Warburg Pincus, a global private equity firm, will invest $110 million in country’s electrical and power distribution equipment company Havells India.
Havells will issue fresh shares and warrants to Warburg Pincus, representing approximately 11.2 per cent of the fully diluted share capital of the company.
SSKI (a subsidiary of IDFC) was the financial advisor and Amarchand Mangaldas provided legal advice to Warburg Pincus on this transaction.
Havells India, $1.2 billion enterprise and one of country’s fastest growing electrical and power distribution equipment companies, manufactures products ranging from building circuit protection, industrial & domestic switchgears, cables & wires, energy meters, fans, CFL lamps, luminaries for domestic, commercial & industrial application, and modular switches.
Havells also owns prestigious global brands like Crabtree (Indian Region), Sylvania, Lumiance and Zenith, among others.
Over a twelve-year period, Warburg Pincus have invested approximately $2 billion in India making it one of the largest private equity investors in the country.
The firm’s past and current investments in India include Ambuja Cements, Bharti Airtel, Dainik Bhaskar, HDFC, Kotak Mahindra Bank, Max India, Moser Baer, Nicholas Piramal, Punj Lloyd, Sintex Industries, Lemon Tree Hotels and WNS Global Services.
(Source: Business Standard)
Showing posts with label India. Show all posts
Showing posts with label India. Show all posts
Monday, October 22, 2007
Friday, October 5, 2007
IFC set to pick up 5% stake in Karnataka Bank
The International Finance Corporation (IFC), the private sector funding arm of World Bank, is set to pick up about 4-5% stake in Mangalore-headquartered Karnataka Bank. The bank’s board is meeting on Friday to decide on a preferential allotment to IFC.
A senior Karnataka Bank official confirmed the development but said pricing details and quantum of stake has not been decided as yet.
Karnataka Bank could be the second Indian bank where the 51-year old World Bank arm has an equity stake. IFC holds 4.99% stake in Federal Bank.
Karnataka Bank had raised Rs 120 crore in June by way of a tier-II bond issue. The bank had gone in for a rights issue (at the ratio of one share for every two shares of post-bonus share capital) at Rs 20 per share (Rs 10 premium) in 2004.
As of June 30, some of the leading institutional shareholders in Karnataka Bank include — Oppenheimer Funds (Oppenheimer International Small Company Fund) with a 4.94% stake, Citigroup Global Markets (Mauritius) 4.34%, UTI Mastershare scheme 1.65%, Franklin Templeton Investment Fund 3.09% and Quantum MF with 3.73% stake.
Post preferential issue, the bank’s capital adequacy ratio(CAR) would rise to 13% from the current 12.72% and help it meet the funding needs up to September 2008.
(Source: Economic Times)
A senior Karnataka Bank official confirmed the development but said pricing details and quantum of stake has not been decided as yet.
Karnataka Bank could be the second Indian bank where the 51-year old World Bank arm has an equity stake. IFC holds 4.99% stake in Federal Bank.
Karnataka Bank had raised Rs 120 crore in June by way of a tier-II bond issue. The bank had gone in for a rights issue (at the ratio of one share for every two shares of post-bonus share capital) at Rs 20 per share (Rs 10 premium) in 2004.
As of June 30, some of the leading institutional shareholders in Karnataka Bank include — Oppenheimer Funds (Oppenheimer International Small Company Fund) with a 4.94% stake, Citigroup Global Markets (Mauritius) 4.34%, UTI Mastershare scheme 1.65%, Franklin Templeton Investment Fund 3.09% and Quantum MF with 3.73% stake.
Post preferential issue, the bank’s capital adequacy ratio(CAR) would rise to 13% from the current 12.72% and help it meet the funding needs up to September 2008.
(Source: Economic Times)
Thursday, October 4, 2007
Ranbaxy ups Zenotech stake to tap biotech
Ranbaxy Laboratories Ltd, India’s second-biggest drugmaker, has agreed to take control of Zenotech Laboratories Ltd to gain access to the $65 billion market (about Rs 2,50,000) for biotechnology treatments.
Ranbaxy will buy shares from founders of the Hyderabad-based company as well as new stock to increase its stake to 45 per cent, it said in a statement today. The Gurgaon-based drugmaker will offer to buy an additional 20 per cent from investors under stock exchange takeover rules, it said.
