News Roundup: Wipro is considering acquisition in Germany to expand footprint

17 March, 2016

Wipro, India’s third largest IT services provider is looking at establishing a strong presence in Germany, one of the under-penetrated IT outsourcing services markets in the European region. The company is planning to grow its presence organically apart from exploring inorganic growth opportunities to equip itself to participate in large outsourcing deals in the country. In 2005, Wipro had acquired chip design services provider NewLogic in 2005 for Euro 47 million ($56 million). In 2006, it had acquired Enabler for about Euro 41 million ($52 million). (Business Standard)

Cairn India seeks partner to hunt for shale resources in Rajasthan block: Cairn India is keen to partner global leaders to hunt for shale resources in its prolific Rajasthan block and wants a policy regime to allow companies to produce hydrocarbons irrespective of whether they are contained in a conventional field or a new source. The company is working closely with the government on extension of contracts because the sector requires long-term investments. In the current financial year, Cairn India is targeting 2,00,000-2,15,000 bpd, but the company is also targeting higher production from other fields.(Times of India)  

PowerGrid plans Rs 4,650-cr follow-on offer: Power Grid Corporation is planning to launch a follow-on public offer for about Rs 4,650 crore ($1 billion) by December. This would comprise four per cent stake sale by the Centre in the company and fresh issue of 13% equity. The Centre’s holding in the company would come down to about 58% from 69.94%.Power Grid’s capex for FY14 is about Rs 22,000 crore. For this level of capex, the company would require 30% equity, which works out to Rs 6,600 crore. (Business Line) 

Fast-food chain Burger King to enter India with PE firm Everstone Capital: Burger King, one of the world’s top fast-food companies, will soon enter India through a franchising partnership with a company that will be headed by the present CEO of its UK operations and majority-owned by private equity firm Everstone Capital, a rare instance of a PE fund partnering with a fast-food chain. In a departure from its usual global practice, the US chain will also hold a minority stake in the Indian franchisee. Two persons with direct knowledge of the development said Burger King and Everstone are expected to sign the franchising agreement shortly. A Mumbai-based real estate developer will also pick up a minority stake in the franchisee company. Everstone and its partners plans to invest $100 million to set up 500 outlets in the country over the next 7-10 years. () 

Jet Airways plans to raise $300 million to replace its high cost rupee debt: Jet Airways plans to raise $300 million (Rs 1,833 crore) in external commercial borrowings this quarter, to replace all of its high cost rupee debt as the lossmaking airline aims to pare down its high finance costs. The company is looking to raise $150 million via its own banking resources and the rest from Etihad’s lenders, the airline’s finance chief Ravishankar Gopalakrishnan said. Jet has total debt of $1.9 billion on its books, out of which $1.2 billion are long-term loans on plane purchases. Of the remaining, $400 million is in dollar terms and the rest in rupees. () 

REC may take over Abhijeet Group project to recover dues: Rural Electrification Corp. Ltd (REC) may acquire the first phase of the Abhijeet Group’s 1,080 megawatts (MW) Jharkhand power project to recover loans, an extraordinary move, especially for a state-owned lender. This could set a trend if REC or other financiers start doing the same with other projects to which they have lent money. REC and Power Finance Corp. Ltd have loaned Rs.6 of every Rs.10 of debt of power utilities. REC’s move concerns the Abhijeet Group’s project in Latehar in Jharkhand, where the REC is the lead lender for the 540MW first phase. (Live Mint) 

Nokia Growth Partners planning further investments in Indian cos: Nokia Growth Partners (NGP), the venture capital arm of Finnish handset manufacturer Nokia is to further invest in Indian companies as valuations are hovering at reasonable levels. With more than $600 million under management, NGP had invested in mobile and technology companies. In September, the U.S. software giant Microsoft acquired Nokia’s mobile handset and device business in a $7.17-billion deal. The deal, however, did not include NGP. The venture capital firm, which invests across companies in the U.S., India, China and Europe, continues to raise funds from Nokia. (Business Line) 

Cairn plans to pick up 50% stake in Rajasthan gas distribution project: Anil Agarwal-led Cairn India Ltd has expressed interest in picking up a 50% stake in an upcoming joint venture (JV) project by Rajasthan State Petroleum Corporation Ltd (RSPCL) and GAIL to develop the gas supply and distribution network across Rajasthan. Both state-run GAIL and RSPCL had signed a joint venture agreement in this regard in November 2012, based on which GAIL would have 26% stake and RSPCL would have 24% stake, while the remaining 50% stake in the JV would be available for private players. In a letter to the chief secretary of Rajasthan, the company has officially expressed interest to pick up the stake. (Business Standard) 

IOB plans to raise Rs 900 crore through QIP & other modes: Indian Overseas Bank has said that it is planning to raise around Rs 900 crore ($147 million) through QIP, private placement and other modes. The bank, which was in need of around Rs 2,100 crore capital, got a commitment from the Government of India, which is the major shareholder of the Bank, on Wednesday that it would infuse Rs 1,200 crore into the Bank, the proposed fund raising is to fill the gap. Depends up on the market condition, the company would look at raising the money this fiscal or next fiscal in different tranches. (Business Standard) 

Courtesy: VCCEdge


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News Roundup: Wipro is considering acquisition in Germany to expand footprint

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