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Weekly Finance and Economic News

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Weekly newsletter

  1. 1. 4 Top Headlines  Redington sells remaining 14% stake in NBFC arm Easyaccess to promoter.  Mumbai-based NBFC NeoGrowth Credit raises $1.6M from Aspada.  David Llyod eyes 20% stake in Talwalkars chain of health centres.  ChrysCap leads $53M Series B round in systems integrator LiquidHub.  Lightspeed Venture Partners raises $950M global VC fund.  UPL sells entire stake in Brazilian agrochemical JV for $59M.  Everstone Capital invests $16.6M in fashion label Ritu Kumar.  GMR Energy looks to raise $242M in IPO; Temasek, IDFC Alternatives, Ascent to part exit.  Fresh food vendor Greencart.in raises angel round of $1.5M.  Temasek investing $40M in Star Agriwarehousing Weekly Executive Summary The Reserve Bank of India (RBI) left its policy interest rate unchanged on Tuesday, as expected, and said it does not expect further near-term policy tightening if headline inflation continues to ease towards the
  2. 2. 4 bank's targeted level.The RBI kept its key repo rate at 8.00 percent, in line with the forecast of all 53 economists in a Reuters poll last week.Since taking office in September, RBI Governor Raghuram Rajan has raised the repo rate three times by a total of 75 basis points. India's consumer price index inflation eased to 8.10 percent in February, near the RBI's January 2015 target of 8 percent, while the wholesale price index slowed to a 9-month low of 4.68 percent. The RBI wants CPI inflation to ease further to 6 percent by January 2016. Rajan expressed concern about risks to growth in an economy expanding at under 5 percent, its slowest in a decade. He said growth in the fiscal year that began this month is expected in a range of 5 to 6 percent, with downside risks. "Lead indicators do not point to any sustained revival in industry and services as yet," Rajan said. The RBI also reduced the availability of overnight funds from its repo window for banks and increased the amount that banks may borrow from its term repo window in a bid to reduce lenders' reliance on short- term central bank funding. Indian stocks were little changed, while the local bond and foreign exchange markets were closed on Tuesday.With India heading for elections running from April 7 to May 12, Rajan had been expected to wait for a glimpse of the next government's economic policies as well as the outlook for monsoon season rains that begin in June before making a policy move, economists said.
  3. 3. 4 Inside The Story Redington sells remaining 14% stake in NBFC arm Easyaccess to promoter Chennai-based Redington (India) Ltd has sold its remaining 14 per cent stake in non-banking finance company (NBFC) subsidiary, Easyaccess Financial Services Ltd (Easyaccess), to Harrow Investment Holding Ltd, Mauritius, as per a stock market disclosure. The firm did not disclose the deal value.Redington’s promoter Harrow Investment Holding (formerly known as Redington Mauritius Ltd), owns 21.04 per cent stake in the company and is part of Singapore-based Kewalram Chanrai Group.In January this year, Redington sold 86 per cent stake in the NBFC arm to Harrow Investment Holding. It had previously disclosed in November that it is planning to sell some stake in Easyaccess to its promoter. Mumbai-based NBFC NeoGrowth Credit raises $1.6M from Aspada. Mumbai-based non-banking financial company (NBFC) NeoGrowth Credit Pvt Ltd has raised Rs 10 crore ($1.62 million) from Aspada Investment Company, as per a statement.NeoGrowth Credit is a non- deposit taking NBFC involved in the merchant cash advance business. It was founded by serial entrepreneurs Dhruv Khaitan and Piyush Khaitan after they sold their transaction processing firm, Venture Infotek in mid- 2010.In mid 2013, Omidyar Network India Advisors Pvt Ltd had invested Rs 17 crore to pick 29 per cent stake in NeoGrowth Credit.
  4. 4. 4 David Llyod eyes 20% stake in Talwalkars chain of health centres. UK's health and fitness group The David Lloyd has begun talks with the management of Talwalkars Better Value Fitness to acquire around 20 per cent stake in the company, two people with direct knowledge of the development said. With this equity deal, both companies are looking to expand their existing partnership of providing consultancy services. In 2012, the company announced its partnership with David Lloyd Leisure Group to provide consulting for leisure and sports clubs in high end residential developments, gated community townships and corporate campuses. The BSE-listed Talwalkars Better Value Fitness is 54.78% owned by the promoters, Madhukar Talwalkar and family. ChrysCap leads $53M Series B round in systems integrator LiquidHub.
