Local private equity fund Tata Opportunities Fund will purchase a significant minority stake in Aurangabad-based auto component maker Varroc group for $60 million, or Rs 272 crore, two people with direct knowledge of the development said. The company will use the money to build new products and to expand its presence in Europe and emerging markets. In 2012, it acquired US-based Visteon Lighting for $100 million, helping it to ramp up its presence in Mexico and Chezch Republic. ()
Centre may sell stake in BHEL to other PSUs: The Government may opt for the cross-holding route to dilute its stake in Bharat Heavy Electricals Ltd (BHEL). This mechanism involves selling shares in one central public sector enterprise (CPSE) to other CPSEs. The Government is looking to sell 5% stake in BHEL, which could give it Rs 1,300 crore ($208 million). Recently, the Centre adopted the cross-holding route for Indian Oil Corporation, selling 10% of its stake in the refining-cum-retailer to ONGC and Oil India. (Business Line)
L&T looks at divesting assets to generate capital for fresh projects: India’s engineering and construction company Larsen and Toubro Ltd (L&T) is adopting an “asset-light strategy” by separating business units into independent subsidiaries with the intention of eventually selling a stake in these businesses. The company, which is considered a corporate proxy for the broader economy, is looking to divest assets as a way to generate capital for investing in fresh projects. Additionally, L&T Infrastructure Development Projects Ltd (L&T IDPL), a unit of L&T, has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval for a proposed foreign direct investment in the company. The company is expecting a total infusion of Rs 2,000 crore ($320 million) in two tranches. (Live Mint)
Mindtree scouts for acquisitions to beef up services portfolio: Mid-sized IT firm Mindtree is scouting for “strategic” acquisitions this year in the package applications and infrastructure management space to strengthen its services portfolio. Although Natarajan, CEO did not state the deal size that the company is looking at, it would not be going for big acquisitions. The deals range from $15-20 million to $100 million,” he added. ()
HDFC puts Hirco’s Chennai township on the block to recover dues: Housing Development Finance Corporation (HDFC) has initiated an auction of London-based Hirco-owned Hiranandani Palace Gardens’ township in Chennai under the Sarfaesi Act to recover Rs 539.86 crore ($86 million) dues. The township is spread over 200 acres and built over three phases. Hiranandani Palace Gardens has another township at Panvel in Maharashtra. HDFC plans to conduct an e-auction on March 3, 2014 with a reserve price of Rs 551 crore ($88 million) for the properties, the mortgage lender announced through a public notice. (Business Standard)
NTPC is looking to acquire 7 private power projects: Public sector power company NTPC Ltd. today said it was actively looking at close to seven private power projects for possible acquisition. The company is looking at a set of projects whose developers no more want to remain in the sector for various reasons. These projects are at different stages of development,” Arup Roy Choudhary, chairman and managing director of NTPC said. Some of these projects are as big as the size of 2,000 Mw, according to him. The firm would also pursue the course of inorganic growth along with the existing expansion plans. Most of these seven projects are coal-fired stations and also possess fuel linkages, he said while refusing to give further details. (Business Standard)
Piramal’s plan to buy 20% in Shriram Capital hits hurdle: Ajay Piramal’s stake purchase in Shriram Capital, the holding company for the group’s financial services businesses, is dragging as stakeholders and the buyer are yet to agree on the quantum of stake that the Mumbai-based firm could own. Piramal is keen to own a fifth of the company that has applied for a banking licence, though with conditions on retaining some characters of its truck funding and retail loans business, said those people. But Shriram Ownership Trust, the majority owner, does not want to bring down its stake to less than 50%. Piramal will be the largest Indian shareholder in Shriram Capital, if it gets to buy 20% in the company. TPG Capital owns 11% stake in the company while South African financial services group Sanlam owns 26%. Remaining 63% is owned by Shriram Ownership Trust for Shriram Group of companies. ()
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