The Big Deal

IT & ITES > BPO (Analytics)
Crisil to acquire UK analytics firm Coalition for Rs. 250-Cr

Mumbai-based listed ratings company Credit Rating and Information Services of India Ltd. (Crisil) is to acquire a 100% stake in London-based analytics firm Coalition Development Ltd. and its subsidiaries. The all-cash transaction has a maximum payout of GBP 29 million (around Rs. 250 crore) with performance-based earnouts over 2 years. The acquisition will add to the earnings per share of Crisil from the first year. Mape Advisory was the advisor to the transaction. 

Coalition Development, which provides high-end analytics mainly to global investment banks, will be part of Crisil’s global research and analytics business 

For more information:  

http://www.bseindia.com/xml-data/corpfiling/AttachHis/CRISIL_Ltd_010612.pdf 

http://www.coalition.com

Spotlight

Port of Antwerp acquires 4% stake in Essar Ports for Rs.175-Cr

Peninsula Land sells Mumbai office space for Rs. 170 crore

Jindal Steel to invest $24-M in Gujarat NRE's Aussie arm

Bagaria Group buys Kolkata land parcel for Rs. 115 Cr

IFC to invest $20-M in Ramkrishna Forgings

Calcutta Metro buys out Bata from township JV for Rs. 100-Cr

 

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Done Deals

PE / VC Fund Investments

Manufacturing > Auto Components
IFC to invest $20-M in Ramkrishna Forgings

IFC is planning to invest $20 million in Kolkata-based listed auto components firm Ramkrishna Forgings Ltd. for expansion activities. The greenfield expansion program will include a new front axle beam manufacturing line with machinery imported from Germany. It will be installed near the company’s existing plant in Jamshedpur. The total project cost is estimated at $97 million.

Founded in 1981, Ramkrishna Forgings manufactures forged and machined transmission and axle components for medium and heavy commercial vehicles.

From the Venture Intelligence PE Deal database:  In Jun-05, UTI Ventures had invested $5-M in Ramkrishna Forgings in return for a 14% stake.

For more information:

http://goo.gl/FvQZS

http://www.ramkrishnaforgings.com

BFSI > Banking
Carlyle acquires South Indian Bank shares worth Rs. 60-Cr

Carlyle, through its First Carlyle Ventures Mauritius unit, has bought 22,622,348 shares on BSE of Thrissur-based, publicly listed South Indian Bank worth Rs. 59.95 crore at Rs. 26.50 per share on May 29, 2012. This constitutes 2% of the total outstanding shares of South Indian Bank. 

From the Venture Intelligence PE Deal database: In Aug 2007, a clutch of investors including IFC, UTI Ventures, Fidelity India and others invested $80-M in South Indian Bank. 

For more information:  

http://www.bseindia.com/mktlive/market_summ/bulk_deals.asp 

http://www.southindianbank.com

IT & ITES > Online Services (Shopping – Apparel)
Tiger Global, SAIF invest $10-M in online fashion brand Zovi’s 2nd round

Bangalore-based e-commerce startup Zovi has raised $10 million as part of its Series B round of funding from Tiger Global and SAIF Partners, reports Startupcentral. The round followed a $5.5 million Series A round raised from SAIF and a group of angel investors, including Makemytrip founder Deep Kalra. 

Zovi was also incubated by SAIF at its Bangalore offices for about six months. This involved putting together the founder team, which includes former Cleartrip executive Satish Mani, and former Benetton executives Kavindra Mishra and Sartaj Mehta, and shaping the business model.

The company is modeled on another SAIF portfolio company called Vancl in China and retails apparel and accessories for men and women under its own brand name. It currently claims 1 lakh active customers. Earlier this month it launched a feature called Zovi Live, which integrates Google mapping technology to give visitors a real-time view into the activity on its website, in terms of what products are being viewed or bought across multiple cities.

For more information:

http://startupcentral.in/2012/05/30/zovi-raises-10-million-series-b-round-from-tiger-global-saif/

http://www.zovi.com

IT & ITES > Online Services (Shopping – Apparel)
Helion, Lightspeed invest $8-M in Fashionara

Former Reliance Trends CEO Arun Sirdeshmukh has raised $8 million (Rs. 45 crore) in funding for his new venture, Fashionara.com, an online apparel retailer, from Helion Venture Partners and US-based Lightspeed Venture Partners. The funding included venture capital as well as debt. 

Bangalore-based Fashionara will compete in a crowded Indian market where online retailers like Fashionandyou, Myntra, Jabong, Zovi and a handful of others already operate. Sirdeshmukh is a former Madura Garments veteran and an IIM-Calcutta graduate. Fashionara’s co-founder is Darpan Munjal, President of LeapMatrix, a consulting firm focusing on e-commerce startups.

For more information:

http://m.economictimes.com/PDAET/articleshow/13680486.cms

http://goo.gl/x1fUp

IT & ITES > Online Services (Product Reviews)
VenturEast, Blume Ventures invest in Reviews42

New Delhi-based Solvy Tech Solutions Pvt. Ltd., which runs community based product reviews platform Reviews42, has raised funding from Blume Ventures and VenturEast. The company’s founders include Surjendu Kuila, Neeraj Jain and Mani Jagadeesan, who had co-founded brand engagement platform Brandandme.com last year. 

Reviews42 aggregates user reviews based on ratings/rankings taken from users. It claims to cover 6,032 products across various categories, with a total of 2,934 reviews contributed by 1,369 reviewers. 

For more information:  

http://www.reviews42.com/investors/ 

http://www.medianama.com/2012/06/223-reviews42-raises-funding-from-blume-ventures-ventureeast/

IT & ITES > Gaming
Mumbai Angels, Blume Ventures invest in Rolocule Games

Pune-based gaming startup Rolocule Games Pvt. Ltd. has raised an undisclosed angel investment from Mumbai Angels and Blume Ventures. As a part of the deal, Ajeet Khurana - an entrepreneur and Mumbai Angels investor - will join the board of Rolocule Games.

From the Venture Intelligence PE Deal database: Rolocule Games has earlier received seed funding from IIM-Ahmedabad’s CIIE (Centre of Innovation Incubation and Entrepreneurship).

For more information:

http://goo.gl/nDmwr

http://www.rolocule.com/

Engg. & Construction > EPC
Bessemer's Vishal Gupta to replace Rob Chandra on Shriram EPC board

Vishal Vijay Gupta is to replace RS (“Rob”) Chandra, as the representative of Bessemer Venture Partners, on the board of Chennai-based listed Shriram EPC, reports Business Standard. Bessemer held a 23.64% stake in Shriram EPC as of December 2011.

http://goo.gl/w6OWt

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Angel Investments  

IT & ITES > Mobile VAS (Education -  Career Counselling)
Voicetap raises $1-M from CCube Angels

Singapore-based angel investment group CCube Angels, sponsored by PE firm Frontline Strategy, has invested $1 million in Noida-based Voicetap, a technology startup focused on mobile education, reports Economic Times. The company, founded by Mrigank Tripathi, is also in talks with VC funds in the US, Singapore and India to raise $6 million over the next few months.   

