December 2007

Mumbai, MH-based listed stock broking-focused financial services firm India Infoline Ltd. is to divest a 6.5% stake to Singapore-based PE firm Orient Global via a preferential allotment for Rs. 555 crore (approximately $141 million). Orient Global is also to acquire a 10% stake in the company's insurance distribution subsidiary, India Infoline Marketing Service Ltd., for $50 million (Rs. 197 crore).

In November, Orient Global had invested $76.7 million for a 22.5% stake in India Infoline's consumer finance subsidiary, India Infoline Investment Services.

For more information:

http://tinyurl.com/35dcfd

http://www.indiainfoline.com

Done Deals

PE / VC Fund Investments

Reliance Capital AMC to raise $122-M from Eton Park

Reliance Capital Asset Management is to raise about $122.2 million (Rs. 501 crore) from Eton Park in return for a 5% stake. The investment values Reliance Capital at 13% of its assets under management. The funds will be utilized to expand the company's domestic and international expansion.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={35E75576-F833-41A1-B85E-E484AC2057B4}

http://www.reliancecapital.co.in

Almondz to raise $8.5 M from Al Anwar

New Delhi, DL-based listed financial services firm Almondz Global Securities (formerly Allianz Securities) is to raise about $8.5 million (Rs. 34.9 crore) via a preferential allotment of convertible warrants to Oman-based PE firm Al Anwar Holdings SAOG in return for a nearly 15% stake.

SBI Capital Markets and Oman-based Gulf Investment Services advised Al Anwar on the deal.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={31AEAC78-053E-41D6-9793-0148E9C53F48}

http://www.almondzglobal.com

Dunbay may acquire 5% stake in DSE

Dunbay has expressed interest in acquiring a 5% stake in Delhi Stock Exchange (DSE), reports Economic Times. If the deal is cleared by the Foreign Investment Promotion Board (FIPB), Dunbay will be the fifth foreign investor in DSE, taking the total FDI in the exchange to 25%.

Other investors include New Vernon Private Equity, Passport Global Master Fund, Lamb Investments and LFD DSE, each holding 5%. Ikarus Petroleum Company, which had also received FIPB clearance to acquire a 5% stake in DSE, withdrew, leaving room for roping in Dunbay.

http://economictimes.indiatimes.com/articleshow/2563409.cms

ICICI Venture to acquire 5% stake in MCX: report

ICICI Venture is close to acquiring a 5% stake in Mumbai, MH-based Multi Commodity Exchange of India (MCX) from Financial Technologies, reports Reuters. MCX facilitates online trading, clearing and settlement operations for commodities futures across India.

Financial Technologies currently holds a 49% in MCX. Earlier this year, Merrill Lynch and Citigroup acquired a 5% stake each in it.

For more information:

http://in.reuters.com/article/businessNews/idINIndia-30786220071202

http://www.mcxindia.com

Aptivaa Consulting raises funds from SBICAPS

Financial risk management solutions firm Aptivaa Consulting Solutions Pvt. Ltd. has raised undisclosed growth-stage funding from SBICAPS Ventures, reports Mint. The investment has been made from the $100 million India Knowledge Fund, a joint venture between SBICAPS Ventures and SBI Holdings.

http://www.livemint.com/2007/11/30014122/Need-to-know--Dubai-fund-to-i.html
 

Other Private Equity / Strategic Investments 

ICICI, IL&FS, Kotak acquire MCX stake for $105-M

ICICI, Kotak and IL&FS have acquired a 9.6% stake in Mumbai, MH-based Multi Commodity Exchange of India (MCX) from Financial Technologies for about $105 million. While ICICI has acquired a 3.5% stake, Kotak and IL&FS have acquired 5% and 1%, respectively.

Earlier this year, Merrill Lynch and Citigroup acquired a 5% stake each in the exchange.

http://www.mcxindia.com

Networth raises $12-M

A clutch of strategic investors has acquired a stake in broking house Networth Stock Broking for about $12.2 million (Rs. 50 crore) via a preferential allotment of shares and convertible warrants, reports Economic Times. The investors include DSP Merrill Lynch, Mavi Investment Fund, Peninsular South Asia Investment, South Asia Access Fund, Mackertich Consultancy Services and Stewart Investment & Financial.

http://economictimes.indiatimes.com/articleshow/2629998.cms

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Mergers & Acquisitions (Domestic)

Nashik Cooperative acquired by Saraswat Bank

Mumbai, MH-based cooperative bank Saraswat Co-operative Bank has acquired Nashik Peoples Cooperative Bank, which has an accumulated loss of about $9.8 million (Rs. 40 crore), reports PTI. The deal marks the fifth acquisition by Saraswat over the past two years.

For more information:

http://economictimes.indiatimes.com/rssarticleshow/2638206.cms

http://www.saraswatbank.com
 

Mergers & Acquisitions (Inbound)

SocGen acquires balance stake in Apeejay Finance

France-based financial services group Societe Generale (SocGen) has bought out the balance 25% stake in Apeejay Finance, the Kolkata, WB-based NBFC arm of the Apeejay Surrendra Group, for an undisclosed amount, reports Business Standard. SocGen had acquired a 75% stake in Family Credit earlier this year. Post deal, the Apeejay Surrendra Group will focus on its interests in the areas of tea, hospitality, shipping and real estate. Apeejay Finance has been renamed FamilyCredit Ltd.

