With TPG Deal, Shriram Properties Eyes Hospitality, Logistics Biz
– After Shriram Properties Ltd recently secured a $100 million (Rs440 crore today) investment from private equity (PE) firm TPG Capital, the Bangalore-based company is working on expanding across India with two new businesses—hospitality and logistics. The company will deploy most of the new money in setting up two wholly owned subsidiaries. It will spend the balance on buying about 600 acres of land in the next 18 months. Shriram will look to buy distressed assets at a discount for the hospitality business, instead of developing hotels. Before TPG, Walton Street Capital had invested in Shriram Properties in 2007.
Vasan Healthcare Close To $100M Deal With GIC – Vasan Healthcare has almost closed a private equity deal of around $100 million from Singapore’s sovereign fund GIC. The company, which wants to raise a total $150 million through pre-IPO placement, is also in talks with a few other private equity firms, including Warburg Pincus, for the remaining funds. GIC is expected to make the investment in tranches. The fast-growing daycare services company had an early stage funding of $50 million from Sequoia Capital India. (Financial Chronicle)
Govt Appoints Four Bankers For BHEL Issue – Four merchant bankers including ICICI Securities and Morgan Stanley will manage the Rs 4,700-crore follow-on public offer of Bharat Heavy Electricals (BHEL), which is expected to hit markets during the Diwali period. The sale of 5% stake in power equipment maker BHEL is expected to mop up about Rs 4,700 crore for the government. The government has appointed four merchant bankers — Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital — for BHEL’s FPO. (Business Standard)
J&J Eyes Medical Device Companies In India – Johnson & Johnson Medical is looking to acquire medical device makers in India and China in the areas of trauma care, infection prevention and diagnostics. The medical devices arm of Johnson & Johnson sells equipment and instruments used for orthopaedics, sterilisation, spinal care , cardiovascular (diseases), gynaecology and diabetes. (Business Line)
Automark Industries To Sell 43% In IPO – Road marking materials manufacturer Automark Industries plans to tap capital market with its initial public offering of 1.25 crore equity shares of face value of Rs 10 each, by diluting 42.6% stake post issue. Company may also consider a pre-IPO placement of upto 25 lakh shares, prior to the filing of the red herring prospectus with the RoC. Turnover of the company, on a standalone basis, increased 393% from Rs 13.17 crore in FY2006-07 to Rs 64.96 crore in FY2010-11. Profit after tax during the same period jumped 934% to Rs 1.66 crore. (Moneycontrol)
L&T Issue Subscribed 46% On Day 1 – The initial public offering of L&T Finance Holdings was subscribed 0.46 times or 45.78 per cent till 1740 hours on the first day of the issue today. The company’s IPO received bids worth 9.82 crore shares against 21.45 crore shares on offer, according to data available with the exchanges. Of this 31 per cent of the bids were at cut-off price. L&T Finance Holdings, which plans to raise about Rs 1,250 crore through the issue, has set the price band at Rs 51-59 a share. The issue, which opened for subscription today, will close on July 29. (Business Line)
Sebi To Decide On Takeover Code, Infra Debt Fund Today – The Securities & Exchange Board of India (Sebi) board will on Thursday is expected to finalise the guidelines for infrastructure debt funds, which will allow large overseas investors to invest in road, ports, power and airport projects. An infra debt fund can be set up either as a trust regulated by Sebi or as a company regulated by RBI. The market regulator is also expected to take a call on the long-awaited amendments to the Takeover Code, where Achuthan committee had recommended 100% open offer for company takeover, doing away with non-compete fee and hiking open offer trigger limit to 25%. (Times of India)