The Big Deal

IT & ITES > IT Services
BT sells 14.05% stake in Tech Mahindra for Rs.1,395-Cr

UK-based BT Group (British Telecommunications Plc), a co-promoter of Mumbai-based listed Tech Mahindra, has pared its stake in the IT firm from 23.15% to 9.1%. Deccan Herald reports that the stake was sold to institutional investors for about Rs.1,395 crore through a series of open market transactions at the BSE and NSE. The deal was managed by global investment bankers JP Morgan and Credit Suisse.

At the end of last quarter, the total promoter holding in Tech Mahindra stood at 70.78%, which included 47.57% with M&M, 23.16% with BT and 0.05% with Mahindra BT Investment Company Mauritius Ltd.  In 2010, BT Group had sold a 5.5% stake in Tech Mahindra to M&M. 

For more information: 

http://bit.ly/Oln6tX

http://www.deccanherald.com/content/275322/bt-sells-141-pc-stake.html

Spotlight

Orchid Chemicals to sell penicillin biz to US firm Hospira for $200-M

HSBC offloads stake in Federal Bank for Rs.341-Cr

Fashion and You acquires Urban Touch for $30-M

Dentsu acquires 51% stake in Taproot for Rs.140-Cr

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Done Deals

PE / VC Fund Investments

Food & Beverages > Packaged Foods (Biscuits)
Peepul Capital acquires majority stake in Unibic Biscuits for Rs.100-Cr: reports

PE firm Peepul Capital is acquiring a majority stake in Bangalore-based Unibic Biscuits India Pvt. Ltd., reports Business Standard. The deal size value is placed at around Rs.100 crore.

For more information:

http://goo.gl/Z4U8M

http://www.unibicindia.com

BFSI > Banking
ChrysCapital acquires addl stake in Federal Bank for Rs.47-Cr

ChrysCapital, via its Warhol unit, has acquired 1,175,000 shares of publicly listed Federal Bank at Rs.400.74 per share via a bulk deal on the BSE, aggregating to Rs.47.2 crore. This constitutes 0.68% of the total outstanding shares of the company. Post the acquisition, ChrysCapital holds a 2.09% stake.

From the Venture Intelligence PE Deal database: Between April-June 2012, ChrysCapital  had invested $18.5 million (Rs.102.2 crore) for a 1.41% stake in Federal Bank.

For more information:

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

http://www.federal-bank.com 

Education > Training & Certification
IndoUS Ventures, India Venture Partners invest in Simplilearn

IndoUS Ventures and India Venture Partners have invested in Bangalore-based Simplilearn Solutions Pvt. Ltd., which runs Simplilearn.com, an online education and training site for professional certification courses, reports Medianama. The company will utilize the funds to expand its current portfolio of certification course, add newer geographies and to double its workforce. Sumit Jain and Rajesh Raju of IndoUS Ventures have joined the board as a part of this deal. K Law advised IndoUS Ventures.

From the Venture Intelligence PE Deal database: In March-12, IndoUS Ventures and India Venture Partners had invested $2.80 million in the company. (Subscribers to the database can login to view the company financials and other transaction details.) 

For more information:  

http://www.medianama.com/2012/08/223-simplilearn-secures-funding-from-iuvp/ 

http://www.simplilearn.com/company/about-us 

http://www.indiavp.com/portfolio.aspx 

Energy > Renewable Power Projects (Hydel)
Infra fund Equis invests in hydel projects of DANS group

Singapore-based energy and infrastructure fund Equis Asia Fund has acquired a substantial stake in New Delhi-based DANS Energy Consulting, which holds interests in two Indian companies developing 194 MW hydro power platforms in northern India, reports Bar and Bench. Equis, set up by former Asian Development Bank and Macquarie executives, has special focus on investments in energy and infrastructure sectors across Asia. 

HSA Advocates advised EAF while Rajah and Tann LLP advised EAF on Singapore law. Trilegal advised DANS. 

For more information:  

http://goo.gl/QLiOq 

http://dansenergy.com 

IT & ITES > Gaming (Online)
Tiger Capital invests in RummyCircle

Tiger Global has invested in Mumbai-based online gaming firm Play Games24x7, which runs RummyCircle.com (formerly Games24x7.com), reports Moneylife. The transaction happened in February 2012. Launched in 2006, the site claims to have more than 1 million rummy players. 

For more information:  

http://goo.gl/GxbH4 

https://www.rummycircle.com

 IT & ITES > Diversified
Blume Ventures invests in Framebench, Glamrs, IDfy, Emo2 & Others

VC firm Blume Ventures, along with individual angels Maneesh Bhandari and Ladsariya Group, has invested in New Delhi-based Framebench. Framebench is a collaboration tool facilitating communication between Designers and Clients, with support for storage, demonstration, and interaction. 

Blume Ventures, along with Anil Chopra, Sanjay Kamlani and other angels, has made an investment in online beauty store Glamrs. 

Blume Ventures, along with a few angel investors, has invested in Mumbai-based online background checking company IDfy. The company, founded by Ashok Hariharan and Hatim Baheranwala, allows users to create a virtual identity by scanning and uploading their identity documents and getting their credentials verified. 

Blume Ventures has also made an investment in app development company 23spaces. The company is currently developing two different apps – Focal, which aims to organize and enable the discovery of curated information based on the context, and Polo, which aims to enable users to organize and discover curated travel experiences. 

Blume Ventures, along with Rajan Anandan, Zafar Baig and other angels, has  invested in surface computing company Emo2. The company develops both hardware and software for touch screens. 

For more information:  

http://goo.gl/aVQ6U 

http://framebench.com 

http://www.glamrs.com 

http://www.idfy.com 

http://23spaces.com 

http://emo2.com/emo2/

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Liquidity Events

Mergers & Acquisitions

IT & ITES > Online Services (Fashion Retail)
Fashion and You acquires Urban Touch for $30-M

Smile Group-promoted Fashion and You has acquired fellow Gurgaon-based fashion etailer UrbanTouch.com for $30 million in cash and stock, reports Economic Times. The acquisition provides an exit for investors Tiger Global and Accel Partners. Urban Touch's founder & CEO Abhishek Goyal, who was earlier an Associate at Accel, will now take over as the CEO of Fashion and You. The post was vacated recently by Fashion and You co-founder Pearl Uppal. 

