December 2007

Done Deals

PE / VC Fund Investments

Dunlop raises $90-M from Spinnaker, others

Dunlop India, the tire manufacturing arm of the Kolkata, WB-based Pawan Ruia Group, has raised $90 million (around Rs. 360 crore) from a consortium of offshore funds led by Spinnaker Capital to restructure its loan and to meet other expenses, reports PTI. The structured deal offers the funds an option to acquire a 15% stake in Dunlop.

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=308499

Jai Balaji to raise $67-M from Citi, India Equity

Kolkata, WH-based listed steelmaker Jai Balaji Industries is to raise about $66.6 million (Rs. 273.25 crore) from Citi Venture Capital Fund and India Equity Partners in return for a 15% stake, reports Business Standard. The preferential allotment of convertible warrants is part of the company's Rs. 587 crore fund-raising plan.

For more information:

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=307808

http://jaibalajigroup.com

HBL Power to raise $25.5 M from Citi

Hyderabad, AP-based listed industrial batteries manufacturer HBL Power Systems Ltd. is to raise about $25.5 million (Rs. 105 crore) via a preferential allotment of shares and convertible warrants to CVC and other investors including CVC fund managers.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={86F964D2-EDBE-48CB-86FC-6D5951A43ECF}

http://www.hbl.in

Adhunik Metaliks to raise $25-M from Clearwater

Kolkata, WB-based listed steel manufacturer Adhunik Metaliks Ltd., part of the Adhunik Group, is to raise about $24.6 million (Rs. 101 crore) from Clearwater Capital Partners in return for a 7.75% stake. The funds will be utilized to repay short term loans and for some project costs.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={E8C8B6AD-DAB1-4E78-8AF3-8C60DC310A30}

http://www.adhunikgroup.com

Interarch raises $24-M from Indivision for 13% stake

Noida, UP-based metal building systems manufacturer Interarch Building Products Pvt. Ltd. has raised about $24.4 million (Rs. 100 crore) via a preferential allotment to Indivision Investment, part of Future Capital, in return for a 13% stake, reports Mint.

The funds will be used to build an additional large plant in Rudrapur, UT, and a small facility in Chennai, TN.

For more information:

http://www.livemint.com/2007/12/03222850/Private-equity-firm-invests-Rs.html

http://www.interarch.net

Electrosteel to raise $18-M from PGS Invest

Kolkata, WB-based listed steel products manufacturer Electrosteel Castings Ltd. is to raise about $17.7 million (Rs. 73 crore) via a preferential allotment to UK-based PE firm PGS Invest Ltd.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={1507418F-7097-4FAE-85CE-751A38A5475A}

http://www.electrosteel.com

Fursa to invest $13-M in Gayatri Starchkem

Investment fund Fursa Alternative Strategies has acquired a 42.6% stake in Hyderabad, AP-based listed firm Gayatri Starchkem for about $4.5 million (Rs. 18.5 crore). It will also further invest $8.5 million (Rs. 35 crore) for the expansion and modernization of Gayatri’s existing production facilities. Parth Gandhi and Jayendra Shah of Fursa have joined the Gayatri Starchkem board. The company manufactures starch, sorbitol and allied products from corn.

http://www.thehindubusinessline.com/2007/12/21/stories/2007122150870200.htm

Meghmani Organics to raise $10-M from IFC

Ahmedabad, GJ-based listed pigments and agro-chemicals manufacturer Meghmani Organics Ltd. is to raise $8-10 million from IFC, the PE arm of the World Bank, to part finance its $125 million project.

For more information:

http://tinyurl.com/2d3pke

http://www.meghmani.com 

Kinetic Engg. to raise $7-M from AIG

Pune, MH-based listed automobile components manufacturer Kinetic Engineering Ltd. is to raise about $7.3 million (Rs. 30 crore) via a preferential allotment of compulsory convertible shares to AIG, reports Economic Times.

The company also plans to raise Rs. 70 crore via an FCCB issue. UK-based KBC Financial Products and Kotak Mahindra UK are the joint lead managers for the FCCB issue.

For more information:

http://economictimes.indiatimes.com/articleshow/2642217.cms

http://kineticindia.com

HNG Float Glass to raise $5-M from IFC

The CK Somany Group is to raise $5 million from IFC, the PE arm of the World Bank, for its new venture in Halol, GJ. The $130 million venture, called HNG Float Glass Ltd., will produce float glass. The CK Somany Group also owns Kolkata, WB-based listed glass containers manufacturer Hindusthan National Glass & Industries Ltd.