  5. 5. 4 Private equity firm ChrysCapital has struck another cross-border deal, leading a series B funding round worth $53 million in Pennsylvania- headquartered LiquidHub. This is largely a secondary round where NewSpring Capital has exited its seven-year-old investment.It has operations in North America, Europe and Asia, including India. In India it has presence through centres in Hyderabad and Mumbai.Although primarily focused on India with its sector-agnostic private equity funds, ChrysCap has earlier made a few cross-border investments but none this large and this is one of the only such deals in the recent past. Lightspeed Venture Partners raises $950M global VC fund Global venture capital firm Lightspeed Venture Partners has closed its new fund at $950 million, according to a disclosure filed with the Securities and Exchange Commission.The fund called ‘Lightspeed Venture Partners X, LP’ pooled in money from as many as 81 investors, as per the disclosure.Recently, it exited its investment in Nest Labs, the maker of high-tech thermostats and smoke detectors, which was
  6. 6. 4 snapped by Google for $3.2 billion in cash. Its current portfolio companies include Snapchat, GrubHub, Mulesoft and TaskRabbit. UPL sells entire stake in Brazilian agrochemical JV for $59M. Agro-chemicals major UPL Ltd has entered into an agreement with an Italian firm Sipcam SPA (Sipcam) to sell its entire 50 per cent stake in the Brazilian agrochemical company Sipcam UPL Brasil SA for $58.80 million (Rs 351 crore), as per a stock market disclosure.Sipcam Isagro Brasil has products like insecticides, fungicides, acaricides, pesticides, nitrogenous and phosphatic fertilisers.Sipcam held the remaining 50 per cent in the JV and post the latest deal, it will own 100 per cent of Sipcam UPL Brasil SA. Everstone Capital invests $16.6M in fashion label Ritu Kumar. Private equity firm Everstone Capital has picked a minority stake by investing Rs 100 crore ($16.6 million) in fashion label Ritu Kumar.It has three distinct brand offerings: Ri, a premium bridal and formal wear line, Ritu Kumar, a traditional pret brand offering ethnic every day and semiformal wear besides Label, a fashion pret line.Sameer Sain, co- founder and managing partner, Everstone Group, said, “We are delighted to partner with Ritu Kumar, whose brand has put India’s rich craftsmanship and heritage on the global map.” GMR Energy looks to raise $242M in IPO; Temasek, IDFC Alternatives, Ascent to part exit. Singapore’s sovereign wealth fund Temasek, IDFC Alternatives and Ascent Capital are looking to part exit in the initial public offer of GMR Energy, the power business arm of GMR Infrastructure. GMR Energy has
  7. 7. 4 filed its documents for the public float in which it seeks to raise Rs 1,450 crore ($242 million), through a fresh issue of shares besides an offer for sale by the private equity investors.Half of the money raised through fresh issue will be used for funding equity contribution in two power projects, including 1,050 MW (Phase I) Kamalanga Power Plant in Orissa and 1,370 MW Chhattisgarh Power Project. It would use another Rs 450 crore for debt repayment the rest for other corporate purposes. Fresh food vendor Greencart.in raises angel round of $1.5M. Mumbai-based Greencart Ventures Pvt Ltd, which runs an e-com venture for fresh produce and gourmet food under Greencart.in, has secured $1.5 million (Rs 9 crore) in what us being an angel round of funding from Techno Group. Techno Group has interests in engineering, hospitality, construction, real estate development, financial services and agribusiness.Greencart will use the money to expand its operations and strengthen its distribution channels. It will also use these funds to augment its sourcing network besides enhancing end user experiences, it said on Monday. Temasek investing $40M in Star Agriwarehousing Singapore state-owned investment company Temasek Holdings is investing Rs 240 crore ($40 million) for a significant minority stake in Star Agriwarehousing and Collateral Management Limited, one of the country's fastest growing agri-solutions companies. The investment reflects Temasek's growing interests in agri-solutions businesses and assets as rising populations and emerging middle class boost food
  8. 8. 4 demand worldwide. Last year, Temasek made its boldest bet in the space in India when it pumped in Rs 572 crore for a 19.9% stake in Godrej Agrovet, a diversified agri-business company of the eponymous group, furthering its partnership with the conglomerate.
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