While Fashion and You focuses on fashion flash sales that run for a few days, Urban Touch offers a catalog of over 300 brands in apparel, beauty and accessories categories. Post deal, Urban Touch and Fashion and You will continue to operate as two distinct websites but will have cross linkages. Urban Touch's over 200 employees will join the 750-member Fashion and You team and the leadership team of Urban Touch will hold stock in the combined entity. 

From the Venture Intelligence PE Deal database: Urban Touch raised $2.25 M from Tiger Global and Accel India in early 2011. (Subscribers to the database can login to view the split up of the investments, valuation, company financials, deal structuring and other transaction details.) 

In December 2011, Sequoia Capital India had invested $7.65 million in Fashion and You. In November 2011, Intel Capital, Norwest and Nokia Growth Partners and Sequoia Capital India had invested $40 million in the company. 

For more information:  

http://economictimes.indiatimes.com/articleshow/15848894.cms 

http://www.urbantouch.com 

Hotels & Resorts > Destination Spas
Morgan Stanley to sell 26% stake in IHHR Hospitality: report

Morgan Stanley is selling its 26% stake in IHHR Hospitality, which owns the Ananda spa in the Himalayas, to the London-based Choudhrie family, reports Economic Times. Morgan Stanley had bought the stake in 2007 for about $40 million. 

The 62% stake that the Choudhries hold in IHHR Hospitality would increase to over 80% after the deal. The Choudhrie family also part owns Gurgaon-based real estate firm Alpha G Corp. 

From the Venture Intelligence PE Deal database: Morgan Stanley had acquired a 20.95% stake in IHHR in Mar-07 for $55-M. 

For more information:  

http://economictimes.indiatimes.com/articleshow/15918386.cms 

http://www.ihhrhospitality.com

Angel Investments  

IT & ITES > Networking Tech (Bandwidth Control Tools)
i7 Networks raises $750-K

Bangalore-based IT products startup i7 Networks has raised $250K from Sharad Sharma, Rao Remala and Murali Venkat Rao, reports Yourstory. i7 offers Indian companies a suite of products that helps manage their network bandwidth. Using i7 EagleEye, companies can get to know what is happening on their bandwidth and fine tune it so that they can get the best performance and ROI while providing better user experience and enhanced productivity.                                            

i7 Networks was established in May 2012 by former executives at S7, a software migration firm that was acquired by US-based Bluecoat Systems in Jan 2010. 

For more information:  

http://bit.ly/RB3oK2 

http://i7networks.in/ 

Other Private Equity/Strategic Investments  

IT & ITES > Online Services (Photos)
Info Edge invests Rs.35-Cr in Canvera Digital Technologies

New Delhi-based listed Info Edge (India) Ltd. has invested Rs.35 crore via optionally convertible cumulative redeemable preference shares in Bangalore-based online photography service firm Canvera Digital Technologies Pvt. Ltd. Info Edge owns and operates Naukri, Jeevansathi, 99acres and other online ventures. J Sagar Associates advised Info Edge on the deal. 

Canvera, founded by IIT-Mumbai alumni Dhiraj Kacker (CEO) and Peeyush Rai, offers various pricing plans to photographers, including a personalized website, social media presence, e-commerce solutions and image storage. 

From the Venture Intelligence PE Deal database: Canvera had raised funding from Footprint Ventures and DFJ in Jan-08. 

For more information:  

http://www.medianama.com/2012/08/223-online-photography-service-canvera-raises-rs-35-cr-from-info-edge/ 

http://canvera.com 

Healthcare & Life Sciences > Medical Devices
Strides promoter invests $3-M in Skanray

Arun Kumar, the promoter of pharmaceuticals company Strides Arcolab, has acquired a minority stake for $3 million in Skanray Technologies, a Mysore-based medical devices company that specializes in high-frequency X-ray systems, dental digital X-ray and imaging, cardiology, critical care products and remote health monitoring, reports Business Standard. He is expected to invest an additional $20 million, which would be leveraged for a niche acquisition in the European market. 

Kumar is also looking to invest in other medical equipment companies, even as Strides is in talks to sell its injectables business for about $800 million.

http://www.business-standard.com/484850/

Mergers & Acquisitions

Mergers & Acquisitions (Inbound)

Healthcare & Life Sciences > Pharmaceuticals
Orchid Chemicals to sell penicillin biz to US firm Hospira for $200-M

Chennai-based listed pharma firm Orchid Chemicals & Pharmaceuticals is to sell its penicillin business to Lake Forest, US-based listed firm Hospira for $ 200 million in cash. The deal includes Orchid’s Penicillin and Penem API business and the API facility located in Aurangabad together with an associated Process R&D infrastructure located in Chennai. The business transfer also covers the related Penicillin and Penem product portfolio and pipeline. Approximately 830 employees would be transferred to Hospira. 

As some of Orchid’s API requirements for the Non-penicillin, Non-Penem, Non-cephalosporin (NPNC) business were supplied by the Aurangabad facility, Hospira will supply such NPNC API to Orchid through a long-term agreement that both companies have entered into. The sale proceeds will be utilized for trimming debt and to foray into newer product verticals. 

Khaitan & Co acted as Indian legal advisor to Hospira, while Baker & Mckenzie acted as Hospira's international legal advisor. Amarchand Mangaldas advised Orchid on the India leg of the transaction, while Latham & Watkins served as Orchid's international legal counsel. 

From the Venture Intelligence M&A Deal database: In Dec-09, Hospira had acquired Orchid's generic injectable finished-dosage form pharmaceuticals business for $400-M. 

