Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
Reliance AIF raising Rs1,000 crore rental yield fund
Reliance AIF Asset Management Co. Ltd, which is a part of Reliance Nippon Life Asset Management Ltd, is raising Rs1,000 crore rental yield fund to buy and own office projects. Besides Reliance AIF’s fund, two more such office investment funds are expected to be launched this year.
The fund that will raise capital from domestic and offshore investors comes amid a prolonged slowdown in India’s real estate sector, with weak residential sales and uncertainty over recovery. However, steady lease rentals, good absorption levels, inadequate supply and global investor interest have breathed life into the commercial office sector.
Reliance AIF had launched the fund in January and is looking to invest in high-quality assets in key cities that will generate regular rental income and capital appreciation on exiting the property. Read more
Centrum Capital to launch new alternative asset unit
Centrum Capital Ltd has set up a dedicated Alternative asset unit named Centrum Asset Management and hired the co-founder and managing director of private equity (PE) fund Blue River Capital, Shujaat Khan, to head it.
Khan will be managing director and head of the asset management businesses at Centrum.
He will head strategy, governance, fund-raising and investment decisions at the alternative asset business. The unit plans to raise funds from high net worth individuals and family offices, and institutions in India and abroad. Centrum currently manages a private equity fund—Kalpavriksh—and co-manages real estate funds along with India Property Advisors Ltd (IPAL). Read more
Profit-sharing agreement norms set to be a hurdle for PE-backed firms’ IPO plans
Initial public offerings (IPOs) of private equity-backed firms that have signed the profit-sharing agreements may face hurdles with market regulator Securities and Exchange Board of India (Sebi) making it mandatory for listed companies to disclose and seek shareholders’ approval for all such agreements.
Profit-sharing or upside-sharing agreements between promoters, key managerial personnel and private equity investors are signed to encourage promoters or key employees to meet an agreed target.
These agreements are often linked to the internal rate of return (IRR) that the private equity investor makes at the time of exit. Read more
MyDidi buys out TimeMyTask; merged entity valued at $15 million
Mumbai-based on-demand cleaning services provider MyDidi has bought its peer TimeMyTask in an all-stock deal, valuing the merged entity at $10-15 million, according to a report by The Economic Times.
As part of the deal, MyDidi will absorb all the employees and the technology stack of TimeMyTask. This is MyDidi’s first acquisition since it set up shop in June 2015.
The merged entity will operate under the brand of MyDidi and will enable the company to access TimeMyTask’s specialisation in intensive and B2B cleaning along with on-demand home cleaning services that MyDidi offers. Read more
Kumar Mangalam raises its holding in Aditya Birla Nuvo to 62.77%
Kumar Mangalam Birla, owner of the diversified conglomerate Aditya Birla Group, has raised its equity stake in Aditya Birla Nuvo by purchasing shares from minority investors for Rs775 crore, The Economic Times reported.
The acquisition of stake also includes 3.86% from rival Anil Ambani-owned Reliance Mutual Fund, which sold almost its entire stake.
With the additional stake acquisition, the total shareholding of Birla in Aditya Birla Nuvo has risen to 62.77% from 58.39%. However, the transaction has also invited criticism from proxy advisory firms and local investors, who said it was against interests of minority shareholders. Read more