The three-year-old startup has bagged Airtel and Tata Docomo as customers. Its technology allows students to assess themselves and also access actual educational content and counseling services over the mobile. Tripathi, a former telecom consultant, spotted the opportunity for mobile based education services when he found that his niece, a high-scorer in her class 12 exams, was unable to find the right information on career choices. 

For more information:  

http://economictimes.indiatimes.com/articleshow/13618823.cms 

http://www.voicetap.in 

Incubation

IT & ITES > Mobile VAS (Location-based Services)
Bharti-SoftBank JV acquires 49% of Mobile VAS startup Y2CF for Rs. 40-Cr

Bharti SoftBank Holdings (BSB), a JV of the Bharti Group and Softbank Corp, has picked up a 49% stake in Gurgaon-based mobile VAS firm Y2CF for Rs. 40 crore, reports Economic Times. BSB has the option to acquire the balance stake at a future date. Y2CF, which stands for Young, Cool, Creative and Fun loving, was founded by CEO Mohammad Imthiaz and Director Kabeer Biswas. Both had earlier worked with Bharti Airtel. BSB, an incubator set up last year to invest in social media and gaming, is partly managed by promoter Sunil Mittal's son Kavin.

Y2CF has developed a location-based platform called Hoppr that has been simultaneously launched by six mobile operators. The company has tied up with brands such as Cafe Coffee Day, Barista, DT Cinemas, Baskin-Robbins, Lakme and Ferns 'n' Petals for its location-based service, which will initially aim to cover 3,000 retail outlets across four cities - Delhi, Mumbai, Kolkata and Bangalore. Y2CF had also hired a bunch of top executives recently, including Gaurav Sharma from analytics major Mu Sigma, to be its head for Analytics & Operational Excellence; Rohit Awasti from Snapdeal to oversee its Online and Communities vertical, and Sanat Thite to head its web strategy.

For more information:

http://economictimes.indiatimes.com/articleshow/13679963.cms

http://www.y2cf.com/

Other Private Equity/Strategic Investments

Shipping & Logistics > Port
Port of Antwerp acquires 4% stake in Essar Ports for Rs. 175-Cr

Port of Antwerp International (PAI) has invested Rs. 175 crore in Mumbai-based, publicly listed Essar Ports Ltd., a private sector port company, as part of a strategic alliance. The Belgium-based port has acquired Global Depository Shares constituting a 4% stake in the diluted equity share capital of Essar Ports, at Rs. 100 apiece. Jan Adam, CFO of PAI, joins the Essar Ports board as non-executive director.

The partnership is aimed at technical assistance for port planning, process improvement and quality and productivity improvement. Essar Ports has two operational ports at Hazira and Vadinar in Gujarat.

http://www.essar.com/article.aspx?cont_id=qgycq66MFKM

Media & Entertainment > Teleshopping
Japan's Tri-Stage acquires 26.4% in Hotbrands for Rs. 40-Cr

Japan's direct marketing company Tri-Stage has acquired a 26.4% stake in Mumbai-based teleshopping company Hotbrands India Pvt. Ltd. for Rs. 40 crore (approximately 680 million yen) by means of a new share issuance.  Tri-stage is also negotiating to acquire an option allowing an investment increase to 49% for Rs. 63 crore (approximately 1,070 million yen) within the next three years. 

At present, Hitesh Israni, the MD and largest shareholder of Telebrands (India) Pvt. Ltd., holds an 80% stake in Hotbrands, while Manisha Israni holds 20%.

For more information:

http://www.tri-stage.jp/data/fileup_s/9999-108054299.pdf

https://www.telebrandsindia.com

Manufacturing > Furniture
Timbor Home raises Rs. 6-Cr from Sidbi

Ahmedabad-based listed furniture and modular kitchens firm Timbor Home has raised Rs. 6 crore from Sidbi. The funds will be used to set up high-end IKI kitchen stores across India this year.

For more information:

http://goo.gl/VKWea

http://www.timborhome.com

Venturing Abroad

Energy > Coal
Jindal Steel to invest $24-M in Gujarat NRE's Aussie arm

New Delhi-based steel producer Jindal Steel & Power Ltd. (JSPL) is to acquire a 10% stake in Gujarat NRE Coking Coal, the Australian subsidiary of Kolkata-based listed Gujarat NRE Coke Ltd., for A$25 million ($24 million). JSPL has also agreed to buy 5 million tons of coal over 10 years from the latter’s Australian mines. Gujarat NRE is selling the shares at A$0.25, a 48% premium to its last trade. 

From the Venture Intelligence M&A Deal database: In May-06, Gujarat NRE Coke had acquired a 85% stake in Australia listed mining firm Zelos. 

For more information:  

http://bit.ly/JoHJl1 

http://economictimes.indiatimes.com/articleshow/13602058.cms

Manufacturing > Paper
JK Paper to pick up stake in Myanmar Pulp Mill

Surat-based listed JK Paper Ltd., a flagship of the JK Singhania Group, is to acquire an equity stake in Myanmar Pulp Mill, Myanmar's largest state-owned pulp mill, as part of a global public-private-participation deal. The move will give JK Paper access to one of the world's largest prime-grade, pulp-bearing forest acreages. 

JK Paper will initially operate the Thar Paung Paper and Pulp Mill, which runs a 200 tpd pulp mill and 50 tpd paper mill, and subsequently expand capacity and export pulp for JK Paper's Indian operations. The mill makes about 70,000 tons of pulp and about 15,000 tons of paper annually. 

For more information:  

http://goo.gl/7wJgf 

http://economictimes.indiatimes.com/articleshow/13791406.cms

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Mergers & Acquisitions

Mergers & Acquisitions (Outbound) 

Manufacturing > Auto Components
Undone: Ruia unable to take control of 3 European firms

Pawan Kumar Ruia has been unable to take control of three more European auto parts companies - Draftex Automotive GmbH, Ruia Global Fasteners AG of Germany and Sealynx Automotive of France - after he failed to inject funds to turn them around, reports Mint. With these three firms filing for insolvency in local courts recently, the Ruia Group has had to give up plans to control six of nine overseas companies that it either acquired or proposed to acquire. 

