Standard Chartered Private Equity (SCPE) is one fund that is looking to make best of the falling valuations. The fund has bought an undisclosed stake in construction company Man Infraconstruction. It has also upped its stake in Mahindra & Mahindra Financial Services,the vehicle finance arm of automotive major. This comes after SCPE picked up stakes in Indian public sector banks Karur Vysya Bank Ltd and Indian Overseas Bank in February from open markets.
The private equity fund has increased the stake in the firm to 9.54% from 7.45% earlier, Mahindra & Mahindra Financial Services said in a filing to the Bombay Stock Exchange. SCPE has bought this 2.09% stake for a total amount of Rs 37.5 crore, at an average share price of Rs 193. This is nearly half of the price at which the fund was allotted shares at Rs 370 per share last year. With open market stake buys, SCPE is bringing down its average price of share purchase.
SCPE had picked up a 4% stake through preferential allotment in early 2008, when TPG-Axon also picked up a 7.22% stake. Private equity major ChrysCapital also picked up a 4.16% stake in a pre-IPO deal in in 2006 in the company through its wholly owned subsidiary Copa Cabana. The stake was bought for Rs 190 per share and was to fall to 3.67% post-issue.
But Copa Cabana's shareholding stands at 4.87% as of December 2008, and Dali Ltd, another entity owned by ChrysCapital has a 3.55% stake in the firm. This takes the total stake held by ChrysCap in Mahindra & Mahindra Financial Services at 8.42%.
In another development, SCPE has invested an undisclosed amount in Man Infraconstruction Limited, reports PTI. The company has also earlier raised monies from Sabre-Abraaj Fund. Man Infra specialises in civil construction services in infrastructure (primarily ports), industrial structures, residential and commercial real estate. SCPE is also evaluating inorganic options for the company in order to expand its footprint.
Showing posts with label Construction. Show all posts
Showing posts with label Construction. Show all posts
Saturday, April 4, 2009
Thursday, March 12, 2009
PE funds for Lavasa likely by June
The Lavasa hill station project of Hindustan Construction Company (HCC) is set for a private equity injection. However, a source said a group of investors were taken for a site visit to Lavasa over a week ago and the placement is expected by June.
HCC officials refused to comment on the private equity infusion.However, they said a likely reason for private equity interest may be that work on the Lavasa project was running one year ahead of schedule at a time most other real estate companies were deferring their developments.
Somewhat ironically, they said easier availability of manpower and other resources, as the slowdown takes hold of the industry, which has helped HCC speed up work on the project.
In a recent interaction with this newspaper, Ajit Gulabchand, chairman and managing director of HCC said they were encouraged by sales during the last one year to advance the phase I completion target from 2022 to 2015. "By 2012, around 10,000 students and executives will be pursuing their studies at Lavasa. By the same time, there will be 1,000 hotel rooms across various categories. Phase 1B and Phase II will begin parallel to each other. What we hoped to complete by 2030 will be completed by 2022," he said.
Developed by Lavasa Corporation, an HCC group company, Lavasa is positioned as Independent India's first and largest hill city, which can be reached in 3 hours by road from Mumbai and in 1 hour from Pune. Spread over 12,500 acres, the hill city is expected to house a number of global leaders in hospitality, tourism, education, healthcare, business research and industry
HCC officials refused to comment on the private equity infusion.However, they said a likely reason for private equity interest may be that work on the Lavasa project was running one year ahead of schedule at a time most other real estate companies were deferring their developments.
Somewhat ironically, they said easier availability of manpower and other resources, as the slowdown takes hold of the industry, which has helped HCC speed up work on the project.
In a recent interaction with this newspaper, Ajit Gulabchand, chairman and managing director of HCC said they were encouraged by sales during the last one year to advance the phase I completion target from 2022 to 2015. "By 2012, around 10,000 students and executives will be pursuing their studies at Lavasa. By the same time, there will be 1,000 hotel rooms across various categories. Phase 1B and Phase II will begin parallel to each other. What we hoped to complete by 2030 will be completed by 2022," he said.
Developed by Lavasa Corporation, an HCC group company, Lavasa is positioned as Independent India's first and largest hill city, which can be reached in 3 hours by road from Mumbai and in 1 hour from Pune. Spread over 12,500 acres, the hill city is expected to house a number of global leaders in hospitality, tourism, education, healthcare, business research and industry
Thursday, September 20, 2007
L&T plans to pick up stake in Feedback
Larsen & Toubro (L&T), the country’s largest infrastructure company, is close to acquiring a stake in Feedback Ventures, a leading integrated infrastructure services firm. L&T’s investment vehicle for the acquisition will be the newly formed L&T Infrastructure Finance.
Sources in the know of the development said L&T Infrastructure’s investment in Feedback would be strategic in nature and bring both the companies closer in the future.
When contacted, sources in Feedback Ventures confirmed that they had held talks with L&T, adding that many private equity players had also shown interest in picking up a stake in the New Delhi-based company.
Sources in L&T said they would not comment on market speculation.
“The company will inform the stakeholder if there is any development worthy of mention on this front,” they added.
Mission Holdings, a group of people who founded the New Delhi-based Feedback Ventures, holds 36 per cent stake. Other shareholders of the closely held company include DLF, HDFC, IDFC and the Thapar group outfit, NewQuest Corporation.
