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DP World, NIIF to buy Continental Warehousing for
$400-M
Economic Times
Hindustan Infralog, an investment platform jointly
promoted by Dubai’s port operator DP World and India’s
National Investment and Infrastructure Fund (NIIF), is
buying a 90% stake in Continental Warehousing
Corporation (Nhava Seva) for USD 400 million from its PE
investors. The existing promoters will retain a 10%
share. Continental Warehousing, the flagship company of
Chennai-based NDR Group, owns and operates
cargo-handling facilities such as container freight
stations (CFS), multimodal cargo handling terminals (MMTs)
and private freight stations. It also provides express
cargo and third-party logistics services. Barclays,
Citi and Deutsche Bank were the
advisors in the transaction.
Private Equity firms Warburg Pincus, Abraaj and IFC
Washington together own 60% of the company, with the
former being the single-largest shareholder with a 40.4%
stake. Abraaj and IFC own 20% while the remaining 40% is
held by N Amrutesh Reddy, executive director and
promoter. Having invested USD 100 million in 2011,
Warburg will make a return of nearly three times. Abraaj
got the stake when it acquired private equity firm
Aureos Capital in 2012. IFC is a recent investor, having
pumped in USD 65 million through a mix of debt and
equity in 2015.
Continental has reported around INR 90 crore EBITDA on a
INR 750 crore top line in FY17.
Private Equity Fund Investments
ICICI Securities raises
Rs.1,718-Cr from anchor investors
Economic Times
ICICI Securities, ICICI Bank's broking arm, has raised
INR 1,718 crore through allotment of shares to 58 anchor
investors. ICICI Securities allotted 3.3 crore shares at
INR 520. International anchor investors to the issue
included Temasek, Fidelity, Fairfax, Nomura, Amansa
Holdings and BlackRock. Domestic funds which invested in
the anchor allotment included HDFC MF, DSP BlackRock,
Reliance MF, Premji Invest, SBI MF, Birla MF and IDFC
MF.
ICICI Bank aims to raise about INR 4,000 crore at the
upper end of the price band by selling 7.7 crore shares
representing 24% stake in ICICI Securities.
Feedback Infra raises Rs 685-Cr from ADV Partners
Economic Times
ADV Partners has invested INR 685 crore in Feedback
Infra, which provides advisory services to the
infrastructure and also manages operations and
maintenance for power projects and roads. As part of the
transaction, L&T has transferred its stake completely to
ADV and IDFC has reduced its stake in compliance with
banking regulatory norms. Part of the primary proceeds
will be to reduce current debt. Khaitan & Co
acted as the Indian legal advisors and advised
Feedback Infra Private Limited on this
noteworthy transaction. Axis Capital
acted as the Sole transaction advisor to
Feedback Infra Group.
KKR-Emerald Media invests $80-M in sports-tech co GSC
Press Release
KKR-backed Emerald Media has acquired a significant
minority stake in Singapore- and Chennai-based sports
technology and management company
Global Sports Commerce
(GSC), through a combination of primary and secondary
transactions. The total investment of about USD 80
million will include the secondary purchase of existing
investor FidelisWorld’ stake and primary growth capital.
Veda Corporate Advisors advised the company on
the transaction. ADV Partners (which had invested in
Nov-15) will continue to hold a significant minority
stake in the company. The growth capital will enable GSC
to explore acquisitions and develop new technologies for
the sporting eco-system and also expand operations in
digital sporting solutions markets across the globe.
GSC has a worldwide presence with offices in 16 cities,
across 10 countries. It combines technology solutions in
the fields of LED signage, sponsorship management,
premium consulting, fan engagement, AR/VR, drone-based
data acquisition, wireless tech and data-sciences with
professional expertise from all over the world.
Franchises that GSC has partnered with, include FIFA,
English Premier League, NRL Australia, Australian
Football league, IPL, Formula 1, Big Bash League, New
Zealand Cricket, Cricket Australia, IMG and Asia Sports.
From the Venture Intelligence
PE-VC Deal Database: FidelisWorld had
invested about INR 127 Cr in GSC (then called Technology
Frontiers) in Mar-14. (Subscribers to the database can
login to view the valuation, deal structuring and other
transaction details.)
E-grocer
Grofers raises Rs.400-Cr in downround led by
SoftBank
Times of India
SoftBank is leading a INR 400-crore financing
round in online grocery startup Grofers, taking
its shareholding up to as much as 35-40%.
Existing investor Tiger Global also participated
in the fundraise along with Russian tech
billionaire Yuri Milner. Grofers’ valuation has
dropped 20% to USD 300 million after the
investment compared to what it fetched in its
previous funding of USD 120 million at the end
of 2015.
While SoftBank invested USD 40 million, Tiger
Global — which holds around 25% in the e-grocer
— invested USD 15 million, with the rest coming
in from Milner. Sequoia Capital, the first
institutional investor in the Gurgaon-based
startup, did not participate in the latest
funding.
Blackstone to buy 80% in Pune’s Nitesh Hub mall
for Rs310-Cr: Report
Mint
Blackstone Group is set to buy an 80% majority
stake in Nitesh Hub, a shopping mall in Koregaon
Park, Pune from real estate firm Nitesh Estates
Ltd for around INR 310 crore. Nitesh Estates
will retain the balance stake. Existing investor
Goldman Sachs Group Inc. will exit the project.
The mall is going to be turned into a mixed-use
development which will have retail and office
space along with food and beverage and
entertainment facilities.
In 2015, Nitesh Estates had bought Park Plaza
Centre, a shopping mall, in Pune’s Koregaon area
for INR 250 crore from Israeli firm Elbit
Imaging Ltd. Goldman Sachs had backed the
acquisition with $37 million.
Chargebee raises $18-M
led by Insight Venture Partners
Press Release
Chargebee, a
SaaS subscription management and recurring
billing solution, has secured $18 Million in
growth capital, led by New York-based Insight
Venture Partners. The Series C investment also
saw participation from previous investors, Accel
India and Tiger Global Management. With this
round of funding, the total investment raised by
the company stands at $24.7 million. The new
capital will be used for increased investment in
product R&D, sales, marketing and growth, to
expand aggressively into newer markets and
segments.
Zappfresh raises Rs 20-Cr from SIDBI VC, Dabur’s
Amit Burman
Mint
Online meat store Zappfresh has raised INR 20
crore from Dabur India vice-chairman Amit Burman
and SIDBI Venture Capital. The company supplies
cold-stored fresh meat like chicken, mutton and
sea food to customers in Delhi and parts of the
National Capital Region. Zappfresh will use the
proceeds from this round to expand its teams and
increase capacity as it looks to bring the
service to other cities.
CRM
s’ware startup ZineOne raises $2.5-M from
Omidyar Network, others
Press Release
ZineOne, a
customer engagement hub that uses AI to provide
banks and retailers with the ability to engage
with their customers in a personalized manner.
has raised $2.5 million in a Series A round led
by Omidyar Network. Other investors in the round
include Harvard Business School Alumni Angels,
Touchstone Equities, as well as existing
investors Hyderabad Angels and Golden Seeds. Anthill Ventures was the advisor to this
round. The round takes ZineOne's total venture
capital raised to $5 million. The company
intends to use the newly raised funds to
accelerate sales, marketing, and execution of
its product roadmap.
Exfinity Ventures invests $2-M
in US-based AgShift
Mint
Exfinity Venture Partners has invested $2 million in AgShift, a
California-based start-up developing technology to inspect and grade
food produce using deep learning and computer vision. The start-up is
currently working with select clients in the food industry to test its
solution.
Green-tech startup
Facilio raises $1.5 M from Accel
Economic Times
Chennai-based green-tech startup
Facilio has
raised USD 1.5 million from Accel India. The
startup offers an integrated facilities
management software to manage building
operations, maintenance and sustainability
performance, across a portfolio of buildings.
