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Weekly newspaper

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Weekly indian Finance and Economic news

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Weekly newspaper

  1. 1. Top HeadlinesAscendas India Trust raises S$100M through follow-onoffering.Future Ventures re-invests in Aadhaar Retailing, ClarksFuture FootwearSonata to sell 50.1% stake in TUI InfoTec for up to $15MAcumen Fund in pact with USAID to provide $15M debtcapital for social startupsCarlyle exits HDFC for $840M, makes over 2xHinduja Group in lead to buy Houghton Intl for $1.15BTVS Capital raises over Rs 500cr for top-up fund; Beefs upteam Weekly Executive SummaryThe market snapped its four-day winning steak and closed lower onpressure from technology, healthcare and banking stocks. A brief halt intrading on the NSE after erroneous orders executed by Emkay GlobalFinancial Services also weighed on the sentiments. A technical mishapbrought down the indicators, however the Nifty recovered from it toclose 41 points down at 5747.The Indian market opened in the green following the reformsannouncement made by the government after market hours onThursday. Positive comments from European Central Bank presidentMario Draghi that the central bank is ready to buy bonds of debt-riddencountries also supported the sentiments.Essel Group on Thursday pared its stake in IVRCL with sale of sharesworth nearly Rs68 crore, around six months after it had expressedinterest in raising its holding in the infrastructure firm. Essel Group, 1
  2. 2. Which had acquired 10.2% in IVRCL in March 2012, through secondarymarket transactions and subsequently increased it to 12.27%, had saidthat the group is keen to increase its stake. IVRCL tumbled 5.77% toclose at Rs44.95 on the NSE.The rupee rose to a near six-month high in opening trade after thegovernment took more reform measures to attract foreign investment.Indias cabinet approved bills on 4 October to attract foreign investmentinto insurance and pensions among new measures to restore confidencein the economy, although the reforms will face a tough fight inParliament.Several dealers cite dollar outflows related to Carlyle Groups estimated$841 million (approx. Rs 4391 crore) stake sale in mortgage lenderHDFC. Positive global risk sentiment and a stronger euro also aidedgains, dealers said. At 9.02 a.m. local time, the rupee was at 51.43/45 asagainst 51.74/75 4 October close. It rose to 51.32, its highest since 13April. Inside The StoryAscendas India Trust raises S$100M through follow-onofferingSingapore Stock Exchange-listed Ascendas India Trust (a-iTrust), thefirst Indian realty focused real estate investment trust, has successfullyclosed its private placement of S$100 million last week.Ascendas IndiaTrust had notified the Singapore exchange on September 28 regardingits proposed private placement through which it was looking to raiseS$70 million- S$100million by offering new units in a-iTrust.a-iTrust’sfollow on equity offering was over-subscribed and the upsize option hasbeen exercised in full. a-iTrust notified the exchange last week that itwill offer the new units to investors at S$0.72 per unit to raise gross 2
  3. 3. proceeds of up to S$100 million, with the minimum issue size of S$70million.Future Ventures re-invests in Aadhaar Retailing, ClarksFuture FootwearInvestment and business management company Future Ventures Indiahas re-invested Rs 10.4 crore ($2 million) in two portfolio firms,Aadhaar Retailing Ltd (ARL) and Clarks Future Footwear (CFFL).ARL, asubsidiary of Future Ventures in which Godrej Group owns 30 per centstake, has got an investment of Rs 8.4 crore while Future Ventures hasinvested Rs 2 crore afresh in CFFL, a 50:50 JV with UK’s C&J ClarkInternational.This investment in ARL by Future Ventures has been madeby way of subscription to and further allotment of further equity shares.Post this transaction too, the shareholding of Future Ventures in ARLcontinues to be 70 per cent and the rest by Godrej Group.Sonata to sell 50.1% stake in TUI InfoTec for up to $15MSonata Software’s wholly owned subsidiary Sonata Europe has struck adeal to sell its 50.1 per cent stake in TUI InfoTech to TUI Travel PLC forup €12 million (Rs 81 crore or $15 million), as per a BSE filing.Headquartered in Hanover in Germany, TUI InfoTech is the IT arm ofEuropean travel and tour firm TUI.“The sale was made for a totalconsideration of up to €12 million payable on a deferred basis onachieving certain milestones and additionally release from certainobligations of €3.5 million. TUI Travel PLC will also be taking overeconomic benefits for the 12 months preceding the date of transaction,”the company said in the filing. 3
  4. 4. Acumen Fund in pact with USAID to provide $15M debtcapital for social startupsGlobal non-profit VC investor Acumen Fund has announced a strategictie up with US Agency for International Development (USAID) to flow ofup to $15 million (Rs 79.5 crore) in private debt capital to socialenterprises working to provide critical goods and services to theunderserved across these regions.Under this agreement, USAID’sDevelopment Credit Authority will partially guarantee loans offered bybanks or non-traditional capital providers to approved socialenterprises within Acumen’s portfolio. Acumen will leverage itsinvestment expertise and global networks to aid its investees insourcing and securing loans that will qualify under the terms of thisagreement.Carlyle exits HDFC for $840M, makes over 2xPrivate equity major the Carlyle Group has sold its entire stake in India’slargest mortgage lender Housing Development Finance Corp (HDFC) inone of the largest exits in countrys PE history. The buyout giant sold 3.7per cent stake in HDFC on Friday for $840 million (Rs 4,338 crore),bring the shares of the firm down by nearly 5 per cent.With this exit,Carlyle has made over $1.11 billion on its $650 million investment madeover five years ago in 2007. While in rupee terms the deal gives Carlylea 2.16x multiple, in dollar terms it comes to 1.71x reflective of the fall inthe Indian currency (when Carlyle bought the stake rupee was around40 per dollar).Carlyle had purchased 5.22 per cent stake in HDFC, a partof which was sold in February this year for $271 million or Rs 1,355crore.Hinduja Group in lead to buy Houghton Intl for $1.15BFamily-owned Indian conglomerate Hinduja Group is the front-runnerto acquire Houghton International, a US producer of metalworkingfluids and other chemicals, following a $1.15 billion bid, according totwo people familiar with the matter.The multibillion-dollar globalinvestment and banking group topped offers by private equity firms in 4
  5. 5. the auction for Houghton, the sources said. AEA Investors LP, theinvestment firm that owns Houghton, could still decide to sell to anotherparty or not at all, the sources added.Representatives of the HindujaGroup, Houghton and AEA did not respond to requests forcomment.Valley Forge, Pennsylvania-based Houghton makes specialtychemicals, oils and lubricants for the metalworking, automotive, steeland other industries. Deutsche Bank (DBKGn.DE) and Morgan Stanley(MS.N) were hired to advise on the sale process, people familiar withthe matter previously told Reuters.TVS Capital raises over Rs 500cr for top-up fund; Beefs upteamChennai-based private equity firm TVS Capital Funds Ltd, whichmanages TVS Shriram Growth Fund-IA, has raised commitments of overRs 500 crore for its top-up fund with backing from large family offices.TVS Capital launched TVS Shriram Growth Fund-IB last year andexpects to make a final close at Rs 550-600 crore in the next 30-45 days,according to Gopal Srinivasan.TVS Capitals chairman and managingdirector Srinivasan said that TVS Shriram Growth Fund-IB has crossedRs 500 crore in terms of commitments. The fund has mostly been raisedfrom family offices, whose commitments have ranged from Rs 15 croreto Rs 50 crore 5

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