The acquisition gives Chief Executive Officer Malvinder Singh control over research and production of drugs based on generic biotechnology, or living cell-based products, that are harder to make than chemical medicines. Companies including General Motors Corp are pushing the US to allow copies of biological medicines as a way to reduce healthcare costs.
The acquisition “provides Ranbaxy with a skill into a business which has higher entry barriers, allowing for greater profitability,’’ said Sarabjit Kour Nangra, an analyst with Angel Broking Ltd in Mumbai, who has a “hold” rating on Ranbaxy’s stock.
Zenotech shares rose by their daily limit on the Bombay Stock Exchange. The stock has more than doubled this year, valuing the drugmaker at about $121 million (about Rs 480 crore). Ranbaxy fell 0.5 per cent, eroding its 13 per cent gain this year.
Ranbaxy will pay Rs 214 crore to increase its stake to 45 per cent. The drugmaker will buy 22 per cent from Zenotech’s founders, including Chief Executive Officer Jayaram Chigurupati, and an additional 16 per cent in preferential stock.
(Source: Business Standard)
Ranbaxy will buy shares from founders of the Hyderabad-based company as well as new stock to increase its stake to 45 per cent, it said in a statement today. The Gurgaon-based drugmaker will offer to buy an additional 20 per cent from investors under stock exchange takeover rules, it said.
The acquisition gives Chief Executive Officer Malvinder Singh control over research and production of drugs based on generic biotechnology, or living cell-based products, that are harder to make than chemical medicines. Companies including General Motors Corp are pushing the US to allow copies of biological medicines as a way to reduce healthcare costs.
The acquisition “provides Ranbaxy with a skill into a business which has higher entry barriers, allowing for greater profitability,’’ said Sarabjit Kour Nangra, an analyst with Angel Broking Ltd in Mumbai, who has a “hold” rating on Ranbaxy’s stock.
Zenotech shares rose by their daily limit on the Bombay Stock Exchange. The stock has more than doubled this year, valuing the drugmaker at about $121 million (about Rs 480 crore). Ranbaxy fell 0.5 per cent, eroding its 13 per cent gain this year.
Ranbaxy will pay Rs 214 crore to increase its stake to 45 per cent. The drugmaker will buy 22 per cent from Zenotech’s founders, including Chief Executive Officer Jayaram Chigurupati, and an additional 16 per cent in preferential stock.
(Source: Business Standard)
Monday, October 1, 2007
Time Technoplast buys 74 pc in NED Energy
Polymer products maker Time Technoplast Ltd said on Monday it has bought a 74 per cent stake in battery maker NED Energy Ltd for an undisclosed sum.
NED's enterprise value is estimated at Rs 650 million and Time Technoplast has the option of buying out the balance 26 per cent from the promoters, it said in a statement.
(Source: Economic Times)
NED's enterprise value is estimated at Rs 650 million and Time Technoplast has the option of buying out the balance 26 per cent from the promoters, it said in a statement.
(Source: Economic Times)
Sterlite Optical buys 58.7 pc stakes in Sterlite Infra
Optic-fiber cable maker Sterlite Optical Technologies Ltd said on Monday it has acquired a 58.7 per cent stake in Sterlite Infrastructure Pvt Ltd, making it a subsidiary of Sterlite Optical.
(Source: Economic Times)
(Source: Economic Times)
Warring brothers put Onida on block
Two members of the Onida founding family have broken off with the third main shareholder and begun talks with a rival group led by Videocon and Kishore Biyani’s Future Capital to sell a substantial stake in the main holding company.
In a development fraught with enormous implications for the consumer durables industry and for one of India’s best-loved TV brands, Sonu Mirchandani and Vijay Mansukhani, who together hold 66% in Guviso, the holding company for Mirc Electronics, have put their stake on the block. Sharp differences with Gulu Mirchandani, Sonu’s brother and the chairman and managing director of Onida, are said to be the main reason.
Gulu, who holds the remaining shares, has been the public face of the company. Sonu and Vijay Mansukhani, the co-brother (Vijay and Gulu’s wives are sisters), have stayed in the background till now, but now want a change in their position. Vijay is on the board of Mirc Electronics, but Sonu is not. Sonu Mirchandani runs Monica Electronics, which manufactures a range of white goods including CTVs. Under an arrangement with Monica, Mirc markets these products under the Onida brand.
