Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
SBI’s credit card subsidiary invites bids from advisors for share sale
SBI Cards and Payment Services Pvt. Ltd, the credit card subsidiary of India’s largest lender State Bank of India, invited investment banks and lawyers to act as advisers for its proposed initial public offering, Mint reported. SBI Card, in which SBI owns a 76% stake and private equity firm Carlyle owns the remaining 24%, is looking to raise ₹1,000 crore in primary capital through the proposed IPO, according to the request for proposal document on the company’s website. The IPO will also comprise an offer for sale of up to 130.5 million shares, representing a 14% stake, owned by existing shareholders. However, the firm did not disclose the quantum of shareholding SBI and Carlyle will individually sell. The total IPO size is expected to be ₹3,000-4,000 crore, valuing the firm at $2-2.5 billion. The company has asked interested banks and lawyers to submit their proposals by 11 September. The company said it plans to appoint up to eight banks to manage the IPO.
DHFL parent WGC sells its loan distribution biz to Metdist Group
Wadhawan Global Capital (WGC), the parent of cash-strapped Dewan Housing Finance Corp. Ltd (DHFL), is selling its loan distribution business Andromeda Sales and Distribution Pvt. Ltd to London-based metal trading firm, Metdist Group of companies for close to ₹150 crore, Mint reported citing two people aware of the development. The sale of Andromeda is part of WGC’s attempts to raise capital to meet debt obligations at the group’s flagship company DHFL. Earlier this month, DHFL said that it has submitted a resolution plan to its lenders which seeks moratorium on repayments but lenders will have to take no haircuts on the principal amount of their loans. On 19 August, PTI reported that the company had defaulted on its financial repayment obligations worth ₹1,571 crore with regard to issuance of bonds and commercial papers. For Metdist, the acquisition of Andromeda will help grow its financial services business in India. The group is already present in the financial services space in India through its Bengaluru-based fintech firm, Atyati Technologies Pvt. Ltd, which provides banking, digital payment, microfinance and insurance services to its clients.
Business execution startup Ally raises fresh funds from Accel, others
Ally, a goal setting and execution management software startup, has raised $8 million in a series A funding round led by venture capital firms Accel Partners India, with participation from the US-based funds Founders Co-op and Vulcan Capital, as well as Lee Fixel, the former private equity chief of Tiger Global Management. Ally helps businesses such as workplace collaboration firm Slack, telecom operator T-Mobile, and home services startup UrbanClap to accelerate their business performance “through alignment, agility, transparency and focus to match the fast-paced needs of their evolving markets," it said. Its product is based on the objectives and key results (OKR) framework, the operating model for running agile businesses popularised by Google and other industry leaders. The Chennai and Seattle-based startup plans to use the funds to invest in scaling product and engineering, sales, and marketing in both regions, reported Mint.
Bike taxi firm Rapido acqui-hires analytics startup Vahanalytics
Bike taxi app Rapido has acqui-hired Mumbai-based Vahanalytics, a data analytics startup that allows organizations to track their vehicle fleet operations, according to the company’s filings with the ministry of corporate affairs (MCA), Mint reported citing business information platform Paper.vc. The value of the deal was undisclosed. However, a person aware of the deal told Mint that the acqui-hire was finalized using a cash and stock component split between the Vahanalytics founders and investors.“The acqui-hire structure is unusual. Typically in stock deals in India, the investors of the target company receive shares in the acquirer. In this case Thinqbate-backed Vahanalytics has been allotted approximately ₹5 million in shares pursuant to a term sheet," said Vivek Durai, chief executive of Paper.vc, in a statement. Mumbai-based Vahanalytics had secured $200,000 ( ₹1.3 crore) in seed funding from Venture Catalysts in May 2016. It also signed a one-year pact with Adani Group in 2017 for tracking vehicles deployed in Gujarat’s Mundra port.
Altico Capital exits Phoenix Group's IT-SEZ project in Hyderabad
Altico Capital, the non-banking finance company, backed by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, has exited completely from realty developer Phoenix Group’s IT-SEZ project in Hyderabad’s Hitec City, The Economic Times reported. The developer has prepaid its ₹250 crore loan it had raised from Altico Capital. Altico had sanctioned the facility in June last year for the land purchase and development of an IT SEZ project forming extension of an existing 5 million sq ft project aVance Business Hub in Hitec City, the commercial business district of Hyderabad. Altico has also received prepayments from multiple other loans spread across various Tier-1 cities, including Casa Grande in Chennai, Marvel in Pune, Skylark in Bangalore, Signature Global and Ramprastha in NCR, Manjeera in Hyderabad across project types including residential, commercial and affordable housing. All these exits have been made with returns ranging in the mid to high teens. Altico has reported net profit of ₹75 crore on the back of revenues worth ₹306 crore for the quarter ended June.