Deals Buzz: Govt set to raise Rs6,000 crore through ETF route
3 min read 11 Jan 2017, 11:29 AM ISTIn other news, PropTiger, Housing.com to merge in all-stock deal worth $70-75 million, while Suzlon is set to raise Rs800 crore from private equity firms
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Suzlon set to raise Rs800 crore from PE firms Asia Climate Partners, Olympus
Wind turbine maker Suzlon Energy Ltd is set to raise Rs800 crore (around $120 million) from private equity investors Asia Climate Partners (ACP) and Olympus Capital Asia to create a renewable energy platform, two people aware of the development said.
“Suzlon has been in talks with investors to create an independent platform to invest in and to acquire renewable assets, for the past few months," one of the two people said, requesting anonymity because the talks are private. “The talks with Olympus and ACP are in a very advanced stage and the transaction is expected to close very soon."
Suzlon is being advised by investment bank Edelweiss Financial Services to help raise funds for the platform, the person added. Read more
ChrysCapital to sell stake in Intas Pharma
Home-grown private equity (PE) firm ChrysCapital has decided to offload its remaining stake in Intas Pharmaceuticals Ltd, a privately held drug maker based in Ahmedabad, and is holding discussions to dilute at least half of the stake shortly, two people aware of the development said.
“The company is looking to dilute around 3% now and has reached out to other bulge-bracket PE firms for the same. The other 3%, they will carry on to the next fund," said one of the persons mentioned above on condition of anonymity as the PE firm has just initiated the stake-sale process.
Delhi-based ChrysCapital, which had first invested in the pharmaceutical firm in 2006, its first bet in the pharma space, is expected to get as much as $100 million from the sale of its stake, said the second person, also on the condition of anonymity. Read more
Former INSEAD students set up fund to invest in alumni start-ups
Two INSEAD alumni have started a new investment firm called InseadAlum Ventures in Singapore with a capital of nearly $700,000 to invest in start-ups founded by ex-students of the international business school.
InseadAlum Ventures will invest between $35,000 and $140,000 in each start-up and will help develop it to a point where it can raise further seed or Series A funding, a media statement said.
The firm is founded by Deepak Shahdadpuri, managing director of Singapore-based venture capital firm DSG Consumer Partners, and Will Klippgen, co-founder of investment firm Cocoon Capital. The fund announced its first investment in UK-based smart thermostat start-up Switchee Ltd where it participated in a $580,000 seed round of funding. Read more
PropTiger, Housing.com to merge in all-stock deal worth $70-75 million
News Corp.-backed real estate portal PropTiger said on Tuesday that Mumbai-based Housing.com will merge with it in an all-stock deal, and that it will receive $50 million in fresh funds from News Corp.’s REA Group Ltd and $5 million from SoftBank Group.
The deal values the SoftBank-backed Housing, which has raised north of $120 million since 2012, at about $70-75 million, according to two people familiar with the development. PropTiger Reality Pvt. Ltd was valued at $200-210 million taking the stock swap ratio to about 3:1, the people said.
This takes the valuation of PropTiger after the merger to close to $270-$285 million. Existing investors in Housing will be given stake in PropTiger’s Singapore entity. Horizon Ventures, an existing investor in PropTiger is likely to exit.
Both companies declined comment on the specifics of the deal. Read more
CPSE ETF set to raise up to Rs6,000 crore; issue to open on 17 January
The government is all set to raise up to Rs6,000 crore from sale of the second tranche of Central Public Sector Enterprise (CPSE) exchange-traded fund (ETF), to be launched on 17 January.
The issue size of the fund will be Rs4,500 crore, with the option of raising another Rs1,500 crore, a government official said on condition of anonymity. The issue will remain open till 20 January.
Prithvi Haldea, chairman, Prime Database, said though ETF is a good instrument to diversify risk, it does not have reach because small investors do not understand the concept. Read more
InstaOffice raises funds from investors led by Globevestor
InstaOffice, a start-up that offers managed office space on a sharing basis, said on Monday it raised an undisclosed pre-Series A round led by Globevestor, a California, US-based venture capital firm that has backed car-rental service Zoomcar, education portal OnlineTyari and lending platform Rubique.
Angel investors including Toppr co-founder Zishaan Hayath, Karan Chellani, managing partner at SQUE Capital, and Mohit Satyanand, chairman of Teamwork Arts, participated in the round.
This is the first external funding raised by the Gurgaon-based company that completes with Awfis, 91springboard and a number of smaller start-ups in the area of co-working space. Read more
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