Uflex to revamp overseas business, list it abroad: Delhi-based flexible packaging company Uflex Ltd is planning a major corporate revamp. The plan includes bringing the overseas business, which contributes nearly half of its INR 5,000-crore turnover, under an umbrella company based in Dubai and list it abroad to part-finance future foreign expansions. While plastic films contributed nearly 60% of the company’s turnover in 2012-13, value-added products contributed around 53% of profits. The Uflex board is expected to take a call on the same in early 2014, said Group President R.K. Jain. Uflex invested $150 million (INR 930 crore today) to set up facilities in Poland and the US in the last two years. Both plants have already broken even and have provisions for future capacity expansion. (Business Line)
Premji may buy Myntra stake for e-commerce entry: Tech czar Azim Premji is boarding India’s rapidly expanding e-commerce story. His family office, PremjiInvest, is in discussions to lead a $50-million (or INR 300-crore) fund-raise in fashion e-tailer Myntra, people familiar with the matter told TOI. PremjiInvest is likely to be a co-investor in the latest round of funding, which may also include British investor CDC, valuing Myntra at around $250 million (INR 1,500 crore). Existing investors Accel Partners and Tiger Global, two US investors who are prolific backers of the Indian e-commerce play, will also participate in latest fund-raise. US investment bank Pacific Crest is advising Myntra on the transaction. (Times of India)
Valmark Infra plans to invest:Valmark Infra and Realty Trust, a SEBI-registered Alternate Investment Fund (AlF- 2) sponsored by Tejraj Gulechha of Bangalore-based Manyata and Valmark group, is in final stage of concluding a real estate deal in Bangalore for deployment of the funds. The fund raised INR 40 crore ($6.4 million) from HNIs and corporate. Valmark Infra and Realty Trust had launched a Rs 125-crore scheme to primarily invest in real estate sector early this year. (Business Line)
Power Grid Corporation files FPO document with RoC: NEW DELHI: Power Grid Corporation has filed papers with the RoC for its follow-on public offer through which it hopes to raise over INR 5,700 crore ($911 million). The company has filed the red herring prospectus with the Registrar of Companies (RoC) in connection with the Follow on Public Offer (FPO) of 787,053,309 equity shares of Rs 10 each of the company constituting 17% of its existing paid-up capital. The FPO constitutes fresh issue of 601,864,295 equity shares or 13% of existing paid-up capital and simultaneous disinvestment by government of 185,189,014 equity shares or 4% of existing paid-up capital. The government stake sale is likely to fetch over INR 1,700 crore ($272 million) to the exchequer.
The company will use the proceeds to meet its investment plans in the next two financial years. Post-FPO, the government stake in the company will come down to 57.89% from current shareholding of 69.42%. According to sources, Citigroup, ICICI Securities, UBS, SBI Caps and Kotak Mahindra have been appointed as merchant bankers for the FPO. (Economic Times)
Ex-Asos boss to list Indian venture on Aim: The former chairman of Asos is set to take Koovs, his new Indian fast fashion business, public early next year as it attempts to benefit from the glut of young Indians moving online. The company which is aimed at India’s fast-growing young middle classes intends to raise $35 million (INR 221.7 crore) with a listing on Aim. The owners plan to float about 35% of the company. The remainder would be split between the Nahata family, which owns about 44%; Lord Alli, who holds 11%; and management, who retain the balance. (Financial Times)