Ruia Global Fasteners (formerly Acument), which was acquired by Ruia in February 2011, has filed for bankruptcy and the provisional liquidator Frank Kebekus has launched a search for new owners. Draftex Automotive, another German firm Ruia acquired in 2009, has been handed over to an insolvency administrator. Sealynx - acquired by Ruia in May 2011 - had been placed under court receivership after the firm became bankrupt in April. 

Ruia gave up on plans for three other foreign companies - Standard Profil AS of Turkey, Meteor Gummiwerke KH Badje of Germany and a unit of Groupe Preciturn of France - in the recent past. 

From the Venture Intelligence M&A Deal database: Ruia had acquired Acument for $200-M in Feb-11. 

http://www.livemint.com/2012/05/31221222/Ruia-unable-to-take-control-of.html 

Mergers & Acquisitions (Domestic)

Healthcare & Life Sciences > Clinics (Eye Care)
Centre For Sight acquires New Vision Laser Center for $10-M

PE-backed Centre For Sight Pvt. Ltd., a chain of specialty eye hospitals, has acquired a majority stake in Vadodara-based New Vision Laser Centres Ltd. for $10 million, reports Economic Times. The Delhi-based company will acquire 11 centers of New Vision Laser Centre spread across Gujarat, Andhra Pradesh and Mumbai, taking its total number of facilities to 35. The company is also planning to buy the residual stake in New Vision Laser in the next few years. 

Centre For Sight is planning to build a 60,000 sq ft large private eye care institute that will provide all ophthalmic super specialties in New Delhi. It has also launched high-end and niche services in boutique eye-care centers. 

From the Venture Intelligence PE Deal database: Matrix Partners has invested $11.35 million a for 21% stake in Centre For Sight. 

For more information:  

http://economictimes.indiatimes.com//articleshow/13608642.cms 

http://www.centreforsight.net

Sports & Fitness > Sports (Football)
Shah Rukh Khan to acquire 50% of Dempo FC for Rs. 30-Cr

Bollywood actor Shah Rukh Khan is to acquire a 50% shareholding in one of India's oldest and most successful football clubs, Dempo FC, for around Rs. 30 crore, reports Economic Times. Negotiations are at an advanced stage and the deal should close in a week or two. Khan, whose cricket team won this year's Indian Premier League, confirmed he is buying the club. 

An ace Indian cricketer, known to be a keen footballer himself, and a few corporate houses had presented bids for Dempo. But Khan has emerged as the leading suitor. The football club, fully owned by Dempo Mining, made history in April this year when it won the I-League crown for a record fifth time. It recently bought a 34% stake in leading Danish soccer club and academy FC Midtjylland, for 12 million euros. 

The promoter of Dempo FC is Shrinivas V Dempo, whose grandfather adopted the club four decades ago. 

For more information:  

http://economictimes.indiatimes.com//articleshow/13694696.cms 

http://demposportsclub.com

Education > Preschool
Tree House to acquire 6 centers from MT Educare

Mumbai-based listed Tree House Education and Accessories Ltd. is to acquire six preschool centers from Mumbai-based listed MT Educare Ltd. for an undisclosed amount. The centers are located at Mumbai and Pune. 

From the Venture Intelligence PE Deal database: While MT Educare is backed by Helix Investments, Tree House is backed by Matrix Partners and Foundation Capital.

For more information:

http://goo.gl/N8eHU

http://www.mteducare.com/

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Other Deals

Manufacturing > Chemicals
Prog Dye Chem increases stake in ACI Infocom

Prog Dye Chem Pvt. Ltd. has acquired an additional 6,14,441 shares (5.56% stake) in publicly listed ACI Infocom Ltd. for Rs. 1.68 crore. This includes the purchase of 6,05,141 shares at Rs. 27 apiece via a share purchase agreement and 9,300 shares at Rs. 52 apiece via an open offer. Post deal, Prog Dye holds an 18.47% stake in ACI.

http://bit.ly/Jw7GUw

Energy > Oil
Jubilant wins oil exploration block in Myanmar

London-listed oil explorer Jubilant Energy has won an on land exploration block in Myanmar, reports PTI. The production sharing contract for the block was signed between Jubilant, Parami Energy Development Co. and Myanmar's state-owned Myanma Oil & Gas Enterprise. Jubilant holds a 77.5% participating interest in this block through its subsidiary Jubilant Oil & Gas Pvt. Ltd., and will be the operator of the block. 

Jubilant Energy is part of the New Delhi-based Jubilant Bhartia Group that controls drug maker Jubilant Life Sciences, agrochemicals maker Jubilant Industries and restaurant chain Jubilant FoodWorks.

http://www.thehindubusinessline.com/companies/article3465745.ece

Debt Financing

IT & ITES > Mobile VAS
SVB provides venture loan to Onward Mobility

SVB India Finance, the Indian subsidiary of US-based Silicon Valley Bank, has provided a venture term loan mobile VAS firm Onward Mobility. Founded in 2008, Onward Mobility is involved in the development and distribution of its own innovative mobile applications catering to the Indian market. 

From the Venture Intelligence PE Deal database: In Aug-11, Onward Mobility had raised Rs.18-Cr from IndoUS Ventures and Qualcomm Ventures. 

http://www.onwardmobility.com

Our Sponsor Ascent Capital, a leading Indian Private Equity firm focused on growth capital, manages about $600 million across three funds. The funds are backed by marquee investors from India and overseas. Contact Information Ascent Capital, Concorde Block, 16th Floor, UB City, #24 Vittal Mallya Road Bangalore 560 001 Tel: + 91 80 3055 1200 info@ascentcapital.in www.ascentcapital.in

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Deals in the Making

Private Equity / Strategic Investments 

Engg. & Construction > Infrastructure (Roads)
Ramky to raise Rs. 700-Cr for BOT projects

Hyderabad-based Ramky Infrastructure is planning to raise Rs. 700 crore in the form of equity to complete its build-operate-transfer (BOT) road projects, reports DNA India. The company has about Rs. 5,000 crore worth of road projects and the equity infusion required for them is estimated to be Rs. 1,100 crore. While about Rs. 300 crore has already gone into these projects either through equity or working capital requirements, the balance would be required in the next 30-36 months. 

Ramky bagged two road projects by the National Highways Authority of India (NHAI) in the last fiscal. One of the projects is in Uttar Pradesh is estimated to cost about Rs. 1,207 crore and would be completed in about 30 months.The other BOT project is in Karnataka with an estimated cost of about Rs. 1,033.65 crore. Both the projects have been taken up with equity and debt component in a ratio of 25:75. 

For more information:  

http://www.dnaindia.com/money/report_ramky-to-raise-rs700-cr-for-bot-projects_1696010 

http://www.ramkyinfrastructure.com

Manufacturing > Mattresses
Kurlon in talks to raise Rs. 200-Cr in PE funding

Global PE majors and large buyout funds are in advanced discussions with the promoters of Bangalore-based mattresses maker Kurlon Ltd. to acquire a 5-15% stake for Rs. 200 crore, reports Business Standard. Potential investors include Franklin Templeton’s Darby PE and Apax PE. 

