Coimbatore: IIFL Wealth Management Ltd (IIFL Wealth) has announced the acquisition of a majority stake in India Alternatives Investment Advisors, the investment manager to India Alternatives Private Equity Fund (India Alt Fund).
IIFL Group has also committed a significant contribution to India Alt Fund. India Alt Fund, a private equity (PE) fund registered with market regulator SEBI, with an initial commitment of Rs 230 crore, invests primarily in mid-growth stage companies.
"This acquisition will enable IIFL Group to widen its presence in the PE industry and provide an added offering under the asset management platform," said Nirmal Jain, chairman of IIFL Group.
"IIFL's fund raising capabilities and relationships with marquee families will help India Alt accelerate its growth path," said Karan Bhagat, MD & CEO of IIFL Wealth. The fund, a 100% institutional fund, plans to accelerate its pace of investment in mid-growth stage companies across sectors particularly in consumer & consumables, healthcare and pharmaceuticals.
Advisors of the India Alt Fund consist of eminent professionals such as Ranjana Kumar (ex-CMD of Indian Bank and NABARD and ex-vigilance commissioner, CVC), Kiran Nadkarni (managed four funds and started ICICI Ventures in India) and Anjani Jain (senior associate dean, Yale School of Management and former vice dean, Wharton).
"Association with IIFL Group is synergistic and will strengthen the India Alt platform, especially in fund raising, deal sourcing and exit management capabilities," said Shivani Bhasin Sachdeva, founder, MD and CEO, India Alt Fund.
IIFL Wealth Management, the private wealth management arm of IIFL Group, advises high net-worth individuals (HNIs) and ultra HNIs and manages assets to the tune of over Rs 55,000 crore.
Success in my Habit
Wednesday, April 9, 2014
Reliance Jio, RCom eye more infra pacts
Mumbai: Mukesh Ambani’s telecom venture Reliance Jio Infocomm is in talks with the Anil Ambani-led Reliance Communications (RCom) to share the latter’s comprehensive retail network across the country.
While announcing its third pact on Monday in which RCom will share its intra-city optic fibre backbone with Jio, a wholly owned subsidiary of Reliance Industries (RIL), the company said it is looking at many other areas of partnership. This deal could earn RCom as much as Rs 5,000 crore spread over the entire life of the cable, which could be around 15 years. According to sources, the talks are centred around Reliance Jio sharing RCom’s retail network so that Jio can use RCom’s consumer touch points to market its products as well as collect bills.
"There are so many areas which could be explored. Reliance Industries does not have a huge consumer-reach like Reliance Communications or other group companies like Reliance Infrastructure," said an official from Reliance Communications. Reliance Infrastructure distributes electricity in Delhi and Mumbai. RCom has 3,000 stores across the country and is also present across 600,000 multi-brand outlets.
RCom, which also has a data centre facility at its Navi Mumbai campus, which it can leverage for Reliance Jio. "They (Jio) will need someone to manage their data centre and also there are more areas like customer care," said the company official.
Analysts believe both the companies can look at their collective approach to get and clinch better deals. “They can jointly bid for future infrastructure procurement or jointly bid for handsets to get an attractive price,” said Mahantesh Marilinga, senior telecom analyst at Finquest.
RCom is already eyeing device play to market its third generation data services with their Zero Bill plan. Apart from the latest Apple iPhone 5 series, the operator is eyeing a variety of devices to make custom-made bill plans.
The three deals signed by Jio with RCom until now are related to infrastructure where the former will share the latter’s cable network within cities.
"Reliance Jio Infocomm will utilise RCom’s nationwide intra-city fibre network for accelerated roll-out of its state-of-the-art 4G services across the country. The agreement is based on arm’s length pricing at prevailing market prices. RCOM’s intra-city optic fiber network extends to nearly 500,000 fibre pair kilometres, across the top more than 300 cities and towns in India," said Jio, in a press release. Jio is looking to offer services such as high-definition TV on the Internet as well as cloud-based healthcare services and storage services, among others.
RIL signed pacts on inter-city and intra-city optic fibre sharing, as well as telecom towers of Reliance Communications. Reliance Jio is still gearing up to launch its 4G-based high-speed data services, which is expected this year. However, Jio has time till 2015 to launch its services, according to the licence conditions of the Wimax spectrum, which was won in 2010.
