ICICI Bank plans ₹20,000 cr capital boost via QIP
ICICI Bank Ltd plans to raise at least ₹20,000 crore by selling shares to institutional investors, in the biggest such capital raising in India, as the nation’s largest private lender looks to expand lending and compete with rivals to fill in the void left by shadow lenders after a crisis engulfed the sector, Mint reported citing two people familiar with the bank’s plans. The Mumbai-based bank has approached at least 10 investment banks on the proposed capital raising, and it may soon give a formal mandate to some of them. The bank may sell a 6-7% equity stake. The plan is to raise the entire money in a single tranche. At one point, the plan was to raise the money through issuance of ADRs (American depositary receipts) but now as the market seems to be stabilizing, the plan is to raise the capital in India.
Shree Cement seeks to raise over ₹2,000 crore via QIP
Shree Cement Ltd, India’s third largest cement maker, is at an advanced stage of raising more than ₹2,000 crore through a qualified institutional placement (QIP) offering, Mint reported citing two people aware of the development. The money will be used for capital expenditure and debt reduction and the fundraise, which could be anywhere between ₹2000- ₹3000 crore depending on demand from investors, is expected to close within this quarter. Shree Cement has hired JM Financial and ICICI Securities as advisers to manage the QIP. QIP is a tool, through which listed companies can sell shares, debentures, or any securities, other than warrants that are convertible into stocks, to a qualified institutional buyer. On 19 October, Shree Cement’s board had said that it planned to raise as much as ₹3,000 crore equity, in one or more tranches, through QIPs. It planned to use these funds for inorganic growth opportunities that may come up over the next 12-18 months, according to a 22 October note by HDFC Securities.
PE firm Advent International acquires controlling stake in Bharat Serums
US private equity (PE) firm Advent International Corp. has acquired a controlling stake in Bharat Serums and Vaccines Ltd, a leading maker of injectable biological and pharmaceutical products, Mint reported. The company operates in women’s healthcare, assisted reproductive treatment, critical care and emergency medicine in India and emerging markets. While financial details of the deal were not disclosed, Mint had reported first on 9 April that promoters of Bharat Serums were in initial talks with PE firms to sell a controlling stake for around $500 million, and had approached Advent for the same. The deal provides a complete exit to the company’s existing investors—PE firms OrbiMed Advisors Llc and Kotak PE. The Daftary family, the promoters of the company, will continue to hold a “meaningful stake", a company statement said, without elaborating. The company, which has three manufacturing plants in Maharashtra, has its products registered in more than 45 countries. Bharat Serums competes with Serum Institute of India, which is controlled by the Poonawalla family and is one of the world’s largest manufacturers of vaccines.
Medikabazaar raises funds in fresh round led by Health Quad
Medikabazaar, a B2B technology platform for medical supplies and equipment raised $15.8 million ( ₹112 crore) in a Series B funding round led by healthcare-centric VC firm, Health Quad, Ackermans & van Haaren of Belgium and Rebright Partners & Toppan Printing from Japan, Mint reported. The funds from the current round will be used to augment the startup’s technology capabilities and supply chain infrastructure as well as building its team strength. The company’s current focus is on optimizing its fulfilment capabilities for better delivery management, especially across Tier 2, Tier 3 cities and rural areas. Co-founded by Vivek Tiwari and Ketan Malkan in 2015, Mediabazaar has introduced state-of-the-art medical devices, tools, materials and services to healthcare providers in the market. These include innovative products in oncology, neurology, dentistry, minimally invasive diagnostics and other therapeutic areas. The company further plans to diversify into other categories such as devices for vascular surgery, ENT, laser devices for varicose veins, gynaecology, interventional radiology and OT environment safety.
