Deals Buzz: Indiabulls Housing Finance to sell stake in OakNorth
The deal, if it goes through, will help the company rake in over six times gain on investment in less than three years.
Indiabulls Housing Finance plans to sell all or part of its 18.7 per cent stake in UK-based OakNorth Holdings within a month to a private equity fund, The Economic Times reported. The deal, if it goes through, will help the company rake in over six times gain on investment in less than three years. OakNorth Holdings has investors including Singapore’s Government Investment Corporation and Clermont Group. The current valuation of Indiabulls’ stake is up to Rs 4,500 crore. The PE fund is investing in fresh and existing shares equivalent to 30 per cent stake in OakNorth Holdings, a lender to small businesses. Read more here.
IL&FS wants a government bailout
The Union government may have to bailout cash-strapped Infrastructure Leasing and Financial Services (IL&FS), if latest discussions between the group’s board and the government are any indication, Mint reported. This has been necessitated following failed attempts by the company to raise ₹4,500 crore through a rights issue. If the government does heed the appeal from IL&FS, this would be its second intervention in the company after having recently superseded the board.
The IL&FS board, chaired by Kotak Mahindra Bank Ltd’s managing director, Uday Kotak, is likely to pitch the centre for a government bailout. In 2008, post the collapse of Lehman Brothers, the US government started an emergency bailout programme called the Troubled Asset Relief Program (TARP). It was aimed at enhancing liquidity of secondary mortgage markets by purchasing illiquid mortgage-backed securities, thereby reducing potential losses of institutions that owned them. Read more here.
Muthoot Microfinance aims to raise Rs 1000 crore from IPO
Muthoot Microfin, which recently received markets regulator Sebi’s approval for its initial public offering (IPO), plans to raise Rs 1,000 crore from share sale, PTI reported. According to market sources, the company plans to hit the market in the first half of the 2019. By that time market conditions would be conducive to raise around Rs 1,000 crore from the IPO, sources said in the report. The proceeds will be utilised for expansion of the company’s footprints in northern India, sources said. Muthoot Microfin, part of the Muthoot Pappachan Group, IPO comprises fresh issue aggregating up to Rs 500 crore and an offer for sale of up to 16,310,072 equity shares, as per the company’s DRHP. Muthoot Microfin is focussed on providing micro loans to women customers predominantly in rural areas. Read more here.
Investors sitting on $40 billion dry powder in India
Dry powder, or the collective pile of investible capital available with private investors, in India is at about $40 billion, according to an analysis by audit and consulting firm EY, Mint reported. The estimate considers capital available with India-based private equity and venture capital funds, global and Asia-focused funds with an India allocation, and sovereign and pension funds, as well as large tech investors such as Naspers. The estimates further note that Indian private equity fund managers and non-Indian fund managers with India-focused funds have $9-10 billion of dry powder that has to be deployed in India. Such record levels of dry powder and aggregate capital raised in the Indian market suggest an improvement in the fundraising environment, and reflect growing interest of limited partners in the India story. Limited partners are investors in private equity or venture capital funds. Abundant capital also means that deal-making becomes more difficult and competitive. Read more here.
Morgan Stanley Real Estate in talks to invest $55 million in KSH Group assets
A real estate fund managed by Morgan Stanley is in advanced talks with Pune-based KSH Group to invest around ₹400 crore (approximately $55 million) in its warehousing assets, Mint reported. KSH Group operates in domestic logistics, manufacturing, service and distribution sectors, with over 600 employees spread across eight cities. The group operates through various companies such as KSH Distriparks, KSH Logistics, KSH Infra, KSH International and Waterloo Distributors. The transaction is likely to be closed in the next one or two months, he added. According to its website, KSH has around 1 million square feet of industrial warehousing and logistics infrastructure, including assets in use and under development. The group plans to build out 5 million sq. ft of warehousing space in and around the Pune region by 2020. Read more here.
Ratan Tata-backed Crayon Data to raise $11 million Series B
Crayon Data, a big data analysis company in which veteran industrialist Ratan Tata and Infosys co-founder Kris Gopalakrishnan invested in, is planning to raise Series B round of funding to the tune of around $11 million from existing and new investors, Business Standard reported. The fund would be used for expansion in western markets, including in the US, and for technology development. The company was founded in 2012 and provides big data analysis to banking, airline and hospitality businesses. It has become profitable in 2018 in earnings before interest, tax, depreciation and amortisation (Ebitda) and is cash positive. Read more here.
Cube Wealth raises Rs 14 crore in Series A funding
Financial planning start-up Cube Wealth has raised ₹14 crore (about $2 million) in a Series A round, the company’s founder and chief executive officer (CEO) Satyen Kothari told Mint in an interaction. The investors that participated include Singapore-based venture fund Beenext, Japan-based Asuka Holding and 500 Startups, a US-based early stage venture fund, Kothari said over the phone. Cube Wealth helps manage investment portfolios and provides investment advice from registered advisers. Cube Wealth helps users plan their finances, with a target to save more. It works on a subscription model, where a user pays an investment adviser, from whom Cube collects a commission. Read more here.