Photo: Bloomberg
Photo: Bloomberg

Deals Buzz: Yes Bank to tank up on $1 billion via rights issue for growth drive

In other news, Temasek, CPPIB in fray to pick up SBI, Central Bank stakes in IL&FS; Macquarie Infrastructure, Tata Housing to partner for Rs2,000 crore projects

Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

Yes Bank to tank up on $1 billion via rights issue for growth drive

Yes Bank is set to launch a $1-billion share sale to institutional investors in what would be the biggest such exercise this year to support its expansion and take advantage of an expected economic revival in India, reported The Economic Times. The Rana Kapoor-controlled bank has mandated Goldman Sachs and Morgan Stanley as lead bankers to the issue, which is expected to be launched within 30 days. Motilal Oswal Securities has also been mandated for the qualified institutional placement (QIP), which will see a stake dilution of 12%-14% of the promoter holding, which is currently 21.88% of the total. Read More

On 21 June, Mint had reported that Yes Bank Ltd had hired Goldman Sachs Group Inc. to help the lender raise as much as $1 billion. Read More

Tata Chemicals to sell urea business to Yara for Rs2,670 crore

Tata Chemicals Ltd has agreed to sell its urea plant in Babrala, Uttar Pradesh, to the Indian unit of Norway-based Yara International ASA for Rs2,670 crore, as it seeks to position itself as a maker of consumer products rather than fertilizers, reported Mint. The transaction, the first cross-border deal in the fertilizer industry, doesn’t include specialty products and complex fertilizers. Tata Chemicals will continue to own the brands Paras, TKS and Daksha. Tata Chemicals, the maker of Tata Salt, has been trying to exit the fertilizer business for at least two years as part of that strategy, aimed at moving away from a segment driven by government regulation. Read More

Temasek, CPPIB in fray to pick up SBI, Central Bank stakes in IL&FS

Singapore investment firm Temasek Holdings Pte. Ltd and Canada Pension Plan Investment Board (CPPIB) are among five potential investors in talks with State Bank of India (SBI) and Central Bank of India to buy the Indian lenders’ stakes in Infrastructure Leasing and Financial Services Ltd (IL&FS), reported Mint. The stakes in the infrastructure financing firm could be worth at least 1,500 crore in total and the transaction is likely to be concluded in the next one month. Among the nine shareholders in IL&FS, SBI holds a 6.42% stake and Central Bank of India 7.67%. Other shareholders include state-run insurer Life Insurance Corporation of India (25.34%), ORIX Corp. of Japan (23.54%), sovereign wealth fund Abu Dhabi Investment Authority (12.56%), Housing Development Finance Corp. Ltd (9.02%), and IL&FS Employees’ Welfare Trust and others with 13.77%. Read More

IVFA-Baring combine to trump TPG to buy ICICI Home Finance in a Rs2,500 crore deal

The combine of private equity firm India Value Fund (IVF) and buyout fund Baring PE Asia has emerged the front-runner for ICICI Home Finance, reported Financial Express. The transaction, valued at $372 million or 2,500 crore, is expected to close soon. Read More

In June, Mint had reported that TPG Capital was close to buying ICICI Home Finance for around 2,100 crore. TPG Capital agreed to buy ICICI Home Finance Co. Ltd after parent ICICI Bank decided to lower the valuation of the home financier. Read More

Mint also reported that TPG had brought on board Temasek Holdings Pvt. Ltd, an investment arm of the Singapore government, Singapore’s sovereign wealth fund GIC and US-headquartered HarbourVest Partners, a private equity fund of funds, to co-invest along with TPG in the acquisition. Read More

Macquarie Infrastructure, Tata Housing to partner for 2,000 crore projects

Macquarie Infrastructure and Real Assets (MIRA), an arm of Australia’s Macquarie Group Ltd, and realty firm Tata Housing Development Co. Ltd are close to setting up a joint investment platform to invest about 2,000 crore in residential projects, reported Mint. This will be one of the largest investment partnerships in residential real estate in India between a global investor and a developer. Out of the 2,000 crore equity investment, MIRA and Tata Housing will invest 1,400 crore and 600 crore, respectively. Read More

Ascendas Singbridge plans fund to invest in India

Singapore headquarters private equity fund, Ascendas-Singbridge plans to float a separate fund to invest in the country’s warehousing segment, reported The Economic Times. “We do not want to be dependent on a particular sector and are looking to derisk our self. As an organisation we have the capability to build warehouse, control and manage development," said Sajay Dutta CEO Ascendas-Singbridge. However he did not share the size of the fund that will be raised to invest in the Indian warehousing space. So far the fund has been investing heavily in real estate space in India. Ascendas-Singbridge will establish a logistics park on minimum 50 to 100 acres of land in the outskirts of major cities. The company will look at setting up warehouses in nodal manufacturing hubs like Bhiwandi, Hoskote, Nagpur, Thane, Raigarh district and Chakkan among others. Read More

Fusion Microfinance raises Rs162 crore equity from overseas PE firms

Delhi-based Fusion microfinance has raised 162 crore in equity from US-based private equity firm Creation Investments Capital Management and Spain’s Gawa Capital as the micro lender is looking to raise its stake in India’s growing microfinance sector, reported The Economic Times. Existing investors—Belgium’s BIO and The Netherland’s Oikocredit—have also invested in this round of fund raising. Read More