Infy
invests addnl $1.5 M in US-based data science
firm Waterline
BSE
Infosys, through the Infosys Innovation Fund,
has made a follow-on investment of USD 1.5
million in
Waterline Data Science,
a Mountain View, CA (USA)-based provider of data
discovery and data governance software. Infosys
had made an initial investment of USD 4 million
in the company in January 2016.
Waterline Data Science provides data scientists
and business analysts a self-service data
catalog to help discover, understand and
provision data, and an automated data inventory
that enables agile data governance across
metadata, data quality and data lineage.
Voice tech startup
Slang Labs raises Rs.8.12 Cr from Endiya
Partners
Mint
Bengaluru-based Slang Labs has raised INR 8.12
crore from venture capital firm Endiya Partners.
The startup develops mobile software for
accepting voice commands in English and Indian
languages and is in talks with more investors to
raise additional funds. The start-up will sell
to other tech start-ups and established
companies in segments including news and media,
travel and ticketing, online delivery,
logistics, and fintech. Slang Labs is co-founded
by Kumar Rangarajan, who had earlier sold his
start-up Little Eye Labs (which was also backed
by Endiya Partners) to Facebook in 2014. Sateesh
Andra, Managing Director, Endiya Partners had
joined the company's board in February 2018.
CustomerSuccessBox raises $1-M
from pi Ventures, Axilor Ventures
Press
Release
Gurgaon-based CustomerSuccessBox, an ‘actionable’ customer success
platform for B2B SaaS companies, has raised USD 1 million in a Pre
Series A round of funding led by pi Ventures with participation from
Axilor Ventures. The funding will be used to drive growth and product
innovation.
CustomerSuccessBox, founded in 2016 by Puneet Kataria (Founder & CEO)
and Amritpal Singh (Co-founder & CTO) is a customer success platform
which helps B2B SaaS companies reduce, churn and grow their recurring
revenue. It is being used by B2B software companies including XebiaLabs,
WizIQ, Synup and WoowUp. Its patent pending technology has processed
over 30 million data points from over 100,000 end users to calculate
Account Health Scores.
Karma
Healthcare raises Rs.3-Cr from 1Crowd, Ankur
Capital & Others
Economic Times
Rajasthan based healthcare startup Karma
Healthcare has raised INR 3 crore in equity
funding from 1Crowd, existing investors Ankur
Capital, Ennovent Capital, Beyond Capital, and
angel investors including Anil Chatta, a
healthcare professional based in the Middle
East.
Karma Healthcare claims to have achieved over
50,000 consultations and operates 10 e-Doctor
clinics in Rajasthan and Haryana, providing
clinical treatment, medicines and diagnostic
services. The company is supported by marquee
organizations such as the Tata Trusts, UBS
Optimus Foundation and WISH Foundation.
Edtech co. Eupheus raises capital from
Sixth Sense Ventures
Times of India
Sixth Sense Ventures, from its second fund, has invested in
technology-led learning platform Eupheus Proficiency Learning. The
target company works with over 1,500 schools to provide them with
interactive learning solutions and reference contexts for textbooks. The
company is planning to use the funds to expand its presence to south
India, and introduce home learning solutions. The company expects to
report INR 18 crore in revenue this year along with operational
profitability.
SIDBI VC
invests in solar water pumps maker Claro Energy
SIDBI VC
SIDBI VC, via its Impact Investments focused Samridhi Fund, has
invested in Delhi-based
Claro Energy Private Limited (CEPL)
which specializes in installation and maintenance of solar
water pumps.
Angel Funding
P2P lender i2iFunding raises
Rs.5-Cr in addl angel funding
Business Standard
Peer to peer lending platform i2iFunding.com has announced raising a
second round of angel investment worth INR 5 crores. The round has been
led by SucSEED Venture Partners; Manish Poddar, a serial entrepreneur
and investor; and a group of other angel investors from consulting and
private equity firms, The investment will be utilized for strengthening
technology, infrastructure and geographical expansion. Over next two
years, the company aims to grow to INR 15-20 crores worth loans every
month (from about INR 1 crore per month currently). It has more than
50,000 registrations with about 3,000 active lenders.
Cryptocurrency player
Nuo Bank raises seed funding of $250-K
Economic Times
PayU India CEO Amrish Rau and managing director
Jitendra Gupta have together invested USD
250,000 in Mumbai-based Nuo Bank. The startup
uses cryptocurrency and blockchain to replicate
a bank that will have a decentralized, global
and transparent cryptobanking platform.
Micro-jobs provider GigIndia
raises seed funding
Inc42
Pune-based GigIndia, which provides micro-jobs to students, has raised
seed funding from a consortium of angel investors including Jessica
Wong, Founding Managing Partner of Ganesh Ventures; Hiro Mashita,
Director at M&S Partners; Xue Manzi, Director-Manzi Fund and Yiyun
Zhang, CEO at Pocket Part Time. The proceeds will be used for expansion,
hiring of staff and for shaping the product with automation techniques
to enhance the user experience.
Founded in 2015 by Sahil Sharma and Aditya Shirole, GigIndia offers
part-time work opportunities for students to help them earn as well as
build their CV for their future jobs. The company promises micro-jobs
with biggies like Alibaba, Xiaomi, SHAREit, Uber, and Paytm.
Social VC Investments
Packaged
foods brand Soulfull raises Rs.35-Cr from Aavishkaar
Economic Times
Impact investor Aavishkaar, through its $200 million Aavishkaar
Bharat Fund, is to invest INR 35 crore into packaged foods
startup Kottaram Agro Foods that markets products under the
brand “Soulfull’.
The Bangalore-based firm is reviving traditional grains - such
as millets - into healthy breakfast and snack options such as
flakes, Ragi bites, muesli and ready-to-cook oat-millet meals.
Jerome Merchant + Partners advised
Aavishkaar Bharat Fund. Trilegal advised
Kottaram Agro Foods Private Limited.
Financial
inclusion firm Basix Sub-K raises Rs.35-Cr from
Accion, NMI
Dealstreetasia
Hyderabad based Basix Sub-K
iTransactions Ltd, a technology company focused
on financial inclusion, has raised nearly $5.4
million (INR 35 crore) from Accion and Nordic
Microfinance Initiative (NMI), among others.
Intellecap served as the investment banker
for the deal. Basix Sub-K iTransactions, a part
of the BASIX Social Enterprise Group, will use
the funds for expansion of its agent banking
network and credit facilitation for micro and
small businesses.
Incorporated in 2010,
Basix Sub-K offers financial services through a
network of basic convenience outlets in 23
states and manages a loan portfolio of INR 666
Cr for various banks. It has deployed 13,000
agents to interface with customers.
From the Venture
Intelligence PE-VC Deal Database:
In 2011 & 2012, Michael and Susan Dell
Foundation had invested about $1 million in
Basix Sub-K. (Subscribers to the database can
login to view the valuation, deal structuring
and other transaction details.)
Impact Micro Ventures, mPokket
get $50-K each from VilCap
Economic Times
Impact Micro Ventures and mPokket, both early-stage financial health
startups, will receive USD 50,000 each from VilCap, the venture capital
fund affiliated with Village Capital, with support from PayPal,
BlackRock and FMO.
Bengaluru-based Impact Micro Ventures uses big data to help un-banked
microenterprises access financing and improve their cash flow. Kolkata-based
mPokket provides microloans via a mobile app.
Liquidity Events
India Value Fund sells TD Power
Systems shares worth Rs 12-Cr, registers 0.79x return
India Value Fund, via India Value Fund IV, has sold 348,531 shares at
INR 201.01 per share on BSE and 252,246 shares at INR 201.05 per share
on NSE of publicly listed TD Power Systems Ltd. on Mar 19, 2018. The
sales, which constituted 1.81% stake, aggregated to INR 12.08 Cr.
Post-deal, the investor holds 1.86% stake (618,194 shares) in the
company.
From the Venture Intelligence PE-VC Deal Database:
In Aug 2011, India Value Fund invested INR 31.21 Cr for 3.67% stake at
INR 256 per share as part of anchor investment.