No further details of the proposed deal could be ascertained. Sources in the know said the proposed purchase of stake would not cost L&T much. By the latest stake sale last year, Feedback Ventures was valued at Rs 84 crore, when DLF acquired 19 per cent stake for Rs 16 crore.
The infrastructure company’s valuation has appreciated over the past one year.
L&T is expected to have its nominees on the board of Feedback Ventures, if it acquires more than 10 per cent stake.
DLF, it may be mentioned, sent two nominees to the Feedback board, following its acquisition of 19 per cent stake last year.
L&T Infrastructure Finance, which was recently launched by L&T, is expected to hit the market in three to four years with a public issue.
(Source: Business Standard)
Sources in the know of the development said L&T Infrastructure’s investment in Feedback would be strategic in nature and bring both the companies closer in the future.
When contacted, sources in Feedback Ventures confirmed that they had held talks with L&T, adding that many private equity players had also shown interest in picking up a stake in the New Delhi-based company.
Sources in L&T said they would not comment on market speculation.
“The company will inform the stakeholder if there is any development worthy of mention on this front,” they added.
Mission Holdings, a group of people who founded the New Delhi-based Feedback Ventures, holds 36 per cent stake. Other shareholders of the closely held company include DLF, HDFC, IDFC and the Thapar group outfit, NewQuest Corporation.
No further details of the proposed deal could be ascertained. Sources in the know said the proposed purchase of stake would not cost L&T much. By the latest stake sale last year, Feedback Ventures was valued at Rs 84 crore, when DLF acquired 19 per cent stake for Rs 16 crore.
The infrastructure company’s valuation has appreciated over the past one year.
L&T is expected to have its nominees on the board of Feedback Ventures, if it acquires more than 10 per cent stake.
DLF, it may be mentioned, sent two nominees to the Feedback board, following its acquisition of 19 per cent stake last year.
L&T Infrastructure Finance, which was recently launched by L&T, is expected to hit the market in three to four years with a public issue.
(Source: Business Standard)
Thursday, August 30, 2007
Blackstone to invest $150 mn in NCC
Yesterday's news.
Blackstone Group, the global private equity firm, will buy a 14.5 per cent stake in Hyderabad-based Nagarjuna Construction Company Limited (NCCL) for $150 million (about Rs 615 crore), one of the largest-ever foreign investments in the construction sector in India.
Blackstone will buy equity in two tranches, through an allotment of 20.24 million equity shares of Rs 2 each at a premium of Rs 200.50 (equivalent to about $100 million) and 9.1 million warrants (with an exercise period of 18 months) of Rs 225 a warrant, with each warrant convertible into a equity share of Rs 2 each at a premium of Rs 223 (equivalent to about $50 million).
Nagarjuna Construction intends to use the funds for additional investments in public-private infrastructure projects and to expand its capital base, which would help it bid for larger projects and strengthen its position in the market.
This is one of the largest investments by Blackstone in the construction sector.
This is the fourth deal by Blackstone in India this year. The company acquired majority control in Gokaldas Exports for about Rs 660 crore, the largest management buyout in the textiles industry.
It has invested $275 million in Ushodaya Enterprises, which runs the Eenadu newspaper and ETV franchise, and also had another management buyout of BPO firm Intelenet from Barclays and HDFC for Rs 840 crore.
(Source: Business Standard)
Blackstone Group, the global private equity firm, will buy a 14.5 per cent stake in Hyderabad-based Nagarjuna Construction Company Limited (NCCL) for $150 million (about Rs 615 crore), one of the largest-ever foreign investments in the construction sector in India.
Blackstone will buy equity in two tranches, through an allotment of 20.24 million equity shares of Rs 2 each at a premium of Rs 200.50 (equivalent to about $100 million) and 9.1 million warrants (with an exercise period of 18 months) of Rs 225 a warrant, with each warrant convertible into a equity share of Rs 2 each at a premium of Rs 223 (equivalent to about $50 million).
Nagarjuna Construction intends to use the funds for additional investments in public-private infrastructure projects and to expand its capital base, which would help it bid for larger projects and strengthen its position in the market.
This is one of the largest investments by Blackstone in the construction sector.
This is the fourth deal by Blackstone in India this year. The company acquired majority control in Gokaldas Exports for about Rs 660 crore, the largest management buyout in the textiles industry.
It has invested $275 million in Ushodaya Enterprises, which runs the Eenadu newspaper and ETV franchise, and also had another management buyout of BPO firm Intelenet from Barclays and HDFC for Rs 840 crore.
(Source: Business Standard)
Thursday, June 21, 2007
BEML close to Brazilian firm acquisition
The state-owned construction equipment company Bharat Earth Movers (BEML) is looking for 100 per cent buyout of Companhia Comercio E Construcoes (CCC) based in Brazil for a total consideration in excess of Rs 100 crore.
The company is expecting the take-over process to be complete by next year. The Indian giant, which is the second largest mining and construction (M&C) equipment supplier in Asia, currently has a joint venture agreement with CCC for manufacture and supply of rail wagons and bogies, mining and construction equipment and spares for the Brazilian market.
Source: Business Standard
The company is expecting the take-over process to be complete by next year. The Indian giant, which is the second largest mining and construction (M&C) equipment supplier in Asia, currently has a joint venture agreement with CCC for manufacture and supply of rail wagons and bogies, mining and construction equipment and spares for the Brazilian market.
Source: Business Standard
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