While announcing its third pact on Monday in which RCom will share its intra-city optic fibre backbone with Jio, a wholly owned subsidiary of Reliance Industries (RIL), the company said it is looking at many other areas of partnership. This deal could earn RCom as much as Rs 5,000 crore spread over the entire life of the cable, which could be around 15 years. According to sources, the talks are centred around Reliance Jio sharing RCom’s retail network so that Jio can use RCom’s consumer touch points to market its products as well as collect bills.
"There are so many areas which could be explored. Reliance Industries does not have a huge consumer-reach like Reliance Communications or other group companies like Reliance Infrastructure," said an official from Reliance Communications. Reliance Infrastructure distributes electricity in Delhi and Mumbai. RCom has 3,000 stores across the country and is also present across 600,000 multi-brand outlets.
RCom, which also has a data centre facility at its Navi Mumbai campus, which it can leverage for Reliance Jio. "They (Jio) will need someone to manage their data centre and also there are more areas like customer care," said the company official.
Analysts believe both the companies can look at their collective approach to get and clinch better deals. “They can jointly bid for future infrastructure procurement or jointly bid for handsets to get an attractive price,” said Mahantesh Marilinga, senior telecom analyst at Finquest.
RCom is already eyeing device play to market its third generation data services with their Zero Bill plan. Apart from the latest Apple iPhone 5 series, the operator is eyeing a variety of devices to make custom-made bill plans.
The three deals signed by Jio with RCom until now are related to infrastructure where the former will share the latter’s cable network within cities.
"Reliance Jio Infocomm will utilise RCom’s nationwide intra-city fibre network for accelerated roll-out of its state-of-the-art 4G services across the country. The agreement is based on arm’s length pricing at prevailing market prices. RCOM’s intra-city optic fiber network extends to nearly 500,000 fibre pair kilometres, across the top more than 300 cities and towns in India," said Jio, in a press release. Jio is looking to offer services such as high-definition TV on the Internet as well as cloud-based healthcare services and storage services, among others.
RIL signed pacts on inter-city and intra-city optic fibre sharing, as well as telecom towers of Reliance Communications. Reliance Jio is still gearing up to launch its 4G-based high-speed data services, which is expected this year. However, Jio has time till 2015 to launch its services, according to the licence conditions of the Wimax spectrum, which was won in 2010.
Ashland opens pharma research facility in Hyderabad
Hyderabad: Ashland Speciality Ingredients, part of Ashland Inc, today opened a centre of excellence focussed on pharmaceuticals in Hyderabad.
The expertise offered here would be pre-dominantly in oral solid dosage form and a range of technical services for drug companies. It is in a leased facility in Alexandria City, near the ICICI Knowledge Park on the outskirts of the city.
With 20 scientists and about 25 Indian customers, the facility is the third for Ashland, said Luis Fernandez-Moreno, President, Ashland Speciality Ingredients. The other two are in Wilmington, Delaware, US and Shanghai in China.
Vast scope
Ashland has invested up to $10 million in India in its two centres of excellence — new pharma in Hyderabad and existing personal care in Mumbai. Investments are into lab equipment and research facilities and not infrastructure building, he told newspersons here.
India promises big opportunities for Ashland’s sectors of global business — coatings and energy, food and beverage, pharma, personal care, construction materials and oilfield service.
"We intend to invest more, expand in human resources and be open to acquisitions and setting up manufacturing units", Fernandez-Moreno said.
Ashland will offer speciality chemicals and industry-leading products, technologies and resources to provide technical solutions to the formulation majors.
With more than 300 employees in the country and a double-digit growth, the US headquartered company will also leverage Indian strengths to grow its global businesses. The company has invested $250 million in Asia since 2007.
"The strengths in oral solid dosage forms — tablets and capsules, delivery of drugs (a major challenge for the industry), enhancing bioavailability, research for materials in injectable drugs will be offered to drug customers.
Globally 70 per cent of our research is in collaboration with customers", said Thomas Durig, Senior Director, Pharma & Nutrition Specialities R&D.