Kurlon is a Rs. 750 crore group company of the Manipal Group and has an around 20% market share in the Rs. 4,000 crore branded mattresses business in India. Maha Rashtra Apex, an NBFC which ceased to operate during 1999, holds an around 35% stake while the rest is held by the promoters.

http://www.business-standard.com/475722/ 

BFSI > NBFC
AFL in talks with Temasek, Everstone to raise Rs. 100-Cr

Chennai-based, Hinduja Group NBFC Ashok Leyland Finance Ltd. (AFL) is in talks to sell a small stake to PE funds such as Temasek, Everstone Capital and AIS Capital, reports Economic Times. AFL wants to sell 10% to raise about Rs. 100 crore for business expansion. Chennai-based Spark Capital is advising the company. 

AFL began operations in March 2010 with equity of Rs. 225 crore. The company is present in 275 cities and towns and lends to commercial vehicles, cars, and construction equipment, tractors and used vehicles.

http://economictimes.indiatimes.com/articleshow/13618973.cms 

Manufacturing > Leather Furniture
Stanley Lifestyles in talks to raise $20-M from L Capital

Bangalore-based premium leather furniture and car seats maker Stanley Lifestyles is in talks with L Capital, the PE arm of the LVMH Group, to raise $20 million, reports Business Line. The money, to be raised in 2013, will be utilized in two stages. The first tranche of $10 million will be used for forward integration such as establishing new showrooms. The second tranche will go to fund backward integration. 

The company, which currently imports all its leather, also plans to set up a tannery in Tamil Nadu. It also plans to set up four more show rooms at Ahmedabad, Ludhiana, Mumbai and Chandigarh during this fiscal. It has tied up with a distributor in Dubai for sales in West Asia. By the middle of next year, it is setting up a scaled down plant near Delhi to make furniture.

http://www.thehindubusinessline.com/companies/article3486985.ece 

IT & ITES > Mobile VAS
Pipal Tech, Unvired to raise VC funding

Bangalore- and Boston-based technology company Pipal Tech Ventures is looking to raise about $2 million (Rs. 11 crore) in VC funding, reports Times of India. The company is developing mobile, social and location based products targeted towards online and offline commerce and media industry. It has launched a mobile application, delightcircle, that allows consumers to see all the stores in a 1 km radius and aggregates all retail offers, coupons and loyalty cards information. The app also allows in-store identification ability, for which a patent has been filed in the US, and location-based marketing. Next on the agenda is developing the capability of comparing prices and making payments. 

Bangalore- and Texas-based cloud-based enterprise mobility platform company Unvired is planning to raise $3-5 million (Rs. 16-27 crore). The funds will be utilized to expand the company’s sales and marketing network in North America, and to develop products. Formerly branded as Indience InfoSystems, Unvired’s product allows corporate executives to access their human resource management enterprise resource planning, business workflows and business dashboards from remote locations. 

For more information:

http://bit.ly/KWAvYe 

http://www.pipaltechventures.com 

http://unvired.com 

IT & ITES > Online Services (Ticketing)
Bookmyshow.com scouting for PE/VC funding

Bigtree Entertainment Pvt. Ltd., which runs online ticketing service Bookmyshow.com, has mandated Mumbai-based investment bank Avendus Capital to raise funds from VC and PE investors, reports Mint. 

In 2007, Raghav Bahl-promoted Network18 had bought a strategic majority stake in Bigtree Entertainment. The company was founded in 1999 and its ticketing service, Bookmyshow.com, was launched in 2007. The company has a team of over 300 and has a 90% market share in the online entertainment ticketing space. 

From the DD Archive: Bigtree was started in 1999 by Ashish Hemrajani with a funding of Rs. 2.5 crore from PE firm Chase Capital Partners. In 2001, Chase Capital sold its stake in Bigtree to News Corp. In March 2007, Network 18 invested in it as the company expanded its presence to 62 cities. 

For more information:  

http://www.livemint.com/2012/05/31225150/Bookmyshowcom-seeks-to-raise.html 

http://in.bookmyshow.com

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IPOs  

Diversified
Monarch Health Services, Max Alert Systems to list on BSE's SME platform

Monarch Health Services, involved in the cosmetics industry, and Max Alert Systems, a maker of fire fighting and building management systems, are set to be listed on the BSE’s SME platform, reports Economic Times. 

Monarch Health Services proposes to raise Rs. 7.2 crore through an issue of 18 lakh shares of Rs. 10 face value at Rs. 40 apiece to set up 23 clinics and meet working capital expenses. Max Alert Systems plans to raise Rs. 8 crore by issuing 40 lakh shares at Rs. 20 apiece, or twice the face value, in early June to build a crusher plant.

http://economictimes.indiatimes.com/articleshow/13617154.cms 

Healthcare & Life Sciences
Fortis Healthcare to list non-core business on Singapore Exchange

Fortis Healthcare Ltd. has hived off its non-core business and related assets into a separate company that will be listed as a business trust on the Singapore Exchange (SGX) to raise around Rs. 2,000 crore, reports Economic Times. 

Out-patient departments (OPDs), existing and upcoming hospital buildings and radiology division, among others, have been spun off into Religare Health Trust. Fortis will own one-third of the trust with overseas investors holding the rest. The Singapore Exchange has approved the listing proposal for Religare Health Trust. After the de-merger, Fortis Healthcare will be left with in-patients departments, intensive care units, operation theatres, and emergency services, which company executives say constitute the core business of the company. 

The hived off business has been valued at around Rs. 3,000 crore and the trust will raise about Rs. 2,000 crore by selling two-thirds of its units to investors. 

http://economictimes.indiatimes.com/articleshow/13615900.cms 

Manufacturing > Auto Components (Forgings)
Bharat Forge to sell loss-making US unit

Bharat Forge is to liquidate the assets and business of Federal Forge, Inc. in the US, which it had acquired in 2005 through its wholly owned subsidiary, for $9.1 million, reports Business Standard. This decision comes after continuous losses recorded from the acquired assets. Bharat Forge is talking to a couple of interested parties. 

The company has invested a total of Rs 98.7 crore (including the acquisition cost) into Bharat Forge America, the US subsidiary, since the buyout. With a sellout, Bharat Forge will cease to have a manufacturing unit in America.

http://www.business-standard.com/475651/ 

Manufacturing > Steel
Essar may list North American steel units

The $17-billion Essar Group has started exploratory talks with banks on the possibility of listing the combined operations of its North American steel business, comprising Algoma and Minnesota steel units, in Canada, reports Economic Times. 