For more information:

http://tinyurl.com/yw9skj

http://www.hngindia.com

Wayzata invests in chemicals firm: report

US-based Wayzata Investment Partners, which is represented in India by Ravi Lekhrajani’s Bollard Strategic Advisors, has made a $6 million investment in June in an unnamed specialty chemical intermediate firm in India, reports Mint.

http://www.livemint.com/2007/12/04230906/Need-to-Know--PE-Forum-to-foc.html

Vivimed to raise funds via preferential allotment

Hyderabad, AP-based listed specialty chemicals manufacturer Vivimed Labs Ltd. is to raise about $6.9 million (Rs. 28.1 crore) via a preferential allotment of convertible warrants.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={646BC895-0453-4FE9-91F4-7715BEAF24B4}

http://www.vivimedlabs.com
 

Mergers & Acquisitions (Domestic)

Shakumbari acquired by India Glycols for $11.5 M

Kashipur, UT-based listed industrial chemicals manufacturer India Glycols Ltd. has acquired a 96.6% stake in Saharanpur, UP-based Shakumbari Sugar and Allied Industries, part of the Jagran Group, for about $11.5 million (Rs. 47 crore). India Glycols plans to further invest Rs. 150 crore to increase the sugar and distillery capacity of Shakumbari.

http://www.bseindia.com/qresann/news.asp?newsid={64DE2849-A3EB-4C57-A165-5748854C279F}

Dhunseri buys out Zimmer from SAPL for $5-M

Kolkata, WB-based tea producer Dhunseri Group has acquired Zimmer’s 6% stake in South Asian Petrochem Ltd. (SAPL) for about $5.4 million (Rs. 22 crore), reports Economic Times. Dhunseri is the lead promoter of SAPL.

For more information:

http://economictimes.indiatimes.com

Modi Group buys out DEG from Bihar Sponge for $1-M

The Umesh Modi Group has bought out Germany-based development financial institution DEG’s 7% stake in Bihar Sponge Iron for about $1.3 million (Rs. 5.5 crore), reports Economic Times. Post deal, its stake has increased from 55% to 62%.

http://economictimes.indiatimes.com

Phoenix to acquire Surya Roshni's lighting business

Noida, UP-based listed halogen lamps manufacturer Phoenix Lamps Ltd., which was acquired by PE firm Actis in a management buyout last year, is close to acquiring the lighting business of Bahadurgarh, HR-based Surya Roshni Ltd. for an undisclosed amount, reports Business Standard. Surya Roshni is into steel pipe manufacturing apart from lighting.

For more information:

http://economictimes.indiatimes.com/articleshow/2626646.cms

http://www.phoenixlamps.com

Sundram Fasteners acquires Upasana

Chennai, TN-based listed auto components manufacturer Sundram Fasteners Ltd., part of the TVS Group, has acquired 100% of Upasana Engineering, a wholly owned subsidiary of Sundram Fasteners Investments, a wholly owned subsidiary of the company. Upasana is a manufacturer of spokes and nipples, tools and other components.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={7DB741FD-F83C-4B7F-A452-68438BDAF897}

http://www.sundram.com
 

Mergers & Acquisitions (Outbound)

Welspun acquires Portuguese firm Sorema for $15-M

Listed home textiles manufacturer Welspun India Ltd. has acquired a 76% stake in Portugal-based bath rugs maker Sorema for about $14.6 million (Rs. 60 crore). Sorema has expected revenues of Rs. 57 crore for the financial year 2007.

http://economictimes.indiatimes.com/articleshow/2635344.cms

Sintex acquires US firm Nero

Ahmedabad, GJ-based listed plastics and fabrics manufacturer Sintex Industries Ltd. has acquired US-based Nero Plastics, Inc. for an undisclosed amount. Post deal, Sintex’s market share in the US electrical business is projected to increase from the current 11% to 30%.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={9D300EEF-331F-4BDA-B8A7-99BC5F9CA009}

http://www.sintex-plastics.com

Nirma acquires US firm Searles Valley

Ahmedabad, GJ-based listed FMCG firm Nirma Ltd, is to acquire US-based natural soda ash producer Searles Valley Minerals Operations, Inc. from an affiliate of Sun Capital Partners for an undisclosed amount.