The two partners are also believed to be upset about Gulu’s control over the company. They feel that they should also have equal share and deciding power. The holding company’s name, Guviso, has been formed by the first two letters of the three individuals.
The development is significant for the consumer durables industry, which has often been plagued by low margins, heavy promotional costs and stiff competition. But Onida has always managed to keep its head above water. It is the third-largest colour TV brand with an estimated market share of about 10%.
It is one of the few Indian brands to have survived the onslaught of the aggression displayed by multinationals, especially the Korean companies in a fiercely-competitive durables market. The brand enjoyed an iconic status with its famous ‘Neighbour’s Envy, Owner’s Pride’ tag line. It is expected to fetch a valuation of Rs 600-800 crore, though its market cap is just about Rs 320 crore
(Source: Economic Times
In a development fraught with enormous implications for the consumer durables industry and for one of India’s best-loved TV brands, Sonu Mirchandani and Vijay Mansukhani, who together hold 66% in Guviso, the holding company for Mirc Electronics, have put their stake on the block. Sharp differences with Gulu Mirchandani, Sonu’s brother and the chairman and managing director of Onida, are said to be the main reason.
Gulu, who holds the remaining shares, has been the public face of the company. Sonu and Vijay Mansukhani, the co-brother (Vijay and Gulu’s wives are sisters), have stayed in the background till now, but now want a change in their position. Vijay is on the board of Mirc Electronics, but Sonu is not. Sonu Mirchandani runs Monica Electronics, which manufactures a range of white goods including CTVs. Under an arrangement with Monica, Mirc markets these products under the Onida brand.
The two partners are also believed to be upset about Gulu’s control over the company. They feel that they should also have equal share and deciding power. The holding company’s name, Guviso, has been formed by the first two letters of the three individuals.
The development is significant for the consumer durables industry, which has often been plagued by low margins, heavy promotional costs and stiff competition. But Onida has always managed to keep its head above water. It is the third-largest colour TV brand with an estimated market share of about 10%.
It is one of the few Indian brands to have survived the onslaught of the aggression displayed by multinationals, especially the Korean companies in a fiercely-competitive durables market. The brand enjoyed an iconic status with its famous ‘Neighbour’s Envy, Owner’s Pride’ tag line. It is expected to fetch a valuation of Rs 600-800 crore, though its market cap is just about Rs 320 crore
(Source: Economic Times
Saturday, September 29, 2007
Vertex eyeing India buys for growth
UK-headquartered business process outsourcing (BPO) firm Vertex is looking at acquisitions in India. The company, which got acquired by a consortium led by private equity player Oak Hill Capital earlier this year, is looking at rapid organic growth.
"With private equity as an owner, there is always a need to grow rapidly. We are looking at doubling our business in the next five years and also at acquisition opportunities in India," Vertex CEO Richard Graham told ET.
Mr Graham added that Vertex will look at small-and medium-sized companies as acquisition targets. Oak Hill Capital Partners, GenNx360 Capital Partners and Knox Lawrence International acquired Vertex for £217.5 million comprising cash, the repayment of intra-group debt and the retention by the purchaser of certain liabilities of Vertex from UK-based United Utilities.
US-based Oak Hill Capital Partners, which currently has $4.6 billion as assets under management, also has significant business interests in Indian BPO majors Genpact and EXL Services. With both Genpact and EXL Services listing on the US bourses, Vertex may also look at a public floatation at a later stage. “If you are owned by a private equity player, then you know one day you will get sold. It is yet to be decided by when will that happen,” added Mr Graham.
Vertex is also looking to move finance and accounting (F&A) and HR functions to its India back-office in Gurgaon. The company is exploring segments high-end work like engineering support services and IT infrastructure management. New capabilities like security services, data centre management, service desk provision and application maintenance are expected to contribute about 30% of its revenues in the next 12 months.
Recently, it transferred the work it was doing for British telecom major Orange to ExlService. “We don’t want to do plain voice-based, low-end BPO work. We want to do transformational kind of work. The Orange business was voice-based work and we arrived at an agreement with EXL and Orange to transfer that work to EXL. I don’t think we have more of such low-end work on our hands now,” said Mr Graham.