The Ruias had acquired both Algoma Steel (Essar Algoma Steel) and Minnesota Industries (Essar Steel Minnesota LLC) five years ago to build large low-cost bases of steel products in North America. Minnesota unit is a greenfield project nearing completion later this fiscal, with production capacity of 7 million tons pelletization plant. The group may raise around $600 million by stake sale in each of these firms.

http://economictimes.indiatimes.com/articleshow/13654748.cms 

Secondary Offerings 

Healthcare & Life Sciences > Oncology
Fresenius Kabi Oncology to sell 15% in Indian arm

Fresenius Kabi Oncology (Singapore), the promoter of Gurgaon-based listed Fresenius Kabi Oncology Ltd., is to sell a 15% stake (23.73 million shares) in the Indian subsidiary via an offer for sale (OFS) in one or more tranches. The promoters currently hold a 90% stake. SEBI has mandated all listed companies to increase their public shareholding to a minimum 25% by June 2013. 

Fresenius Kabi also proposes to make an application to the FIPB for seeking the approval for the proposed OFS. The implementation of one or more OFS by FKSL will be subject to the receipt of approval from the FIPB and the market conditions. Amarchand Mangaldas is acting as the Indian legal advisor to Fresenius Kabi (Singapore) in this regard.

http://goo.gl/qLhk6

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Mergers & Acquisitions

Food & Beverages > Restaurants
Navis in talks with Mumbai hotelier to sell Nirula’s for Rs. 150-Cr

Malaysia-based PE firm Navis Capital Partners is in talks with a Mumbai-based hotelier to sell Nirula’s Corner House Pvt. Ltd., the fast-food chain it acquired in 2006 for nearly Rs. 90 crore, reports Mint. This is Navis’ third attempt at selling the chain. The size of the latest deal is estimated at Rs. 150 crore.

http://www.livemint.com/2012/06/03221215/Navis-in-talks-to-sell-Nirula.html

Energy > Oil & Gas (Distribution)
GSPC lowers bid for GGCL stake

BG is facing aggressive bargaining in the sale of a 65% stake in its city gas venture, Gujarat Gas Company Ltd. (GGCL), with the sole bidder, Gujarat State Petroleum Corp (GSPC), offering to pay less than its original bid, reports Economic Times. The rupee's depreciation is also squeezing the returns further for the global energy firm. 

GSPC, which had earlier offered to pay Rs. 300 per equity share of GGCL, is now willing to pay only Rs. 250-260 per share.

http://economictimes.indiatimes.com/articleshow/13791084.cms

Healthcare & Life Sciences > Pharmaceuticals
Electral maker in talks to sell stake: report

The promoters of Mumbai-based listed pharmaceutical company FDC are reportedly in talks to sell their stake in the firm to an overseas drug maker, reports Economic Times. Promoters hold a 66.9% stake in the company, which owns brands such as electrolyte substitute Electral.

http://economictimes.indiatimes.com/articleshow/13617039.cms

BFSI > Asset Management (Mutual Fund)
Mirae, Vanguard, Pramerica in race for ING’s mutual fund biz in India

South Korea's Mirae, Vanguard and US-based Pramerica have held talks for purchasing Dutch firm ING Asset Management's Indian mutual fund business, which may be carved out of the Asian operations and sold separately, reports Economic Times. 

ING is selling its Asia-Pacific insurance and asset management businesses to help repay the assistance provided by the Dutch government in 2008 at the time of the global financial markets meltdown. The Indian business has assets of Rs. 797 crore as of April this year and is barely profitable. A separate sale is estimated to fetch about Rs. 40 crore.

http://m.economictimes.com/PDAET/articleshow/13652036.cms

Hotels & Resorts > Hotels
Accord Group to acquire hotels within, outside India

Chennai-based Accord Group is looking to increase the number of hotels under its belt to eight via a three-pronged strategy of acquisitions within and outside India, building new facilities and running hotels under management. Currently, the group has three 5-star hotels in Chennai, Puducherry and Ooty. While the first two are owned by the group, the Ooty property is leased.

The group is in the process of finalising negotiations to acquire 1.5 acres in Chennai (opposite the Hilton Hotel) to build a 5-star hotel.The group are also looking at a greenfield property in Bangalore.The company is in talks to acquire hotels in London, Singapore and Dubai.

For more information:

http://news.webindia123.com/news/articles/Business/20120529/1993690.html

http://www.theaccordmetropolitan.com

Energy > Oil & Gas (Distribution)
OIL in talks to acquire Reliance Gas Transportation Infra

State-run Oil India Ltd. (OIL) is in talks to buy a 51% stake in Mukesh Ambani's privately held company Reliance Gas Transportation Infrastructure (RGTIL), reports Economic Times. JPMorgan, Citi and SBI Caps are managing the stake sale.

Another state-run company, Gail India, is also keen to pick up a stake in RGTIL, which currently operates the $3.75-billion East-West gas pipeline that can take gas from Kakinada, the landfall point of Reliance Industries' D6 block in the Krishna-Godavari basin.

http://economictimes.indiatimes.com/articleshow/13622123.cms

Energy > Exchange
Power exchanges IEX, PXI looking to acquire NPEX

The National Power Exchange (NPEX), the country’s third power exchange which is yet to launch its operations, has received separate merger proposals from the other two power exchanges, Indian Energy Exchange (IEX) and Power Exchange India (PXI), reports Business Standard. NPEX is promoted by NTPC, NHPC, Power Finance Corporation and Tata Consultancy Services. The other equity partners are BSE, IFCI, Meenakshi Power and DPSC.

http://www.business-standard.com/475838/

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Fund News

New Funds (Being Raised) 

Anand Lunia launches new VC fund, India Quotient

Seedfund CFO Anand Lunia has launched his new VC firm, India Quotient (IQ), with its first fund and a committed corpus of about $5 million, reports StartupCentral. IQ will invest $50,000-500,000 per company, picking up stakes of up to 20%. The firm will invest in pre-revenue startups that need funds between the angel and Series A stages. The fund will focus on areas such as Internet and mobile, technology-oriented businesses in the healthcare and education segments, financial services, food and travel.

The firm has raised about 10% of the corpus from a group of established entrepreneurs including Vishal Mehta and Kashyap Dalal, founders of ecommerce companies Infibeam and Inkfruit, Jaydeep Barman, founder of fast food chain Faasos, e-learning company Brainvisa Technologies founder Vikas Kumar and auto classifieds site Carwale founder Mohit Dubey. The IQ team also consists of Madhukar Sinha, who earlier led healthcare, education and bottom-of-the-pyramid investments for Aavishkaar, and Lizzie Chapman, country head at British online short-term loans provider Wonga. Chapman will be associated with the firm on a part-time basis.