The expertise offered here would be pre-dominantly in oral solid dosage form and a range of technical services for drug companies. It is in a leased facility in Alexandria City, near the ICICI Knowledge Park on the outskirts of the city.
With 20 scientists and about 25 Indian customers, the facility is the third for Ashland, said Luis Fernandez-Moreno, President, Ashland Speciality Ingredients. The other two are in Wilmington, Delaware, US and Shanghai in China.
Vast scope
Ashland has invested up to $10 million in India in its two centres of excellence — new pharma in Hyderabad and existing personal care in Mumbai. Investments are into lab equipment and research facilities and not infrastructure building, he told newspersons here.
India promises big opportunities for Ashland’s sectors of global business — coatings and energy, food and beverage, pharma, personal care, construction materials and oilfield service.
"We intend to invest more, expand in human resources and be open to acquisitions and setting up manufacturing units", Fernandez-Moreno said.
Ashland will offer speciality chemicals and industry-leading products, technologies and resources to provide technical solutions to the formulation majors.
With more than 300 employees in the country and a double-digit growth, the US headquartered company will also leverage Indian strengths to grow its global businesses. The company has invested $250 million in Asia since 2007.
"The strengths in oral solid dosage forms — tablets and capsules, delivery of drugs (a major challenge for the industry), enhancing bioavailability, research for materials in injectable drugs will be offered to drug customers.
Globally 70 per cent of our research is in collaboration with customers", said Thomas Durig, Senior Director, Pharma & Nutrition Specialities R&D.
Sun blazes with $4-billion Ranbaxy buy
Mumbai: Drugmaker Sun Pharma sent ripples across the pharmaceutical industry on Monday morning as it agreed to buy out the troubled Ranbaxy in a $4-billion (including $800-million debt), all-stock deal, in the process creating India’s largest drug company.
The landmark deal also makes the combined Sun-Ranbaxy entity the fifth largest generic drug-maker in the world, with estimated revenues of $4.2 billion for the year ended December 31, 2013.
The mega-deal underlines Sun Pharma Managing Director Dilip Shanghvi’s image as a “risk-taker”, since Ranbaxy is currently under intense scrutiny from the US Food and Drug Administration for compliance lapses at four of its manufacturing facilities in India.
Explaining the deal, Shanghvi said Ranbaxy was distinctive in nature, as it has several attractive brands, strengths and capabilities that can be leveraged.
On whether it would be Sun Pharma’s most challenging acquisition yet, he replied: “It is the largest for sure. I would not say challenging, but interesting …a validation of many of my principles.”
Ranbaxy is owned by Japanese major Daiichi-Sankyo and four of its India-based plants are at present barred from exporting to the US. Daiichi had bought Ranbaxy in 2008 from its erstwhile promoter-family, led by Malvinder and Shivinder Singh.
Arun Sahwney, Ranbaxy’s Managing Director and Chief Executive Officer, said that Sun Pharma was an ideal partner, as it had a good and proven track record of creating significant long-term shareholder value and successfully integrating acquisitions into its growing portfolio of assets.
Sun also indicated, as part of the transaction that “Daiichi Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the recent subpoena which Ranbaxy has received from the United States Attorney for the Toansa facility”. Top Sun Pharma and Ranbaxy executives present at the joint call in Mumbai to announce the transaction, however, did not give details on this.
The transaction is expected to close by the end of calendar year 2014, and Daiichi will get about nine per cent in Sun Pharma, making it the second largest shareholder after the promoter-family. Daiichi will also have the right to a representative on Sun’s board of directors.
Combined force
Shanghvi said the product portfolios of the two companies did not overlap, and as a result, Sun, for instance, could get access to Ranbaxy’s branded and over-the-counter products. The management expects revenues of $250 million and operating synergies three years after the deal is closed with Daiichi.
In the period till the transaction is done, an integration committee with representation from both companies will help iron out issues, Shanghvi said.
Under the agreements, Ranbaxy shareholders will receive a 0.8 Sun Pharma share for each share of Ranbaxy, a company note said.
