Billionaire investor Ajay Piramal is close to acquiring a 20% stake in Shriram Capital for Rs 1,900 crore ($299 million), said three persons with direct knowledge of the development, a move that will allow Piramal to strengthen his presence in financial services. The stake sale will be through a primary and secondary issue of shares by the holding company and Shriram Ownership Trust. Shriram Ownership Trust, set up by founder R Thyagarajan for the benefit of his employees, owns a 64% stake in the holding company while 26% is held by strategic partner Sanlam financial services group of South Africa. The remaining 10% stake is held by American private equity fund TPG Capital. (Economic Times)
Sanmar Group plans to raise Rs 250 crore from KKR to reduce debt: Chennai-based chemicals-to engineering conglomerate Sanmar group will raise Rs 250 crore ($39.38 million) from American private equity fund Kohlberg Kravis Roberts (KKR) to reduce promoters' debt and expand its chemical business, a person familiar with the deal said. The private equity fund is likely to subscribe to the convertible debentures issued by Sanmar Engineering Technologies, the holding company for the engineering business. KKR would invest through its alternative investment platform. If the deal materialises, this would be the second round of fund raising by the Chennai based group from KKR in the past one year. The legendary buyout firm had provided Rs 400 crore to Sanmar group in November last year. (Economic Times)
Wockhardt board endorses European listing of its Swiss arm: Drug maker Wockhardt today said its board has endorsed the decision of its Switzerland-based arm Wockhardt Bio AG to undertake a European listing. In order to meet long term aspirations of the company and its group, the Board of Directors of Wockhardt Ltd. have endorsed the decision of the Board of Wockhardt Bio AG, Switzerland, to undertake a European Listing with a relatively modest dilution of approximately 5% of shareholding of Wockhardt Bio AG, Switzerland. The holding company, for undertaking this is primarily Wockhardt Bio AG, Switzerland. (Economic Times)
Gillette India's promoters may sell shares via OFS on November 13: FMCG major Gillette India's promoters are likely to sell shares worth over Rs 550 crore ($87 million) through Offer for sale route on Wednesday in a bid to comply with market regulator Sebi's minimum public shareholding norms. The company's promoter would sell 28,57,744 equity shares in the OFS, the floor price for which would be decided after tomorrow market close. Earlier in September, Gillette India had announced a fresh plan to meet Sebi's minimum public holding norms under which its US-based promoter P&G and Poddar Group would sell part of their respective holdings. As per the plan, P&G would sell 0.9% stake, worth about Rs 66 crore at current market value, Poddar Group would also bring down their holding to below 5% through part sale of equity. (Economic Times)
Union Bank plans Rs 2,000-crore bond issue: Public-sector lender Union Bank today said it is likely to get Rs 500 crore ($79 million) from government next month and is also planning to raise Rs 2,000 crore ($315 million) through tier II bonds during the quarter. The bank has received in-principle approval from the government for Rs 500 crore and hopefully gets it by mid-December. (Economic Times)
Chandigarh-based start-up plans to raise Rs 19 crore: Chandigarh-based VoteChat, a start-up company, is planning to raise Rs 19 crore ($3 million) to fund its expansion plans and product development. The company is already in talks with couple of investors and hopes to close the deal soon. Meanwhile, the company launched a new Mobile app ‘VoteChat’ for Apple stores, which would be available from Tuesday. (Business Standard)
Incube plans to raise Rs 75 cr in next 4-6 weeks: Incube Connect Fund, India’s first social venture fund registered by the Securities and Exchange Board of India (SEBI) early this year, has received approval for its first institutional contribution of Rs 20 crore from the Small Industries Development Bank of India (SIDBI) towards the corpus. The Ahmedabad-based Incube, which aims to collect a corpus of Rs 200 crore for investment in four sectors impacting the life of people, would complete first closure by collecting nearly Rs 75 crore in the next four to six weeks. The fund is in advanced stage of deliberations with various contributors, including PSU banks and insurance companies. (Business Line)
IOC eyes Paradip stake sale: Global energy players are keen to pick up a stake in the Rs 30,000-crore Paradip refinery, whose commissioning is likely to be delayed to the next fiscal. “Several global players have shown interest in picking up stakes in the refinery project and petrochemical plant. Talks are at a preliminary stage said, R.S. Butola, chairman and managing director of IOC. Global firms, who are keen to pick up stakes in the 15-million-tonne (mt) per annum refinery, include Kuwait Petroleum Corporation, Saudi Aramco, Petroleos de Venezuela SA and state-owned Iraq oil firm. Sources said KPC and Aramco were also interested in picking up a stake in the 1-million-tonne petrochemical plant that was split from the refinery for building in the future. (Telegraph)
Courtesy: VCCEdge