The firm enters the market with a portfolio of five companies. Lunia had invested in these companies in his personal capacity ahead of raising the fund. The portfolio includes IIM Jobs, a jobs portal for business school graduates, personalized gifting startup Engrave, at-home beauty and personal care services company Belita and, mystery shopping network RedQuanta. Two more deals are currently under negotiation, which will take the total capital committed in investments to about $500,000.

For more information:

http://goo.gl/NprqP

http://www.indiaquotient.in

Apollo, ICICI Venture raising $350-M distress fund: report

US-based PE firm Apollo Global Management LLC and ICICI Venture are close to raising $350 million to invest in distressed assets in India, reports Reuters. The new fund will invest in companies that face special or distressed situations or restructurings or are spinning off assets, and will also invest in non-performing loans. ICICI Venture and Apollo eventually aim to raise about $750 million for the fund. 

Apollo, which manages $86 billion globally, joined with ICICI Venture last year to launch the fund.

http://goo.gl/1yySW 

Edelweiss, IARC plan asset reconstruction funds

Edelweiss Asset Reconstruction and International Asset Reconstruction Co. (IARC) are planning to raise asset reconstruction funds of Rs. 500 crore and Rs. 300 crore, respectively, reports Economic Times. The two firms will raise funds through placements to affluent investors, NBFCs, banks and foreign investors. 

Both Edelweiss and IARC are looking to raise money in their second fund. Edelweiss ARF-1, floated in 2010, raised and fully-invested Rs. 90 crore, while IARC’s first fund raised and deployed Rs. 250 crore in 2010-2011.

http://goo.gl/BZUTY 

People

Former JLL CEO Sanjay Dutt to head Cushman & Wakefield India

Commercial property & real estate services firm Cushman & Wakefield India has appointed Sanjay Dutt as Executive MD, South Asia, reports Mint. Dutt, who recently quit as chief executive (business) of international property consultant Jones Lang LaSalle India to launch his own real estate fund RE Zone Investment Advisors, replaces Anuraj Mathur, who was with Cushman & Wakefield for more than 13 years. Dutt will own a reduced stake in RE Zone Investment Advisors, but continue to be on its board. 

For more information:  

http://www.livemint.com/2012/05/31155835/Former-JLL-CEO-Sanjay-Dutt-to.html 

http://www.cushwake.com/cwglobal/jsp/globalHomeSSO.jsp

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Real Estate News 

PE Investments 

Real Estate > Commercial (Food Park)
Future Ventures to set up food park near Bangalore

Future Ventures India Ltd. (FVIL) is setting up an integrated food park across 120 acres near Bangalore, reports Financial Chronicle.  

Rice processor and exporter LT Group, which operates under the Daawat brand, will use FVIL’s food parks as part of a pact. The two business groups will also work towards jointly developing and marketing a range of snacks to be manufactured at Daawat Foods’ facilities and a range of organic staple foods being processed by Nature Bio Foods at its facilities in North India.

http://www.mydigitalfc.com/news/future-group-ties-l-t-group-159 

RE Mergers & Acquisitions  

Real Estate > Commercial (Office Space)
Peninsula Land sells Mumbai office space for Rs. 170 crore

Mumbai-based listed Peninsula Land Ltd. has sold space in an office building in Lower Parel, Mumbai to financial services firms, including Tata Capital, National Realty, India Nivesh Insurance Brokers and Tata AIG Life Insurance, for Rs. 170 crore, reports Economic Times. The company has sold around 1 lakh sq ft space spread over three floors in one of the two towers at Peninsula Business Park in the central Mumbai office district in the last one-and-a-half months.

For more information:

http://economictimes.indiatimes.com/articleshow/13620054.cms

http://www.peninsula.co.in

Real Estate > Land Parcel
Bagaria Group buys Kolkata land parcel for Rs. 115 Cr

Kolkata-based Bagaria Group, which is into steel, tea and real estate, has bought a 2 acre plot from the Kolkata Municipal Corporation at Rs. 57.5 crore (around $10.4 million) per acre -- one of the highest amounts paid for a plot in the city - reports IANS. The group will set up a residential property on the land, spending Rs.100 crore (around $18 million). 

Out of the Rs. 500 crore (around $90 million) Bagaria plans to invest this year across India, Rs. 300 crore would be spent in Bengal alone.

http://news.webindia123.com/news/articles/Business/20120603/1997217.html 

Real Estate > Township
Calcutta Metro buys out Bata from township JV for Rs. 100-Cr

Bata India Ltd. has exited its real estate joint venture project at Batanagar in southern Kolkata, reports Business Line. The integrated township project was a joint venture between the shoe-maker and Calcutta Metropolitan Group. Bata has received Rs. 100 crore upfront in cash for future transfer of shares in the JV company, Riverbank Developers Pvt. Ltd. (RDPL), and for development rights. In addition, Bata will receive 640,000 sq ft of constructed space free of cost in the project. 

Bata still retains the legal title over the 230-odd acres of land where the project is coming up.

http://www.thehindubusinessline.com/industry-and-economy/marketing/article3473678.ece 

Real Estate > Land Parcel
HCC sells land on Mumbai-Pune expressway for Rs. 27-Cr

Mumbai-based listed Hindustan Construction Co. Ltd. (HCC) has sold 20 acres of land along the Mumbai-Pune expressway for Rs. 27 crore to encash a non-core asset, reports Mint. It had acquired 100 acres of additional land when it built a portion of the Mumbai-Pune expressway between 1997 and 2000. 

HCC is looking to further divest non-core assets to repay debts that stood at around Rs. 4,200 crore as of March 31, 2012. It may sell another 80 acres at the same location in Khopoli, Navi Mumbai, and also residential apartments it owns in New Delhi, Kolkata and Lucknow. 

For more information:  

http://www.livemint.com/2012/05/29222056/Hindustan-Construction-may-sel.html 

http://www.hccindia.com 

Other RE News 

L&T may merge property development, real estate units

Engineering and construction conglomerate Larsen & Toubro may merge its property development and real estate units, reports Economic Times. L&T Urban Infrastructure will now be merged with L&T Realty, which in turn will manage the real-estate business for the company.

http://economictimes.indiatimes.com/articleshow/13737893.cms 

Vision India plans Rs. 1,750-Cr realty projects

Chennai-based Vision India Real Estate is planning to launch two projects with a total cost of Rs. 1,750 crore, reports Business Standard. The company will invest around Rs. 300 crore, apart from the land cost, which will be funded primarily through FDI.  