Vertex India has over 1,800 employees at its two Gurgaon centres. The company is also looking at an additional facility in India. The company’s head office is located in Liverpool and it has 9,000 employees based in 66 locations across the UK, US, Canada and India.
(Source: Economic Times
"With private equity as an owner, there is always a need to grow rapidly. We are looking at doubling our business in the next five years and also at acquisition opportunities in India," Vertex CEO Richard Graham told ET.
Mr Graham added that Vertex will look at small-and medium-sized companies as acquisition targets. Oak Hill Capital Partners, GenNx360 Capital Partners and Knox Lawrence International acquired Vertex for £217.5 million comprising cash, the repayment of intra-group debt and the retention by the purchaser of certain liabilities of Vertex from UK-based United Utilities.
US-based Oak Hill Capital Partners, which currently has $4.6 billion as assets under management, also has significant business interests in Indian BPO majors Genpact and EXL Services. With both Genpact and EXL Services listing on the US bourses, Vertex may also look at a public floatation at a later stage. “If you are owned by a private equity player, then you know one day you will get sold. It is yet to be decided by when will that happen,” added Mr Graham.
Vertex is also looking to move finance and accounting (F&A) and HR functions to its India back-office in Gurgaon. The company is exploring segments high-end work like engineering support services and IT infrastructure management. New capabilities like security services, data centre management, service desk provision and application maintenance are expected to contribute about 30% of its revenues in the next 12 months.
Recently, it transferred the work it was doing for British telecom major Orange to ExlService. “We don’t want to do plain voice-based, low-end BPO work. We want to do transformational kind of work. The Orange business was voice-based work and we arrived at an agreement with EXL and Orange to transfer that work to EXL. I don’t think we have more of such low-end work on our hands now,” said Mr Graham.
Vertex India has over 1,800 employees at its two Gurgaon centres. The company is also looking at an additional facility in India. The company’s head office is located in Liverpool and it has 9,000 employees based in 66 locations across the UK, US, Canada and India.
(Source: Economic Times
Wipro buys singapore design company
Wipro Technologies will acquire Oki Techno Centre Singapore (OTCS), a wholly-owned subsidiary of Oki Electric Industry, Japan, over a period of one year and this would be its second acquisition in the semiconductor space with the earlier one being NewLogic.
OTCS registered revenues of 8.8 million Singapore dollars for the fiscal year ended March 31, 2007 and has a 40-member team. Vasudevan Aghoramoorthy, V-P, Wipro Technologies said, this acquisition will enable them to meet the demand for newer wireless technologies and also expand its breadth of offering in the semiconductor design space.
For the first time, Wipro Technologies has made an acquisition in the Far East region with all its previous buyouts in the US and Europe.
OTCS is focussed on wireless design and has capabilities in radio frequency (RF) technologies. It mainly works for the parent company with some third party clients and Wipro expects to provide solutions for the semiconductor companies.
(Source: Economic Times)
OTCS registered revenues of 8.8 million Singapore dollars for the fiscal year ended March 31, 2007 and has a 40-member team. Vasudevan Aghoramoorthy, V-P, Wipro Technologies said, this acquisition will enable them to meet the demand for newer wireless technologies and also expand its breadth of offering in the semiconductor design space.
For the first time, Wipro Technologies has made an acquisition in the Far East region with all its previous buyouts in the US and Europe.
OTCS is focussed on wireless design and has capabilities in radio frequency (RF) technologies. It mainly works for the parent company with some third party clients and Wipro expects to provide solutions for the semiconductor companies.
(Source: Economic Times)
Friday, September 28, 2007
Carlyle, TPG eye stake in NIIT
New Delhi-based IT company NIIT Technologies is learned to be in preliminary discussions with private equity players Carlyle and TPG to sell a majority stake. Industry sources said a strategic investor is also believed to be interested in the transaction.
Promoters currently hold 40% stake in NIIT Technologies and sources said they may sell anywhere between 25% and 40% in the company. This would trigger an open offer, where investors can buy an additional 20% in the company.