Other Private Equity/Strategic Investments
Consumer
electronics firm iBall raises Rs.53-Cr
Venture Intelligence
Research
Mumbai-based Best IT World (India) Pvt. Ltd,
which owns consumer electronics brand
iBall, has
raised INR 52.67 crore from a group of investors
led by Varun Daga (Founder, Girik Capital) and
Shreans Daga who invested INR 12.5 crore each.
The deal, concluded in February 2018, provides
the company with a post money valuation of
between INR 169-188 crore. J Sagar Associates
acted as legal advisors to the investors.
Balrampur Chini invests
Rs.37.5 Cr in education sector lender Auxilo for
50% stake
Business Line
Balrampur Chini Mills has invested about INR
37.5 crore in Mumbai-based startup Auxilo
Finserve, an RBI-registered NBFC lender in the
education sector, in lieu of 50% stake. The
remaining 50% will be held by Enam Holdings’
Akash Bhanshali. Both the investors have
committed to make further investments of INR 350
crore in the next three to four years through
multiple tranches, with each investing about INR
175 crore.
Auxilo provides loans to students for higher
studies (global and domestic) and educational
institutes for infrastructure modernisation. The
company, which started operations in October
2017, has presence in Mumbai, Hyderabad,
Chennai, Delhi, Bengaluru and Pune.
Analytics startup Flutura raises
$1-M from Hitachi
Bengaluru-based IoT startup Flutura Decision Sciences and Analytics had
raised USD 1 million in Series A1 funding from Japan firm Hitachi
Hi-Tech Solutions in Dec-17. The valuation of the company was 88% higher
than the previous round that happened in Feb-17.
From the Venture Intelligence PE-VC Deal Database:
In Feb-17, Flutura raised USD 7.63 million in Series A
funding. The round was led by Vertex and supported by Pi Ventures, Lumis
Partners, The Hive and a few angels. (Subscribers to the database can
login to view the valuation, deal structuring and other transaction
details.)
Chatbot
startup One Labs attracts funding from Micromax
Economic Times
Micromax has invested in a consumer technology
and artificial intelligence based startup 'One
Labs', which has developed chat bot like Apple's
Siri and Google Assistant. One Labs has
developed 'inOne' platform which provides access
to apps across multiple genres from food,
shopping, travel, deals, cabs, news, recharge,
games etc within a single app. In addition, One
Labs has created an AI enabled voice or chatbot
solution called One Assistant which packages
services provided on 'inOne' in a virtual
assistant format.
IPOs
Bandhan Bank IPO
oversubscribed ; IFC to realize INR 814-Cr
Economic Times
The initial public offering (IPO) of Bandhan Bank got
subscribed by 14.62 times. The IPO received bids for
1,22,10,47,920 shares as against the total issue size of
8,34,96,347. The QIB quota saw 38.68 times subscription,
while the NII (Non-Institutional Investors) category was
subscribed 13.89 times. RII (Retail Institutional
Investors) saw 1.19 times subscriptions.
The IPO comprised a fresh issue of 9,76,63,910 shares,
an offer for sale for up to 1,40,50,780 shares by
International Finance Corp (IFC) and up to 75,65,804 by
IFC FIG Investment Co. The price band was fixed between
INR 370 and INR 375 per share, with a face value of INR
10 each. Kotak Mahindra Capital, JM Financial,
Goldman Sachs and JP Morgan are the book
running lead managers of the issue.
From the Venture Intelligence
PE-VC Deal Database: IFC first invested
in Bandhan - when it was still an NBFC MFI - in 2011.
GIC is another PE investor in the Bank. (Subscribers to
the database can login to view the valuation, deal
structuring and other transaction details.)
Autocomp
maker Sandhar Technologies’ Rs.512-Cr IPO
subscribed 3.31 times
MoneyControl
The initial public offer of auto component maker
Sandhar Technologies was subscribed 3.31 times.
The IPO to raise INR 512 crore received bids for
5,15,34,900 shares against the total issue size
of 1,55,74,311 shares. Bulk of the demand came
from institutional investors (subscribed 14.5
times). The portion of retail investors was
subscribed 1.2 times, while that of high net
worth individuals, 6.5 times.
The public offer comprises fresh issue of shares
worth INR 300 crore and an offer for sale of up
to 64 lakh shares (including anchor portion of
46,30,842 shares). The price band for the IPO
was fixed at INR 327-332. ICICI Securities
and Axis Capital are managing the
issue.
Karda
Constructions’ IPO subscribed 2.49 times
Business Standard
The initial public offer (IPO) of Karda
Constructions has received bids for 1.07 crore
shares and was subscribed 2.49 times. Karda
Constructions is engaged in the business of real
estate development in Nashik, Maharashtra. The
price band for the issue was INR 175-180 per
share. The issue comprised fresh issue of 23
lakh equity shares as well as offer for sale
(OFS) by the promoters. The company plans to use
the proceeds towards part repayment of overdraft
facilities and term loans and for general
corporate purposes.
Hindustan Aeronautics IPO falls short of 100%
subscription
Mint
The INR 4,229 crore initial public offering
(IPO) of state-owned Hindustan Aeronautics Ltd
(HAL) witnessed an overall subscription of 99%.
While the portion of shares reserved for
institutional investors in the HAL IPO received
a firm response, those reserved for other
categories of investors were under-subscribed.
The portion of shares reserved for institutional
investors in the HAL IPO saw a subscription of
1.73 times or 173%, while those kept aside for
retail investors and high net-worth individuals
(HNIs) were subscribed to the extent of 38% and
3%, respectively.
HAL had set a price band of INR 1,215-1,240 per
share for the public offering. HAL’s IPO is a
pure secondary offering, where the government of
India is selling a total of 34.10 million
shares, representing a 10.2% stake in the
company. HAL is engaged in the design,
development, manufacture, repair, overhaul,
upgrade and servicing of aircraft, aero engines,
helicopters, avionics, accessories and aerospace
structures.
HDFC MF to make private
placement of 16 lakh shares ahead of IPO
Economic Times
HDFC Mutual Fund will go for a private placement of 16 lakh shares, a
bulk of it to distributors, before its IPO opens as per the DRHP filed
with the regulator. These shares will have a lock-in period of one year.
The shares are being offered to only IFAs who do business with the
company as entrepreneurs. This is in addition to the 7.2 lakh shares the
AMC has kept reserved in the IPO for distributors. Regulatory rules
stipulate that an offer for private placement can be made to not more
than 200 people in a financial year and hence this offer will be made to
only 199 distributors
M&A
EESL arm acquires UK’s
Edina Power for Rs 493-Cr
Press Release,
Economic Times
EPAL, a joint venture between state-run Energy
Efficiency Services Limited (EESL) and UK-based
EnergyPro Limited, has acquired combined heat
and power utility Edina Power Systems Limited in
UK Pounds 55 million (INR 493 crore). The
advisors to the deal included KPMG, Bowline
Capital Finance, Lux Nova and Verco
Global.
Edina supplies, installs and maintains CHP, gas
and diesel power generation systems. It employs
200 people across its UK headquarters in
Manchester and manufacturing base in Lisburn,
Northern Ireland, and provides work for 400
contractors. Edina also has a small operation in
Australia.
Zensar
to buy US-based insurance focused IT Services
firm Cynosure for $33-M
BSE,
Economic Times
Zensar Technologies Ltd, an RPG Group company,
is to acquire US-based Cynosure Inc for USD 33
million. Zensar will acquire the entire share
capital of Cynosure Interface Solutions Pvt Ltd
and its wholly owned subsidiary, Cynosure Inc.
The target company is headquartered in Chicago
and has an offshore development centre in
Bengaluru. The acquisition will be funded by a
mix of internal accruals and external debt.
Cynosure focuses on providing guidewire platform
implementation services to Property and Casualty
(P&C) insurance carriers and posted a revenue of
about USD 20 million in 2017. The target, with
over 150 employees, will become a part of Zensar’
s Insurance vertical. Post-acquisition, Cynosure
will continue to be managed by Sid Wadhwa, CEO &
Co-founder.
