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Following a strong momentum of India--US cross border transactions last month, September witnessed eight US bound and six India bound transactions. The rising trend of US bound investments by Indian companies was evident this month, especially in areas of Industrial commodities, Utilities, Information Technology and Healthcare.
The key transaction(by size) this month were KEC international acquisition of SAE Towers Holding for $ 95 million in cash and Biologics capital raise of $ 80 million through equity shares.
India bound transactions by US companies were led by private placement in IT, Healthcare and Utilities sectors with M&A taking a back seat. Micromax Informatics Limited received $43 million funding from new investors Sandstone Capital Sequoia Capital, and Madison Capital Management. Svasti Microfinance Pvt. Ltd raised its first round of equity funding from The Michael and Susan Dell Foundation, Endowment Arm and several high net worth individuals.
With respect to US bound acquisition by Indian companies there were six M&A and two private placements. Core Projects & Technologies Limited acquired Technical Systems Integrators and Keenan and Keenan Group for approximately $20 million. Core Projects funded the acquisitions from the proceeds of its earlier foreign currency convertible bonds issue. Similarly IFGL Refractories Ltd. acquired CUSC International Ltd and El Ceramics LLC for $13 million. The acquisition has largely been funded, to the extent of $10 million, with five-year loans from HDFC Bank and the balance from IFGL.
Welcome to the October 2010 edition of our US-India newsletter, which focuses on key developments and issues affecting foreign direct investments (FDI) and foreign institutional investments (FII) between the US and India. For more information, please visit www.ivgpartners.com