For more information:  

http://www.orchidpharma.com/mc_mediareleases_details.aspx?id=43 

http://bit.ly/Sg9eqR 

Advertising & Marketing > Advertising (Ad Agency)
Dentsu acquires 51% stake in Taproot for Rs.140-Cr

Tokyo-based listed Dentsu Inc. has acquired a 51% stake in Mumbai-based advertising agency Taproot India Communication Pvt. Ltd. Media reports estimate the deal size at Rs.140 crore, including an initial upfront payout of Rs.60 crore and future earn-outs of Rs.80 crore. Taproot will continue to operate independently under the management control of its current leadership. 

Founded in 2009 by Agnello Dias and Santosh Padhi, Taproot has emerged as one of the Cannes Lions top 20 independent agencies in the world. The company brings to Dentsu 33 full-time employees and a roster of clients that includes PepsiCo, Airtel, The Times of India, Polycab, Marico, Karbonn Mobiles, Myntra.com, Mumbai Mirror, Nirma, DSP BlackRock Mutual Fund, UTV Bindass and UTV Stars. 

For more information:  

http://www.dentsu.com/news/release/2012/pdf/2012095-0829.pdf 

http://economictimes.indiatimes.com/articleshow/15914824.cms 

http://www.taprootindia.co.in 

Manufacturing > Industrial Parts (Injection Molding Machines)
L&T to sell Plastics Machinery biz to Toshiba

Mumbai-based listed Larsen & Toubro is to sell its entire stake in L&T Plastics Machinery Ltd. (LTPM) to Japan-based listed Toshiba Machine Co. Ltd. (TMCL). LTPM manufactures and markets injection molding machines catering to sectors such as automotive, packaging and stationery. Cross-border I-banking firm Business Development Asia (BDA) was the exclusive financial advisor to L&T on the sale. Khaitan & Co. was the legal advisor to the acquirer. 

TMCL manufactures injection moulding machines and other machinery at its manufacturing units in Japan and China. It currently caters primarily to the Asian and North American markets. The LTPML acquisition is in line with TMCL’s strategy to expand globally with a particular focus on developing countries.  

LTPML was originally formed as a joint venture with Demag Ergotech GmBH, L&T Demag Plastics Machinery, in 2000. In 2009, L&T acquired the JV partner’s stake. LTPML recorded sales of Rs.206 crore and profit after tax of Rs.11 crore in the financial year ending March 2012. 

For more information:  

http://www.bseindia.com/xml-data/corpfiling/AttachLive/Larsen_&_Toubro_Ltd1_270812.pdf 

http://www.larsentoubro.com 

Mergers & Acquisitions (Outbound) 

Manufacturing > Industrial Machinery (Pumps)
McNally Bharat acquires control of UK firm Hayward Tyler

Listed firm McNally Bharat Engineering Co. Ltd. (MBECL) has acquired control of UK-based Hayward Tyler, a £32-million industrial pumps and motors maker, reports Business Line. The Deepak Khaitan-promoted MBECL had picked up a 25.27% stake in the London AIM-listed Specialist Energy Group Plc (SEG) - the holding company of Hayward Tyler- over the last two years for Rs.46.06 crore. Last month, MBECL purchased another 16.42% through placement of fresh shares worth £5 million (Rs.44 crore) in SEG. As a result, MBE Mineral Technologies Pte Ltd (MBE), a wholly-owned Singapore-domiciled investment arm of MBECL, now controls 41.69% stake in SEG. The final deal also saw MBCEL providing £4 million (Rs.35.2 crore) loan to SEG. Three MBE directors have joined the SEG board. 

During the first seven months this year, Hayward Tyler’s new orders were £20.3 million against £18.8 million for the equivalent period last year. MBECL is planning to introduce the target's line of pumps in India.

http://www.thehindubusinessline.com/companies/article3851182.ece 

Manufacturing > Industrial Equipment (Compressors)
Elgi Equipments acquires 100% stake in Italian firm Rotair

Coimbatore based listed Elgi Equipments has acquired a 100% stake in Rotair Spa, a Caraglio, Italy-based company engaged in the design, manufacture and distribution of compressors and allied products for the construction and industrial sectors. The acquisition has been routed through Elgi’s 100% Italian subsidiary, Elgi Compressors Italy. 

Rotair has an annual turnover of Euro 15 million with market presence across Europe and other international markets. 

From the Venture Intelligence M&A Deal database: In Feb-09, Elgi had acquired French air compressors manufacturer Belair for $1-M.  

For more information: 

http://beta.bseindia.com/corporates/anndet.aspx?newsid=d52e0e95-9e5a-4ef5-8ae8-4c637ea14cf9 

http://www.rotairspa.com/EN/index.aspx 

Mergers & Acquisitions (Domestic) 

Manufacturing > Steel
Tata Steel acquires majority stake in Tata Sponge Iron for Rs.65-Cr

Publicly listed Tata Steel has raised its stake in associate firm Tata Sponge Iron to 51% following the purchase of an 11.26% stake or 17.34 lakh shares through a voluntary open offer, reports PTI. Tata Steel had launched a voluntary open offer on July 27 at a price of Rs.375 per share. The offer closed on August 9. AZB & Partners advised Tata Steel on the legal aspects. 

Tata Steel had a 39.74% stake before the start of the offer. It had said that total funds required for implementation of the offer (assuming full acceptance) would be Rs.65.02 crore.

http://www.business-standard.com/india/news/tata-steel-acquires-majority-stake-in-tata-sponge-iron/184459/on 

Manufacturing > Steel
JSW Steel merges JSW Ispat with itself

JSW Ispat shareholders are to receive one share of fellow publicly listed JSW Steel for every 72 shares held by them, reports NDTV. The merger will make JSW the second largest domestic steel producer, with a 14.3 million tonnes per annum production capacity, after state-owned Steel Authority of India (SAIL). Post the merger, Japan-based JFE Steel's stake in JSW Steel will come down to 14.92%. 