(Source: Economic Times)
Promoters currently hold 40% stake in NIIT Technologies and sources said they may sell anywhere between 25% and 40% in the company. This would trigger an open offer, where investors can buy an additional 20% in the company.
(Source: Economic Times)
Lupin acquires Rubamin Labs
Lupin, the country’s biggest maker of tuberculosis medicines, has bought Baroda-based Rubamin Laboratories (RLL), which will give it an entry into the global contract research and manufacturing services (CRAMS) business. The deal size was not disclosed.
Rubamin manufactures advanced intermediates and specialises in active pharmaceutical ingredients (APIs) used in drug-making. The eight-year-old company has a wide customer base in Europe. It has a turnover of about $10 million.
RLL belonged to the Rubamin Group, whose main business is mining and metallurgy in India and Congo in Central Africa. RLL was hived into a separate company last year.
“The acquisition enables us to step up our strategic initiative in the CRAMS segment,” Lupin Chairman Desh Bandhu Gupta said. “We have a proven track record of achieving global position in every therapy that we have entered at the intermediate and API level.”
The global CRAMS market was estimated at $895 million in 2006 and growing at 43 per cent, according to business research and consulting company Frost & Sullivan.
(Source: Business Standard)
Rubamin manufactures advanced intermediates and specialises in active pharmaceutical ingredients (APIs) used in drug-making. The eight-year-old company has a wide customer base in Europe. It has a turnover of about $10 million.
RLL belonged to the Rubamin Group, whose main business is mining and metallurgy in India and Congo in Central Africa. RLL was hived into a separate company last year.
“The acquisition enables us to step up our strategic initiative in the CRAMS segment,” Lupin Chairman Desh Bandhu Gupta said. “We have a proven track record of achieving global position in every therapy that we have entered at the intermediate and API level.”
The global CRAMS market was estimated at $895 million in 2006 and growing at 43 per cent, according to business research and consulting company Frost & Sullivan.
(Source: Business Standard)
Thursday, September 27, 2007
Bank of India may dilute 5pc govt stake
The country’s sixth-largest bank in terms of assets, Bank of India (BoI) is considering diluting 5% government stake.
Mr Narayanasami,BoI chairman and managing director, indicated the bank is weighing the option of raising resources through the qualified institutional placement (QIP) route. “We are open to both follow-on issue and the QIP route. However, latter offers more advantages since it could be faster and cost effective,” he said.
If the bank goes ahead with the QIP offering, it will be the first public sector bank to do so. Among private banks, Axis Bank and Centurion Bank of Punjab recently concluded QIP issuances. With 5% stake sale, the bank would raise close to Rs 600 crore at the current market price.
The resources raised will enable BoI fund its new businesses and help it in meeting the new Basel II norms. “It will be useful in making investments in the insurance business and in any new venture we may consider taking up in future,” Mr Narayanasami said. BoI has total assets of Rs 86,842 crore with net profit of Rs 1,123 crore as on March 31, 2007.
(Source: Economic Times
Mr Narayanasami,BoI chairman and managing director, indicated the bank is weighing the option of raising resources through the qualified institutional placement (QIP) route. “We are open to both follow-on issue and the QIP route. However, latter offers more advantages since it could be faster and cost effective,” he said.
If the bank goes ahead with the QIP offering, it will be the first public sector bank to do so. Among private banks, Axis Bank and Centurion Bank of Punjab recently concluded QIP issuances. With 5% stake sale, the bank would raise close to Rs 600 crore at the current market price.
The resources raised will enable BoI fund its new businesses and help it in meeting the new Basel II norms. “It will be useful in making investments in the insurance business and in any new venture we may consider taking up in future,” Mr Narayanasami said. BoI has total assets of Rs 86,842 crore with net profit of Rs 1,123 crore as on March 31, 2007.
(Source: Economic Times
UAE firm acquires 4% stake in Development Credit Bank
UAE company has acquired over four per cent stake in India's Development Credit Bank (DCB), marking its entry into the Indian market.
Al Bateen Investment Co LLC (ABI), a unit of the Abu Dhabi-based Al Ain International Group, announced in Abu Dhabi yesterday that it has acquired 4.24 per cent stake in DCB.
ABI invested by subscribing to DCB's preferential issue to a group of institutional investors. These include Tata Capital and the Mauritius-based GRA Finance Corporation.
