New Delhi: Private equity firm Kohlberg Kravis Roberts and Co. Lp (KKR) will invest Rs750 crore in Dalmia Cement (Bharat) Ltd (DCBL).
As per the agreement, KKR will invest upto Rs750 crore in DCBL’s subsidiary, subsequent to which it will house post-restructuring DCBL’s 9 million tonnes per annum cement-manufacturing capacity.
The use of proceeds will be used for both organic and inorganic growth and de-leveraging.
“When we realigned our businesses in March 2010, one of our goals was to create separate pure play entities that could thrive on their own and have flexibility to raise capital,” said Puneet Dalmia, managing director of DCBL.
—Devesh Chandra Srivastava
India needs $100 bn in PE/VC funds: CII-KPMG
Mumbai: The Indian economy needs between $60 billion (Rs2.73 trillion) and $100 billion worth of private equity (PE) and venture capital (VC) investments over the next three years, according to a report by consulting firm KPMG and the Confederation of Indian Industries (CII) that was released Friday.
“Over the past five years $50 billion worth of PE investments has come into the country with 1,400 companies being the recipients of this money,” said Sri Rajan, partner, Bain and Co. India Pvt. Ltd. By December 2010, PE investments are expected to touch $10 billion, the report says. It adds that the largest recipients of PE/VC funds will be micro, small and medium enterprise.
ABG Shipyard unit to borrow $168 mn
Singapore: PFS Shipping (India) Ltd, a Singapore-based unit of Indian ship-builder ABG Shipyard Ltd, hired State Bank of India to help it borrow $168 million (Rs766 crore) to buy new vessels, according to a person familiar with the matter. The 8.5-year so-called club loan, which is guaranteed by ABG Shipyard, will pay an all-in fee of about 5.1 percentage points more than the London interbank offered rate, the person said, asking not to be identified as the details are private.
Jindal Steel says Bolivia claim limit is $18 mn
Mumbai: Jindal Steel and Power Ltd said its contract with the Bolivian government doesn’t have a provision for damages of $800 million (Rs3,648 crore) after state newswire ‘ABI’ reported the company may have to pay if their mining venture collapses.
Jindal Steel said any claim from the government is limited to $18 million, the New Delhi-based company said in a statement to the Bombay Stock Exchange. The amount can only be claimed if there’s an investment shortfall by the end of fiscal 2014, the company said. Jindal Steel signed a commitment with the Bolivian government in 2007 to develop the El Mutun mine.
Exim Bank profit up 8%, bad debt limited to 1%
Mumbai: Export Import Bank of India (Exim Bank) on Friday said its annual profit after tax rose 8% to Rs513.5 crore from Rs477 crore a year ago. Last year’s profits included a tax refund of Rs75 crore but there was no extraordinary gain this year.
Advances of the export promotion body floated by the Reserve Bank of India increased by 14% to Rs39,371 crore in the year. Bad debts of the bank remained limited to 1.05% of the credit disbursed from 1.24% a year ago.
During the year, the bank extended 22 lines of credits worth $753.31 million to 20 countries to support export of projects, goods and services from India.