This exchange ratio represents an implied value of Rs. 457 for each Ranbaxy share, a premium of 18 per cent to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3 per cent to Ranbaxy’s 60-day volume-weighted average share price, in each case, as on April 4, 2014. Sun Pharma’s shares were up nearly 3 per cent to close at Rs. 587.25 on the BSE, while Ranbaxy’s were down a little over 3 per cent at Rs. 445.20.
The transaction will represent a tax-free exchange to Ranbaxy shareholders, who are expected to own around 14 per cent of the combined company.
The proposed transaction has been unanimously approved by the boards of directors at Sun Pharma, Ranbaxy, and Ranbaxy’s controlling shareholder, Daiichi Sankyo. It still requires shareholder and other regulatory approvals.
The landmark deal also makes the combined Sun-Ranbaxy entity the fifth largest generic drug-maker in the world, with estimated revenues of $4.2 billion for the year ended December 31, 2013.
The mega-deal underlines Sun Pharma Managing Director Dilip Shanghvi’s image as a “risk-taker”, since Ranbaxy is currently under intense scrutiny from the US Food and Drug Administration for compliance lapses at four of its manufacturing facilities in India.
Explaining the deal, Shanghvi said Ranbaxy was distinctive in nature, as it has several attractive brands, strengths and capabilities that can be leveraged.
On whether it would be Sun Pharma’s most challenging acquisition yet, he replied: “It is the largest for sure. I would not say challenging, but interesting …a validation of many of my principles.”
Ranbaxy is owned by Japanese major Daiichi-Sankyo and four of its India-based plants are at present barred from exporting to the US. Daiichi had bought Ranbaxy in 2008 from its erstwhile promoter-family, led by Malvinder and Shivinder Singh.
Arun Sahwney, Ranbaxy’s Managing Director and Chief Executive Officer, said that Sun Pharma was an ideal partner, as it had a good and proven track record of creating significant long-term shareholder value and successfully integrating acquisitions into its growing portfolio of assets.
Sun also indicated, as part of the transaction that “Daiichi Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the recent subpoena which Ranbaxy has received from the United States Attorney for the Toansa facility”. Top Sun Pharma and Ranbaxy executives present at the joint call in Mumbai to announce the transaction, however, did not give details on this.
The transaction is expected to close by the end of calendar year 2014, and Daiichi will get about nine per cent in Sun Pharma, making it the second largest shareholder after the promoter-family. Daiichi will also have the right to a representative on Sun’s board of directors.
Combined force
Shanghvi said the product portfolios of the two companies did not overlap, and as a result, Sun, for instance, could get access to Ranbaxy’s branded and over-the-counter products. The management expects revenues of $250 million and operating synergies three years after the deal is closed with Daiichi.
In the period till the transaction is done, an integration committee with representation from both companies will help iron out issues, Shanghvi said.
Under the agreements, Ranbaxy shareholders will receive a 0.8 Sun Pharma share for each share of Ranbaxy, a company note said.
This exchange ratio represents an implied value of Rs. 457 for each Ranbaxy share, a premium of 18 per cent to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3 per cent to Ranbaxy’s 60-day volume-weighted average share price, in each case, as on April 4, 2014. Sun Pharma’s shares were up nearly 3 per cent to close at Rs. 587.25 on the BSE, while Ranbaxy’s were down a little over 3 per cent at Rs. 445.20.
The transaction will represent a tax-free exchange to Ranbaxy shareholders, who are expected to own around 14 per cent of the combined company.
The proposed transaction has been unanimously approved by the boards of directors at Sun Pharma, Ranbaxy, and Ranbaxy’s controlling shareholder, Daiichi Sankyo. It still requires shareholder and other regulatory approvals.
Canada invites Coal India to explore mining opportunities
Kolkata: Canadian High Commissioner in India Stewart Beck on Tuesday met N Kumar, Director (Technical) of Coal India Ltd, to seek investments for coal assets in British Columbia.
Coal is the mainstay of the British Columbian economy, on the west coast of Canada, representing over half of the total mineral production and the single largest export commodity of the province.
Though primarily a producer of metallurgical coal (used in firing blast furnaces for manufacturing steel), the Canadian province also has a fair share of thermal coal assets.
