The Indian market closed lower due to losses in technology, healthcare, and banking stocks. A technical issue on the NSE also weighed on sentiments. The rupee rose to a near six-month high following government reforms to attract foreign investment. Carlyle Group exited HDFC, making over twice its initial investment of $650 million. TVS Capital raised over Rs. 500 crore for a new fund from family offices.

1. Top Headlines
Ascendas India Trust raises S$100M through follow-on
offering.
Future Ventures re-invests in Aadhaar Retailing, Clarks
Future Footwear
Sonata to sell 50.1% stake in TUI InfoTec for up to $15M
Acumen Fund in pact with USAID to provide $15M debt
capital for social startups
Carlyle exits HDFC for $840M, makes over 2x
Hinduja Group in lead to buy Houghton Int'l for $1.15B
TVS Capital raises over Rs 500cr for top-up fund; Beefs up
team
Weekly Executive Summary
The market snapped its four-day winning steak and closed lower on
pressure from technology, healthcare and banking stocks. A brief halt in
trading on the NSE after erroneous orders executed by Emkay Global
Financial Services also weighed on the sentiments. A technical mishap
brought down the indicators, however the Nifty recovered from it to
close 41 points down at 5747.
The Indian market opened in the green following the reforms
announcement made by the government after market hours on
Thursday. Positive comments from European Central Bank president
Mario Draghi that the central bank is ready to buy bonds of debt-ridden
countries also supported the sentiments.
Essel Group on Thursday pared its stake in IVRCL with sale of shares
worth nearly Rs68 crore, around six months after it had expressed
interest in raising its holding in the infrastructure firm. Essel Group,
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2. Which had acquired 10.2% in IVRCL in March 2012, through secondary
market transactions and subsequently increased it to 12.27%, had said
that the group is keen to increase its stake. IVRCL tumbled 5.77% to
close at Rs44.95 on the NSE.
The rupee rose to a near six-month high in opening trade after the
government took more reform measures to attract foreign investment.
India's cabinet approved bills on 4 October to attract foreign investment
into insurance and pensions among new measures to restore confidence
in the economy, although the reforms will face a tough fight in
Parliament.
Several dealers cite dollar outflows related to Carlyle Group's estimated
$841 million (approx. Rs 4391 crore) stake sale in mortgage lender
HDFC. Positive global risk sentiment and a stronger euro also aided
gains, dealers said. At 9.02 a.m. local time, the rupee was at 51.43/45 as
against 51.74/75 4 October close. It rose to 51.32, its highest since 13
April.
Inside The Story
Ascendas India Trust raises S$100M through follow-on
offering
Singapore Stock Exchange-listed Ascendas India Trust (a-iTrust), the
first Indian realty focused real estate investment trust, has successfully
closed its private placement of S$100 million last week.Ascendas India
Trust had notified the Singapore exchange on September 28 regarding
its proposed private placement through which it was looking to raise
S$70 million- S$100million by offering new units in a-iTrust.a-iTrust’s
follow on equity offering was over-subscribed and the upsize option has
been exercised in full. a-iTrust notified the exchange last week that it
will offer the new units to investors at S$0.72 per unit to raise gross
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3. proceeds of up to S$100 million, with the minimum issue size of S$70
million.
Future Ventures re-invests in Aadhaar Retailing, Clarks
Future Footwear
Investment and business management company Future Ventures India
has re-invested Rs 10.4 crore ($2 million) in two portfolio firms,
Aadhaar Retailing Ltd (ARL) and Clarks Future Footwear (CFFL).ARL, a
subsidiary of Future Ventures in which Godrej Group owns 30 per cent
stake, has got an investment of Rs 8.4 crore while Future Ventures has
invested Rs 2 crore afresh in CFFL, a 50:50 JV with UK’s C&J Clark
International.This investment in ARL by Future Ventures has been made
by way of subscription to and further allotment of further equity shares.
Post this transaction too, the shareholding of Future Ventures in ARL
continues to be 70 per cent and the rest by Godrej Group.
Sonata to sell 50.1% stake in TUI InfoTec for up to $15M
Sonata Software’s wholly owned subsidiary Sonata Europe has struck a
deal to sell its 50.1 per cent stake in TUI InfoTech to TUI Travel PLC for
up €12 million (Rs 81 crore or $15 million), as per a BSE filing.
Headquartered in Hanover in Germany, TUI InfoTech is the IT arm of
European travel and tour firm TUI.“The sale was made for a total
consideration of up to €12 million payable on a deferred basis on
achieving certain milestones and additionally release from certain
obligations of €3.5 million. TUI Travel PLC will also be taking over
economic benefits for the 12 months preceding the date of transaction,”
the company said in the filing.
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4. Acumen Fund in pact with USAID to provide $15M debt
capital for social startups
Global non-profit VC investor Acumen Fund has announced a strategic
tie up with US Agency for International Development (USAID) to flow of
up to $15 million (Rs 79.5 crore) in private debt capital to social
enterprises working to provide critical goods and services to the
underserved across these regions.Under this agreement, USAID’s
Development Credit Authority will partially guarantee loans offered by
banks or non-traditional capital providers to approved social
enterprises within Acumen’s portfolio. Acumen will leverage its
investment expertise and global networks to aid its investees in
sourcing and securing loans that will qualify under the terms of this
agreement.
Carlyle exits HDFC for $840M, makes over 2x
Private equity major the Carlyle Group has sold its entire stake in India’s
largest mortgage lender Housing Development Finance Corp (HDFC) in
one of the largest exits in country's PE history. The buyout giant sold 3.7
per 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 made
over five years ago in 2007. While in rupee terms the deal gives Carlyle
a 2.16x multiple, in dollar terms it comes to 1.71x reflective of the fall in
the Indian currency (when Carlyle bought the stake rupee was around
40 per dollar).Carlyle had purchased 5.22 per cent stake in HDFC, a part
of which was sold in February this year for $271 million or Rs 1,355
crore.
Hinduja Group in lead to buy Houghton Int'l for $1.15B
Family-owned Indian conglomerate Hinduja Group is the front-runner
to acquire Houghton International, a US producer of metalworking
fluids and other chemicals, following a $1.15 billion bid, according to
two people familiar with the matter.The multibillion-dollar global
investment and banking group topped offers by private equity firms in
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5. the auction for Houghton, the sources said. AEA Investors LP, the
investment firm that owns Houghton, could still decide to sell to another
party or not at all, the sources added.Representatives of the Hinduja
Group, Houghton and AEA did not respond to requests for
comment.Valley Forge, Pennsylvania-based Houghton makes specialty
chemicals, oils and lubricants for the metalworking, automotive, steel
and other industries. Deutsche Bank (DBKGn.DE) and Morgan Stanley
(MS.N) were hired to advise on the sale process, people familiar with
the matter previously told Reuters.
TVS Capital raises over Rs 500cr for top-up fund; Beefs up
team
Chennai-based private equity firm TVS Capital Funds Ltd, which
manages TVS Shriram Growth Fund-IA, has raised commitments of over
Rs 500 crore for its top-up fund with backing from large family offices.
TVS Capital launched TVS Shriram Growth Fund-IB last year and
expects to make a final close at Rs 550-600 crore in the next 30-45 days,
according to Gopal Srinivasan.TVS Capital's chairman and managing
director Srinivasan said that TVS Shriram Growth Fund-IB has crossed
Rs 500 crore in terms of commitments. The fund has mostly been raised
from family offices, whose commitments have ranged from Rs 15 crore
to Rs 50 crore
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