In December, 2010, the JSW Steel had acquired a 41% stake in debt-ridden Ispat Industries for about Rs. 2,157 crore from its then promoters Pramod and Vinod Mittal and subsequently renamed it as JSW Ispat Steel. It also refinanced the latter’s Rs.6,000 crore debt to bring it out of corporate debt restructuring. As on June 30, 2012, JSW Steel has 46.75% stake in JSW Ispat, while the erstwhile promoters, Pramod and Vinod Mittal hold less than 20%.

http://bit.ly/TP1IhK 

Manufacturing
TICL acquires 95.57% stake in Simto Investment from Voltas for Rs.30-Cr

Tata Investment Corporation Ltd. (TICL) has acquired from Voltas Ltd .14,62,087 equity shares of Rs.10 each representing 95.57% of the share capital of Simto Investment Company Ltd. for a consideration of Rs.29.68 crore based on a valuation carried out by an external valuer. Simto has a paid-up capital of Rs.1.53 crore. Both TICL and Voltas are publicly listed companies of the Tata Group.

http://bit.ly/N33c9K

Other Deals

BFSI > Banking
HSBC offloads entire stake in Federal Bank for Rs.341-Cr

HSBC has sold its entire 5% stake in Aluva, Kerala-based private sector lender Federal Bank for a little over Rs.341 crore through open market transactions, reports Mint. HSBC had held 85.16 lakh shares, or a 4.98% stake, in Federal Bank through HSBC IRIS Investments Mauritius Ltd. The shares were sold at an average price of Rs.401.04 apiece. 

Earlier this year, HSBC offloaded its entire holdings in Axis Bank and Yes Bank for about Rs.2,425 crore through open market transactions.

http://www.livemint.com/2012/08/28204209/HSBC-offloads-entire-stake-in.html                               

Healthcare & Life Sciences > Pharmaceuticals (Drug Discovery)
Advinus to receive milestone-linked payments from Japan’s Takeda

Japanese drug maker Takeda has advanced about $5 million (Rs.28 crore) to the Pune-based drug discovery unit of R&D startup Advinus Therapeutics, a Tata Group company, and will get the ‘right of first look’ at any resulting R&D asset, reports Startupcentral. The development is seen as an interim arrangement to help sustain Advinus’ loss-making discovery operations for the next six months.

http://startupcentral.in/2012/08/advinus-gets-reprieve-from-japanese-drug-maker-takeda/

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Deals in the Making

Private Equity / Strategic Investments

Energy > Power Projects
KKR, Bain Capital in talks to buy 30% stake in Lanco’s power biz for $750-M

PE firms Bain Capital and Kohlberg Kravis Roberts (KKR) are in talks to invest about $750 million (Rs.3,892 crore) for a minority stake in Gurgaon-based Lanco Infratech, reports Business Standard.  The company has put a higher stake on the block - around 30% - in some of its generation projects. Macquarie has been mandated to facilitate the deal. Lanco had earlier held talks with energy majors such as AES of the US and Gaz de France to invest in its power business.                                                    

Lanco is also planning to monetize its wind portfolio and its roads business to bring some additional liquidity into operations. The company is also looking for a strategic partner in its solar vertical. 

For more information:  

http://www.business-standard.com/484852/ 

http://www.lancogroup.com 

Energy > Renewable Power Projects (Wind Energy)
Kalyani Group in talks with PE firms to raise $300-M for Kenersys

The Kalyani Group, promoter of auto components maker Bharat Forge, is in talks with PE firms to sell a $300 million stake in its wind energy firm Kenersys, reports Reuters. The transaction would dilute part of the controlling stake of the Kalyani Group in the alternative energy firm and also enable First Reserve Corp, a US-based energy-focused PE firm, to make a partial exit from an investment it made in Kenersys in 2008. 

Kenersys is an integrated wind energy company that designs, assembles and markets wind turbine generators.

http://www.reuters.com/article/2012/08/28/bharatforge-kenersys-idUSL4E8JG17R20120828 

Manufacturing > Cement
CVCI in fray for Rs.400-Cr Shriram cement unit stake: report

Citi Venture Capital International (CVCI) is holding talks to invest Rs.400 crore in the cement unit of the Shriram Group, after other PE firms dropped out of the fray, reports Times of India. Shriram Group initiated the process to sell stake in Sree Jayajothi Cements in which it acquired 70% stake earlier this year following conversion of loans into equity. PE players Blackstone, KKR and Mount Kellet had shown initial interest. 

Shriram picked a controlling interest in Jayajothi which has 3.2 million ton per annum plant in the Kurnool-Kadappa region of Andhra Pradesh. Original promoter Jayavilas Group has the remaining shares. Shriram is looking to induct a financial partner to revive the cement unit, and would allow the investor to keep an equal stake post dilution. The group and its PE partner would look to sell the business to strategic buyers in the next four to five years.

http://timesofindia.indiatimes.com/business/india-business//articleshow/15849594.cms 

IT & ITES > Online Services (Marketing)
Ybrant Digital to raise Rs.250-Cr from Credit Suisse, ICICI Bank, others

Ybrant Digital, listed on the BSE recently through its acquisition of the listed entity LGS Global, will raise Rs.210 crore, including Rs.100 crore from Credit Suisse and ICICI Bank, through issue of shares to three firms to fund the future acquisitions, reports Business Line. 

Experian, from which Ybrant acquired some online business, will get 1.18 crore shares with a face value of Rs.2 each, totaling Rs.110 crore in one or more tranches on the basis of preferential allotment. Post allotment, the holding of promoters would come down to 39.78% from 41.67%. Experian will have a post issue stake of 2.42%, Credit Suisse would have 0.54% and ICICI Bank, 1.62%.

http://bit.ly/RC99qT 

Energy > Equipment (Renewable – Solar)
Baring PE, Aditya Birla PE eye 20% stake in Anu Solar Power for Rs.100-Cr

Baring Private Equity Partners and Aditya Birla Private Equity are in the running to buy a 20% stake in Bangalore-based Anu Solar Power for Rs.100 crore, reports Economic Times. The deal may close by the end of September. Anu Solar Power, which makes solar inverters, water heaters and provides off-grid power solutions, reported revenue of Rs.60 crore in the financial year 2011-12. Advisory firm Ernst & Young is the lead arranger.

http://bit.ly/OOAoBM 

Energy > Renewable Power Projects (Wind Energy)
Morgan Stanley joins race to acquire DLF's wind power biz

US-based Morgan Stanley Infrastructure Partners has joined the race to buy real estate firm DLF's wind power business, reports Economic Times.  Bharat Light and Power, a cleantech company promoted by former GE India President & CEO Tejpreet Chopra, and Hyderabad-based Mytrah Energy are among others interested in the purchase. Management consultancy Pricewaterhousecoopers is handling the sale. 