HSBC Securities and Capital Markets (India) advised Nirma on the transaction and JP Morgan Securities advised Searles Valley. Wilson Sonsini Goodrich & Rosati served as US legal counsel while AZB Partners was Indian counsel. Due diligence was conducted by KPMG.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={DB86B786-128D-423F-8892-35086F33F641}

http://www.nirma.co.in

Voltas to buy out partners from two JVs

Mumbai, MH-based listed engineering services provide Voltas, part of the Tata Group, is to buy out its JV partners from Universal Comfort Products and Saudi Ensas Company, reports Business Standard. Universal is currently a 50:50 JV with US-based Fedders International manufacturing room and split ACs. Saudi Ensas is a 49:51 JV with a Saudi Arabian firm.

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=307128

Maharashtra Seamless to acquire Romania plant

Gurgaon, HR-based seamless Maharashtra Seamless, part of the DP Jindal Group, is to acquire an unnamed Romania-based seamless pipes plant with a capacity of 200,000 tons a year.

http://www.jindal.com/pr1207.PDF
 

Mergers & Acquisitions (Inbound)

Italian firm Prysmian to acquire Nicco arm for $32-M

Italy-based Prysmian Group is to acquire a 60% stake in Nicco Cables, the newly spun off industrial cables business of Kolkata, WB-based listed engineering and construction firm Nicco Corporation Ltd., for about $31.7 million (Rs. 130 crore), reports Economic Times.

For more information:

http://economictimes.indiatimes.com/articleshow/2615584.cms

http://www.niccogroup.com 

Manitowoc buys out Shirke from cranes JV

US-based cranes manufacturer Manitowoc Co., Inc. has bought out the BG Shirke family from their joint venture, Shirke Construction Equipment, reports Business Standard. Manitowoc has set up Potain India to carrying out the manufacturing of tower cranes that was being done by the JV.

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=305947

Digvijay acquired by Portuguese firm

Grasim Industries, the listed textile fibers and chemicals arm of the Aditya Birla Group, is to divest a 53.3% stake in Shree Digvijay Cement Company to Portugal-based cement maker Cimpor for about $78.5 million (Rs. 322 crore), reports Business Standard. Cimpor will also launch a mandatory open offer for another 20%.

The Aditya Birla Group had acquired Shree Digvijay from the Bangur family in 1998 for Rs. 66 crore. The listed company came out of BIFR purview only recently.

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=306652

Linde to acquire additional stake in BOC India

Germany-based Linde AG Group is to increase its stake in BOC India, its Indian arm, from 54.8% to 74%, reports Business Line. Linde acquired the stake following its acquisition of UK-based BOC Group in 2006.

http://www.thehindubusinessline.com/2007/12/12/stories/2007121252161600.htm

Gujarat Apollo to exit JV with Johnson Screens

Mehsana, GJ-based road construction equipment manufacturer Gujarat Apollo Industries is to divest its 49% stake in Johnson Screens (India) to US-based joint venture partner Johnson Screens, Inc. for an undisclosed amount, reports Business Standard.

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=308607
 

IPOs

Manaksia raises $61 M

Kolkata, WB-based steel containers manufacturer Manaksia Ltd. (formerly Hindusthan Seals Ltd.) has raised about $60.5 million (Rs. 248 crore) via an IPO. The book running lead manager to the issue is ICICI Securities.

http://www.manaksia.com

Precision Pipes raises $18-M

New Delhi, DL-based pipes manufacturer Precision Pipes and Profiles Co. Ltd. has raised $18.3 million (Rs. 75 crore) via an IPO. The book running lead managers are Nexgen Capital and UTI Securities.

http://www.precisionpipes.com

Porwal Auto Components raises $9-M

Indore, MP-based automobile components manufacturer Porwal Auto Components Ltd. has raised about $9.1 million (Rs. 37.5 crore) via an IPO. The book running lead manager to the issue is Keynote Corporate Service.

http://www.porwalauto.com
 

Other Private Equity / Strategic Investments

Tata Steel arm to invest $52-M in Steel Strips

Kalimati Investment Company, the investment of Tata Steel, is to acquire a 10% stake in Chandigarh, CH-based listed auto components manufacturer Steel Strips Wheels for about $52 million (Rs. 213 crore), reports Business Standard. Tata Steel is a supplier of raw material to Steel Strips Wheels and Tata Motors is a buyer of its products.

