Aditya Birla Group-owned UltraTech Cement, has begun talks to purchase an incomplete 6.7-million- tonne cement plant in Gujarat owned by ABG Cement (ABGCL). Executives of both UltraTech Cement and ABG had three rounds of negotiations. Axis Capital, the investment banking arm of Axis Bank, is advising UltraTech on the deal. UltraTech has offered around INR 4,660 crore ($880.65 million) at $130 a tonne while ABG is believed to be asking for INR 5,008 crore ($946.42 million) at $156 a tonne. ABGCL is promoted by ABG Cement Holdco Pvt. Ltd., or ABGHPL. IFCI owns a small stake of 7.62%. ABGHPL is owned by Rishi Agarwal and family, the promoters of listed shipbuilder ABG Shipyard. (The Economic Times)
India to Sell NTPC Stake in 7-8 Days: India’s federal government would sell a part of its stake in power producer NTPC Ltd. in the next seven to eight days, and in National Aluminium Co. later this month. In March, it plans to sell stakes in Steel Authority of India Ltd., Rashtriya Chemicals & Fertilizers Ltd. and MMTC Ltd. The list of share sales planned over the next few weeks indicates the government’s efforts to raise as much funds as possible from asset sales before the fiscal year ends on March 31. On Friday, the government sold a 10% stake in oil explorer Oil India Ltd. The issue is expected to fetch the government about 31.14 billion rupees, though the final figure will be clear only Tuesday. In NTPC, India’s largest power utility by production capacity, the government plans to sell a 9.5% stake. The cabinet has also already cleared a proposal to sell 12.15% of National Aluminium. (The Wall Street Journal)
Samsung Life eyes Pramerica stake in DLF JV for India entry: Even as ING exited the Indian insurance sector by selling off its 26% stake in the joint venture (JV) ING Vysya Life Insurance to partner Exide Industries, a number of foreign players are waiting in the wings to enter India. The latest aspirant is Samsung Life Insurance, South Korea’s largest insurance company is in talks with DLF-Pramerica to buy Pramerica’s 26% stake in the insurance JV. DLF-Pramerica is a 74:26 joint venture between DLF and American insurer Prudential International Insurance Holdings, a wholly- owned subsidiary of Prudential Financial. According to sources, Samsung Life is in talks simultaneously with other JV partners such as Bharti Axa to acquire the 26 per cent stake owned by Axa in the JV. (Business Standard)
NHB to raise INR 5,000 crore from tax-free bonds by March-end: National Housing Bank (NHB), the regulator for housing finance companies, plans to come out with a retail issue of INR 5,000-crore ($945 million) tax free bonds later this month. The company is looking to go for retail issue of our tax-free bonds in the third week of this month. Of the total issue size, INR 3,750 crore (708.68 million) has been earmarked for retail investors while remaining INR 1,250 crore ($236.22 million) for private placement to institutional investors. Currently, the private placement option is open for institutional investors to subscribe such bonds. The issue closes on February 6. The fund raised will be utilised for promoting affordable housing. (Business Standard)
Kennametal India tanks on US parent stake sale plan: US-based parent-promoter of Kennametal India Ltd. is looking to cut stake in the company from the current 88.61% to comply with the SEBI norms on minimum public share holding requirements. The company has received a letter from Kennametal Inc., the promoter shareholder of the company for the proposed stake sale. According to SEBI guidelines, the public shareholding in a company should be a minimum of 25% by June. (Business Standard)
ADB in talks with banks for infra debt fund foray: Asian Development Bank (ADB) is in talks with banks for a possible participation in the infrastructure debt fund (IDF) floated by them through the NBFC route. The current regulatory framework allows IDFs to be floated either through the Non Banking Finance Company (NBFC) route or through the mutual fund route. (Business Line)
Su-Kam to buy solar panel firm; deal by March-end: Su-Kam Power Systems is in the final stages of negotiations to acquire a solar panel maker and an announcement to this effect is likely by the end of next month. The planned acquisition would help the inverter major to own manufacturing capacity of panels to become a major player in solar energy applications. The company is looking to acquire for less than INR 100 crore ($18.89 million). (Business Line)
HDFC plans to raise $500 m overseas: HDFC Ltd. is planning to raise $500 million (INR 2,645 crore) through the External Commercial Borrowing (ECB) route. The company is awaiting the Reserve Bank of India’s approval for the proposed fundraising. The firm would be raising the funds before March-end 2013. Housing finance companies (HFCs) and the National Housing Bank (NHB) can also tap the ECB route for financing prospective owners of low-cost housing units. (Business Line)
DVC in rejig mode to unlock value via IPO: Damodar Valley Corporation (DVC), a statutory organisation, created by DVC Act, 1948 is now preparing for a corporate makeover. The company is serving the dual purpose of controlling flood as well as irrigating nearly 6 lakh hectares of farm land in West Bengal and Jharkhand through 2,500 km of canal network, DVC runs nearly 5000 MW power generation capacities (mostly thermal). Another 2000 MW capacity is under implementation. It also has a 1000 MW joint venture with Tata Power. While a Corporate Plan, drafted by Deloitte, is now finalised at the DVC end. The move is expected to help DVC in introducing corporate accounting practices for the power business and unlock value through IPO. The corporation mooted a similar proposal way back in December 2007. Accordingly, a letter of intent (LoI) was also issued to KPMG in January 2008 for a ‘hand holding relationship till IPO’. (Business Line)
DLF plans to raise Rs 2,100 crore by selling 8.1 crore shares to institutional buyers: DLF Ltd. is looking to raise INR 2,100 crore ($396.86 million) by selling 8.1 crore shares to qualified institutional buyers known in market parlance as institutional placement programme (IPP) by April. The move is in line with guidelines stipulating 25% public shareholding. The fund raising would also help reduce the realtor’s debt. The issue will be the largest fund raising in India through IPP. The companies have begun discussion with merchant bankers and are likely to appoint three or four bankers soon. Currently, the promoters holds 78.58% stake in the target company, will trim their stake to 75% after the issue. (The Economic Times)
Blackstone set for big profit in B’lore real estate JV: Global investor Blackstone is set for a possible maiden profit from the Indian real estate market, riding on robust luxury apartment sales in the tech city of Bangalore. Blackstone is exiting a joint venture with southern developer Embassy Property Developments, building 467 residential units, raking in more than INR 210 crore ($39.68 million). In 2011, Blackstone funded Embassy Lakeside Terraces, developing apartments priced between INR 3 core and INR 10 crore. Embassy CMD Jitu Virwani has proposed to buy back Blackstone’s non-convertible debentures (NCDs), triggering a profitable exit for private equity investor. (The Times Of India)
Lupin eyes brands, tie-ups in US: The INR 7,100-crore drugmaker Lupin is looking at enhancing the presence of its branded products in the US (where it earns 42% of its revenues) by acquiring new brands or by forging partnerships with US firms. Lupin boasts brands like Suprax (antibiotic), Antara (anti-cholesterol) and Aero Chambers (a device used in the treatment of asthma). The company’s overall business is divided 75:25 between generics (comprising products relating to oral contraception, dermatology, ophthalmics) and brands. (DNA)
Sylph Technologies plans to raise funds: Sylph Technologies Ltd. is looking to raise $10 million (INR 53 crore)through issue of American depository receipts or global depository receipts or foreign currency convertible bonds or external commercial borrowing. The company is also planning to raise approximately $5.6 million (INR 30 crore) through issue of shares to qualifies institution. (BSE)
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