OYO buys service aptmts
operator Novascotia for $1-M
Economic Times
Online hotel aggregator OYO has acquired
Chennai-based service apartment operator
Novascotia Boutique Homes for USD 1 million
(about INR 6.71 crore), marking its first major
buyout as well as establishing its presence in
the service apartment and corporate executive
stay segment.
Novascotia manages 350 rooms in Chennai,
Coimbatore, Hyderabad, Kochi and
Thiruvananthapuram and has 64 employees, who
will be absorbed by OYO.
Vital
Wires acquires design studio Two55am for $500-K
Economic Times
Boutique SAP solutions provider Vital Wires has
acquired fellow Gurgaon-based product innovation
venture Two55am for about $500,000.
Additionally, Sumit Gandhi, who was leading
Two55am, will now join the merged entity as
partner, and will also head its global
enterprise digital practice. The entire team of
the design and UX studio has also been absorbed.
Hero MotoCorp ups stake
in Colombia JV to 68%
BSE
Hero MotoCorp Ltd, through its wholly owned
subsidiary HMCL Netherlands B.V. (HMCL), is to
invest USD 10,500,600 towards acquisition of 30
Million Compulsorily convertible preference
shares (CCPS) which on fully diluted basis
increase the shareholding from 51% to 68% in
HMCL Colombia S.a.S, which is engaged in the
business of manufacture, assembly and
distribution of two wheelers in Colombia. The
company recorded a turnover of USD 25.8 million
in 2016-17.
Videocon
sells 51.32% stake in general insurance arm
Press Release
Videocon Industries has sold its 51.32% stake in Liberty Videocon
General Insurance Company to Diamond Dealtrade Ltd (a DP Jindal
Group Company) and Enam Securities Pvt Ltd. The Insurance
Regulatory and Development Authority of India (IRDA) has
approved the transfer of 26% to Diamond Dealtrade and 25.32% to
Enam Securities. Axis Capital acted as financial advisor
to Liberty International Holdings Inc - for identification of
new JV partner for its Indian general insurance business.
Silicon and Beyond
acquired by US-based Synopsys
Design & Reuse
US-based Synopsys, Inc. has acquired
Silicon and Beyond Private
Limited, a Bangalore-based provider
of high-speed SerDes technology used in data
intensive applications such as machine learning,
cloud computing, and networking. The acquisition
also adds a team of R&D engineers with
high-speed SerDes expertise to help designers
meet their evolving design requirements.
Sterlite Power acquires
Goa-Tamnar Transmission Project
Money Control
Sterlite Power has acquired the Rs 1,500 crore
Goa-Tamnar Transmission Project. The project
will deliver an incremental 400kV feed to Goa
and scale up the transmission network for power
evacuation from generation projects pooled at
Raigarh (Chhattisgarh).
Aspire Systems acquires
Polish IT Services firm Goyello
Times of India
Chennai-based Aspire Systems has acquired
Poland-based Goyello which provides IT
consulting, software development and mobile
solutions to clients in Europe and America. The
acquisition is expected to help Aspire launch
and scale up its nearshore presence in the
European market, with its primary delivery
center based in Poland. Following the
acquisition, Goyello’s team of 120 people will
be joining Aspire’s workforce across Poland and
Netherlands.
With this acquisition, Aspire Systems will have
its second largest development centre in Poland,
after Chennai. The company currently has over
2.300 employees and 120 customers globally.
Supreme Court upholds sale of
Park Hyatt Goa to ITC
Mint
The Supreme Court has upheld the sale of Park Hyatt Goa owned by Blue
Coast Hotels to ITC Ltd by Industrial Financial Corp. of India (IFCI),
against a Bombay High Court order. The SC has directed that the transfer
of the property title be done within six months.
Undone: Edelweiss ends
Rs.250-Cr deal to buy Religare’s securities unit
Mint
Edelweiss Financial Services Ltd’s acquisition
of Religare Enterprises Ltd’s securities
business has fallen through because Religare
failed to get the necessary regulatory
approvals. Edelweiss Financial, the wealth
management unit of Mumbai-based Edelweiss Group
had offered to buy the securities business of
Religare in December 2017 for about INR 250
crore (USD 38.5 million).
Undone: ZEE terminates
9X Media acquisition
Economic Times
Zee Entertainment Enterprises has terminated the
acquisition of music broadcaster 9X Media
announced in October 2017 due to “non-completion
of certain material conditions precedent”.
ZEE had agreed to pick up 100% stake in 9X Media
and its subsidiary INX Music for a total cash
consideration of INR 160 crore. Later, ZEE had
extended the long-stop date to facilitate the
investee entities of 9X Media to comply with
certain conditions for conclusion of the
transaction. New Silk Route, which owns about
80% stake in 9x Media, has been looking to exit
the company since 2013 after first investing in
INX Media, as 9X was formerly known, over 10
years back.
Other Deals
Cut-flower exporter Karuturi
raises funds from Phoenix Group
Business Line
Bengaluru-based Karuturi Global, the world’s largest producer of cut
roses, has raised funding from Singapore-based Phoenix Group to repay
debt and revive the Kenya operations. Karuturi’s Naivasha farm in Kenya
has 500 acres of land with 300 acres of greenhouses valued at over USD
100 million. The farm produces about 33 million roses annually for
export to Europe, accounting for 10% of Kenya’s exports of cut flowers.
Karuturi also has floriculture farming in India and Ethiopia, besides
interests in food processing, retailing and IT. Phoenix operates 10
business verticals in 22 countries.
Debt Financing
Alteria Capital invests INR 8.5
Cr in Fingerlix
Economic Times
Venture Debt firm Alteria Capital has made its first investment in
ready-to-cook food brand Fingerlix. The Mumbai-based startup, which is
backed by Accel Partners and Zephyr Peacock, raised INR 8.5 crore in its
first debt financing exercise. With this, the total capital raised by
Fingerlix reached INR 71.5 crore, including equity and debt.
Fingerlix will use the proceeds to build production capacity for its
existing presence in the country’s top six cities. The firm, which has a
kitchen in Mumbai, will build one in Delhi immediately and follow it up
with another for the southern market. Fingerlix will use a portion of
the fund to also boost its distribution channel and increase presence in
retail and other distribution outlets.
Real Estate
Transactions
Jai Corp's Jains buy sea-view
bungalow La Bonita for Rs.152-Cr
Economic Times
The promoter family of Jai Corp, including Gaurav Jain and his father
Satyapal Jain, have bought La Bonita — a sea-view bungalow in Breach
Candy from the Mehta family, who happen to be Sachin Tendulkar’s
in-laws. The deal is for INR 152 crore, including stamp duty of INR 7.25
crore.
The bungalow, also known as Mehta House, is a ground plus two-storey
structure with built-up area of nearly 20,000 sq ft. It is built on
around one-third of an acre in the country’s most expensive property
location. The transaction involved seven people as sellers, including
Anjali Tendulkar.
Godrej Fund
Management raises $600-M
Business Standard
Godrej Fund Management (GFM), the real estate
private equity arm of the Godrej group, has
raised $600 million in the first phase of two
new funds for investing in office projects.
The “Godrej Build to Core — I” (GBTC-I) fund, a
club-style office investment platform, has
raised $450 million. This will be invested to
develop Grade-A buildings across key locations.
APG Asset Management, which had invested in
other funds managed by GFM, will be the
cornerstone investor of GBTC-I.
The other new fund, “Godrej Office Fund — I”
(GOF-1), a discretionary blind pool, has raised
$150 million. The fund will invest in core and
core-plus offices and commercial properties
across the country.
Lighthouse Fund
raises $200-M third fund
Business Standard
Lighthouse Fund has closed its third round at
USD 200 million, taking total assets under
management to USD 500 million.
