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Weekly newsletter

  1. 1. Top Headlines Phoenix Mills to Buy Out Kshitijs Stake in Chennai Projects for $21M. Kingfisher Airlines denies shutdown rumours Grocery E-tailer BigBasket.com Raises $10M From Ascent Capital RIL Buys Analjit Singh’s Stake In EIH; Ups Holding To 18.53% JP Morgan’s Infra Fund Raises Over $95M For India Sidecar Vehicle GTL Infra To Roll Over $228M FCCB Mahindra Satyam Acquires vCustomers International Ops For $27M. MCX debuts on BSE at 34% premium Inside The Story Phoenix Mills to Buy Out Kshitijs Stake In Chennai Projects For $21M. Phoenix Mills Ltd (PML), a Mumbai-based property developer, is buying out Kshitij Venture Capital Fund’s (Kshitij VC) investment in its Chennai market city project and a separate high-end residential development for Rs 106 crore ($21 million).PML has approved the proposed acquisition of Kshitij VC’s holding in Classic Mall Development Co Pvt Ltd and Classic Housing Projects Pvt Ltd. The mall has a leasable space of 0.9 million sq. ft. and the residential project has a saleable area of approximately 0.25 million sq. ft. The retail mall is expected to start operations this year. PML has launched 0.25 million sq. ft. of residential space in Chennai of which 0.17 million sq. ft. has already been sold.Kshitij VC holds 32 per cent each in both the companies and PML is buying out the entire stake from the private equity fund, promoted by retail major Kishore Biyani’s Future Group. 1
  2. 2. Kingfisher Airlines denies shutdown rumoursCash-strapped Kingfisher Airlines on Sunday refuted speculation that itplanned to shut down its operations as a section of pilots havethreatened to boycott work without pay and dues being given to them.The development comes after Kingfishers chief executive SanjayAggarwal met pilots on Thursday and sought their cooperation.However, other reports also said that Aggarwal told pilots that if they donot cooperate, then the airline would have to shut shop. Seeking torefute the allegations, an airline spokesperson said: "Aggarwal met aGroup of pilots to appeal to them not to stay away from flying dutieswhich would potentially affect the operating schedule."Grocery E-tailer BigBasket.com Raises $10M from AscentCapitalBangalore-based private equity firm Ascent Capital has invested $10million in the first round of funding in BigBasket.com, an online grocerystore. The transaction is believed to be the first institutional investmentin an online grocery retailer and the largest series A round in an e-tailing firm in India. For Ascent Capital, which manages $600 millionacross three funds, this is the first reported investment in a technologycompany after five years.RIL Buys Analjit Singh’s Stake In EIH; Ups Holding To18.53%Mukesh Ambani-led Reliance Industries Ltd has become the largest non-promoter shareholder in EIH Ltd; ahead of ITC’s 14.98 per centstake.RIL has increased its stake by another 3.73 per cent in EIH, thehospitality firm that operates the luxury hotel chain Oberoi. The stakewas acquired by RIL’s wholly owned subsidiary Reliance IndustriesInvestment and Holding Pvt Ltd on Friday through open markettransactions for Rs 191.83 crore. The shares were acquired from Max 2
  3. 3. India promoter Analjit Singh’s entities – Gaylord Impex Ltd and PivetFinances Ltd.JP Morgan’s Infra Fund Raises Over $95M For IndiaSidecar VehicleJP Morgan Asset Management, the global investment and wealthmanagement firm, has raised over $95 million commitment for an India-specific ‘sidecar’ fund. The sidecar fund, an over-allocation pool givingthe fund manager an opportunity to invest in larger deal opportunities,is being raised for JP Morgan’s Asian infrastructure fund.A report inPension & Investments states that the State of Michigan RetirementSystems has committed $70 million to the fund, which is invested in twotoll roads in India. The investment is part of the overall $1.685 billioncommitments made by Michigan Retirement Systems to funds of ApaxPartners, Parthenon Group, Credit Suisse and others.GTL Infra To Roll Over $228M FCCBMumbai-based telecom tower operator GTL Infrastructure Ltd is in talkswith its foreign currency bondholders to roll over the bonds worth$228.3 million, which are due for redemption in November 2012,sources with direct knowledge of the development have said.“Thecompany is in talks with the bondholders to roll over the bonds withnew covenants and reduced conversion price,” one of the sourcesdetailed. According to the official, the company does not have thewherewithal to pay the bondholders and redeem the bonds. Therefore,the bondholders are trying to roll over the bonds to avoid a case ofdefault.“The coupon will be higher and the premium will be morereasonable,” the person said but refused to divulge details of therestructuring. The company has signed non-disclosure agreement withthe bondholders and is in advanced stages of discussions, and anannouncement is likely soon, another person involved in the discussionhas said. 3
  4. 4. Mahindra Satyam Acquires vCustomers International OpsFor $27MMahindra Satyam, a leading global consulting and IT services provider,has announced the 100 per cent acquisition of BPO firm vCustomer’sInternational operations for $27 million. This is the first 100 per centacquisition by Mahindra Satyam since it became part of Mahindra Groupand marks the entry of Mahindra Satyam’s BPO operations into otherverticals such as retail and consumer technology in addition tosignificantly enhancing technical support credentials, a statement saidon Wednesday."The combination of vCustomer’s expertise in the retailand consumer technology verticals with Mahindra Satyam’s domainexpertise and customer base will further strengthen the ability toaddress evolving market needs," the statement added.MCX debuts on BSE at 34% premiumMulti-Commodity Exchange (MCX), which debuted on the BSE on Fridayto become the first Indian bourse to be listed, got a premium of 34% onits IPO price, listing at Rs 1,387 compared to its IPO price of Rs 1,032.Nearly 1.40 crore shares of the eight-year old exchange were traded onits debut day, more than double its offer size of 64.3 lakh shares. At theclose of trading on the first day, MCX shares were at Rs 1,297, up almost26% on the day, translating to a market capitalization of Rs 6,614 crore($1.3 billion). 4
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