Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country.
Arundhati Bhattacharya working on an insurance play in life after SBI
Former State Bank of India (SBI) chairman Arundhati Bhattacharya is looking to start a general insurance business, along with Sunil Mehta, former country head and chief executive of American insurer AIG, and Deepak Ishwarbhai Amin, a former director of SBI, Mint reported citing a person aware of the development. On 3 September, Bhattacharya and Mehta registered their company, Welmo Fintech Pvt. Ltd. They will soon be approaching the insurance regulator to obtain an R1 approval, which is the first stage of approval by the Insurance Regulatory and Development Authority of India (Irdai) to start an insurance company. It is followed by R2 and R3 approvals. The insurer has a paid-up share capital of ₹1 lakh, but will be required to have a minimum of ₹100 crore as paid-up equity share capital to obtain the second stage of regulatory approval. For that, its founders are looking to raise capital from venture capital investors.
PE firm KKR acquires 10% stake in CG Power
Private equity (PE) firm KKR acquired a 10% stake in CG Power and Industrial Solutions Ltd by invoking the pledge on shares provided as collateral for credit facilities extended to entities related to promoter Gautam Thapar, Mint reported. The next few days are likely to reveal KKR’s plans for the company, given that there is no identifiable management at the moment, after the board removed chairman Thapar and the chief executive officer (CEO) also put in his papers. According to stock exchange data, KKR India Debt Opportunities Fund II and KKR India Financial Services have acquired over 62.6 million shares in CG Power, from Vistra ITCL (India) Ltd— which translates into a total of just under 10%. As on 30 June, Vistra ITCL held a 21.63% stake in the company.
Piramal raises ₹690 crore from Credit Suisse through NCDs
Piramal Enterprises Ltd has raised ₹690 crore in debt financing from Credit Suisse, Mint reported citing regulatory filings. Separately, its financial services unit, Piramal Capital and Housing Finance Ltd, too, has raised ₹300 crore through the sale of non-convertible debentures (NCDs). The debt raised from Credit Suisse will mature in September 2020. The fundraisings follow the firm’s bid last month to raise around ₹3,000 crore by selling NCDs (including an option to retain over-subscription of up to ₹2,500 crore). However, on 28 August, the company told the stock exchanges that the administrative panel of Piramal’s board had decided to defer the issue of privately placed NCDs to a future date. Amid the liquidity crunch facing non-bank lenders, Piramal has been trying to reduce its dependence on short-term funding sources.
Blackstone inks ₹2,700 crore deal for CCD tech park
Blackstone Group has signed a definitive agreement to buy Global Village Tech Park, owned by a subsidiary of Coffee Day Enterprises (CDEL), for about ₹2,770 crore, The Economic Times reported citing people with knowledge of the matter. Blackstone, along with Southbased developer Salarpuria Sattva, will acquire the 90-acre, IT-focussed Global Village Tech Park held by the Tanglin Retail Realty unit. The PE fund is expected to own 80% in the tech park while Salarpuria will hold the rest. A formal announcement of the deal is expected as early as Tuesday. CDEL said in an exchange notification on August 14 that a nonbinding letter of intent had been signed with Blackstone. The deal will help India’s largest coffee chain, stricken by the death of founder VG Siddhartha in July, repay some of its debt. CDEL is estimated to have debt of ₹4,970 crore. MAPE Advisory Group advised Coffee Day Group on the transaction.
InCred in Race to Buy Reliance Wealth
Anil Ambani’s Reliance Group has put its wealth management unit up for sale as it looks to raise funds to repay debt, The Economic Times reported citing two people familiar with the matter. Among the suitors are said to be InCred Finance, a nonbanking finance company (NBFC) backed by former Deutsche Bank global co-CEO Anshu Jain. If the deal goes through, it will be the third major buyout in the Indian wealth management industry in recent months.The decision to sell Reliance Wealth Management is part of the group’s strategy to sell non-core assets. Reliance recently sold its stake in the mutual fund business to joint venture partner Japan’s Nippon Life.The buyout of Reliance Wealth with about ₹3,500 crore of assets under management (AUM) will pave the way for InCred’s entry into the wealth management industry. InCred could rope in an industry veteran to head the venture, said the two people in the know.