DCB is one of the fastest growing private sector commercial banks in India.
Nearly 80 years old, DCB currently has a network of 72 branches in India and plans to double that number by 2009.
The Aga Khan Fund for Economic Development is the largest stakeholder in the bank, holding more than a 55 per cent stake.
(Source: Economic Times)
Al Bateen Investment Co LLC (ABI), a unit of the Abu Dhabi-based Al Ain International Group, announced in Abu Dhabi yesterday that it has acquired 4.24 per cent stake in DCB.
ABI invested by subscribing to DCB's preferential issue to a group of institutional investors. These include Tata Capital and the Mauritius-based GRA Finance Corporation.
DCB is one of the fastest growing private sector commercial banks in India.
Nearly 80 years old, DCB currently has a network of 72 branches in India and plans to double that number by 2009.
The Aga Khan Fund for Economic Development is the largest stakeholder in the bank, holding more than a 55 per cent stake.
(Source: Economic Times)
India's share in M&A deals in Asia spurts to 15%
India's share in the total merger and acquisition deals in Asia has gone up from 6 per cent in 2005 to 15 per cent in 2006, SBI Capital Markets said on Wednesday.
The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent.
SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, "Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators."
He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006.
(Source: Economic Times)
The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent.
SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, "Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators."
He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006.
(Source: Economic Times)
Mallya boards US Epic
VLJs (very light jets), small four to eight seater jets that have been creating a flutter in corporate America, have a new backer. Liquor baron Vijay Mallya is picking up a 50% stake in Epic Aviation, the Bend Oregon-based small aircraft manufacturer.
For the past two years, business aircraft circles, particularly in the US, have been bullish about the new planes that are being manufactured through disruptive technologies with new engines, avionics and materials.
Speaking to ET, he said “Epic is an outstanding global business opportunity as they have four world beater aircraft. There is a growing demand for business jets in the region, that we hope to tap,” Mr Mallya, a pilot with a multi-engined rating and close to 2,000 flying hours, flew the aircraft earlier last month. He refused to comment on the investment in the venture.
Epic has recently experienced an unprecedented surge in sales, booking orders more than $23 million at the Sun n Fun fly in April this year. It also sold aircraft worth $40 million three months later at AirVenture in Oshkosh, Wisconsin, said a company release.
(Source: Economic Times
For the past two years, business aircraft circles, particularly in the US, have been bullish about the new planes that are being manufactured through disruptive technologies with new engines, avionics and materials.
Speaking to ET, he said “Epic is an outstanding global business opportunity as they have four world beater aircraft. There is a growing demand for business jets in the region, that we hope to tap,” Mr Mallya, a pilot with a multi-engined rating and close to 2,000 flying hours, flew the aircraft earlier last month. He refused to comment on the investment in the venture.
Epic has recently experienced an unprecedented surge in sales, booking orders more than $23 million at the Sun n Fun fly in April this year. It also sold aircraft worth $40 million three months later at AirVenture in Oshkosh, Wisconsin, said a company release.
(Source: Economic Times
Tata Sons buys 14.7% in Praj for Rs 338 cr
Tata Sons, the unlisted holding company of the Tata group, has bought 14.7% in engineering company Praj Industries, in an open-market transaction totalling Rs 338 crore, which signals the Tatas’ intention to enter the distillery and waste water treatment industry.
The move by the Tatas also indicates a major change in the shareholding pattern of the Pune-based Praj, as the market transaction falls a notch below the takeover code.
According to BSE, Tata Sons bought 9.13 crore shares at Rs 252 per share, which is at a 6% premium to Wednesday’s closing price of Rs 238 per share. Praj’s shares were down 4.1% on BSE on Wednesday.
The move by Tata Sons assumes significance as the group’s current shareholding is now just below the Sebi-stipulated trigger for an open offer. According to capital market norms, if a company acquires 15% of the stock in another company, then the acquirer has to make an open offer to retail shareholders to buy at least 20% of the target company.
Despite repeated attempts, there was no official comment from either Tata Sons or Praj Industries. However, sources in the Tata group said the move is mainly to cash in on the growing demand for ethanol and brewery technology. The promoters, the Chaudhari family, hold 28.2% in the company where other prominent shareholders include large investors such as Vinod Khosla (8.8%) and Rakesh Jhunjhunwala (6%).
