Vikram Akula, the poster boy of micro-lending in India, has given up the battle to re-establish his presence in SKS Microfinance the company he had founded but was forced to quit amid differences with senior managers and some shareholders. SKS Trust Advisors the original promoters of SKS Microfinance, an entity close to Akula has decided to sell its 12.5% equity stake in the country's only listed micro-lending company, two sources familiar with the development told ET. SKS Trust Advisors has hired Adharaya Financial Advisors, a low-key Mumbai-based investment bank, to find a buyer for the stake sale. While SKS Trust Advisors is the registered owner of the shares, the beneficial ownership of the equity bloc lies with five mutual benefit trusts (MBTs) underlying SKS Trust. (The Economic Times)
WestBridge Capital to buy stake in NBFC Vistaar Finance for Rs 100 crore: Private equity fund WestBridge Capital, which primarily buys stake in listed companies, will acquire a minority stake in the Bangalore-based non-banking finance company Vistaar Finance for Rs 100 crore ($16.78 million), two people with knowledge of the development said. "The deal is likely to be signed soon and an announcement is likely next week," an investment banker with knowledge of the development said. WestBridge, which manages $800 million, will join the existing set of PE funds. Vistaar Finance raised Rs 15 crore in its first round of funding from Saama Capital and Elevar Equity in 2010, and two years later, raised Rs 40 crore from Omidyar Network and Lok Capital. The existing investors will invest Rs 40 crore through this round to maintain their holding in the company. (The Economic Times)
ADB's $1billion bond set to get government nod: The government is set to clear a proposal by ADB to raise a billion-dollar-plus rupee-denominated bond programme. The bond issue is expected to reduce dependence of foreign borrowing as the currency risk will be borne by the investor. Speaking to newspersons on the sidelines of a CII event on developing the market for corporate debt, K P Krishnan, additional secretary, department of economic affairs, ministry of finance, indicated that the government was likely to clear the proposal. He said that the total size of the borrowing would be of the same order as the $1 billion (Rs 5,943 crore) rupee-denominated bond issue by International Finance Corporation. (The Times of India)
OVL to raise Rs 5,190 crore loans to meet Capex: ONGC Videsh, the overseas arm of state explorer Oil and Natural Gas Corp (ONGC), plans to raise Rs 5,190 crore ($871 million) in loans this fiscal to fund its planned capital expenditure of Rs 14,792 crore ($2.48 billion). The fund raising will be besides the long-term debt the company plans to take to repay bridge, or short-term financing, it had resorted to fund acquisition of 16% stake in a giant gas field in Mozambique for $ 4.125 billion. Of this, Rs 9,602.45 crore will be met from internal resource generation (revenue from sale of Oil and gas) and the remaining Rs 5,189.64 crore will have to be raised in loans. (The Economic Times)
Courtesy: VCCEdge