“It was a preliminary discussion. We have already floated a tender for exploring investment opportunities abroad,” Kumar told Business Line .
CIL currently holds interests in two assets in Mozambique acquired through a concession agreement between the African and Indian Governments.
As part of its plan to gainfully utilise the huge cash reserve, the national miner made an attempt in 2009-11 to acquire coal assets abroad. A couple of assets were also short-listed. However, the intricate Government policies on risk mitigation came in the way of striking the deals.
“I think it’s incumbent on the Government that the risk factor is reduced, otherwise this (acquisition plan) is not going to move,” the then coal secretary Alok Perti had said in a conference in Kolkata.
Earlier, at a meeting organised by the CII here, the Canadian High Commissioner said bilateral trade between the two countries is expected to grow 12 per cent in 2014. The Indo-Canadian trade stood at $5.5 billion in 2013.
Coal is the mainstay of the British Columbian economy, on the west coast of Canada, representing over half of the total mineral production and the single largest export commodity of the province.
Though primarily a producer of metallurgical coal (used in firing blast furnaces for manufacturing steel), the Canadian province also has a fair share of thermal coal assets.
“It was a preliminary discussion. We have already floated a tender for exploring investment opportunities abroad,” Kumar told Business Line .
CIL currently holds interests in two assets in Mozambique acquired through a concession agreement between the African and Indian Governments.
As part of its plan to gainfully utilise the huge cash reserve, the national miner made an attempt in 2009-11 to acquire coal assets abroad. A couple of assets were also short-listed. However, the intricate Government policies on risk mitigation came in the way of striking the deals.
“I think it’s incumbent on the Government that the risk factor is reduced, otherwise this (acquisition plan) is not going to move,” the then coal secretary Alok Perti had said in a conference in Kolkata.
Earlier, at a meeting organised by the CII here, the Canadian High Commissioner said bilateral trade between the two countries is expected to grow 12 per cent in 2014. The Indo-Canadian trade stood at $5.5 billion in 2013.
Thursday, April 3, 2014
Ritu Kumar label gets Rs. 100-cr Everstone funding
New Delhi: Private Equity firm Everstone said it will invest Rs. 100 crore for an undisclosed minority stake in the fashion label of designer Ritu Kumar. Ritu Kumar, a known face in India’s fashion fraternity, runs the eponymous premium fashion label.
Sameer Sain, Co-founder and Managing Partner of the Everstone Group, said, “Combining Ritu Kumar’s brand heritage, its strong management team and Everstone’s deep understanding and expertise within this space, Ritu Kumar will be poised for continued success and growth.”
Ritu Kumar, Founder-Director, said equally relevant would be its role in increasing visibility of the ‘Ritu Kumar Label line’. “In the last seven years, we have been developing structures within the company, including sub-brands and product lines, to create scale in the premium and luxury segments. Our requirements from a private equity partner were fairly stringent and in Everstone we believe that we have found excellent partners to grow with,” Amrish Kumar, Director and CEO, Ritu Kumar said.
The designer wear segment has seen much activity due to the opportunities it presents. Moet Hennessy Louis Vuitton or LVMH’s private equity arm, L Capital, owns 40 per cent of premium retailer Genesis Luxury.
Sameer Sain, Co-founder and Managing Partner of the Everstone Group, said, “Combining Ritu Kumar’s brand heritage, its strong management team and Everstone’s deep understanding and expertise within this space, Ritu Kumar will be poised for continued success and growth.”
Ritu Kumar, Founder-Director, said equally relevant would be its role in increasing visibility of the ‘Ritu Kumar Label line’. “In the last seven years, we have been developing structures within the company, including sub-brands and product lines, to create scale in the premium and luxury segments. Our requirements from a private equity partner were fairly stringent and in Everstone we believe that we have found excellent partners to grow with,” Amrish Kumar, Director and CEO, Ritu Kumar said.
The designer wear segment has seen much activity due to the opportunities it presents. Moet Hennessy Louis Vuitton or LVMH’s private equity arm, L Capital, owns 40 per cent of premium retailer Genesis Luxury.
