In other news, Canada’s largest pension fund manager Canada Pension Plan Investment Board (CPPIB) has committed to invest up to $600 million in National Investment and Infrastructure Fund (NIIF) through its master fund
Mumbai:Mint brings you your dose of the top deals news, reported from newsrooms across the country.
Integrated logistics solutions provider Allcargo Logistics Ltd bought a controlling stake in Gati Ltd for around ₹416 crore, entering the express logistics space, Mint reported. Allcargo provides a comprehensive range of services, such as multimodal transport operations, container freight station operations, or inland container depot operations, projects and engineering solutions, warehousing, distribution, contract logistics and logistics parks. Gati has a wide-ranging customer base across corporate India, e-commerce companies, as well as small and medium enterprises (SMEs). It has a presence across 727 districts and a service network that reaches out to 19,000 PIN codes across the country. As part of the transaction, Allcargo has signed a share purchase agreement with Gati’s promoter group to acquire up to 10.3 million shares at ₹75 apiece. Allcargo will also subscribe to a preferential issue of 13.3 million equity shares of Gati at ₹75 apiece. Consequent to the closure of the two agreements, Allcargo will own a 19.43% stake in Gati. Allcargo will spend ₹178 crore for acquiring the stake. Additionally, Allcargo will look to acquire another 26% stake from Gati’s public shareholders through an open offer, which too will be priced at ₹75. If it manages to acquire the entire 26%, Allcargo will end up spending another ₹238 crore, taking its total acquisition spend to ₹416 crore. The deal is expected to close by 30 March 2020.
CPPIB pledges $600 million in NIIF’s master fund
Canada’s largest pension fund manager Canada Pension Plan Investment Board (CPPIB) has committed to invest up to $600 million in National Investment and Infrastructure Fund (NIIF) through its master fund, Mint reported. CPPIB committed $150 million in the master fund of NIIF, along with co-investment rights of up to $450 million in future opportunities to invest alongside the master fund. Post the funding, CPPIB will become a shareholder in NIIF’s investment management company. With the latest funding, which marked the fourth close of the NIIF Master Fund, the fund has achieved its initial target size of $2.1 billion, and has also got co-investment rights of $3 billion from global and domestic investors, which will allow NIIF to write larger cheques for single infrastructure deals. To be sure, NIIF Master Fund invests equity capital in core infrastructure sectors in India, with a focus on transportation, energy and urban infrastructure. It also counts AustralianSuper, Ontario Teachers’ Pension Plan (Ontario Teachers), Abu Dhabi Investment Authority (ADIA), Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance, in addition to the Indian government as its shareholders.
Flipkart leads funding round in Shadowfax
Walmart-owned e-commerce platform Flipkart has led a $60 million investment in Shadowfax, which offers an on-demand, last-mile logistics network, Mint reported. The Series D funding round also saw the participation of Eight Roads Ventures, NGP Capital, Qualcomm Ventures, Mirae Asset Naver Fund, and the World Bank-backed International Finance Corp. Flipkart has an existing partnership with Shadowfax for logistics across various categories for its e-commerce business. It is working towards bringing kirana stores into the e-commerce fold by enabling them to be a part of this offering, it said. Its hyperlocal approach aims to place inventory closer to customers, leveraging existing investments of space and working capital of kirana stores to accelerate delivery timelines. Shadowfax, which was founded in 2015, enables delivery of 10 million monthly shipments across diverse segments, ranging from hot food to grocery to fashion and electronics. Its clients include a slew of e-commerce firms such as Swiggy, Amazon, Paytm, Snapdeal, and BigBasket. It also plans to use the funds to enhance tech capabilities, recruit talent, increase the number of shipments to 100 million a month and expand its geographical presence to 1,000 Indian cities.
CarDekho raises $70 million in round led by Ping An
Online automotive portal CarDekho Thursday said it has raised $70 million in a Series D round led by Chinese investor Ping An Global Voyager Fund, Mint reported. Ping An is a majority shareholder in Autohome, China’s leading online automobile portal, Mint reported. Sunley House Capital Management, a subsidiary of private equity firm Advent International, joined the round along with existing investors Sequoia India and Hillhouse Capital. While CarDekho did not disclose its latest valuation, a person familiar with the matter said it is valued at $700 million post the latest round. CarDekho sells both new and used cars on its platform, and has seen strategic investor interest despite a slowdown in India’s automobile industry. CarDekho, owned by Girnar Software Pvt. Ltd, was founded in 2008 by Jaipur-based brothers Amit and Anurag Jain. It has raised about $250 million so far, previously raising $110 million in a Series C round led by Sequoia India, China’s Hillhouse Capital, Google parent Alphabet’s growth investment arm Capital G and Axis Bank, in January. At the time, it was valued at $400-500 million.
Welspun Group buys majority stake in One Industrial Spaces; enters warehousing space
Promoters of Mumbai-based conglomerate Welspun Group have acquired a majority stake in One Industrial Spaces, an integrated real estate fund focused on warehousing sector, for an undisclosed amount, Mint reported. The acquisition also marks Welspun’s entry into the industrial warehousing market. The textile major, which also has interests in infrastructure, oil and gas among others, said the investment was made by the promoters in their personal capacity through a closely held family office investment vehicle. Post the acquisition, One Industrial Spaces – the company founded by Anshul Singhal who was earlier the heading Embassy Industrial Parks, would be re-branded as ‘Welspun One Logistics Parks’. It will also be the exclusive development manager for a portfolio of ready land assets owned by the promoters in their personal capacity with an estimated value of $50 million and development potential of over 5 million square feet of Grade-A industrial/warehousing space. This includes a marquee 3 million square feet project in Mumbai Metropolitan Region (MMR), both the companies said in statement.
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