The company, which is currently developing a 680-unit apartment project at Padur near the Old Mahabalipuram Road (OMR) in collaboration with Gem Group, is looking at launching a villa, apartment and plotted residential project on 75 acre at the OMR by the end of this year. The company also plans to set up logistics parks in Pune, Bangalore and Mumbai.

http://www.business-standard.com/475580/ 

Nitesh Estates launches Rs. 425-Cr Bangalore project

Nitesh Estates Ltd. has launched a Rs. 425 crore luxury villa project in Bangalore, called Nitesh Napa Valley, reports Moneycontrol. Located off Bellary Road, the project is the first of the five Rs. 1,500 launches planned by Nitesh Estates for the fiscal.  Napa Valley will house 133 villas.

http://goo.gl/QDajY 

South City Projects to construct Sri Lanka's tallest building

Kolkata-based South City Projects Ltd. will construct Sri Lanka's tallest building, a 68-storey residential tower in Colombo, reports Economic Times. The 400-apartment condominium will be built at a cost of $250 million. The land, which is currently under the defense and urban development ministries, will be given to the company on an extended lease.

For more information:

http://economictimes.indiatimes.com/articleshow/13602501.cms

http://www.southcityprojects.com/sc.htm

Ahmedabad SE to sell land to raise net worth

Gujarat's defunct equity bourse, Ahmedabad Stock Exchange (ASE), is making yet another attempt at revival, reports Business Standard. The exchange plans to raise around Rs. 50-60 crore by selling the land parcel it holds in Ahmedabad to partly meet the Rs. 100 crore net worth criteria set by SEBI.

SEBI has given regional stock exchanges (RSEs) time till 2014 to revive directly or tie-up with pan-India exchanges. RSEs will have to face shut-down if this deadline is not met. ASE plans to tie up with the NSE.

http://goo.gl/Nijmb

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India, Ahoy!

Bangla group to invest Rs. 7-Cr in Tripura agro-food processing unit

Bangladeshi agro-food processing group, Programme for Rural Advancement Nationally (PRAN), has been permitted by the Bangladesh Revenue Board to invest Bangladeshi Taka 10 crore (around Rs. 6.80 core) to set up an agro-food processing unit in Tripura, reports Business Standard.

Tripura Industrial Development Corporation (TIDC) has allotted a 2 acre land to PRAN to set up the unit at Bodhjungnagar Industrial Growth Centre area.

http://www.business-standard.com/india/news/bangladeshi-group-to-invest-rs-680-cr-in-tripura/166055/on

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New Ventures

Mathias, Sharma, Bhasin launch mentoring co for startups

Lloyd Mathias, who has had stints at PepsiCo, Motorola India and most recently as CMO at Tata Teleservices, has joined hands with former Nokia India MDs Sanjeev Sharma and Parikshit Bhasin to form GreenBean Ventures, reports Times of India. The Gurgaon-based firm will work with telecom and technology start-ups, helping them with strategy planning, scaling up operations, diversification planning, unlocking value and exploring new opportunities like social media and e-commerce.

http://goo.gl/1vTXi 

Ishan Equipment in JV with US firm Blair Rubber

Ohio-based Blair Rubber Company has formed a joint venture with Vadodara-based Ishan Equipment Pvt. Ltd., reports Business Standard. Blair Rubber manufactures rubber linings which are used in interior of storage tanks, rail cars, food processing, wastewater and nuclear environments to protect metal and concrete from corrosion. 

Ishan Equipment, with more than 18 years of experience, offers a wide range of rubber linings to cater to diverse industries.

http://goo.gl/T7RjZ

Reliance Brands forms JV with Italy's Brooks Brothers

Reliance Brands, a unit of energy major Reliance Industries, is bringing the oldest American men's clothier chain Brooks Brothers to India, reports Times of India. Brooks Brothers, privately owned by Italian businessman Claudio Del Vecchio, will hold a 51% stake in the new entity with the rest being held by Reliance Brands. 

This will be Reliance's fifth joint venture after Iconix, Paul & Shark, Diesel and Ermenegildo Zegna.

http://timesofindia.indiatimes.com/business/india-business//articleshow/13788129.cms 

Tide Water may set up JV with Nippon Oil

Tide Water Oil, part of public sector conglomerate Andrew Yule, is exploring the possibility of setting up a joint venture with Japan’s JX Nippon Oil and Energy Corporation, reports Telegraph India. Tide Water already has a franchisee agreement with Nippon to market its Eneos brand of lubricant in India. The two companies also have an agreement for technical collaboration.

http://www.telegraphindia.com/1120531/jsp/business/story_15552396.jsp#.T8bOmVIc_KQ

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Expansion/Diversification

Gitanjali to invest $75-M in UAE for expansion

Mumbai-based listed jewelry firm Gitanjali Group is planning to invest up to $75 million (around Rs. 414 crore) in increasing its number of outlets in the UAE to 110 within two years, reports Business Standard. The company is also planning to expand the brand into Saudi Arabia and is looking at opportunities in Qatar, Kuwait and Bahrain. 

For more information:

http://goo.gl/yph8P 

http://www.gitanjaligroup.com 

Godrej to invest Rs. 500-Cr for new unit at Dahej

Godrej & Boyce Manufacturing Company Ltd. is setting up a new plant for chemical process equipment manufacturing at Dahej SEZ in Gujarat with an investment of Rs. 500 crore for the first phase of development, reports Business Standard.

http://www.business-standard.com/476010/ 

DT Cinemas plans to launch luxury multiplexes

DT Cinemas, the multiplex arm of realty major DLF, is considering to enter the luxury segment by launching super-premium film screening centers, reports PTI. The company, which currently operates 29 screens in the NCR and Chandigarh, is also planning to enter South India, besides expanding in existing locations.

http://goo.gl/ZlMJi

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People

OnMobile Global appoints Rajesh Kunnath as CFO

Bangalore-based mobile VAS firm OnMobile Global Ltd. has appointed Rajesh Kunnath as CFO. Kunnath is replacing Amit Rastogi, who had resigned from the company on April 10, 2012. 

From the Venture Intelligence PE Deal database: Investors in OnMobile Global include Norwest and Bessemer. 

http://www.onmobile.com/news_coverage_pr_38.html

RCom appoints former Aircel COO Gurdeep Singh as CEO

Reliance Communications has appointed former Aircel COO Gurdeep Singh as President & CEO of its wireless business, which provides and manages mobile telephony services, reports PTI. Singh had quit Aircel in January this year.

The positions at RCom were lying vacant after Syed Safawi left the company in February.

http://goo.gl/wa2Sh

Fmr Taro CEO Markov to replace Dilip Shanghvi as Sun Pharma Chairman

Mumbai-based drug-maker Sun Pharma has appointed Israel Makov as the chairman of its board of directors, reports Economic Times. He takes over the position from Dilip Shanghvi who has held the position for three decades. 