Chinese module maker Trina explores tie-ups to fund distressed solar projects
Trina Solar of China is keen to invest in Indian solar power projects as part of its wider strategy to expand the market for its own solar modules and photovoltaic cells, Mint reported citing Raj Kumar Roy, founder director at Engenrin Energy Pvt. Ltd, a renewable energy startup which is the development and engineering-procurement-construction (EPC) partner for Trina Solar in India. The company is keen on under-construction projects and distress opportunities in India’s renewable energy sector. “Trina Solar is keen to expand its project development businesses in India by either partnering with large developers to offer EPC-plus-financing or by buying out projects struggling for finance. Trina’s strategy, across Asia and Australia, is to develop a project of global standards and then sell these de-risked cash flow-generating projects to pure financial investors," Roy said in an interview. So far, Trina has evaluated four to five such projects in India and is currently at an advanced stage of evaluating assets of 50-150 MW size in Gujarat and Odisha, Roy said. The target is to do 100-150 MW projects in the first year and then scale up based on the experience with these projects.
KKR-backed EuroKids in talks to buy Kidzee for ₹1,200 crore
EuroKids, a leading playschool chain in the country controlled by US private equity firm KKR, is in preliminary talks to acquire Asia’s largest preschool chain Kidzee from Zee Learn for ₹1,000–1,200 crore The Economic Times reported citing people aware of the development. The transaction involves demerging the pre-school business from the listed parent company Zee Learn and subsequently hiving it off through a slump sale. If the deal goes through, it will help Subhash Chandra-promoted Essel Group further deleverage its consolidated balance sheet. The group that owns broadcaster Zee Entertainment Enterprises, direct-to-home service DishTV and specialty packaging firm Essel Propack is battling with a debt repayment issue of close to ₹7,500 crore, across its diversified businesses. New York-headquartered KKR — which bought 92% stake in Euro-Kids for about ₹1,500 crore in September — is believed to have made a non-binding offer to acquire educational portfolio of Zee Learn, particularly Kidzee, and is awaiting a response from the management, people cited earlier said.
Haldiram’s, Vedanta, Indonesian billionaire and eight others in race for Videocon
Haldiram’s, Vedanta and Indonesian billionaire Robert Hartono are among the eight suitors competing to acquire Videocon Industries under the insolvency and bankruptcy code (IBC) framework for resolution of stressed companies, The Economic Times reported citing people familiar with the matter. All eight suitors have submitted formal expressions of interest (EoI) and will soon start due diligence on the company, for which a process to find a buyer was formally kick-started in August. The other suitors are said to include both strategic and financial investors and a state-run oil and gas company. Despite the diversified nature of operations of Videocon Industries, all potential bidders are expected to submit a comprehensive resolution plan and not bid for assets or business verticals piecemeal. Videocon Industries owns a stake in the prized Ravva oil field in the Krishna-Godavari basin and has a consumer and home appliances business with four manufacturing plants. The company also owns prime commercial real estate in different parts of India and also has a telecom arm which is not operational.
Prestige buys 29% in DB Realty’s commercial project in Bandra
Prestige Group has picked up 28.99% stake in commercial development of a DB Realty project. The property in Mumbai’s Bandra locality has a development potential of over 7 lakh sq ft and is valued at about ₹2,100 crore, The Economic Times reported citing two persons familiar with the development. The joint venture entity will develop a mixed-use project with total 200 hotel rooms, while the rest will be office space. The deal marks Bengaluru-based Prestige Estates Projects’ entry into the Mumbai commercial market. The transaction is yet to be completed, including the final development potential. This is the second transaction between Prestige and DB Realty. Last month, the Bengaluru-headquartered firm had entered in to a JV with DB Realty to develop a hospitality-led mixed use project spread over 7.7 acres land parcel in Delhi’s Aerocity. Prestige Group is planning to build India’s largest hotel and convention centre on the same land parcel. Following the acquisition of the shares by the developer, the total shareholding of the company in DB BKC will increase to 66.35% to total share capital of DB BKC. The company holds convertible instruments that it may convert in the course of time.