata Group’s financial services arm, Tata Capital, plans to launch an Africa-focused private equity fund with an initial capital of about $300 million. The Tata group firm would also look at utilising Mauritius as a platform for its Africa initiatives, a senior executive said The proposed fund would also look to invest in energy segment, including renewables, light manufacturing and financial services. (Economic Times)
Heidelberg looking to buy cement units in central India: HeidelbergCement India Ltd. is planning for acquisitions in India. The company is already in talks with few potential sellers for the proposed buy. The funding would be done through Heidelberg Cement group. The firm is looking at central region, west, east and north. (Money Control)
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