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Raju & Jain quitting, Kalaari may raise smaller fund; AION may back GMR Airports

Rajesh Raju, managing director at venture capital firm Kalaari Capital, may leave the company but continue to manage the second and third funds, Mint reported, citing three people aware of the development. Sumit Jain, partner at Kalaari, has resigned from the firm, according to the report.

Also, Kalaari is expected to raise a fourth, smaller fund later this year or early next year, the report said, citing people. It may appoint a new general partner for the fund.

Raju is the general partner of the second and third funds.

In 2017, Bala Srinivasa and Prashanth Aluru had resigned as partners.

Separately, GMR Airports is in advanced discussions to raise around $500 million from special situations fund AION Capital Partners to let some of its investors exit, Mint reported, citing two people aware of the development.

The proposed investment will be a mix of equity and debt, the report said.

The PE investors could seek a valuation of about Rs 25,000 crore for GMR Airports, according to the report.

The PE investors include Macquarie SBI Infrastructure Fund, Standard Chartered Private Equity, JM Financial-Old Lane India Corporate Opportunities Fund, and Build India Capital Advisors.

GMR Airports has plans for an initial public offering later this year, according to the report.

GMR Airports is a subsidiary of GMR Infrastructure Ltd. It is the holding company for investments in Indian airports by the GMR group. 

The company operates two airports in New Delhi and Hyderabad. It is also developing an airport in Goa.

GMR Infrastructure has presence in energy, transport and urban infrastructure.

In another development, renewable energy major Greenko Group’s agreement to buy Orange Renewables could fall apart, with the deal hitting a roadblock,

The Economic Times reported, citing people aware of the development.

In June, Greenko had agreed to acquire AT Capital-backed Orange for a total enterprise value of around $922 million.

As on June-end, Orange had 907 megawatts of solar and wind power assets.

New Delhi-headquartered Orange is a fully-owned subsidiary of Singapore-based AT Holdings Pte. Ltd.

Separately, Fotowatio Renewable Ventures (FRV) is looking to sell its only solar power project in India, Mint reported, citing two people aware of the development.

FRV is fully owned by the Abdul Latif Jameel group of Saudi Arabia.

Edelweiss Infrastructure Yield Plus Fund and Sprng Energy, an Indian renewable energy platform set up by private equity firm Actis, are interested in the solar power project, according to the report.

Under its only solar power project in India, FRV has two plants with a combined capacity of 100 megawatts at the Ananthapuramu Solar Park in Andhra Pradesh. Last year, it received a loan of $35.64 million from International Finance Corporation for this project.

In another report, The Economic Times said that cereal maker Kellogg and consumer goods maker Reckitt Benckiser Plc are looking to acquire

GlaxoSmithKline’s consumer nutrition business, which is valued upwards of $4 billion.

Citing people, the report said that other suitors are Nestlé, Unilever, Mondelēz and Coca-Cola.

GlaxoSmithKline had initiated a strategic review of milk drinks brand Horlicks and its other consumer healthcare nutrition products businesses in order to support its $13 billion deal to buy Novartis’ 36.5% stake in their consumer healthcare joint venture.

The majority of Horlicks and other nutrition products sales are generated in India. The strategic review will include an assessment of GlaxoSmithKline’s 72.5% stake in Mumbai-listed GlaxoSmithKline Consumer Healthcare Ltd.

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