800-MW unit-I of AP Genco’s Krishnapatnam plant goes on stream
Hyderabad: The first unit of 800 MW (2x800 MW) of Sri Damodaram Sanjeevaiah Thermal Power Station in Krishnapatnam has been synchronised with the Power Grid late on March 31. This project being executed by AP Genco is expected to partly ease up the demand supply situation in the State. It is expected to generate 38 million units per day once both the 800 MW units get commissioned.
This is a landmark project for AP Genco as it is the first 800 MW supercritical unit in the State and also first amongst public sector utilities. While the first unit has now been synchronised, second unit is expected to be commissioned by July. This project has been taken up under the mega power policy formulated by the Government. The project has been developed by a special purpose vehicle formed by AP Genco, AP Discoms and Government of Andhra Pradesh.
BHEL, L&T and TPL served as major contractors for AP Genco project and Navayuga Engineering Company executed the sea water related works. The power plant is located at Krishnapatnam, about 25 km Nellore on a 1,170 acre site. Of the coal required for the project, 5 million tonnes per annum (about 71.4 per cent) is from Mahanadi Coalfields Ltd and 2 million tonnes per annum (about 28.6 per cent) is imported coal.
The project is expected to generate 11920 million units per annum. The power project entered into a power purchase agreement in November 2010.
This is a landmark project for AP Genco as it is the first 800 MW supercritical unit in the State and also first amongst public sector utilities. While the first unit has now been synchronised, second unit is expected to be commissioned by July. This project has been taken up under the mega power policy formulated by the Government. The project has been developed by a special purpose vehicle formed by AP Genco, AP Discoms and Government of Andhra Pradesh.
BHEL, L&T and TPL served as major contractors for AP Genco project and Navayuga Engineering Company executed the sea water related works. The power plant is located at Krishnapatnam, about 25 km Nellore on a 1,170 acre site. Of the coal required for the project, 5 million tonnes per annum (about 71.4 per cent) is from Mahanadi Coalfields Ltd and 2 million tonnes per annum (about 28.6 per cent) is imported coal.
The project is expected to generate 11920 million units per annum. The power project entered into a power purchase agreement in November 2010.
Aurobindo Pharma acquires Actavis operations in 7 European countries
Hyderabad: Aurobindo Pharma Ltd has completed the acquisition of certain commercial operations in Western Europe from Actavis Plc. In January this year, the Hyderabad-based Aurobindo Pharma had signed an agreement with Actavis to acquire its personnel, commercial infrastructure, products, marketing authorisations and dossier licence rights in seven European countries for €30 million.
Both companies had also inked a long-term commercial and supply arrangement.
“The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe with a top 10 position in several key markets,’’ Muralidharan, Senior Vice-President of European operations for Aurobindo, said here on Tuesday.
Smooth transition
Aurobindo would work to combine the strength of both enterprises in these markets and to identify and maximise all opportunities.
“We will continue to collaborate with Actavis to ensure business continuity and a smooth transition. In parallel, we will work closely with the acquired management teams to achieve a rapid and successful integration,’’ he added. Aurobindo’s scrip gained 4.67 per cent on BSE on Tuesday to end at Rs. 534.70
Both companies had also inked a long-term commercial and supply arrangement.
“The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe with a top 10 position in several key markets,’’ Muralidharan, Senior Vice-President of European operations for Aurobindo, said here on Tuesday.
Smooth transition
Aurobindo would work to combine the strength of both enterprises in these markets and to identify and maximise all opportunities.
“We will continue to collaborate with Actavis to ensure business continuity and a smooth transition. In parallel, we will work closely with the acquired management teams to achieve a rapid and successful integration,’’ he added. Aurobindo’s scrip gained 4.67 per cent on BSE on Tuesday to end at Rs. 534.70
PE investments double in Q1 of 2014
Chennai: Private equity (PE) firms invested $2.27 billion in the January-March quarter of 2014 compared to $1.18 billion in the same quarter last year, an increase of 93%. The number of deals in the quarter was slightly lower at 89 transactions compared to 103 last year, implying the value per transaction has more than doubled. There were five $100 million or more investments in this quarter against one last year.
On a quarterly basis, the numbers were largely flat as there were 86 deals in the previous quarter worth $2.22 billion, as per data provided by Venture Intelligence, a PE research firm..
