Deals Buzz: Advent International, KKR eye L&T’s valves arm5 min read . Updated: 06 Dec 2016, 02:54 PM IST
In other news, PE funds, promoters to exit Kiran Energy; Australia's Link Group eyes another acquisition in India
Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
PE funds, promoters to exit Kiran Energy
The owners of solar power producer Kiran Energy Solar Power Pvt. Ltd have decided to sell the company outright after earlier attempts to sell a majority stake failed, two people familiar with the development said.
Private equity funds own nearly 80% in the Mumbai-based company and founder Ardeshir Contractor holds 15%, while former Tata Sons executive director Alan Rosling and a few others own the rest.
“The company has been on the block for almost two years now, with three private equity investors who own around 80% stake in the company wanting to exit," said the first of the two people cited above, both of whom declined to be identified.
Kiran Energy has 100 megawatts (MW) of solar power assets, including a 60MW plant in Rajasthan. The company also owns a stake in Mahindra Solar and is currently developing several photovoltaic projects in India. Read more.
Veritas Finance plans to raise Rs100 crore
Chennai-based Veritas Finance Pvt. Ltd, which provides financial services to micro and small enterprises, is holding discussions with existing and new investors to raise as much as Rs100 crore to fund growth plans.
The loan book of the company has crossed Rs50 crore. Veritas expects to end the financial year to March 2017 with a loan book of Rs100 crore.
“We plan to increase the loan book to Rs400 crore in the next year and cross Rs1,000 crore in two years, which would mean we (need to) strengthen our capital base to support growth," Arulmany added. The company has reached a monthly loan disbursement of Rs9 crore.
Veritas Finance is seeking to expand from Tamil Nadu and Puducherry to east India as well as to Karnataka and Andhra Pradesh. Read more.
Ahead of IPO, Laurus Labs sells shares for Rs395 crore to 25 anchor investors
Hyderabad-based Laurus Labs Ltd, a research and development-driven pharmaceutical company, on Monday said it has raised Rs395.4 crore by selling shares to a group of 25 anchor investors, including Goldman Sachs AMC, HBM Partners and the Nomura Trust and Banking Co. Ltd, ahead of its initial public offer (IPO).
Shares were allocated at Rs428, the upper end of the IPO price band of Rs426-428, the company wrote to the stock exchanges.
Goldman Sachs India Ltd, Nomura, Morgan Stanley Investment Holding Co. (Mauritius) Ltd, Tata AIA Life Insurance Co. Ltd, Kotak Mutual Fund, Eastspring Investments India Equity Open Ltd, DB International (Asia) Ltd, Government Pension Global Fund and UTI Asset Management Co. Ltd were among the investors who were allotted shares in the anchor allotment. Read more.
India Grid Trust files DRHP with Sebi for Rs2,650 crore IPO
India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT), filed its draft red herring prospectus with the capital markets regulator for a proposed IPO of as much as Rs2,650 crore.
The investment trust, sponsored by Sterlite Power Grid Ventures Ltd, owns inter-state power transmission assets in India.
Sterlite Infraventures Ltd is the investment manager of IndiGrid, while Axis Trustee Services Ltd is the trustee, IndiGrid said in a statement on Monday.
InvITs are expected to encourage higher foreign investment in India’s infrastructure sector, reduce the burden on bank funding and allow developers to unlock tied-up capital. Read more.
Mahindra Agri to buy controlling stake in Dutch fruit distributor OFD Holding
Mahindra & Mahindra has agreed to acquire up to 60% equity stake in Netherlands-based OFD Holding BV, a fruit distribution company, for 5 million euros, the company said in a regulatory filing.
OFD Holding BV managing director Corne van de Klundert said the development would strengthen the company’s position as an integrated supply chain company.
The deal terms are, however, subject to customary adjustments on closing, it said in the filing with the stock exchanges. The deal would need approval from German anti-trust authority and the Reserve Bank of India.
Mahindra and OFD already have a supplier-customer relationship which shall be further strengthened to address market needs. The acquisition will provide access to a large sourcing base to both the companies across the globe, including India, South American countries and South Africa as well as a distribution base in Europe and China. Read more.
Advent International, KKR eye L&T’s valves arm
Private equity giants KKR & Co. and Advent International have made offers to acquire the industrial valves unit of Larsen and Toubro (L&T) in a deal pegged at $400-500 million (around Rs3,000 crore).
L&T chairman A.M. Naik is expected to take a call on the possible sale of valves unit, The Times of India reported, citing sources privy to the matter. The sale is a part of efforts of the engineering and construction conglomerate to shed its non-core assets.
The two PE firms are looking to acquire the entire 100% stake in L&T Valves, which manufactures industrial valves for key sectors like oil and gas, power and chemicals. The unit had clocked a revenue of Rs1,465 crore and a profit of Rs138 crore last fiscal year. Read more.
Nandan Nilekani, Rohini Nilekani buy 2% stake in Fabindia
Infosys co-founder Nandan Nilekani and wife Rohini Nilekani have acquired a 2% equity stake in Fabindia Overseas Pvt. Ltd through Entrust, their family office, for about Rs100 crore, pegging the valuation of the company at around Rs5,000 crore, The Economic Times reported.
Earlier this year, PremjiInvest, the personal investment entity of Wipro chairman Azim Premji and an existing investor in Fabindia, bought an 8% stake in the company from L Capital, the private equity arm of Louis Vuitton Moet Hennessy, for about Rs360 crore.
Azim Premji owns 25% in the ethnic wear company, while the rest is owned by the Bissell family, which founded the company, the employees and other minority shareholders. Read more.
Australia’s Link Group eyes another acquisition in India
Australian Stock Exchange-listed Link Group is in advanced stage of discussion with a couple of companies in the share registry business and aims to strike a deal shortly, Business Standard reported.
The company entered the Indian market in September 2008 and settled the transaction a day after the Lehman Brothers went bankrupt and handled many large IPOs.
The company is looking at an acquisition primarily in share registry business to increase its market share in the field and claim leadership.
“Our focus has been the share registry business. But our equally focused area could be Indian pension system which has been recently centralized. We think that might be equally competitive and the system would be open for competition. We hope to get an opportunity to bring in the technology we developed in Australia to India," said John McMurtrie, group managing director, Link Group. Read more.