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=307900

India Steel raises $16-M from Mitsui

Japan-based trading firm Mitsui & Co. has acquired an additional 10% stake in Ruchi Group-promoted Indian Steel Corporation (ISC) for about $15.9 million (Rs. 65 crore), reports Business Standard. It now holds a 20% stake in ISC, which will utilize the proceeds to part finance its Rs. 950 crore expansion plan.

http://www.business-standard.com/india/storypage.php?autono=305724

PG Foils raises $4-M

Ahmedabad, GJ-based listed aluminum foils manufacturer PG Foils Ltd. has raise about $3.7 million (Rs. 15 crore) via a preferential allotment of convertible warrants to strategic investors.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={73660398-DDB9-42EB-BF4D-2A173895A7DF}

http://www.pgfoils.com

Banco raises $3-M from Japan Metal

Vadodara, GJ-based auto components manufacturer Banco Products has made a preferential allotment of a 4.5% stake to Japan Metal Gasket for about $2.6 million (Rs. 10.5 crore). The company manufactures gaskets and radiators for automobiles, oil engines, compressors and locomotives.

Japan Metal already has a technical collaboration with Banco for manufacturing gaskets.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={CAD4CE78-51EA-4756-9F64-4AE3FBBF85B8}

http://www.bancoindia.com

Refex Refrigerants to raise $1.5 M

Chennai, TN-based refrigerant products manufacturer Refex Refrigerants Ltd. is to raise about $1.5 million (Rs. 6 crore) via a preferential allotment to unnamed investors. It also plans to raise about $49 million (Rs. 200 crore) via an FCCB issue.

For more information:

http://www.bseindia.com/qresann/news.asp?newsid={CE2BB3F5-140C-4DAC-9DAD-3CE38CF30AD9}

http://www.refex.co.in

Volvo forms JV with Eicher

Sweden-based automaker Volvo AB is to form a commercial vehicles (CV) joint venture with New Delhi, DL-based listed automobile manufacturer Eicher Motors Ltd. Under the deal, the new JV entity will be a step down subsidiary of Eicher Motors, which will divest its CV business into the new subsidiary. Volvo's Indian truck sales and service network would also become part of the subsidiary.

The new unlisted entity will have an enterprise value of $506 million. Volvo will invest a total of $350 million in it. While Eicher will hold a 54.4% stake, Volvo will hold the balance 45.6%. Volvo will also acquire an 8.1% stake in Eicher Motors from its promoters.

http://www.eicherworld.com/mediar/photo/img/pic207.PDF
 

Secondary Offerings

West Coast raises $9-M

Dandeli, KA-based listed paper manufacturer West Coast Papers Mills Ltd., part of the SK Bangur Group, has raised $9 million via a GDR issue to be listed on the Singapore Stock Exchange.

http://www.bseindia.com/qresann/news.asp?newsid={D564C68D-D1EB-4F7A-8D48-3C05C46BE38E}
 

Deals in the Making

Private Equity / Strategic Investments

Diamond Power to raise $61-M to fund acquisition

Vadodara, GJ-based listed aluminum conductors manufacturer Diamond Power Infrastructure Ltd. (formerly Diamond Cables) Ltd. is likely to acquire a European company by the end of January 2008, reports Business Standard. It plans to raise about $61 million (Rs. 250 crore) to fund the acquisition, via an FCCB, GDR or ADR issue, or a QIP.

For more information:

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=307229

http://www.dicabs.com

Boiler maker Cethar scouting for PE funding

Various PE firms including ChrysCapital, Citigroup and UTI Ventures are looking to invest in Tiruchi, TN-based boiler manufacturer Cethar Vessels, reports Economic Times. The investment size is estimated at $50-100 million.

Cethar, launched in 1981, will use the proceeds in expansion plans. SSKI is handling the deal.

For more information:

http://economictimes.indiatimes.com/articleshow/2626953.cms

http://www.cethar.com

Actis, TPG looking to buy out promoters from Onida

Several PE funds including Actis and Texas Pacific Group (TPG) are in talks with Sonu Mirchandani and Vijay Mansukhani to acquire their combined stake in Guviso, the holding company of Mumbai, MH-based listed electronic appliances manufacturer Mirc Electronics, reports Economic Times. Mirc is the owner of the Onida brand. The promoters have chosen to sell their stakes due to differences with Gulu Mirchandani, Sonu’s brother.