For more information:

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=307932

http://www.familycreditindia.com

Stratcap Securities acquired by Swiss firm EFG

Switzerland-based private banker and wealth manager EFG International has acquired a 75% stake in Mumbai, MH-based Stratcap Securities India for an undisclosed amount. Stratcap is involved in managing individual and institutional client relationships in mutual funds, fixed income and equities. The stake is being acquired from Stratcap’s parent, Strategic Capital Corporation.

http://www.efginternational.com

Sharepro to be acquired by Australian firm Link

Australia-based Link Markets is to acquire a 74% stake in share registrar Sharepro Corporate Services for an undisclosed amount, reports Times of India. Sharepro is a Sebi registered category I registrar to issues and securities transfer.

http://timesofindia.indiatimes.com/rssarticleshow/2635836.cms

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Deals in the Making

PE / VC Fund Investments

Yes Bank to raise $146-M

Mumbai, MH-based listed private sector bank Yes Bank is to raise about $140-146 million (Rs. 575-600 crore) via a preferential allotment in January-March to an overseas PE firm, reports Financial Express.

http://tinyurl.com/2ptbd5

Emkay Share to raise $61-M

Mumbai, MH-based brokerage firm Emkay Share & Stock Brokers Ltd. is to raise about $61 million (Rs. 250 crore) via a QIP issue.

BoR promoters may reduce stake to 25%

The Tayal family, the promoters of Bank of Rajasthan (BoR), is likely to bring down its stake in the bank to around 25% from the current 43.9%, reports Economic Times. The bank is likely to launch a series of preferential allotments to Indian and overseas investors.

http://economictimes.indiatimes.com/articleshow/2605820.cms

IFCI may divest 20% stake to IFC

New Delhi, DL-based listed financial services firm IFCI may divest a 20% stake to IFC, the PE arm of the World Bank, reports Economic Times.

http://economictimes.indiatimes.com/articleshow/2590371.cms

Arcil to raise funds

Mumbai, MH-based bad-loan restructuring firm Asset Reconstruction Company India (Arcil) is planning to raise about $244 million (Rs. 1,000 crore) through a rights share issue and a preferential allotment, reports Financial Express.

For more information:

http://www.financialexpress.com/news/ARC-eyes-Rs-1-000-cr/244271/

http://www.arcil.co.in

Broking firm Choksey scouting for funds

Mumbai, MH-based broking house KR Choksey Shares and Securities is looking to raise funds form a PE investor, reports Economic Times.

For more information:

http://economictimes.indiatimes.com/Broking_firms_want_to_enter_capital_market/articleshow/2580333.cms

http://www.krchoksey.com

Sterlite-led consortium likely to acquire IFCI stake: report

A consortium of Sterlite Industries and Morgan Stanley has emerged as the frontrunner in the race to acquire a strategic 26% stake in troubled financial institution IFCI Ltd., reports Business Standard.

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=307904
 

Mergers & Acquisitions

Union Bank to make overseas acquisitions

PSU bank Union Bank of India plans to expand its overseas operations through acquisitions, reports PTI. The bank will look at a mid-sized entity for acquisitions.

http://economictimes.indiatimes.com/articleshow/2625917.cms

Merrill may acquire Sharekhan stake from Citigroup

Citigroup Venture Capital is to looking to divest a part of its 75% stake in Mumbai, MH-based online retail broking firm Sharekhan Ltd., and US-based financial services firm Merrill Lynch is the front-runner to acquire the stake, reports Economic Times. Other potential bidders include Baring Private Equity.

Citigroup had acquired an 85% stake in Sharekhan in May for Rs. 650-700 crore.

For more information:

http://economictimes.indiatimes.com/Merrill_Lynch_to_pick_20_stake_in_Sharekhan/articleshow/2646215.cms

http://sharekhan.com  

State Bank of Mauritius scouting for Centrum stake

State Bank of Mauritius is looking to acquire a 15% stake in Mumbai, MH-based investment banking firm Centrum Capital, reports Economic Times. The move is part of the bank’s new focus on expanding its reach and network in the Indian retail and financial services segment.

http://economictimes.indiatimes.com/articleshow/2649544.cms

SBI, Coface close to acquiring stake in GTF

State Bank of India (SBI) and Coface, a France-based credit insurance and factoring company, have been short-listed to acquire a 52.5% stake in Mumbai, MH-based factoring and forfaiting services provider Global Trade Finance Ltd., reports Business Standard. The promoters of GTF - Export-Import Bank of India (40%) and IFC (12.5%) - had decided to sell their stake some months ago. The other shareholders of GTF are FIM Bank Malta and Bank of Maharashtra.

A host of PE firms, foreign banks and PSU banks had evinced an interest in buying into GTF. These include JP Morgan Financial, GE Financial, Warbug Pincus, Actis, Standard Chartered Bank, State Bank of India and Coface.

For more information:

http://www.business-standard.com/common/storypage_c.php?leftnm=10&autono=308193

http://www.gtfindia.com

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