Fireside closes
first fund with Rs.340-Cr
Mint
Fireside Ventures, an early-stage venture
capital fund focused on consumer brands, has
closed its first fund with a corpus of INR 340
crore. Fireside is led by Kanwaljit Singh, Vinay
Singh and V.S. Kannan Sitaram. Investors in the
fund include FMCG giants like Unilever Ventures,
Emami Ltd, and ITC Ltd. Other prominent
investors including Premji Invest, Westbridge
Capital, Mariwala Family Office, Sanjiv Goenka
Family Office, and Sunil Munjal’s Hero
Enterprise Investment Office.
The fund also announced a new advisory board
including Amazon India head Amit Agarwal; Harsh
Mariwala, chairman, Marico Ltd; and Sri Rajan,
chairman, Bain & Co. India.
IREO
accused of $147-M fraud
Washington Post
Real estate investment company IREO has been accused of
defrauding its foreign investors to the tune of USD 147
million. Two global investment companies based in New York
and London, that have invested nearly USD 300 million in the
IREO, have filed a criminal complaint with New Delhi Police
last month alleging that the fund’s Indian managing
director, Lalit Goyal, co-founder Anurag Bhargava and others
were engaged in “large-scale fraud” by “illegally siphoning
off” at least USD 147 million of investors’ money.
Sequoia to cut
India fund size by 25%
Times of India
Venture Capital firm Sequoia is trimming the
size of its latest India fund by almost 25%.
Sequoia Capital was set to raise USD 650-700
million, which would be deployed across
internet, consumer and healthcare companies in
India as well as in Southeast Asia.
SoftBank
Managing Partner Kabir Misra exits Snapdeal board
Business Standard
SoftBank Capital’s managing partner Kabir Misra has exited
the board of beleaguered e-commerce firm Snapdeal. Misra was
appointed on the Snapdeal board last year to steer the
merger with Flipkart. The move fell apart in the face of
stiff opposition from many other shareholders.
VI
Updates
Media Mentions
Startup go back to known
investors for double dip:
The Times of India
A Times of India article quotes Venture Intelligence data:
UrbanLadder raised $12 million from 4 existing investors in January this
year. In November last year, Accel
Partners pumped in Rs 100
crore
into their portfolio company Universal Sports Biz, Venture Intelligence
data said.
Fireside Ventures closes
first fund at Rs 340 crore backed by PremjiInvest, Unilever, ITC &
others:
The Economic Times
An ET article quotes Venture Intelligence data on fund raising by
consumer focused funds:
2017 alone saw investments worth $337 million in this sector, an almost
160% increase from 2016 and a 60% rise from 2015, data from Venture
Intelligence shows.
High Stakes:
Outlook Business
An Outlook Business' article on Private Equity investments and exits in
2017 quotes Venture Intelligence data:
Spark Capital
is one of India’s leading mid-market,
full-service Investment Banks. Having our
genesis from the south in 2001 and now
having a pan-India presence, we offer
services encompassing Investment Banking,
Institutional Equities, Fixed Income
Advisory and Wealth Advisory. Our key
differentiator is the ability to offer
services that benefit from an amalgam of the
experience of our founding members and the
contemporary thinking of our young
leadership team. Our core values of
integrity; putting customers first; and
seeking partnerships that are mutually
beneficial, help us build sustainable,
long-term relationships with clients. Our
services include equity and debt capital
raising in private and public markets; M&A
advisory; research-led public-market stock
ideation; and customised wealth advisory
solutions. Sectors where we have built
considerable domain strength and transaction
experiences are BFSI, Healthcare, Consumer,
Technology, Infrastructure and Industrials.
Our commitment to staying the course with
respect to our core values; our strong
entrepreneurial culture; an ability to
attract and retain high quality talent; and
our gradual expansion of markets and
services has served as cornerstones of our
evolution. Over the past three years, we
have advised on over 30 deals aggregating to
USD 1.8 billion; scaled up research coverage
to over 200 listed stocks; and rapidly grown
assets-under-advice on the back of
above-market performance of client
portfolios.
For more details please visit
www.sparkcapital.in
IHH bid values Medanta at about Rs.5,600-Cr
Mint
Malaysia’s IHH Healthcare Bhd has submitted a
bid to buy a controlling stake in Medanta-The
Medicity super specialty hospital.The bid values
the premier hospital at INR 5,500-5,700 crore
US-based private equity fund Carlyle Group owns
27% in Gurugram-based Medanta, while Singapore’s
Temasek Holdings Pte holds 18%. Cardiac surgeon
Naresh Trehan, his family and Medanta co-founder
Sunil Sachdeva own the rest
Oyo
in talks to raise $800-M from SoftBank,
others
Mint
Hotel rooms aggregator Oyo Rooms has
initiated talks to raise USD 500-800 million
in fresh funding. Oravel Stays Pvt. Ltd,
which operates Oyo Rooms, is in early talks
with existing investors led by SoftBank
Group and two new investors to raise its
next round.
In September, Oyo had raised USD 250
million, mostly from SoftBank Vision Fund.
Sunil Munjal-led Hero Enterprise had also
invested in the round, along with Oyo’s
previous shareholders Sequoia India,
Lightspeed Venture Partners and Greenoaks
Capital.
Aavishkaar-Intellecap Group to raise $75-M
Mint
Aavishkaar-Intellecap Group plans to raise as
much as USD 75 million in the next few months to
fund growth of its various businesses and to
invest in new ones. The Impact investing-focused
group operates its equity funds business through
Aavishkaar Venture Management Services;
investment banking, consulting and research
through Intellecap; extending working capital
and business loans to small and medium
enterprises through Intellecash, venture debt
through Intellecap and microfinance lending
through Arohan.
The capital will be used to fund businesses such
as IntelleGrow, a lender to small businesses,
and Tribe, an early-stage fintech company within
the group. The group is currently raising a USD
200 million India-dedicated fund and has started
formal talks to raise its first Africa fund.
Video sharing platform VuLiv to raise
$4-M in pre-series A funding
Economic Times
VuLiv, a tech-based media player startup,
which allows its users to view and share
on-device video content without internet, is
in talks with strategic investors to raise
USD 3-4 million in pre-Series A funding. The
money raised will be used as a growth fund
to launch new products and unlock global
value.
KKR, Carlyle, Gen Atlantic, others in
race to buy controlling stake in Pepe Jeans
India
Economic Times
Five global private equity funds including
KKR, Carlyle, General Atlantic and
Malaysia’s sovereign fund Khazanah have
submitted non-binding offers to purchase a
controlling stake in the Indian arm of Pepe
Jeans. The parent company of Pepe Jeans
India is seeking a valuation of INR 2,000
crore for the Indian business. Kotak IB
is advising the global parent on the
divestment of the Indian unit. Pepe operates
more than 200 branded outlets in India —
most of them franchisee-run — and its
products are also sold through more than
1,500 multi-brand outlets.
Tata Capital looking to exit Sai Life Sciences;
top PE funds in the race
Economic Times
Tata Capital is looking to exit the
Hyderabad-headquartered Sai Life Sciences in
which it has a 35% stake. Bulge-bracket private
equity funds have lined up for the proposed
transaction. Sai Life Sciences is among the best
performing companies in Tata Capital's
portfolio. It is a contract development and
manufacturing organization focused on providing
innovator pharma companies with drug discovery,
CMC development and CGMP commercial scale
manufacturing services.
The PE funds that are known to have expressed
interest in the company include General
Atlantic, Warburg Pincus, Apax Partners, Temasek
and True North. These funds have been
shortlisted for the due diligence stage.
Non-binding offers have given Sai Life Sciences
an equity value of INR 1500-1600 crore. Tata
Capital had picked up a minority stake at the
Sai Life Sciences for INR 185 crore in 2014 .
Investment bank Jefferies is running the
stake sale process.
IPOs
Warburg Pincus set to part exit via Lemon
Tree Hotels’ IPO
Mint
Buyout firm Warburg Pincus is set to make a
partial exit from its almost 12-year-old
investment in Lemon Tree Hotels Ltd, as the
company prepares to launch its initial
public offering (IPO) at the end of this
month. Lemon Tree Hotels will launch its INR
1,039 crore IPO on 26 March. The hotel
operator has set a price band of INR 54-56
per share for the IPO. At the upper end of
the price band, the share sale values the
company at INR 4,403 crore.
