Tata Capital to roll out first PE fund by 2009-end

Tata Capital plans to roll-out the first of its series of private equity funds by the end of this year and will approach the market regulator Sebi to obtain regulatory approval very soon, a top company official said. "We plan to launch our first private equity fund, a 'classic' PE fund, before this year-end, specifically targeting the mid-market segment. We will be seeking regulatory approval from market regulator, Sebi, in the near future," Tata Capital Head Private Equity Shailendra Bhandari told PTI here. This will be followed by the Innovation Fund, most likely by end-2010, and later by a sector-specific fund, Bhandari said. Tata Capital, which proposes to be the anchor investor in all its domestic funds, has tied-up with Japan's Mizuho Securities to partner it in the mid-market fund which will be the first to be launched. This fund will target mid-market companies which are typically unlisted and the deal size would be in the range of $25-30-million. "It will be sector-agnostic and will invest in all sectors except real estate. We plan to do 4-5 deals a year, stay invested in companies for five years and exit in the sixth," he said.

Tatas to pick up stake in Development Credit Bank

Tata Capital Ltd and Tata Investments would jointly pick up a 4.5 per cent stake in Development Credit Bank (DCB) for around Rs 85 crore, a bank official said. The bank would make a preferential allotment of shares to five specific group of inv estors, including the Tatas, for Rs 300 crore, DCB Managing Director and CEO Gautam Vir told reporters here on Monday. Other investors, who would be allotted shares are Al Bateen of Abu Dhabi (4.5 per cent), Lehman Brothers arm, Marc Faber and SVG.

Following the issue, the bank's capital adequacy ratio (CAR) would increase from 10.5 per cent to 17.7 per cent.

(Source: Business Line)