Infrastructure dominated other sectors in terms of big-ticket investments with the two largest deals belonging to the sector. Canadian pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ) along with Omani sovereign wealth fund State General Reserve Fund (SGRF) invested 2,000 crore in L&T IDPL, the infrastructure development arm of engineering major Larsen & Toubro. The second largest PE deal involved Canadian pension fund PSP Investments (along with IDFC PE) partnering Abu Dhabi's National Energy Company (Taqa) to buy out two hydel power plants operated by Jaiprakash Power Ventures in the state of Himachal Pradesh. PSP and IDFC will put up a total of 1,960 crore for their 39% and 10% stake respectively, while Taqa will own 51%.
"Brisk activity in infrastructure before elections is really a surprise since it is such a policy driven sector. Pure finance VCs and PEs are in wait and watch mode and this is where large, long term sovereign and pension funds have walked in," said Arun Natarajan, CEO of Venture Intelligence. "Overall, large investments are going through but the middle market is still the same. The situation with initial public offerings has also not changed."
However, Sameer Mehta, director at Atlas Advisory, said that it was a due to expectations of change in government. "A new government led by Modi is seen as more infrastructure-centric compared to Congress' perceived socially-centric stance. These expectations are pulling in investors," said Mehta.
IT accounted for $895 million worth of investments. The big tech deals include the $260 million buyout of the Aditya Birla Group's BPO unit Minacs by CX Partners and Capital Square Partners, the $143 million fifth round raised by e-commerce firm Snapdeal.com which was led by eBay along with existing VC investors and General Atlantic's $100 million investment in healthcare software firm Citius IT. Online classifieds firm Quikr also raised $90 million from eBay and existing PE/VC investors.
"Like last year, when CSS Corp and Hexaware were the major deals, IT has continued to see strong activity. I expect this to continue as it is outward looking with markets abroad. Rupee has also helped them," said Natarajan.
Healthcare witnessed reduced activity. There were only nine deals worth $70 million in the sector with a $20 million as the largest. Mehta of Atlas Advisory said that it was due to cyclical reasons and also because there aren't many prospective firms which can be picked up in the market. "Healthcare is still strong. If there is a good venture, it will get funded," he said.
On a quarterly basis, the numbers were largely flat as there were 86 deals in the previous quarter worth $2.22 billion, as per data provided by Venture Intelligence, a PE research firm..
Infrastructure dominated other sectors in terms of big-ticket investments with the two largest deals belonging to the sector. Canadian pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ) along with Omani sovereign wealth fund State General Reserve Fund (SGRF) invested 2,000 crore in L&T IDPL, the infrastructure development arm of engineering major Larsen & Toubro. The second largest PE deal involved Canadian pension fund PSP Investments (along with IDFC PE) partnering Abu Dhabi's National Energy Company (Taqa) to buy out two hydel power plants operated by Jaiprakash Power Ventures in the state of Himachal Pradesh. PSP and IDFC will put up a total of 1,960 crore for their 39% and 10% stake respectively, while Taqa will own 51%.
"Brisk activity in infrastructure before elections is really a surprise since it is such a policy driven sector. Pure finance VCs and PEs are in wait and watch mode and this is where large, long term sovereign and pension funds have walked in," said Arun Natarajan, CEO of Venture Intelligence. "Overall, large investments are going through but the middle market is still the same. The situation with initial public offerings has also not changed."
However, Sameer Mehta, director at Atlas Advisory, said that it was a due to expectations of change in government. "A new government led by Modi is seen as more infrastructure-centric compared to Congress' perceived socially-centric stance. These expectations are pulling in investors," said Mehta.
IT accounted for $895 million worth of investments. The big tech deals include the $260 million buyout of the Aditya Birla Group's BPO unit Minacs by CX Partners and Capital Square Partners, the $143 million fifth round raised by e-commerce firm Snapdeal.com which was led by eBay along with existing VC investors and General Atlantic's $100 million investment in healthcare software firm Citius IT. Online classifieds firm Quikr also raised $90 million from eBay and existing PE/VC investors.
"Like last year, when CSS Corp and Hexaware were the major deals, IT has continued to see strong activity. I expect this to continue as it is outward looking with markets abroad. Rupee has also helped them," said Natarajan.