Warburg Pincus, which had invested
approximately INR 300 crore in 2006 for a
24% stake in the company, is selling a 12%
stake in the company through the IPO. At the
upper end of the price band, Warburg will
garner INR 529 crore (approx $81.2 million)
from the share sale.
As of 31 January, Lemon Tree operated 4,697
rooms in 45 hotels (including managed
hotels) across 28 cities in India. For nine
months ended 31 December 2017, Lemon Tree
reported a net profit of INR 12.59 crore on
a total revenue of INR 174.31 crore.
Aavas Financiers in talks with investment banks
to go public
Mint
Mortgage lender Aavas Financiers Ltd is in talks
with investment banks for an initial public
offering (IPO). The proposed IPO will include a
mix of primary and secondary share sale, with
existing investors Kedaara and Partners Group
selling part of their stakes. Aavas, earlier
known as AU Housing Finance, was the housing
finance business of Jaipur-based small finance
bank AU Small Finance Bank Ltd. In February
2016, Swiss investment firms Partners Group and
Kedaara Capital acquired it for INR 900-1,000
crore. In FY17, Aavas reported a revenue of INR
313.9 crore and a profit of INR 57.8 crore.
M&A
Debt-laden Ruchi Soya attracts bids up to
Rs.10,000-Cr for 51% stake
Business Line
Ruchi Soya Industries Ltd (RSIL), which is
currently undergoing bankruptcy proceedings,
has received 26 applications from Indian and
foreign conglomerates to acquire a 51% stake
in the company. The bidders are quoting
anywhere between INR 8,000 crore and INR
10,000 crore for 51% stake in the edible
oil-maker. Ruchi Soya had a total debt of
about INR 12,000 crore as of December 31,
2017.
The bidders include ITC, Patanjali Ayurved,
Emami Group, Sakuma Exports, Phoenix ARC,
AION Capital Partners, 3F Oil Palm Agrotech
and Singapore-based Musim Mas. Global
investment firm KKR, Indian subsidiary of
US-based Cargill Corp, Singaporean palm oil
company Golden-Agri Resources and Malaysia’s
Sime Darby Bhd are also in the race.
UltraTech offers Rs.7,266 Cr for 98.43%
stake in Binani Cement
BSE
Publicly listed UltraTech Cement has agreed
to pay INR 7,266 crore in return for 98.43%
stake in Binani Cement subject to
termination of IBC Proceedings and other
clearances.
IDFC looks to exit asset mgmt biz in Rs.4,000-Cr
deal: report
Times of India
IDFC has begun discussions with IndusInd Bank
and Citic CLSA, among others, to merge or sell
its asset management company (AMC). PE firm Apax
Partners too has reportedly evinced early
interest to pursue a deal. IDFC is expected to
ask for a Rs 4,000-crore payout — almost 6% of
the assets under management.
SC stays RCom sale to Jio; agrees to hear
SBI’s plea
Times of India
The Supreme Court stayed the sale of assets
of Anil Ambani-promoted RCom Consolidated to
elder brother Mukesh Ambani-promoted
Reliance Jio Infocomm (Jio) in view of who
should be refunded first out of the money
raised from the deal — banks who have lent
money to RCom, or Ericsson.
SBI had challenged a tribunal’s order, which
was upheld by the Bombay High Court,
allowing Ericsson to stake a claim on RCom’s
assets. RCom owes Indian lenders INR 42,000
crore. SBI argued that as a secured lender,
its claim took precedence over others. RCom
Consolidated incorporates ADAG’s Reliance
Communications, Reliance Infratel and
Reliance Telecom. Apart from SBI, 24 other
Indian lenders constitute the Joint Lenders
Forum. They had initiated a sale through
bidding for RCom Consolidated’s assets.
Orchid Pharma gets three final bids at par with
liquidation value
Economic Times
Ingen Capital, Fidelity Trading Corporation and
Union Quimico Farmacéutica are in the final race
to acquire distressed drug maker Orchid Pharma.
The offers made by all of them are at par with
the liquidation value of the company. Orchid
Pharma, which is facing financial claims of INR
3,500 crore, exports active pharmaceutical
ingredients (APIs) of antibiotics and has two US
Food and Drug Administration approved
manufacturing plants. It was referred to
bankruptcy court by Lakshmi Vilas Bank (LVB) in
the middle of last year.
Edelweiss, Hero Future eye Atha Group’s
solar assets
Economic Times
Edelweiss Group and Hero Future Energies are
among the bidders for solar assets of close
to 190 mw project capacity belonging to the
Kolkata-based Atha Group’s renewable energy
arm AMPL Cleantech. The assets include eight
solar assets across various locations
including Rajasthan, Karnataka, Maharashtra,
Telangana and Madhya Pradesh up for
evaluation.
New Ventures
Arvind in automotive fabrics JV with Adient
BSE
Publicly listed Arvind Ltd has formed a JV with
global automotive seating player Adient to
manufacture automotive fabrics. The joint
venture - Adient Arvind Automotive Fabrics -
will have its manufacturing base in Ahmedabad.
Adient will hold a 50.5% stake.
Nalco, Canada's Almex to set up JV in Odisha
Business Standard
National Aluminium Company Ltd (Nalco) is to
form a joint venture with Ontario (Canada)-based
Almex for the production of automotive-grade
aluminium. The project, estimated to cost INR
2500 crore, will come up at the downstream
aluminium park at Angul (Odisha) in the vicinity
of Nalco’s aluminium smelting unit. Nalco will
have the majority stake in the JV, which have an
annual production capacity of 60,000 tonnes.
India Ahoy!
Music streaming service Spotify to launch in
India
Business Standard
The world’s largest music streaming service,
Spotify, is looking to bring its service to
India, as it looks to boost growth and stay
ahead of rival Apple. The company has leased
office space in Mumbai. The company has also
made ex-Googler Akshat Harbola as its Head of
Market Operations in India.
People
Balesh Sharma to head the Vodafone-Idea
merged entity
BSE
The new entity that will be formed by the
merger of Vodafone India and Idea Cellular
Ltd will be headed by Balesh Sharma as the
CEO. Sharma is currently the chief operating
officer (COO) of Vodafone India. Akshaya
Moondra, currently the chief financial
officer at Idea Cellular, will be the CFO
and Ambrish Jain, currently deputy managing
director at Idea, will take over as COO of
the merged entity.
Vodafone India CEO Sunil Sood will join
Vodafone Group Plc’s Africa, Middle East &
Asia-Pacific leadership team.
Axis Bank senior executives Sidharth Rath, V.
Srinivasan resign: report
Mint
Sidharth Rath, head of corporate and transaction
banking, and V. Srinivasan, deputy managing
director at Axis Bank Ltd have quit. Rath’s exit
followed the hiring of S.M. Sundaresan, formerly
head of corporate banking at Standard Chartered,
as head of corporate banking at Axis Bank.
Srinivasan, who joined Axis Bank as executive
director-corporate banking in 2009, was elevated
as a director in October 2012. Earlier, he was
managing director and head of markets with J.P.
Morgan India.
Reliance ARC appoints Ravindra Rao as CEO
Business Standard
Reliance Asset Reconstruction Co (ARC), part of
Reliance Capital, has appointed Ravindra Rao as
its new Chief Executive Officer. Rao has taken
over as CEO from Asokan Arumugam..Rao was
earlier with Fullerton India, where his last
assignment was that of the CEO of the home
finance subsidiary.
Bharucha Delhi corporate partner Arjun Anand
joins Singhania
Legally India
Bharucha & Partners Delhi partner Arjun Anand
has joined Singhania & Partners as a partner. He
specialises in M&A and transactional law.
