Deals buzz: ONGC Videsh raises $1 billion to finance Vankor acquisition
In other news, Kedaara Capital invests Rs430 crore in Hyderabad’s Vijaya Diagnostic; payments firm Payworld India scouts for a strategic partner
Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
Kedaara Capital invests Rs430 crore in Hyderabad’s Vijaya Diagnostic
Private equity (PE) firm Kedaara Capital Advisors Llp has agreed to invest Rs430 crore in Hyderabad-based diagnostics chain Vijaya Diagnostic Centre Pvt. Ltd, two people aware of the development told Mint.
“The two parties have recently signed agreements and the deal has been closed,” said one of the two people cited above, requesting anonymity. “Talks between Kedaara and Vijaya Diagnostic were on for the last four-five months.”
Kedaara has acquired a “significant minority stake” in Vijaya Diagnostic through both a primary and secondary share sale, he added.
Mint had reported in September that Vijaya Diagnostic was in talks with Kedaara Capital to raise at least Rs350 crore.
According to the second person cited above, while initially Kedaara was looking to invest around Rs350 crore, it eventually agreed to invest around Rs430 crore, as the company has seen strong growth in operating profit in the current financial year. He also requested anonymity. Read more.
Payworld India scouts for a strategic partner
Payworld India, which offers domestic money remittance services and mobile recharges, is in talks with a strategic investor to infuse funds and help the company grow its business, two people with direct knowledge of the matter said.
“The company is expected to raise as much as $100 million through the deal,” said one of the two people cited above, on the condition of anonymity, as the talks are at a premature stage.
The payments firm, which had missed out on a payments bank licence last year, has hired a banker to find a buyer, said the second person, also requesting anonymity.
When contacted, Payworld India’s chief operating officer Praveen Dhabhai said the talks with investors are at an initial stage. Read more.
OVL raises $1 billion debt to fund Vankor acquisition
ONGC Videsh Ltd (OVL), the overseas investment arm of state-run Oil and Natural Gas Corp. Ltd, has raised $1 billion through a US dollar bonds issue to finance its acquisition of 15% equity stake in Russia’s second-biggest oil field Vankor.
OVL raised $600 million through a 10-year bond at a coupon rate of US treasury rate plus 2.20% and another $400 million through a 5.5-year maturity bond at an interest rate of US treasury rate plus 1.75%, PTI reported citing its managing director Narendra K. Verma.
The company will utilize the proceeds from the issue to refinance a $1.2 billion bridge loan the company had taken from a group of foreign banks to make payments for $1.268-billion acquisition. Read more.
Textbook publisher S Chand files papers for IPO
Everstone Capital-backed education-focused publishing firm S Chand Group has filed draft papers with capital markets regulator Securities and Exchange Board of India for its initial public offering (IPO) that includes fresh issue worth Rs300 crore.
The initial share would have fresh issue to the tune of Rs300 crore as well as the offer for sale (OFS), according to the company’s draft red herring prospectus (DRHP) filed with Sebi.
Everstone and International Finance Corp. (IFC) will also be offloading little over 6 million equity shares through the OFS route.
Proceeds from the issue would be utilised for repayment and prepayment of loans as well as for general corporate purposes. The loan amount includes those taken by its subsidiary for funding the acquisition of Chhaya Prakashani.
Mint had reported in July that S. Chand Group has hired three investment banks and initiated work on an IPO that could see the company raise as much as Rs600 crore. Read more.
India Quotient targets first close of latest fund by June
Seed investor India Quotient is targeting a first close of $30 million (about Rs200 crore) for its latest fund by June, a top executive of the firm told Mint.
Founded in 2012, India Quotient’s portfolio includes start-ups such as ShareChat, LendingKart, HolaChef, Roposo and PrettySecrets. The firm has raised two funds so far. The last fund raised by the seed investor had a corpus of $16 million.
The seed investor currently has 35 companies in its portfolio. The firm was set up by entrepreneur-turned-venture capital investor Anand Lunia along with social venture capital firm Aavishkaar executive Madhukar Sinha. Read more.
Tata trustees had a role in Welspun deal structuring, emails show
Tata Trusts trustees were involved in discussing the structure of the announced acquisition of Welspun Renewables Energy Pvt. Ltd by Tata Power Co. Ltd, according to email records reviewed by Mint.
These records were part of the supporting documents submitted by Tata Sons Ltd’s ousted chairman Cyrus P. Mistry in his representation to the shareholders ahead of the extraordinary general meetings of Tata companies called to remove him from their boards.
In July, the office of Noshir Soonawala, a trustee of the Tata Trusts, exchanged at least three emails with Mistry with reference to the Welspun acquisition’s proposed and revised structure. In one email, Soonawala conveyed that he met Nimesh Kampani of JM Financial Ltd to understand the proposed structure of the acquisition. Read more.