“Ethanol is here to stay,” said an analyst tracking the sector. “The business has better margins and the demand is likely to rise further as governments across the world are making it mandatory for companies to hike ethanol content in fuels,” he added. Ethanol in fuel reduces harmful emissions.
(Source: Economic Times)
The move by the Tatas also indicates a major change in the shareholding pattern of the Pune-based Praj, as the market transaction falls a notch below the takeover code.
According to BSE, Tata Sons bought 9.13 crore shares at Rs 252 per share, which is at a 6% premium to Wednesday’s closing price of Rs 238 per share. Praj’s shares were down 4.1% on BSE on Wednesday.
The move by Tata Sons assumes significance as the group’s current shareholding is now just below the Sebi-stipulated trigger for an open offer. According to capital market norms, if a company acquires 15% of the stock in another company, then the acquirer has to make an open offer to retail shareholders to buy at least 20% of the target company.
Despite repeated attempts, there was no official comment from either Tata Sons or Praj Industries. However, sources in the Tata group said the move is mainly to cash in on the growing demand for ethanol and brewery technology. The promoters, the Chaudhari family, hold 28.2% in the company where other prominent shareholders include large investors such as Vinod Khosla (8.8%) and Rakesh Jhunjhunwala (6%).
“Ethanol is here to stay,” said an analyst tracking the sector. “The business has better margins and the demand is likely to rise further as governments across the world are making it mandatory for companies to hike ethanol content in fuels,” he added. Ethanol in fuel reduces harmful emissions.
(Source: Economic Times)
Sistema takes 10% in Shyam
Russian telecom firm Sistema has finally got a foothold in India — the company has picked up 10% stake in Shyam Telelink, which offers CDMA-based mobile services in Rajasthan, for $11.4 million.
Sistema said that it intends to increase its stake in Shyam to 51% after receiving approval from the Foreign Investment Promotion Board (FIPB) of India. If it goes through, the overall value of the deal may reach $58.1 million.
Earlier, Sistema had tried to pick up a stake in Aircel Cellular, but the deal fell through. It was also in the race for Hutchison’s stake in Hutch-Essar.
In a related development, Shyam Telelink has also applied for mobile licences, also called Universal Access Service Licence, across the country.
Sistema, which was founded in 1993, is the largest private sector consumer services company in Russia. Sistema, along with its subsidiaries serve over 80 million consumers in Russia, the CIS and Eastern and Western Europe
(Source: Economic Times)
Sistema said that it intends to increase its stake in Shyam to 51% after receiving approval from the Foreign Investment Promotion Board (FIPB) of India. If it goes through, the overall value of the deal may reach $58.1 million.
Earlier, Sistema had tried to pick up a stake in Aircel Cellular, but the deal fell through. It was also in the race for Hutchison’s stake in Hutch-Essar.
In a related development, Shyam Telelink has also applied for mobile licences, also called Universal Access Service Licence, across the country.
Sistema, which was founded in 1993, is the largest private sector consumer services company in Russia. Sistema, along with its subsidiaries serve over 80 million consumers in Russia, the CIS and Eastern and Western Europe
(Source: Economic Times)
Wednesday, September 26, 2007
Canbank to sell 49% MF arm stake to Robeco
Canara Bank is transferring 49% in its mutual fund arm Canbank Investment Management Services (CIMS) to Netherlands-based Robeco, the asset management arm of Rabobank Group, today. The bank had signed an agreement in March with Robeco for selling the stake.
Canara Bank will retain 51% in its mutual fund arm after the stake sale. Subsequently, the bank will set up a joint venture, the bank informed BSE today.
(Source: Business Standard
Canara Bank will retain 51% in its mutual fund arm after the stake sale. Subsequently, the bank will set up a joint venture, the bank informed BSE today.
(Source: Business Standard
Fidelity buys 10 pct stake in BAG Films
Fund manager Fidelity International has picked up a 10 percent stake in BAG Films & Media Ltd through issue of fresh equity shares, the Economic Times reported on Tuesday.
The deal is valued at 500-600 million rupees, it said, quoting investment banking sources.