For more information:

http://economictimes.indiatimes.com/articleshow/2599715.cms

http://www.onida.com  

Sintex scouting for European acquisitions

Ahmedabad, GJ-based listed plastics and fabrics manufacturer Sintex Industries Ltd. is set to acquire at least three more foreign companies next year to boost its presence in composites, reports Business Line. The $150 million acquisitions are likely to be in Europe

For more information:

http://www.thehindubusinessline.com/2007/12/07/stories/2007120756010300.htm

http://www.sintex-plastics.com

Godrej FMCG arm looking for overseas acquisitions

Mumbai, MH-based FMCG firm Godrej Consumer Products Ltd. (GCPL) is scouting for acquisitions in the hair color business in developing markets, reports Business Standard.

http://www.businessstandard.com/common/storypage_c.php?leftnm=10&autono=306857

Mergers & Acquisitions

Tata Tea close to $300-M European acquisition

Kolkata, WB-based listed tea producer Tata Tea Ltd. is close to acquiring a beverage company in Europe for $300 million, reports Business Standard.

http://www.business-standard.com/india/storypage.php?autono=308245

Godrej Sara Lee to acquire Chinese firm for $50-M

Mumbai, MH-based FMCG firm Godrej Sara Lee Ltd. is to acquire a China-based manufacturer of household insecticides for $50 million (about Rs. 200 crore) next month, reports Business Line. Godrej expects to use the deal to launch its brands — Jet, Hit and Goodnight — in China.

http://www.thehindubusinessline.com/2007/12/15/stories/2007121552350500.htm

Videocon to make fresh bid for Daewoo Electronics

Ahmedabad, GJ-based listed electronics firm Videocon Industries is to submit a fresh bid to acquire Korea-based Daewoo Electronics, reports Economic Times. Creditors of Daewoo, who have a controlling stake in the company, have once again invited fresh bids for the business. Videocon is not likely to partner with US-based PE firm Ripplewood but may consider partnering with a new PE player, the report adds.

Videocon’s earlier bid to acquire the Daewoo business failed over pricing issues.

http://economictimes.indiatimes.com/articleshow/2618344.cms

United Phosphorus may bid for Australian firm Nufarm

Mumbai, MH-based listed generic agrochemical manufacturer United Phosphorus  Ltd. (UPL) is to bid for Australia-based agriculture chemical company Nufarm, reports Business Standard. The move follows Nufarm ending talks for a $3 billion bid with a consortium led by China National Chemical Corp, which includes PE firm Blackstone.

UPL recently ended talks to acquire Japan-based Arysta LifeScience Corporation.

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=307290

Hindujas may acquire lubricants firm Tide Water

The Hinduja Group is to bid for Tide Water Oil, the lubricants manufacturing arm of PSU firm Andrew Yule & Co., for an undisclosed amount, reports Times of India. Andrew Yule and United India Insurance are planning to divest their combined 40.3% stake in Tide Water Oil, which was originally floated as a JV with Caltex (now Chevron) 60 years back. Chevron still holds 22% in Tide Water through a subsidiary called Four Star Oil.

http://timesofindia.indiatimes.com/rssarticleshow/2642059.cms

Rallis India looking to make acquisitions

Rallis India, the agrochemicals arm of the Tata Group, is looking to invest about $146 million (Rs. 600 crore) in acquisitions and green field projects, reports The Hindu.

http://www.thehindu.com/2007/12/22/stories/2007122256431800.htm
 

IPOs

Steel containers maker Manaksia files for IPO

Kolkata, WB-based steel containers manufacturer Manaksia Ltd. (formerly Hindusthan Seals Ltd.) has filed for an IPO of 15.5 million shares at a price band of Rs. 140-160 per share. The issue will constitute 22.3% of the company's fully diluted post issue paid-up capital. The issue opens on December 17 and closes on December 19. The book running lead manager to the issue is ICICI Securities.

http://www.manaksia.com

Precision Pipes files for IPO

New Delhi, DL-based pipes manufacturer Precision Pipes and Profiles Co. Ltd. has filed for an $18.3 million (Rs. 75 crore) IPO with a price band of Rs. 140-150 per share. The issue opens on December 17 and closes on December 20 and the book running lead managers are Nexgen Capital and UTI Securities.

http://www.precisionpipes.com

Porwal Auto Components to launch IPO

Indore, MP-based automobile components manufacturer Porwal Auto Components Ltd. has filed for an IPO of 5 million shares at a price band of Rs. 68-75 per share. The issue opens on December 17 and closes on December 20. The book running lead manager to the issue is Keynote Corporate Service.

Sejal Architectural Glass files for IPO

Mumbai, MH-based Sejal Architectural Glass Ltd. has filed for an IPO of 9.7 million shares. The book running lead manager to the issue is Saffron Capital Advisors.

http://www.sejalglass.com

Shankara Pipes plan IPO

Bangalore, KA-based steel tubes manufacturer Shankara Pipes India Ltd. is to launch an IPO of 6.1 million shares. The book running lead manager to the issue is Keynote Corporate Services.

http://www.shankarapipe.com

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