DLF's wind power business is likely to be valued at about Rs.1,000 crore.

http://economictimes.indiatimes.com/articleshow/15918028.cms

Food & Beverages > Restaurants (Chinese)
Yo! China in talks to raise Rs.50-Cr

Moods Hospitality, the owner of Chinese fast-food restaurant chain Yo! China, is looking to raise over Rs.60 crore in the first quarter of next year to facilitate the expansion of Yo! China and Dim Sum Bros, reports Economic Times. The company will open 10 “youth-friendly” cafes over the next one year as part of a strategy to increase profitability. 

The cafes, with an average built-up area of 2,000 sq ft, will have display kitchens and serve alcohol and specialty desserts. Some existing Yo! China restaurants could be converted into cafes. The Rs.50 crore Moods Hospitality operates 50 Yo! China outlets and two fine dining Dim Sum Bros restaurants in the country. 

From the Venture Intelligence PE Deal database: In December-2006 Matrix Partners India had invested $5.50 million in Yo China. (Subscribers to the database can login to view the company financials and other transaction details.) 

For more information:  

http://economictimes.indiatimes.com/articleshow/15917308.cms 

http://www.yo-china.com 

Manufacturing > Chemicals
Sanmar to rope in investor for Egypt biz

Sanmar Group company TCI Sanmar Chemicals is looking to rope in an investor for its Egyptian operations, reports Business Line. It operates a 2 lakh tons a year PVC plant in Egypt.

http://www.thehindubusinessline.com/companies/article3817040.ece 

Retail
Designer Duo Ashima and Leena to raise PE funding

Designer Duo Ashima and Leena are in the process of tapping PE funding, reports Economic Times. They plan to set up a lifestyle store that will sell home furnishings, crockery, and collectibles and open an education institute.

http://economictimes.indiatimes.com/articleshow/16028925.cms 

Energy > Renewable Power Projects (Wind Energy)
Techno Electric to raise PE funding for Simran Wind expansion

Techno Electric & Engineering is in talks to raise funds from PE players to fuel future expansion plans in its subsidiary Simran Wind Project Pvt. Ltd., reports Moneycontrol. The firm may either look at equity injection that will feed expansion over the next 1-2 years or tie-up long-term funding. 

Last year, IFC had invested $5 million to acquire a 3.38% stake in Simran Wind.

http://www.moneycontrol.com/news/business/techno-electric-to-tap-pe-funds-for-simran-wind-expansion_751143.htm

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IPOs 

Engg. & Construction
Thejo Engg. plans Rs.19-Cr IPO on NSE SME platform

Thejo Engineering has announced a price band of Rs.402-430 for its IPO on NSE’s SME exchange Emerge, reports Business Line. The company intends to raise up to Rs.19 crore through this issue, which opens on September 4 and closes on September 6. This would be the first company to list on Emerge. 

Thejo Engineering is in the business of providing solutions for bulk material handling, mineral processing and corrosion protection. It plans to deploy the IPO proceeds to set up a poly urethane unit and a lining plant; expand its existing R&D centre and set up another R&D centre and invest in its Australian subsidiary.  IDBI Capital is the book running lead manager for the issue.

http://www.thehindubusinessline.com/markets/stock-markets/article3836431.ece 

Secondary Offerings 

Agri-business > Agri Chemicals
Govt. to sell 12.5% in RCF

Publicly listed Rashtriya Chemicals Fertilizers (RCF), the listed PSU which is India's No.3 urea maker, expects t he government to start a share sale in the company during the quarter ending March 2013. The sale would reduce the government's holding in the company to 80% from its current 92.5%.

http://bit.ly/PK2qKR

Mergers & Acquisitions

IT & ITES > Mobile VAS
Tech Mahindra in talks to buy Comviva for around Rs.750-Cr

Mumbai-based IT services firm Tech Mahindra is in talks to buy the Bharti Group’s mobile VAS firm Comviva Technologies for around Rs.750 crore, reports Economic Times. 

Formerly known as Bharti Telesoft, Comviva is about 50% owned by Sunil Mittal and his family through holding firms and trusts. PE firms Sequoia Capital and Cisco hold a 30% and 5% stake in the company, respectively, with the balance 15% is owned by employees. 

For more information:  

http://economictimes.indiatimes.com/articleshow/15912085.cms 

http://www.comviva.com 

IT & ITES > IT Hardware
Lenovo in talks to buy out promoters from HCL Infosystems for Rs.500-Cr

Global PC maker Lenovo is in talks to buy out the promoter stake in publicly listed IT products and services firm HCL Infosystems for around Rs.500 crore, reports Financial Chronicle. As of June end, HCL Infosystems has promoter shareholding of 50.77%. HCL Corporation is the single largest promoter entity with a 42.85% stake. Acquiring the promoters’ stake would necessitate an open offer for another 25% shares by the Chinese firm.  

HCL Infosystems markets a wide range of notebooks and desktop computers, servers, computer peripherals such as keyboards, mouse, computer monitors and gaming consoles.

http://wrd.mydigitalfc.com/news/lenovo-buy-out-hcl-infosystems-033 

IT & ITES > BPO (Financial Research)
Helion Ventures in talks to sell stake in Amba Research: report

Helion Ventures has been holding talks with multiple parties as it looks to exit investment research outsourcing firm Amba Research, reports Economic Times. With delivery centers in Bangalore, Colombo and Costa Rica and sales offices in New York, London and Singapore, Amba carries out equity research, credit research and quantitative analysis for investment banks, funds and asset managers. The Amba exit, if consummated, will be the third exit by Helion since its inception in 2006. 