BAG Films Managing Director Anurradha Prasad, when contacted, declined to comment.
The company's board is meeting on Tuesday afternoon to consider preferential issue of shares and warrants.
(Source: Reuters)
The deal is valued at 500-600 million rupees, it said, quoting investment banking sources.
BAG Films Managing Director Anurradha Prasad, when contacted, declined to comment.
The company's board is meeting on Tuesday afternoon to consider preferential issue of shares and warrants.
(Source: Reuters)
Indiastar Fund picks up 18.5% stake in IOL Chem
The $2-billion Indiastar (Mauritius) fund, foreign private equity investor, has picked up an 18.5 per cent equity stake in Punjab-based IOL Chemicals and Pharmaceuticals Ltd (formerly known as Industrial Organics Ltd), a leading manufacturer of industrial chemicals and bulk drugs in the country.
IOL Chemicals and Pharmaceuticals Ltd, based out of Ludhiana-Punjab, manufacturers and exportersindustrial chemicals, organic chemicals and drugs like Glacial Acetic Acid, Ethyl Acetate, Acetic Anhydride, Ibuprofen.
The company has completed the expansion of its capacities of acetic acid to 50,000 TPA, Ethyl Acetate to 33,000 TPA, Acetic Anhydride to 12,000 TPA and Ibuprofen to 3,600 TPA. The company has also put up a 4Mw cogeneration power plant for captive consumption.
The company is also going in for expansion of Rs180 crores to be funded partly by aforesaid securities, debt from financial institutions and internal accruals.
The company would further expand Ibuprofen capacity to meet the growing export demand. Currently, it is exporting its finished products mainly in South Asian countries.
The major customers for the company include United Phosphorus Ltd, Rallis India Limited, Ranbaxy Laboratories Limited, Nector Life Science Limited etc .
IOLCP is also exporting products to countries such as Bangladesh, Dubai, Libya, Lebanon, Thailand, Syria & Singapore.
(Source: Business Standard)
IOL Chemicals and Pharmaceuticals Ltd, based out of Ludhiana-Punjab, manufacturers and exportersindustrial chemicals, organic chemicals and drugs like Glacial Acetic Acid, Ethyl Acetate, Acetic Anhydride, Ibuprofen.
The company has completed the expansion of its capacities of acetic acid to 50,000 TPA, Ethyl Acetate to 33,000 TPA, Acetic Anhydride to 12,000 TPA and Ibuprofen to 3,600 TPA. The company has also put up a 4Mw cogeneration power plant for captive consumption.
The company is also going in for expansion of Rs180 crores to be funded partly by aforesaid securities, debt from financial institutions and internal accruals.
The company would further expand Ibuprofen capacity to meet the growing export demand. Currently, it is exporting its finished products mainly in South Asian countries.
The major customers for the company include United Phosphorus Ltd, Rallis India Limited, Ranbaxy Laboratories Limited, Nector Life Science Limited etc .
IOLCP is also exporting products to countries such as Bangladesh, Dubai, Libya, Lebanon, Thailand, Syria & Singapore.
(Source: Business Standard)
Gremach acquires 75% stake in 11 coal mines in Mozambique
Gremach Infrastructure Equipments & Projects shares soar 5 per cent on news that the company has taken 75 per cent controlling stake in 11 coal mine licenses in Mozambique aggregating 13,520 hectares in Moatize.
“This region falls in Karoo basin which is recognized as prime hard coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the company,” Gremach said in a notice to BSE.
Gremach plans to begin prospecting the area in October, which will be completed by mid 2008. The licenses have been purchased from Mozambique’s Osho Mozambique Coal Mining Limitada.
"These 11 licences are very close to existing Companhia Vale do Rio Doce mines and few of them have common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world," Rishi Raj Agarwal, MD of the company said.
(Source: Economic times)
“This region falls in Karoo basin which is recognized as prime hard coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the company,” Gremach said in a notice to BSE.
Gremach plans to begin prospecting the area in October, which will be completed by mid 2008. The licenses have been purchased from Mozambique’s Osho Mozambique Coal Mining Limitada.
"These 11 licences are very close to existing Companhia Vale do Rio Doce mines and few of them have common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world," Rishi Raj Agarwal, MD of the company said.
(Source: Economic times)
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