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

Ultratech, PE firms line up to buy stake in Emami Cement

Private equity firms, KKR and Temasek Holdings along with Mumbai-based cement player, UltraTech Cement are looking to buy stake in Emami’s cement business, valuing it at 5,000-5,500 crore, The Economic Times reported citing people aware of the matter. The proceeds from the stake sale would be used by Emami promoters to pare debt of up to 2,200 crore and focus on their consumer business. Recently, the cement business also got regulatory clearance to launch an initial public offer (IPO) and may raise about 1,000 crore, of which half would be an offer for sale by existing promoter. In 2017, Ultratech Cement acquired part of JP Associates’ cement business and Temasek is looking to buy a stake of up to 20 per cent in Wonder Cement, though the talks are yet to be concluded, reported ET . KKR had also been interested in cement business as it bought Dalmia Cements and and sold it in 2017 at a 150 per cent return in less than two years. KKR has also invested in south India-based Bhavya Cements through a structured credit deal. Read more

HDFC Bank plans to list NBFC arm, raise $1 billion

HDFC Bank Ltd, India’s largest private sector lender, may launch an an initial public offering (IPO) of its non-bank lending unit, HDB Financial Services, to raise more than $1 billion, Mint reported citing two people aware of the development. Founded in 2007, HDB, offers various products such as personal loans, commercial vehicle loans, gold loans, and loans against property. The company is likely to raise about 7,000-8,000 crore or more through the IPO, which could be a combination of primary and secondary shares but will largely be a primary capital raising exercise given the current market conditions, according to one of the persons Mint quoted in its report. As of March 31, HDFC Bank held a 95.53% stake in HDB Financial Services, while the rest is held by individual shareholders and employee trusts. Read more

Coca-Cola looks to buy stake in Café Coffee Day

Soft drinks giant Coca-Cola may buy a significant stake in Café Coffee Day (CCD) as it looks to increase its footprint in the fast-growing café business in India, The Economic Times reported citing executives with knowledge of the matter. The move would also help the firm diversify and hedge risks associated with its core carbonated drinks business, which has been slowing down over the past few years. While the talks are still at a nascent stage, a potential stake acquisition may be driven by Coca-Cola’s Atlanta headquarters as both managements are already engaged in engaged in talks. Promoted by VG Siddhartha, the country’s largest coffee chain is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises. With a footprint of 1,752 cafés as of March, CCD competes with Starbucks and smaller chains such as Barista and Costa Coffee, and has not been able to expand much over the past two years due to its rising debt. Read more

Unacademy raises $50-million from Steadview, Sequoia, others

Education startup Unacademy raised a $50 million Series D round from US-based hedge fund Steadview Capital, as well as existing investors venture capital firms Sequoia Capital India, Nexus Venture Partners and Blume Ventures, Mint reported. Angel investors Aakrit Vaish (co-founder & chief executive officer, Haptik) and Sujeet Kumar (co-founder, Udaan) also participated in the round, along with Unacademy founders, Gaurav Munjal and Roman Saini. Unacademy, that allows educators to create multimedia content for free viewing by users, recently launched its Plus Subscription and over 50,000 learners have already subscribed to it since its launch. In July 2018, the startup raised $21 million from Sequoia, SAIF Partners, Nexus Venture Partners and other existing investors at a valuation of more than $100 million. Prior to that, it raised $11.5 million from Sequoia and SAIF Partners in September 2017. Read more

Adani Ports launches $750-million bond sale to repay loans, fund capex

Billionaire Gautam Adani-promoted Adani Ports And Special Economic Zone Ltd launched a $750-million offshore bond sale on Wednesday, to repay existing loans and finance capital expenditure, Mint reported citing two people aware of the development. The US dollar-denominated bonds are priced at a mark-up of 265 basis points over the 10-year US benchmark yield. The funds will be used for capital expenditure, including on-lending to subsidiaries to meet their capital expenditure needs, as well as for repaying existing debt, this person added. Investment banks Bank of America Merrill Lynch, Standard Chartered Bank, Citi, JP Morgan, Barclays and others are managing the offering. The bond issue comes after several other Indian firms tapped into the offshore bond market this year, after tepid fundraising activity in 2018. Last year, Indian companies raised $6.3 billion through dollar denominated bonds, down 51.7% from a year ago as the number of issuances more than halved, according to data from Thomson Reuters. Read more