Nalanda Capital exits Mindtree following Sebi’s notice
Singapore-based Nalanda Capital sold its entire 10.61% stake in Mindtree Ltd to Larsen and Toubro Ltd (L&T) for ₹ ₹1,707.46 crore in an ongoing open offer for shareholders that closes on June 28, Mint reported. The move, according to two people aware of the development, could have been prompted by the Securities and Exchange Board of India’s (Sebi) show-cause notice to Nalanda for pressing Mindtree’s public shareholders to refrain from tendering shares to L&T at ₹980 per share in the open offer. A third person familiar with the development said another reason behind Nalanda’s move could be the promoters of Mindtree losing control of the board. The stake purchases from Nalanda, mutual funds and some index funds have brought L&T’s shareholding close to 48% in Mindtree, the first person quoted earlier told Mint.
Piramal Capital eyes $400 million via offshore loans amidst liquidity crisis
Piramal Capital and Housing Finance may raise up to $400 million through external commercial borrowings (ECBs) to ease liquidity pressure as domestic lenders stay wary of lending to the financial services sector, The Economic Times reported citing two bankers familiar with the matter. Even as the pricing of the two-to-five-year loan has not been finalized, such loans are typically given at a markup or spread of 200-300 basis points over the dollar-linked London Interbank Offered Rate (Libor), dealers told ET, citing past deals. The housing finance firm, with a wholesale book of ₹51,436 crore, out of which real estate loans account for ₹40,160 crore, is facing woes of a capital crunch in the real estate market due to its heavy developer loans. The company recently also sold off a 10% stake in Shriram Transport Finance for ₹2,300 crore, and may also exit his investments of 20% in Shriram Capital and 10% in Shriram City Union.
Mahindra Finance looks to raise $460 million from overseas markets
Mahindra and Mahindra Financial Services, the non-bank financial company of the Mahindra group, is looking to tap the overseas markets to raise at least $460 million through a mix of loans and bonds. The company had raised $200 million in FY19 through the ECB route, and is in the process of raising another $160 million in overseas loans, Mint reported citing an interview with Ramesh Iyer, vice-chairman and managing director, Mahindra Finance. The lender is also looking to raise another $300 million through offshore bonds and is in the process of obtaining an international credit rating, Iyer told Mint. Mahindra Finance primarily offers financing for purchasing new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment and for small and medium enterprises.
Yes Bank may sell majority stake in mortgage finance arm
Indian banker Rana Kapoor’s family is planning to sell a stake in their six-year-old mortgage finance company as rising wariness in the credit market erodes growth prospects of shadow finance firms, Mint reported from a Bloomberg news feed. The fund, known as The Three Sisters: Institutional Office, may sell a majority stake to Tokyo-based Nomura Holdings Inc, according to Bloomberg sources. Started by the banker’s daughter Radha Kapoor Khanna, the fund is still deliberating a potential stake sale and there’s no guarantee that it will lead to a transaction.
JM Financial Fund II buys significant minority stake in Isthara Parks
JM Financial Private Equity’s second fund — JM Financial India Fund II — made its fourth investment to buy a significant minority stake in in Coimbatore-based co-living operator Isthara Parks for close to ₹40-50 crore, that will be used for company’s expansion plan in tranches, The Financial Express reported citing two people aware of the matter. The company, that provides fully furnished, shared accommodations for working professionals and students, plans to expand in existing markets Hyderabad, Bengaluru and NCR initially, as well as in other key cities in Asia thereafter. Prior to the latest investment, the second fund of JM Financial has also made investments in India Home Loan, an affordable housing company, Spandana Sphoorty Financial, an NBFC-MFI, and Vendiman, a vending solutions provider.
Fitness startup CureFit secures $120 million in latest funding round
Health and fitness startup CureFit closed a $120 million financing round, in a mix of equity and debt, from new investors including Unilever Ventures, Epiq Capital, Innoven Capital and Kotak Mahindra Bank, that have also come on its board, The Economic Times reported. The round was led by existing investors including Chiratae Ventures (formerly IDG Ventures), Accel Partners, Kalaari Capital, and Oaktree Capital. On May 7, Mint reported that the company had raised $75 million in a funding round led by existing investor Accel Growth, along with existing investors Kalaari Capital and IDG Ventures India and new investors Anand Piramal Trust and Pratithi Investment Trust, who also participated in the Series D round, that valued the company at over $500 million. The investment came after its July 2018 fundraise, the biggest ever by an Indian healthcare start-up, at $120 million led by existing investors IDG Ventures, Accel Partners and Kalaari Capital. CureFit is building a platform offering health, wellness, food and merchandising through multiple brands. This includes a chain of 180 fitness centres under the brand CultFit, with its app having about 500,000 active subscribers across its various offerings.