From the Venture Intelligence PE Deal database: Helion had invested $10-M in Amba Research in Jun-07. 

http://economictimes.indiatimes.com/articleshow/16039176.cms 

Healthcare & Life Sciences > Hospitals
Moolchand Hospital seeks acquisitions

New Delhi-based, Sequoia Capital-backed Moolchand Hospital is looking to acquire hospital chains, IVF (in vitro fertilization) clinics and pathological laboratories, reports Business Standard. The company plans to spend Rs.500 crore over the next five years for expansion and acquisitions. 

Moolchand is in advanced talks with many hospitals in the northern and eastern parts of India, where it may kickstart the first phase of expansion. However, for new verticals like diagnostics, dialysis centers and fertility-assistance services, the group is targeting smaller towns and cities. 

From the Venture Intelligence PE Deal database: Moolchand had raised $22.28 M from Sequoia in Jun-11 for a nearly 22% stake. 

http://www.business-standard.com/484865/ 

Engg. & Construction > Infrastructure (Roads)
IVRCL set to exit three road SPVs

IVRCL Ltd., which has completed the merger process with IVRCL Assets & Holdings Ltd., is set to sell three road projects in the South, reports Business Line. The deals are likely to be finalized in 3-4 weeks.

http://www.thehindubusinessline.com/companies/article3836483.ece 

Shipping & Logistics > Port
L&T to sell part of Dhamra Port stake

Larsen & Toubro Ltd. may sell off a part of its stake in Dhamra Port Company Ltd., an equal joint venture with Tata Steel Ltd., reports Wall Street Journal.

http://blogs.wsj.com/dealjournalindia/2012/08/27/larsen-expects-to-sell-part-of-dhamra-port-stake/ 

IT & ITES > IT Services
NTT keen on more buys in India

The NTT Group is looking to buy companies that will propel the growth of its IT services segment in India and abroad, reports Economic Times.

http://goo.gl/HTxAs 

Engg. & Construction
Wadia Group to exit from engineering JV Gherzi Eastern

Wadia Group, which exited from three businesses in the past year, is now preparing to shed its engineering business by making an exit from Gherzi Eastern, an unlisted 50-year-old, Rs.100-crore design engineering firm which has built facilities for companies such as Reliance Industries and Siemens, reports Economic Times. The divestment plan for the engineering business will see Bombay Burmah buying out stakes of the joint venture partner, the Gherzi family who will retain the textile engineering business. Bombay Burmah will sell the residual business to interested suitors. 

The Wadia Group holds 57% in Gherzi Eastern while the remaining 43% is with the Gherzi family.

http://bit.ly/TbvX58 

BFSI > Banking
HSBC may exit Karnataka Bank

HSBC is looking to offload its entire 4.46% stake in listed private sector lender Karnataka Bank, reports Financial Express. This is part of HSBC's global exercise to shore up its capital by liquidating non-strategic holdings. The shares are most likely to be sold through open market transaction. HSBC’s current holding of 83.99 lakh shares (4.46%) in Karnataka Bank is worth about Rs 70 crore.

http://bit.ly/Scmmgz

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Fund News

New Funds (Being Raised) 

Inno Group to raise new fund for Chennai housing

Investment group Inno Group Holdings Ltd. is raising Rs.150 crore from overseas investors, mostly high networth individuals (HNIs) in Belgium for its fifth fund to develop a housing project near Chennai, reports Mint. Inno Group intends to strengthen its real estate development portfolio, and has decided to develop projects on its own. 

The firm which has a capital commitment of about $200 million from its investors has invested around $65 million so far in hotel and housing projects in India. 

For more information:  

http://bit.ly/TNsebc 

http://www.innogroupholdings.com 

People 

Property fund Indiareit's CEO quits to start own fund: report

Ramesh Jogani, MD & CEO of Indiareit Fund Advisors, the real estate fund unit of Piramal Healthcare, has quit to set up his own fund, reports Reuters. He joined Indiareit in 2005-06 and has since raised three domestic funds sized at a total of Rs.19.5 billion.

http://reut.rs/TORIoN 

JM Financial PE head Harinder Sawhney passes away

Harinder Sawhney, MD of JM Financial’s PE business, died of cardiac arrest, reports Business Standard. The 45-year-old Sawhney had more than 15 years’ experience in the PE industry. He had joined JM Financial in 2006. He is survived by his wife and two children.

http://goo.gl/Z4U8M

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Real Estate News 

VGN Developers in talks to raise Rs.900-Cr

Chennai-based real estate company VGN Developers Pvt. Ltd. is in talks with international PE players to bring in project-level investment, reports Business Standard. The company is looking at an investment of around Rs.1,800 crore in the next two years, for land acquisition and development projects. Of this, around Rs.900 crore would be equity and the rest would be debt.

VGN recently launched a 20 acre residential project with around 1,166 apartments on the outskirts of Chennai.

http://www.business-standard.com/484602/

Cipla set to buy Rs.270-Cr office space in Mumbai

Pharmaceutical major Cipla is close to buying office space in central Mumbai in a deal worth over Rs.270 crore, reports Economic Times. The office space under consideration - about 1.30 lakh sq ft at Peninsula Business Park in Lower Parel - is likely to form the company's new headquarters and consolidate all its functions.

http://economictimes.indiatimes.com/articleshow/15863036.cms

Reliance Industries plans flagship shopping mall in Delhi

Reliance Industries plans to build a flagship shopping mall in South Delhi, reports Economic Times. The 720,000 sq ft commercial complex at Alaknanda will come up on a plot that RIL won in a Delhi Development Authority bid in 2007 for about Rs.400 crore.

http://economictimes.indiatimes.com/articleshow/15917029.cms

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New Ventures

Palash Healthcare forms JV with Jordan firm

Mumbai-based healthcare IT firm Palash Healthcare Systems has formed a joint venture with Amman, Jordan-based Health Information Systems, reports Business Standard. The 50:50 JV, known as Health 3 Operations, will primarily focus on tapping the healthcare segment in Middle East and and North America. Palash, under the H3O brand, has launched multilingual (English & Arabic) versions of its healthcare IT solutions in GCC countries.

http://www.business-standard.com/484697/ 

Dhoni launches bike racing team

Indian cricket captain Mahendra Singh Dhoni has floated his own bike racing team which is now competing in the FIM Supersport World Championship, reports Business Line. The team, named MSD R-N Racing Team India, entered the 17-race championship in the 10th race at Brno, Czech Republic and is expected to compete full season in 2013. The team has two riders in Florian Marino of France and Dan Linfoot of Great Britain. 