Former Tata Group GC Bharat Vasani joins CAM as
corporate partner
Press Release,
Economic Times
Bharat Vasani, former general counsel of Tata
group, has joined leading full service law firm
Cyril Amarchand Mangaldas as a corporate partner
of the firm. He will be based out of the firm's
Mumbai office. Prior to this, Bharat Vasani was
Legal Advisor to the Tata Group Chairman. His
areas of specialization include company law,
corporate and commercial laws, securities law,
capital market transactions, M&A transactions,
JVs, competition Law, employment Law and
property matters.
Regulatory News
Govt asks NBFCs to register with
financial intelligence unit
Mint
The government asked non banking financial
companies (NBFCs) to register with the
country’s financial intelligence unit (FIU-IND)
and report details of clients as per the
requirements under the Prevention of Money
Laundering Act.
Bankruptcy
PNB takes Hanung Toys to NCLT for Rs.2600-Cr in
outstanding loans
Economic Times
Punjab National Bank (PNB) is taking Hanung Toys
& Textiles, an NCR-based soft toys and home
furnishing company, to the bankruptcy court for
unpaid loans totaling INR 2,600 crore. The
corporate debt restructuring plan crafted
three-years ago failed to take off. This has led
to an increase in outstanding dues to INR 2,600
crore. There are about 15 lenders to the
company.
Bidders may be able to make only up to
30% bullet payment for stressed cos
Economic Times
The insolvency and bankruptcy regulator is
set to suggest that at least 70% of the
payment by the bidder of a company in the
bankruptcy proceeding be paid on a regular
basis and the remaining 30% be paid in the
form of bullet payment as a final payment by
the bidder to qualify for bidding. This is
indicated in a draft report on the
evaluation criteria of bids for bankrupt
companies prepared by the Insolvency and
Bankruptcy Board of India. The draft has
suggested that 70% of weightage should be
given to quantitative criteria which
includes upfront cash payment and fresh
capital infusion. The risk weightage for
qualitative criteria is 30% which include
reasonableness of financial projections,
track record, financial strength and prior
experience.
Varun Resources faces liquidation as
lenders reject resolution plan
Business Line
A clutch of 12 banks led by State Bank of
India has decided to liquidate Varun
Resources Ltd – once India’s biggest
liquefied petroleum gas (LPG) ship owner —
to recover dues worth some INR 2,000 crore,
after rejecting a resolution plan submitted
by a third party. The lenders’ decision
means that eight LPG carriers of Varun
Resources will be sold either through the
NCLT process or will have to be auctioned
through the Admiralty Law process, because
the ships have been “arrested” by the
Admiralty court at the behest of the crew
and the ships’ then manager – Fleet Ship
Management Inc — to recover their dues.
SBI Hong Kong branch challenges Binani Cement
resolution
Economic Times
State Bank of India’s (SBI) Hong Kong branch has
challenged the lenders’ decision to declare
Dalmia Bharat-Bain Piramal consortium the winner
for Binani Cement. This, together with
UltraTech’s renewed bid for Binani Cement has
added another chapter to the ever-changing
bidding script. SBI’s Hong Kong branch had given
a loan to a subsidiary of Binani Cement which
was guaranteed by the parent company. However,
the resolution plan approved by the lenders
provides for paying only 10% of the amount dues
which SBI HK is opposing.
Panel may favour giving NCLT power to halt
resolution
Economic Times
The panel reviewing the Insolvency and
Bankruptcy Code (IBC) may suggest that the
National Company Law Tribunal (NCLT) should be
empowered to halt resolution proceedings if
lenders agree. Currently, only the Supreme Court
can exercise powers under Article 142 of the
Constitution in cases that are pending in the
NCLT. The panel’s recommendation of 90% lender
support effectively gives likely buyers an
opportunity to enter into one-time settlement
with banks, operational creditors and employees
while bankruptcy proceedings are on.
Electrosteel bid: NCLT pulls up
resolution professional
Times of India
The National Company Law Tribunal (NCLT) has
ordered the resolution professional dealing
with Electrosteel Steels to communicate the
reasons for deciding the eligibility of two
bidders- Tata Steel and Vedanta - in three
days to Renaissance Steel India, which had
challenged the decision. The resolution
professional should record the reasons for
deciding on any issue during the course of
the process to select a resolution applicant
for a company facing insolvency. It then
went on to pull up the resolution
professional for not providing proof in
support of his decisions.
Renaissance Steel was among the four bidders
for Electrosteel and had challenged the
eligibility of the other bidders arguing
that Vedanta and Tata Steel had been found
to be guilty in cases related to their
operations in Zambia and the UK,
respectively.
VISA Steel gets interim stay on insolvency
proceedings
Economic Times
The Orissa High Court has granted an interim
stay on corporate insolvency resolution
proceedings against VISA Steel, a special-steel
producer, until its next hearing on April 12.
State Bank of India (SBI) had moved the NCLT to
initiate proceedings against the loss-making
firm under the Insolvency and Bankruptcy Code,
2016.
UltraTech challenges Binani sale to
Dalmia
Economic Times
UltraTech Cement is gearing up to challenge
the lenders' decision to pick its rival,
Dalmia Bharat as the winning bidder for
Binani Cement. UltraTech’s contention is
that its revised bid of INR 7,266 crore with
payment of 100% of unsecured creditors (up
by over INR 700 crore) should be included in
the final shortlist. UltraTech Cement had
submitted the revised bids with the National
Company Law Tribunal (NCLT) after the
Committee of Creditors, in its last meeting,
chose Dalmia Bharat-led consortium's offer
of INR 6,750 crore.
UK firm Liberty House’s bid for ABG
rejected
Economic Times
The lenders to ABG Shipyard, led by ICICI
Bank, have rejected the only bid they
received, from Liberty House, prompting the
resolution professional to opt for yet
another round of bidding. The new deadline
to submit binding bids is March 26. In the
last two occasions, London-based metals
group Liberty House was the only bidder for
bankrupt ABG Shipyard, which owes banks INR
18,245 crore. The bid failed to meet
lenders’ expectation following which a
decision was made to invite fresh bids.
Essar Steel’s lenders reject
ArcelorMittal, Numetal bids
Mint
Lenders to Essar Steel Ltd have decided to
reopen bidding for the debt-ridden steel
maker after declaring ArcelorMittal and
Numetal Mauritius Ltd ineligible. Bidding
will be open to all six companies which had
submitted expressions of interest in Essar
Steel in the first round of bidding.
ArcelorMittal and Numetal can also bid
provided they take “corrective action”. The
tentative deadline for fresh bids is 2
April.
Binani Cement RP moves court alleging
Rs.2400-Cr fraudulent transactions
Economic Times
In a fresh twist to the ongoing takeover
battle over Binani Cement resolution
professional (RP) Vijaykumar V Iyer has
moved the National Company Law Tribunal (NCLT),
Kolkata, alleging fraudulent transactions of
about INR 2,400 crore involving the
“corporate debtor” (Binani Cement) that are
“undervalued, extortionate, preferential.”
The RP has asked the court to take action
and “appoint an appropriate investigation
agency to investigate the directors of
Binani Cement and the counter parties.”
Sebi may impose trading curbs on cos undergoing
insolvency proceedings
Business Standard
The Securities and Exchange Board of India (Sebi)
may impose trading restrictions on shares of
companies that are undergoing insolvency
proceedings. The move is aimed at reducing
volatility in stock prices and curbing
manipulation of price-sensitive information. The
Sebi board may also announce more checks and
balances on algorithmic (algo) trading,
reduction of mutual fund costs and changes in
buyback and takeover regulations. Sebi is likely
to propose new rules for fiduciaries, such as
lawyers and chartered accountants, dealing in
the securities market but who are not registered
with the market regulator. Sebi will allow the
new promoters to breach the 75% shareholding cap
in order to infuse equity into the company. Sebi
could mandate higher disclosures prior to
debtors moving the National Company Law Tribunal
(NCLT).
