Southern conglomerate Shriram Group is poised to sell an 18% stake in its unlisted company Shriram Properties to a real estate fund of Tata Group for Rs 600 crore ($95.88 million), said people directly aware of the matter. The Tata realty fund is conducting due diligence ahead of the proposed investment, which is likely to close in the next 60 days. Shriram Group, which holds a 60% stake in the real estate developer, will bring its stake down to 42% after the deal. Earlier this year, billionaire Ajay Piramal had picked up a 10% stake in Shriram Capital, the holding company of the Chennai-based group’s financial services business, for Rs 700 crore. TPG (17%) and Starwood Capital and Walton Street Capital (together with 23%) own the remaining shares in Shriram Properties. (Times of India)
Power Finance Corp plans to raise Rs 3,876 crore via tax-free bonds: State-run lending agency Power Finance Corp (PFC) has filed draft documents with market regulator Sebi for raising up to Rs 3,876 crore ($620 million) through tax- free bonds by March next year. The proposed issue is part of its plan to garner Rs 5,000 crore ($800 million) by way of issuing tax-free securities in the fiscal 2013-2014. Of the total target, Rs 1,124.10 crore ($180 million) has already been raised. ICICI Securities, A K Capital Services, Axis Capital and Edelweiss Financial Services are book running lead managers to the issue. (
Jaypee plans to sell 22.4% in NCDEX at a profit: New Delhi-based Jaypee Capital Services is set to exit the country’s second-placed commodity futures exchange, National Commodity and Derivatives Exchange (NCDEX). The Gaurav Arora-owned Jaypee Capital is an anchor investor in it, with a 22.38% stake. Jaypee has done two deals to sell 10% stake; talks with some investors for selling the other 12.38% is in the final stage, and likely to be completed in a few days. The shares are being sold at Rs 180 apiece against the acquisition price of Rs 59 three years earlier. Jaypee acquired stake in NCDEX at a concessional price, with a rider that the buyer would have to help the exchange raise its turnover in stages over three years. According to sources, the IDFC and Oman deal pacts have been sent to the regulator, the Forward Markets Commission (FMC), for approval. (Business Standard)
Vodafone’s UK parent may buy Analjit Singh’s stake: British telecom giant Vodafone Plc is planning to approach the Foreign Investment Promotion Board (FIPB) to buy the 6.2% stake held by its Indian partner, Analjit Singh. The move has come a little over a month after the government liberalised the foreign direct investment (FDI) policy for the telecom sector, permitting up to 100 per cent of foreign investment in services. In the case of Vodafone India, the British parent holds a 64% stake, while Ajay Piramal has 11%. The remaining 25% stake is owned by independent investors, including Analjit Singh and IDFC. In February last year, Piramal’s purchase of an additional 5.5 per cent stake had cost him $618 million. (Business Standard)
Top Indian metal companies flock to Stemcor’s asset sale: Some of India’s top metal companies, including the Tatas, the Jindal brothers and the Ruias of Essar, made non-binding bids last week for the iron ore assets of London-based Stemcor, say bankers. These assets are estimated to cost close to $1.3 billion. The Vedanta group and the Birlas are also in the fray but might not make aggressive bids. Stemcor is selling its iron ore mines and a pellet plant in Odisha, as it wants to repay its $1.2 billion of debt in the backdrop of sagging sales. (Business Standard)
OVL is in race to buy massive offshore oil block in Brazil: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is among 11 companies in race to acquire Brazil’s Libra pre-salt block. OVL is among the companies that paid a 2 million Brazilian reals ($886,014) fee and submitted documents to participate in Brazil’s bid round for the massive Libra pre-salt block. Leading the list are Anglo-Dutch supermajor Shell, France’s Total, and Repsol-Sinopec, the joint venture between the Spanish and Chinese players, according to Brazil’s National Petroleum Agency (ANP). The other contenders are Chinese state-run players China National Offshore Oil Corp and China National Petroleum Corp, Ecopetrol of Colombia, Mitsui of Japan, Galp of Portugal and Malaysia’s Petronas. Brazil’s national oil company Petroleo Brasileiro, or Petrobras, too figures in the list, according to ANP. It would get a 30% exploration stake in the block if it is operated by a foreign player. ()
Infibeam looks for tie-ups, eyes inorganic growth: Infibeam.com, an e-tailer based out of Gujarat is on the prowl, eyeing inorganic growth through acquisitions and keen to raise capital for organic growth. The company would also reach out to small and medium retailers in the Middle East through marketplace BuildaBazaar.com thus, becoming the first e-tailer from India to set foot overseas, albeit digitally. In the past, the company acquired companies in retail and technology, while now the firm is looking to acquire companies focused on verticals like big data analytics, digital advertising, digital content and fulfillment. In addition, Buildabazaar would launch few clients based in UAE next month. ()
PE investors in IEX hit by valuation concerns, FTIL woes: Technologies-India (FTIL) have made it difficult for private equity firms Lightspeed Venture Partners and Bessemer Venture Partners to dilute their holdings in Indian Energy Exchange, power exchange in which FTIL holds 33.5% stake. According to sources, Bessemer and Lightspeed were in talks with various PE firms, including New Enterprise Associates and Summit Partners, early this year to offload a part of their stake but the recent issues related to FTIL’s National Spot Exchange (NSEL) has made investors wary of picking up a stake in the power exchange. The decision of the two PE entities to dilute their holding was also on account of the Foreign Investment Promotion Board (FIPB) norms that stated that any foreign investor could not hold over 5% stake in a power exchange without its approval. Lightspeed and Bessemer bought stake in IEX from PTC Financial Services in December 2010 by shelling out R35 crore each. Sources add that the stake of the two entities increased from 5.5% each to 10% each once the compulsory convertible preference shares or CCPS were converted. (Financial Express)
Shapoorji Pallonji to exit renewable energy venture floated with BPCL: Shapoorji Pallonji Agri Management services, an affiliate of the $2.5 billion Shapoorji Pallonji group, would shortly exit the joint venture Bharat Renewable Energy Ltd., it floated with State-run Bharat Petroleum Corporation (BPCL) and Hyderabad-based Nandan Cleantec Ltd. Each of the partners has an equal stake in the joint venture. The Shapoorji Pallonji group has recently indicated their intention to exit the joint venture and have offered their holdings to the existing promoters in the proportion of their current shareholding. Bharat Renewable Energy have conveyed to the Shapoorji Pallonji group to hold on till, the firm find a suitable buyer for their stake. Shapoorji Pallonji has agreed. (Business Standard)
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