Avendus eyes IDFC mutual fund firm; Chalet Hotels, Bharat Hotels push back IPOs

KKR-controlled financial services firm Avendus Capital is looking to acquire the mutual fund business of non-banking financial company IDFC Ltd for less than Rs 2,000 crore, three people in the know told Mint.

Citing the people, the report said IDFC is seeking a valuation of Rs 3,500-4,000 crore for IDFC Asset Management Company.

The closure of the deal has been delayed because of valuation mismatch, the report said.

The assets under management of IDFC Asset Management Company stood at Rs 69,483 crore as on 30 September.

In another development, K Raheja Corp-promoted hospitality firm Chalet Hotels Ltd and Delhi-based Bharat Hotels, which owns and operates hotels and resorts under The LaLiT brand, have pushed back plans for initial public offerings (IPOs), The Economic Times reported.

Both the companies had received regulatory approvals to float their IPOs last month.

Citing people aware of the development, the report said Chalet Hotels and Bharat Hotels are looking to launch their IPOs in the first quarter of the next year if the markets improve.

Chalet Hotels, which owns hotel and apartment units such as the Lakeside Chalet Marriott Executive Service Apartments and the Renaissance Mumbai Hotel and Convention Centre, was planning to issue fresh shares worth Rs 950 crore. The total issue size was estimated at Rs 1,800-2,000 crore .

Bharat Hotels was planning to issue fresh shares worth Rs 1,200 crore.

Separately, Rajasthan-based Kogta Financial India Ltd is in talks with private equity firms to sell a minority stake for Rs 150 crore, Mint reported.

Citing two people aware of the development, the report said that the company would use the proceeds to expand its loan book and enter new markets.

Mumbai-based investment bank Equirus Capital is advising Kogta on the stake sale, the report said.

Kogta offers financing for commercial vehicles, cars, two-wheelers, micro, small and medium enterprises, and loans against property, according to its website.

The company’s assets under management stood at Rs 429 crore in March 2018, according to a report by Crisil (Credit Rating Information Service of India).

In October 2016, Kogta had raised Rs 26 crore from IIFL Seed Ventures Fund I, according to VCCEdge, the data intelligence platform of News Corp VCCircle.