Makov was the former CEO of Israeli generic drugs-major Taro Pharmaceutical Industries. In 2010, Sun Pharma acquired a majority stake in Taro Pharma. The company is still in process of acquiring minority shares of Taro Pharma and is interested in acquiring 100% 

For more information:  

http://economictimes.indiatimes.com/articleshow/13655124.cms 

http://www.sunpharma.com

Infosys BPO COO Ritesh Idnani resigns

Ritesh Idnani has resigned as Senior VP & COO of Bangalore-based Infosys BPO, reports Business Standard. Amitabh Chaudhry had quit as MD & CEO in 2009.

http://www.business-standard.com/475768/

Sugata Sircar is Gujarat Gas MD

Sugata Sircar has been appointed as MD of publicly listed Gujarat Gas Company Ltd. with effect from July 01, 2012, reports Moneycontrol.

http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=557109

Aurobindo Pharma replaces Chairman & MD in board recast

Hyderabad-based listed pharmaceuticals firm Aurobindo Pharma has restructured its board replacing its both Chairman and MD with senior officials in the firm, reports Economic Times. The development comes in the background of two promoters being named in the ongoing investigation against YSR Congress President YS Jagan Mohan Reddy and the company's poor performance in the latest financial year. 

PV Ramprasad Reddy will relinquish his position as Executive Chairman of the company from June 1 and will continue to be whole time director on the Board. K Ragunathan, an independent director, has been appointed as Non-Executive Chairman of the board. Nityananda Reddy relinquished his post as MD of the company to become the vice-chairman and a whole time director. N Govindarajan, presently the CEO, will take over as Director and MD of the company.

http://economictimes.indiatimes.com/articleshow/13679998.cms

Dinesh Kumar Mehrotra appointed as LIC Chairman

Dinesh Kumar Mehrotra has taken over as the Chairman of LIC, the country's largest insurer, reports Economic Times. He had been serving as the acting chairman of company after TS Vijayan retired from this position in May.

http://economictimes.indiatimes.com/articleshow/13696006.cms

Tushar Chawla joins ALMT Legal Delhi

Tushar Chawla, former Partner at Economic Laws Practice, will be joining ALMT Legal as Partner and will head the firm’s Corporate practice in the Delhi office. He has over 17 years of experience and has worked both in-house and with law firms. He specializes in Merger & Acquisition, Technology Transfer, SEZ, Cross Licensing Agreements and Intellectual Property.

http://goo.gl/1qkV7

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Regulatory News

Defunct exchanges must close shop in two years: SEBI

Stock market regulator SEBI has said in a circular that defunct stock exchanges and those which are not able to maintain a turnover of Rs. 1,000 crore will have to close shop within two years, reports PTI. According to its new guidelines, the de-recognized exchanges will have to apply within two months from today and upon failing to do so, they shall be subject to compulsory closure. 

SEBI also mandated that the exclusively listed companies on such bourses shall be listed on any other recognized stock exchange by these. The recognized stock exchanges may also facilitate the listing of these exclusively listed companies on defunct bourses and can carry out changes in their listing criteria.

http://goo.gl/WXa1z

SEBI issues new consent settlement norms

Promoters found guilty under fraudulent and unfair trade practices (FUTP) will have to shell out at least Rs. 1 crore, or 0.5% of the market value of their holding in the company, whichever is higher, to settle the charges under the new consent process, reports Business Standard. The holdings will also include any convertible warrants or options. Market regulator SEBI has revamped the consent mechanism, setting a base amount for settling various stock market-related violations. 

Whole-time directors or the chairman of a company will be charged the higher amount of between Rs. 25 lakh and 0.5% of their holding, while the base penalty for independent directors and other key persons is set at Rs. 10 lakh. A merchant banker, guilty of fraudulent practice, will have to pay 1% of the issue size handled by it, while other intermediaries associated with the issue will attract a penalty of 0.25% of the issue size.

http://www.business-standard.com/475611/

Foreign investor norms eased to accelerate capital inflows

The government has allowed qualified foreign investors (QFIs) from six member-countries of the Gulf Cooperation Council (GCC) and 27 countries of the European Commission (EC) to invest in the Indian capital market to enhance foreign capital inflows, reports Business Standard. The GCC nations include Saudi Arabia, Bahrain, UAE, Oman, Qatar and Kuwait. 

With this, a $1 billion window over and above the current $20 billion limit has been created for QFI investment in corporate bonds and mutual fund debt schemes. The window is meant to test the waters for the time being and could be widened if required. Norms for opening accounts in India and keeping funds in them have also been relaxed substantially. 

A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards and is a signatory to the International Organization of Securities Commission’s (IOSCO’s) Multilateral Memorandum of Understanding (MMoU). QFIs do not include FIIs (foreign institutional investors) or sub-accounts.

http://www.business-standard.com/475755/

Banks to be allowed to trade in commodity futures

The government is set to remove the legal hurdle in the entry of banks into commodity futures trading, despite the RBI’s reservations on the issue, reports Business Standard. Banks can currently trade in shares, bonds and currencies, but are prohibited from trading in goods. 

However, the Finance Ministry has now supported the Consumer Affairs Ministry’s proposal to amend the law, as it would provide a hedging tool for banks. The Banking Laws Amendment Bill is likely to be tabled in the Monsoon session of Parliament.

http://www.business-standard.com/476217/

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Other News

FIPB clears 25 FDI proposals worth Rs. 2,973-Cr

The FIPB has cleared 25 FDI proposals worth Rs. 2,973.40 crore, reports PTI. During its meeting held earlier this month, it also rejected eight proposals and deferred decision on 13. 

The application of AIF III Sub Pvt. Ltd. to bring in FDI worth Rs. 1,000 crore has been approved. The Mauritius-based firm proposes to induct foreign investment in the units of a fund constituted as a trust. Mumbai-based Microqual Techno's application to increase Rs. 522.90 crore in foreign equity to carry out its wireless telecommunications business was also approved. 

Other proposals which have been approved are those of Genworth Financial Mortgage Guaranty India (Rs. 124 crore), Plethico Pharmaceuticals (Rs. 500 crore) and Kintetsu World Express India (Rs. 267.69 crore).

http://www.mydigitalfc.com/economy/govt-clears-25-fdi-proposals-worth-rs-2973-crore-872

Munich Re set to exit India over low premiums

Global re-insurer Munich Re has virtually pulled out of the Indian market, indicating that it will stay out unless premiums rise substantially, reports Financial Chronicle. The company has been in India for over 30 years, providing reinsurance support to both public sector and private non-life insurers. Its exit was partly triggered by the low prices quoted by domestic insurers in the face of fierce competition.

http://www.mydigitalfc.com/news/unhappy-premiums-munich-re-exits-india-014

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