In other news, Blackstone may invest Rs300 crore in Paranjape unit; real estate PE firms Rising Straits and Arthveda Fund raise offshore capital
Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
DLF rental arm stake sale likely to be concluded by September
Realty major DLF’s promoters are likely to sell 40% stake in its rental arm, DLF Cyber City Developers Ltd (DCCDL), by September, reported the Press Trust of India. Three global institutional investors have been shortlisted as buyers in DCCDL: Blackstone, GIC and Abu Dhabi Investment Authority. The due diligence for the deal, estimated to fetch around ₹ 12,000 crore, is on. DLF’s billionaire promoter K.P. Singh and his family will reinvest a significant part of the amount realised from the sale in DLF Ltd.
The realty major had announced in October last that its promoters would sell 40% stake in DCCDL, which holds the bulk of office and retail complexes. DCCDL has about 25-26 million sq. ft of leased commercial space with an annual rental income of about ₹ 2,250 crore. Read more.
In June, Mint had reported that global investors such as Government of Singapore Investment Corp. Pte Ltd (GIC), Abu Dhabi Investment Authority and Canada Pension Plan Investment Board, and private equity firm Blackstone Group Lp, had submitted expressions of interest for acquiring a stake in DLF’s rental arm. Read more.
Blackstone may invest Rs300 crore in Paranjape unit
Global private equity investor Blackstone Group Lp is in talks to invest about ₹ 300 crore in a group company of Pune-based real estate developer Paranjape Schemes Construction Ltd, reported Mint. The talks are at the due diligence stage right now and the deal is expected to close by the end of August. Founded in 1987, Paranjape Schemes has developed real estate projects in Pune, Mumbai, Bengaluru, Nashik and other cities. The company claims on its website that it has completed at least 165 projects. Read more.
Rising Straits and Arthveda Fund to raise offshore capital
Asset management firms Rising Straits Capital and Arthveda Fund Management Pvt. Ltd have started raising money from offshore investors to invest in real estate projects, joining many others who are already scouting for such capital, reported Mint. Rising Straits Capital, founded by Subhash Bedi, co-founder of Red Fort Capital, plans to raise nearly $1 billion over the next three years from institutional investors in the US, West Asia and South-East Asia through the managed account route.
This would be Rising Straits’ first fund-raising initiative after it was formed last year, following a separation between Red Fort Capital co-founders Bedi and Parry Singh. Arthveda Fund Management, an associate firm of Dewan Housing Finance Corp. Ltd, is raising about $150 million from institutional investors, said chief executive and director Bikram Sen. The capital will be raised through a blind pool arrangement and will only invest in low- and middle-income housing projects. Read more.
Maini Precision seeks to raise up to Rs500 crore from PE funds
The Bengaluru-based Maini Precision Products Ltd is in talks to raise up to ₹ 500 crore from private equity funds and is likely to drop its planned initial public offering (IPO), reported Mint. Maini Precision is a manufacturer and supplier of high-precision components and assemblies, catering to automotive, industrial and aerospace companies across the world.
The company is a supplier to OEMs (original equipment manufacturers) such as Bosch Ltd, Eaton Corp. Plc, Stanley Black & Decker Inc. and others. ICICI Securities Ltd, one of the bankers hired to advise Maini on its IPO, is advising the company on the private fund-raise, he said. Read more.
Ovum gets Rs33 crore from Norwest, IL&FS Invest
Bengaluru-based Neonatal Care & Research Institute, which runs Ovum hospitals for pediatric and neonatal care, has raised ₹ 33 crore from IL&FS Investment Managers and Norwest Venture Partners, reported The Economic Times. The company is the latest among mother-and-childcare hospital chains to get funding from venture capital and private equity investors in recent months.
The company was launched by four doctor-entrepreneurs in 2011 with a shop-in-shop model by offering neonatal services to several major hospitals in the city. It runs a paediatric and delivery hospital, started two years ago, and an in-vitro fertilisation (IVF) centre. Ovum plans to use the money to expand to three more hospitals in and around Bengaluru in the next 18 months. Read more.
Healthkart raises Rs80 crore from Sequoia, Kae Capital, others
Online health products vendor Healthkart, owned by Bright Lifecare Pvt. Ltd, has raised ₹ 80 crore in a Series E round of funding from existing investors Sequoia Capital India and Kae Capital, among others, documents with the Registrar of Companies showed, reported Mint.
The money will be used to enhance marketing initiatives and offline expansion, Sameer Maheshwari, founder and managing director of Healthkart, said in an email response. Currently, Healthkart has two offline stores and plans to set up seven-eight more stores, 200-300 sq. ft in size, in the next six months. Read more.
Fulcrum Ventures plans to raise up to Rs.800 crore for new fund
Pharmaceuticals and healthcare-focused private equity (PE) firm Fulcrum Venture India is planning a third fund which could attract as much as ₹ 700-800 crore. The fund-raising plans are at an early stage and right now, they are in the process of tying up soft commitments from limited partners (LPs).
The firm is currently working on registering the new fund with the Securities and Exchange Board of India (Sebi), and the process is expected to be completed by the end of the current quarter. The latest fund will see the Fulcrum raise funds from both domestic and overseas LPs, with more than half of the money raised from overseas. Read more.
Exim raises $1 billion bonds at lowest yield since 2000
Export Import Bank of India (Exim Bank) has raised $1 billion by floating 10-year bonds offering a coupon of 3.375%, marking a revival in appetite for Indian debt, reported Times of India. Exim Bank said that the yield on the bond is the lowest on a $500 million-plus bond since 2000.
In the last fortnight, Adani Transmission raised $500 million and pharma firm Glenmark mopped up $200 million. Earlier in July, mortgage giant HDFC and the region’s multilateral financial Asian Development Bank, raised ₹ 3,000 crore and ₹ 500 crore, respectively, from international investors by floating rupee-denominated debt. Read more.
Mohandas Pai and Ranjan Pai float Rs250 crore fund for small developers
Manipal Education and Medical Group scion Ranjan Pai and former Infosys finance chief Mohandas Pai have floated a real estate investment fund to make small-sized investments in tier II property developers in Bengaluru and Mumbai, among others, reported Times of India.
The ₹ 250 crore initial fund, named Neev, also counts three other investors as its co-founders. The five partners have pooled in 35% of the first fund, while the remaining would be contributed by HNIs. The founders also plan to start a larger fund of up to ₹ 1,000 crore by next year. Read more.
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