Dhoni is part of the management, while actor Nagarjuna Akkineni has been mentioned as a Director. Nandish Domlur, a cardiac surgeon by profession, is the MD & CEO of the team. 

For more information:  

http://www.thehindubusinessline.com/news/sports/article3830951.ece 

http://www.msdr-nracing.com 

Narayana Hrudayalaya in JV with US firm TriMedx

Bangalore-based Narayana Hrudayalaya is in a new joint venture pact with US-based TriMedx, a subsidiary of Ascension Health, reports Business Standard. TriMedx specializes in reducing expenses, maximizing utilization and driving profitability through innovative management programs centered on medical technology assets. The JV intends to help small hospitals extend the lifecycle of costly MRI and other major equipment. 

The two partners had already come together to set up an expansive healthcare city in the Cayman Islands in an equal JV, which would have about 2,000 beds over a period of time at an initial cost of $60 million.

http://www.business-standard.com/484651/ 

Kishore Biyani’s cousins launch luxury retail company

Kishore Biyani’s younger first cousins have started a luxury retail company independent of the retail tycoon’s Future Group, reports Mint. Rakesh Biyani, JMD of Pantaloon Retail (India) Ltd., and Sunil Biyani, a director of Future Group, have teamed up to launch Selangor Retail Pvt. Ltd. The two brothers, sons of Kishore Biyani’s paternal uncle, will still keep their roles in Future Group. 

Selangor Retail has opened two stores in Mumbai of Royal Selangor, a 130-year-old Malaysian luxury gift items brand. Over time, the company will add more luxury and gift brands from around the world.

http://www.livemint.com/2012/08/30215017/Kishore-Biyani8217s-cousins.html 

Arvind in glass composites JV with German firm PD FibreGlass

Textile major Arvind Ltd. has formed a 51:49 joint venture with Germany’s PD FibreGlass Group, reports Business Line. Named Arvind PD Glass Composites Pvt. Ltd., the JV manufactures glass fabrics and has commissioned the first phase of its production facility at Santej near Ahmedabad.

http://www.thehindubusinessline.com/companies/article3840632.ece

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Expansion/Diversification

Rashtriya Chemicals to invest $1-B in Canadian potash mines

Publicly listed Mumbai-based Rashtriya Chemicals and Fertilizers Limited (RCF) is considering a $1 billion investment in Canadian potash mines to secure long-term supply of the soil nutrient, reports Economic Times.

http://bit.ly/PK2qKR 

Videocon plans Rs.900-Cr investment in Punjab telecom biz

Diversified Videocon Group on Monday announced to invest Rs.800-1,000 crore in telecom business in Punjab, reports Business Line. The company plans to set up an IT hub for its entire telecom business at Mohali, a call centre with 500 seats at Jalandhar and additional 1,200-1,500 towers especially in rural areas to expand coverage. 

The company may also consider investment in setting up an assembly unit for LCD and washing machines in the state.

http://www.thehindubusinessline.com/companies/article3827991.ece 

Premier Explosives sets up new plant in Andhra

Premier Explosives Ltd. has set up a new emulsion explosives plant at Nalgonda district of Andhra Pradesh, reports Business Line. The plant will have a capacity to produce 5,000 tons of packaged explosives a year. It is a new product from the company which specializes in producing a range of explosives to meet the requirements of mining and allied industries.

http://www.thehindubusinessline.com/companies/article3828411.ece 

Jain TV Group launches DTN venture

The Jain TV Group has launched its direct to network service (DTN) to offer distribution of digital satellite television signals to cable operators in the country, reports Deccan Herald. To start with, the broadcast company will offer 200 standard definition and high definition channels. It also plans to achieve capacity to offer 500 channels including 30 HD channels and value added services later. 

The Jain TV Group’s Noida Software Technology Park (NSTPL) has signed a multi-transponder agreement with Intelsat, a provider of satellite services worldwide, for C-band capacity to launch the Headend-In-The-Sky (HITS) platform as JAINHITS. Motorola and KIT digital are also partners in the venture.

http://www.deccanherald.com/content/275098/jain-tv-group-launches-dtn.html 

India Seamless forays into lighting business

Pune-based aircraft manufacturer India Seamless Group has forayed into the consumer lighting business by launching LightO Technologies Pvt. Ltd., reports Business Standard. The new company will operate in India, Sri Lanka, Bangladesh and Nepal.

http://www.business-standard.com/484894/ 

Baldota plans Rs.300-Cr gold mining plant in Karnataka

Hospet-based Ramgad Minerals and Mining Ltd., a Baldota Group company, is in advanced stages of beginning gold mining operations at the Gadag district of Karnataka, reports Business Standard. It will set up a 1,000 tons per day gold ore processing plant at an initial investment of Rs.300 crore.

http://www.business-standard.com/484915/

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People

Mouli Raman named OnMobile MD

OnMobile Global has decided to appoint two different persons for the positions of MD and CEO, thereby splitting both the positions, reports Medianama. It has appointed the company’s co-founder and Executive Director Mouli Raman as its MD, while it is still on the lookout for a new CEO. 