Others
CBI books Totem Infrastructure in
Rs.1,394-Cr bank loan fraud
Business Standard
The CBI has booked Hyderabad-based
construction and infrastructure company
Totem Infrastructure Ltd, for allegedly
defrauding a consortium of eight banks to
the tune of over INR 1394 crore. Totem
worked as a subcontractor for several major
infrastructure companies. Its promoters
Tottempudi Salalith and Tottempudi Kavita
were named in a CBI FIR, registered on the
basis of a complaint from the Union Bank of
India.
Online marketplace ShopClues fires 50
Economic Times
Online marketplace ShopClues has laid off
between 45-50 employees across multiple
functions. The layoffs were made taking into
account individual performances. The firm’s
employee strength is believed to be between
1,150-1,200.
Solar auctions in Maharashtra, Karnataka put off
due to lack of bidders
Economic Times
Two recent solar auctions – one in Maharashtra
and the other in Karnataka – have failed to
attract enough bidders, leading to their
repeated postponement.
Maharashtra’s latest 1,000 MW solar auction
received bids of only 530 MW and thus had to be
postponed for the fourth time. Karnataka’s 1,200
MW auction for projects at the Pavagada Solar
Park drew bids of only 550 MW at the second
effort. With over 90% of solar equipment being
imported, solar developers have become cautious
ever since the Directorate of Safeguard Duty,
reacting to a complaint from local solar
manufacturers, proposed imposing 70% safeguard
duty on imported solar panels in January this
year on the grounds that such imports were
crippling local industry.
Essar Steel lenders to take a call on offers
made by Numetal, ArcelorMittal
Business Standard
The lenders of Essar Steel are to take a call on
the two offers made by Numetal Mauritius, a VTB
Bank of Russia-owned company and ArcelorMittal.
Both the bids are likely to be rejected with
lenders planning to seek second round of
bidding.
ArcelorMittal failed to clear the legal
eligibility test as the company and its promoter
LN Mittal had investments in two non-performing
assets in India - Uttam Galva Steels and KSS
Petron, respectively. Numetal bid may not clear
the eligibility test as 25% stake is held by a
trust in which a Ruia family member is a
beneficiary.
Global activist investor Elliott sets sights on
Fortis Healthcare
Times of India
The world’s largest activist investor Elliott
Management, which has caused several top
management exits and selloffs through activist
boardroom interventions, is mopping up Fortis
shares in a rare show of interest in a public
company traded solely on Indian exchanges.
The New York-based Elliott, which manages about
USD 40 billion globally, has taken on several
American and European corporate heavyweights in
its 40-year history, including Warren Buffett
when it blocked Berkshire Hathaway’s takeover of
energy company Oncor last year. It has scaled up
activist investments outside the US with
campaigns in 50-odd companies across 14
countries.
Cricketer Rahul Dravid lodges complaint against
Bangalore-based investment co
Mint
Former Indian cricket team captain Rahul Dravid
has lodged a complaint against a Bengaluru-based
Vikram Investment Company for cheating him of
INR 4 crore. He claims to have invested INR 20
crore in the company in 2014 on assurance of
getting higher returns, but was yet to get back
INR 4 crore to match his principal investment.
Ola, Uber drivers go on strike; impact
restricted mainly to Maharashtra
Business Today
Driver partners of cab-hailing firms Uber
and Ola - led by Maharashtra Navnirman
Vahtuk Sena, the transport wing of
Maharashtra Navnirman Sena - have gone on a
strike. While this indefinite strike was
expected to have impact across the country,
it has only affected business mainly in
Mumbai and Pune.
The strike has been called primarily because
drivers aren't earning enough to make ends
meet despite working for long hours every
day. According to reports, drivers in Uber
and Ola make around Rs 25,000-30,000 every
month, which is a far cry from what they
were reportedly promised initially. Another
pertinent issue plaguing the drivers is the
hike in fuel prices and the companies
reducing rates to attract more customers.
Economic Laws Practice
("ELP") is a leading full-service Indian law
firm established in the year 2001 by eminent
lawyers from diverse fields. The firm’s
Private Equity & Venture Capital practice
brings onboard a unique understanding of
commercial matters and legalese to be able
to provide effective solutions to all
stakeholders in a transaction. The team
looks at providing a bespoke legal service
experience, which is sector agnostic in
nature and driven towards successful
consummation of the relevant transactions.
ELP advises clients on all aspects of
private equity and venture capital
transactions, whether from a fund formation
perspective or a potential portfolio
investment or a relevant exit transaction.
Our services include right from
conceptualising a structure, to conducting
the legal due diligence exercise, to the
preparation of the relevant documentation,
to providing assistance to the final closure
including negotiations and corporate
secretarial assistance.
ELP is the firm of choice for clients
because of its in-depth expertise,
continuous availability, geographic reach,
transparent approach, competitive pricing
and most importantly the involvement of
partners in every assignment.
“Avalon Consulting, among Asia’s top-rated consulting firms, is proud to announce a partnership with Cordence Worldwide. With this partnership, Avalon becomes the 11th member firm of the partnership, which now has 3000+ professionals, a presence in 23 countries through 70+ network offices around the world. For more details click here”
Founded in 1989, Avalon Consulting is an international management consulting firm that offers services in growth strategy, business transformation and transaction support to clients across a wide range of sectors including Agribusiness, Automotive, Chemicals, Construction, Education, Engineering, FMCG, Healthcare, Pharmaceuticals and Retail. It has offices in Mumbai, Delhi, Chennai, Bangalore and Singapore serving clients across India, Middle East, South East Asia, China, Europe and the US. Avalon Consulting is a member firm of Cordence Worldwide, a global management consulting partnership.
Connect with Avalon Consulting on Twitter, Facebook and LinkedIn to receive interesting insights and updates.
Basiz is a high end and
specialized fund accounting service provider
with international footprints, with offices
in Mumbai, Chennai and Coimbatore in India,
besides Singapore, London and New York.
Basiz primarily focuses on servicing Fund
administrators, Hedge Funds, Mutual Funds,
Private Equity / Venture Capital Funds,
Family Offices, REIT Funds, Insurance
Portfolios and Managed Accounts.
Contact Information
Sesh A.V ACA, Managing Director
Basiz Fund Services Pvt. Ltd
M: +918286008554, E:
sesha@basizfa.com
http://www.basizfa.com
Spark Capital
is one of India’s leading mid-market,
full-service Investment Banks. Having our
genesis from the south in 2001 and now
having a pan-India presence, we offer
services encompassing Investment Banking,
Institutional Equities, Fixed Income
Advisory and Wealth Advisory. Our key
differentiator is the ability to offer
services that benefit from an amalgam of the
experience of our founding members and the
contemporary thinking of our young
leadership team. Our core values of
integrity; putting customers first; and
seeking partnerships that are mutually
beneficial, help us build sustainable,
long-term relationships with clients. Our
services include equity and debt capital
raising in private and public markets; M&A
advisory; research-led public-market stock
ideation; and customised wealth advisory
solutions. Sectors where we have built
considerable domain strength and transaction
experiences are BFSI, Healthcare, Consumer,
Technology, Infrastructure and Industrials.
Our commitment to staying the course with
respect to our core values; our strong
entrepreneurial culture; an ability to
attract and retain high quality talent; and
our gradual expansion of markets and
services has served as cornerstones of our
evolution. Over the past three years, we
have advised on over 30 deals aggregating to
USD 1.8 billion; scaled up research coverage
to over 200 listed stocks; and rapidly grown
assets-under-advice on the back of
above-market performance of client
portfolios.
For more details please visit
www.sparkcapital.in
Technology Holdings is an M&A and strategic advisory group that assists companies and private equity funds globally with their acquisition, growth and exit strategies. We are exclusively focused on creating strategic transactions for IT Services & BPO, Technology & SaaS, Analytics, Digital Transformation, Healthcare IT/BPO and Engineering Services companies. Technology Holdings has offices across India, USA and the UK.
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For more information, please visit:
http://www.technology-holdings.com/
Write to us at:
anurag@technology-holdings.com
or call us at +91-9108671235
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