Healthcare witnessed reduced activity. There were only nine deals worth $70 million in the sector with a $20 million as the largest. Mehta of Atlas Advisory said that it was due to cyclical reasons and also because there aren't many prospective firms which can be picked up in the market. "Healthcare is still strong. If there is a good venture, it will get funded," he said.
RBI relaxes rough diamond import norms
Mumbai: In a further liberalising of the norms for rough diamond imports, the Reserve Bank of India (RBI) has lifted restrictions on a number of mines abroad, to which advance remittances can be extended for such import of roughs.
Banks may use their own discretion to extend advance remittance to Indian importers in favour of global miners. Based on recommendations from the Gems & Jewellery Export Promotion Council (GJEPC), RBI had in 2007 notified five global miners of roughs — including Diamond Trading Company, UK; Rio Tinto, UK and BHP Billiton, Australia — to which an importer was allowed to make advance remittance without any limit and without a bank guarantee or standby letter of credit for import of roughs. The number was later extended to nine, including Al Rosa and Gokharan from Russia and Endiama EP from Angola.
“Henceforth, we will not notify the names of overseas mining companies from whom an importer may import rough diamonds into India, by way of advance payments, without any limit or bank guarantee or standby letter of credit,” RBI stated on Monday. At present, banks extend remittances to foreign miners on behalf of importers before the dispatch of consignments.
“RBI’s move will help the industry, as we will be able to procure rough diamonds from anywhere. Our hands will be free now,” said Shreyas Doshi, chairman, Shrenuj & Co.
Banks are now permitted to decide on the foreign mining companies to which an importer can make advance payments, without any limit or bank guarantee or standby letter of credit, the circular clarified. RBI cautioned that mining company in question should have recommendations from GJEPC and importers, be a recognised processor of roughs and have a good record.
The advance payment should be transferred directly to the account of the company concerned, not through numbered accounts or otherwise. The regulator has ,however, restricted remittances to any mining company without certification from the Kimberly Process Certification Scheme, established in 2003 by the United Nations to prevent diamond sales from financing war or human rights abuses.
For public sector undertakings, banks may permit the advance remittance with a specific waiver of bank guarantee from the ministry of finance, where the advance payment is equivalent to or exceeds $100,000. Banks are to report all such advances or remittances of over $5 million within 15 days of every six months.
Banks may use their own discretion to extend advance remittance to Indian importers in favour of global miners. Based on recommendations from the Gems & Jewellery Export Promotion Council (GJEPC), RBI had in 2007 notified five global miners of roughs — including Diamond Trading Company, UK; Rio Tinto, UK and BHP Billiton, Australia — to which an importer was allowed to make advance remittance without any limit and without a bank guarantee or standby letter of credit for import of roughs. The number was later extended to nine, including Al Rosa and Gokharan from Russia and Endiama EP from Angola.
“Henceforth, we will not notify the names of overseas mining companies from whom an importer may import rough diamonds into India, by way of advance payments, without any limit or bank guarantee or standby letter of credit,” RBI stated on Monday. At present, banks extend remittances to foreign miners on behalf of importers before the dispatch of consignments.
“RBI’s move will help the industry, as we will be able to procure rough diamonds from anywhere. Our hands will be free now,” said Shreyas Doshi, chairman, Shrenuj & Co.
Banks are now permitted to decide on the foreign mining companies to which an importer can make advance payments, without any limit or bank guarantee or standby letter of credit, the circular clarified. RBI cautioned that mining company in question should have recommendations from GJEPC and importers, be a recognised processor of roughs and have a good record.
The advance payment should be transferred directly to the account of the company concerned, not through numbered accounts or otherwise. The regulator has ,however, restricted remittances to any mining company without certification from the Kimberly Process Certification Scheme, established in 2003 by the United Nations to prevent diamond sales from financing war or human rights abuses.
For public sector undertakings, banks may permit the advance remittance with a specific waiver of bank guarantee from the ministry of finance, where the advance payment is equivalent to or exceeds $100,000. Banks are to report all such advances or remittances of over $5 million within 15 days of every six months.
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