This development essentially means that Raman is no longer the Interim MD after he took over that position in July 2012, following the resignation of OnMobile Co-founder MD & CEO Arvind Rao.

http://goo.gl/rIxsT 

Rajnikant Patel quits Indian Commodity Exchange

Rajnikant Patel has stepped down from his current post of MD & CEO of Indian Commodity Exchange (ICEX), reports Economic Times. Patel, who was responsible for the corporatization and demutualization of BSE in 2005, will continue to stay on the board as director. 

For more information:

http://economictimes.indiatimes.com/articleshow/15974398.cms

http://www.linkedin.com/in/rajnikantfpatel

Tata Power Solar Systems appoints Ajay Goel as CEO

Tata Power Solar Systems (formerly Tata BP Solar India) has appointed Ajay Goel as the CEO. An alumnus of IIT-Delhi with an MBA from the University of Chicago, Goel brings over 20 years of industry experience.

http://www.tata.com/article.aspx?artid=T9I0nfRn+6c

Ravi Uppal set to join Cairn India next month

Ravi Uppal, MD & CEO of L&T Power, is set to join Cairn India, part of the $11 billion Vedanta Group, reports Business Standard. Uppal will succeed CEO Rahul Dhir, who is leaving the company on August 31 after being at the helm for six years.

http://www.business-standard.com/484680/

Arundhati Bhattacharya to head SBI Caps

State Bank of India (SBI) has appointed Arundhati Bhattacharya as the MD & CEO of its merchant banking arm SBI Capital Markets, reports Business Standard. She will replace S Viswanathan.

http://bit.ly/NKR2y2

Regulatory

Shome panel recommends doing away with Capital Gains tax

Parthasarathi Shome, the head of a committee set up to sort out a host of tax problems plaguing investors, has said foreigners would prefer to invest directly in India rather than route money through low-tax jurisdictions such as Mauritius if Asia's third-largest economy is able to create an environment in which foreign capital feels welcome. By the end of this month, the Shome-helmed panel will come up with final recommendations on so-called indirect transfers or overseas deals in which some or all of the underlying assets are Indian.

http://economictimes.indiatimes.com/articleshow/16226913.cms

SEBI allows partial fungibility of IDRs; may cut IPO listing time to 7 days

Market regulator SEBI has allowed conversion of up to 25% of Indian depository receipts (IDRs) into underlying shares in a year, reports Business Standard. The move is to implement the budget proposal and to improve the attractiveness of IDRs as an instrument. Currently, Standard Chartered is the only foreign entity that has listed its IDRs on the Indian bourses. 

SEBI also plans to reduce the listing time for an initial public offering (IPO) from 12 days from the closure of an issue to seven days. It would issue a circular to facilitate applications for IPOs electronically — through stock brokers across many cities — soon. Those preferring not to deal with brokers may download the application forms directly from the stock exchange’s website and view the status of their applications online. 

For more information:

http://www.business-standard.com/484755/

http://www.business-standard.com/484730/

SEBI to ask companies for IPO pricing details

Market regulator SEBI may ask companies and merchant bankers to limit any business transactions amongst them to bare minimum and to provide investors with a detailed analysis of how they discover the IPO price range, reports Financial Express. 

The proposed steps are aimed at safeguarding the investors' interest and ring-fencing the IPO market from possible over-pricing of the public offers through a nexus between the company promoters and merchant bankers.

http://bit.ly/OMfSlg 

SEBI amends rules on promoter stake sale routes

Market regulator SEBI amended its rules to allow promoters to use rights and bonus issue of shares for dilution of their stake to meet minimum public holding norms, reports Mint. SEBI also said that it would consider any further relaxation in this matter on case by case basis. The promoters will have to forego their entitlement to shares being issued in such rights and bonus issues.

http://www.livemint.com/2012/08/29172923/Sebi-amends-rules-to-allow-fre.html

Competition watchdog may have its say on all M&As

The Competition Commission of India (CCI) is likely to be empowered to have jurisdiction on mergers and acquisitions, reports Business Standard. The proposed amendments in the Competition Act, 2002, are expected to be considered in a cabinet committee meeting in the coming week. The ministerial panel would evaluate recommendations of a group of ministers (GoM) headed by Finance Minister P Chidambaram, which suggested mergers and acquisitions, including those in the banking, telecom and pharmaceuticals sectors, be under CCI’s purview.

http://www.business-standard.com/484880/

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Other News

SC orders Sahara to refund Rs. 24,000-Cr

The Supreme Court has ordered two of Sahara Group companies- Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) - to refund around Rs. 24,000 crore to their investors within three months with 15% interest per annum, reports Financial Express. If the companies fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies. The Court also appointed one of its retired judges Justice B N Aggarwal to oversee the action taken by SEBI against the two Sahara firms. 

The group might have to fork out around Rs 38,000 crore as of now which includes the principal amount of Rs 24,029.73 crore and interest of around Rs 14,000 crore. .

http://bit.ly/PUXxjO 

Karuturi restructures FCCB redemption payments

Publicly-held flower exporter Karuturi Global has tripped up on paying back $55 million which it had earlier raised through the FCCB route. The company has now restructured the bonds and has got RBI approval to pay back the bond holders after a year with an additional 7 per cent interest added on to it. 

The company which is embarking an ambitious $300 million agriculture foray in Ethiopia by growing a range of cereal and plantation crops, suffered a severe setback during late 2011 due to heavy floods in the region.

http://bit.ly/RAVP67

Aditya Birla Nuvo to rework Pantaloons deal value: report

Aditya Birla Nuvo is set to rework its deal for a controlling stake in Pantaloons after the latter's June quarter business fell below estimates, leading to a slight valuation drop, reports Times of India.

Aditya Birla Nuvo had announced plans to buy a 50.1% stake in Pantaloons in May this year for Rs. 800 crore in cash while taking on a similar quantum of debt. The deal entailed Pantaloon Retail India (PRIL), with diversified retailing interests, demerging lifestyle stores into a separate entity. Aditya Birla Nuvo planned subscribing Rs 800 crore debentures of PRIL, to be converted into equity of the demerged business, besides assuming the debt.

http://timesofindia.indiatimes.com/articleshow/15913112.cms

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