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Weekly Finance and Corporate Deals

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Weekly newsletter

  1. 1. 1 Top Headlines Govt sells around 9% of Axis Bank for $912M; LIC, Goldman Sachs among buyers. IFCI buying IDBI’s entire 18.95% stake in Stock Holding Corp. India records fastest rollout of stores in Starbucks’ history: Avani Davda. Payment solutions firm Innoviti raises $1.6M from Tata Capital, others. Capital International close to picking 15% in snacks maker Balaji Wafers for around $100M. JPMorgan sells physical commodities unit to Mercuria for $3.5B. IFC to lend $25.5M to Janalakshmi and Vistaar Finance. Nalanda Capital picks stake in TTK Prestige for $7.7M. Info Edge puts in $2.2M more in online photography startup Canvera, ups stake to 32% Inside The Story Govt sells around 9% of Axis Bank for $912M; LIC, Goldman Sachs among buyers. The government-controlled Specified Undertaking of Unit Trust of India (SUUTI) has sold over 9 per cent or almost half of its stake in Axis Bank for around Rs 5,557.2 crore ($912 million) through bulk deals executed on BSE on Friday.SUUTI held 20.7 per cent equity stake in Axis Bank and the government was looking to divest its holding in a few listed firms as part of its move to rein in the fiscal deficit for the year.As per exchange data, part of the shares was acquired by state-controlled insurance giant LIC, which picked shares worth Rs 1,116 crore. Other buyers include
  2. 2. 2 FIIs like Citigroup, Goldman Sachs and New World Fund.With this deal, LIC joins SUUTI to become the single-largest shareholder of Axis Bank with around 11 per cent stake each. IFCI buying IDBI’s entire 18.95% stake in Stock Holding Corp. State-run lender IFCI is buying IDBI Bank Ltd’s entire 18.95 per cent equity stake in custodial and depository services provider Stock Holding Corp of India Ltd (SHCIL), according to a stock market disclosure. The value of the transaction, however, is not disclosed.Following the stake acquisition, IFCI’s equity participation in SHCIL will increase to 52.86 per cent from 33.91 per cent, it added.IDBI Bank obtained approval from its shareholders for the proposed stake sale on February 28.The government and RBI had reportedly directed the state-run lenders to offload their non-core holdings in an effort to boost and protect their capital base. India records fastest rollout of stores in Starbucks’ history: Avani Davda. World’s largest coffee chain Starbucks, which forged an equal joint venture with Tata Global Beverages and opened its first outlet in India in October 2012, has seen the fastest rollout of its outlets in the country in the company’s history, according to a top company executive.At present, Tata Starbucks has 40 outlets in Delhi, Mumbai, Bangalore and Pune with its coffee plantations in the Coorg area of Karnataka state. Globally, Starbucks— the world’s largest coffee chain—runs over 20,000 coffee stories across 64 countries, serving more than 70 million customers per week.
  3. 3. 3 Payment solutions firm Innoviti raises $1.6M from Tata Capital, others. Bangalore-based payment solutions provider Innoviti Embedded Solution Pvt Ltd has raised Rs 10 crore ($1.6 million) from Tata Capital and a group of HNIs (High Net-worth Individuals) based out of India and London, according to a report by The Economic Times, citing its CEO Rajeev Agrawal.According to the report, three HNIs put in Rs 6 crore for a minority stake in the company, while the rest came from Tata Capital as a loan. The proceedings from this round will be used to expand its operations to the Middle East and scale the team. Capital International close to picking 15% in snacks maker Balaji Wafers for around $100M. Capital International Private Equity Funds (CIPEF) is said to be leading the race to buy a stake in Gujarat-based potato chips and snacks maker Balaji Wafers Pvt Ltd, as per a report in Mint citing unnamed sources in the Indian company.The report said the PE firm may pick around 15 per cent stake valuing the company at around Rs 4,000 crore. This would mean deal worth around Rs 600 crore or just about $100 million.The company hopes to conclude the stake sale to CIPEF in a month’s time, the paper said. JPMorgan sells physical commodities unit to Mercuria for $3.5B. JPMorgan is selling its physical commodities business to Mercuria for $3.5 billion, the U.S. investment bank said on Wednesday, sweeping the fast-growing Swiss trading house into the top league of commodities traders.The all-cash transaction for one of the most powerful oil and metals desks on Wall Street is expected to close in the third quarter, JPMorgan said in a statement.In documents circulated to potential buyers last year, JPMorgan had valued its physical commodity business
  4. 4. 4 at $3.3 billion, with an annual income of $750 million. JPMorgan paid nearly $2 billion to buy the largest part of the business from RBS in 2010.JPMorgan decided to sell its multi-billion dollar physical commodities division last year due to rising regulatory and political pressure and so it could concentrate on the bank's core business of lending. IFC to lend $25.5M to Janalakshmi and Vistaar Finance. International Finance Corp, the private sector lending arm of the World Bank, may lend up to Rs 120 crore (close to $20 million) to microlender Janalakshmi Financial Services Pvt Ltd and up to Rs 35 crore (around $5.5 million) to Vistaar Finance, a non-banking finance company focused on micro, small & medium enterprises (MSME).The Bangalore headquartered MFI has a borrower base of more than 1 million women and a loan portfolio of around Rs 1,400 crore ($223 million). Nalanda Capital picks stake in TTK Prestige for $7.7M. Public market focused private equity firm Nalanda Capital has picked 1.5 per cent stake in kitchen appliances maker TTK Prestige, the flagship of southern India-based TT Krishnamachari group of companies, for Rs 47 crore ($7.7 million).The stake was picked through a market transaction where an existing investor Columbia Acorn Trust sold shares.This is the second such public markets focused PE firm to pick a stake in the company. Last year, emerging markets-focused investment firm Cartica Capital had picked a minority stake in TTK Prestige through a mix of preferential allotment and share purchase from existing shareholders including the promoters.
  5. 5. 5 Info Edge puts in $2.2M more in online photography startup Canvera, ups stake to 32% Info Edge (India), which runs a slew of consumer Internet portals, including Naukri.com, has invested Rs 13.5 crore ($2.21 million) more in online photography startup Canvera Digital Technologies Pvt Ltd. The investment was done through optionally convertible cumulative redeemable preference shares.In total, Canvera has raised Rs 15 crore in funding, of which the remaining Rs 1.5 crore was invested by a few unnamed investors.With the fresh investment, Info Edge’s total exposure to Canvera has risen to Rs 57 crore and it holds around 32 per cent per cent stake in Canvera (on a fully diluted and converted basis), up from around 27 per cent as of February 2014 this year.

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