SoftBank may shelve plan to invest in Piramal Group. (Photo: Reuters)
SoftBank may shelve plan to invest in Piramal Group. (Photo: Reuters)

Deals Buzz: Essel Group in talks with Adani to sell solar energy assets

In other news, financial services firm Vivriti Capital, which runs an online marketplace for mid-market corporates to raise debt, plans to raise 500 crore for a debt fund that will invest in companies in its marketplace

Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country.

Essel Group in talks with Adani to sell solar energy assets

The Essel Group, which needs to sell a host of assets to stave off loan defaults, is in talks with the Adani group to sell its remaining solar energy portfolio, Mint reported citing two people close to the development. Essel is rushing to complete its unfinished solar power projects of 480 megawatts (MW) to sell them to Adani Green Energy Ltd, the group’s renewable energy arm. In August, Essel Infraprojects Ltd, wholly owned by Subhash Chandra’s debt-heavy Essel group, sold its operating portfolio of 205MW to Adani Green Energy at an enterprise value of 1,300 crore. Prior to the sale, the Essel group had a consolidated solar power portfolio of 685MW, which it had won under the National Solar Mission and state government auctions. The average power purchase agreement for the assets is 5.50 per kWh, fairly high by current standards of below 3 per kWh. Now, the remaining 480MW in its portfolio is on the block as well, despite most of it still being under construction. Of the 1,300 crore that Essel earned in the first deal, the equity portion was roughly 200 crore, which it is investing back to make its remaining portfolio operational. The Adani group has tacitly agreed to buy the bulk of the remaining portfolio once the plants start generating power.

Vivriti Capital to raise 500 crore debt fund

Financial services firm Vivriti Capital, which runs an online marketplace for mid-market corporates to raise debt, plans to raise 500 crore for a debt fund that will invest in companies in its marketplace, Mint reported citing Vineet Sukumar, co-founder and managing director Vivriti Capital. The new debt fund will have a base size of 250 crore with an equal amount as a greenshoe option, which will let the fund raise more capital in case of robust investor demand. Vivriti expects to close the fundraise by the end of this fiscal. The firm has already received commitments worth 140 crore, and plans to start investing from the fund from next month onwards. The fund will lend to mid-size corporates and financial institutions with annual revenues of around 50 crore. It also plans to raise further equity capital, and has started a formal process to raise 450 crore from private equity funds. The two-year-old company has so far raised 300 crore in equity from Creation Investments, a US-based impact investor.

SoftBank may shelve plan to invest in Piramal Group

Masayoshi Son’s Soft-Bank may call off talks aimed at backing the Piramal Group’s financial services arm, Piramal Capital and Housing Finance, due to irreconcilable differences; The Economic Times reported citing four people close to the situation. The Mumbai-based conglomerate was negotiating a deal that would have spun off the group’s housing finance division into a separate company with SoftBank investing around $1 billion for a significant stake. Piramal Group’s inability to move away from wholesale loans to consumer lending was one of the biggest points of friction, forcing the SoftBank Vision Fund’s investment committee to decide against the deal. Also, the Piramal Group was never SoftBank’s first option, it was Bajaj Finserv. But it is a listed company and SoftBank did not want to get into the public market. One of the reasons Bajaj Finserv was the first choice was its retail exposure through Bajaj Finance, the consumer lending arm. Another bone of contention was SoftBank’s insistence that technology be the core platform in this new entity. The two parties also differed on the timeline of the exit. SoftBank had come with a sharp six-eight year timeline in which this new entity would list on the BSE. This timeline was not deemed acceptable by the Indian group.

Allcargo, TVS Unit in Race for Supply-chain Business of Sical

Allcargo and TVS Supply Chain Solutions (formerly TVS Logistics) are in initial discussions to acquire the supply-chain business of Sical Logistics, the offshore and multimodal logistics services firm owned by the Coffee Day Group, The Economic Times reported citing two people aware of the development. Container freight hubs of Sical’s subsidiary, Sical Multimodal and Rail Transport, are also up for sale as the coffee chain seeks to sell a range of assets and use the proceeds to repay debt after the unfortunate death of group founder VG Siddhartha. Allcargo and TVS Logistics are also in discussions for the railroad assets, and both deals together could fetch the Coffee Day Group 500-550 crore. The supply chain solutions division of Sical includes cold chains, warehousing and industry distribution logistics. The division has a fleet of 414 vehicles and warehouse space of 1.2 million square feet. Bankers and advisers helping the Coffee Day owners have reached out to TVS Logistics and Allcargo Logistics to sell the logistics operations, and talks are at preliminary stages. The Coffee Day Group currently holds 55.18% in Sical through its group entities. ICICI Securities is advising Sical.

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