Indian direct-to-home television-service provider Tata Sky Ltd. is likely to apply soon for an initial public offering to raise INR 25 billion ($466.2 million). The company recently selected investment banks Kotak Mahindra Capital Co., Morgan Stanley and Citigroup Inc. to manage the offering. The company is a 70:30 joint venture between India's Tata group and Star Group. The firm is likely to file a draft prospectus with capital-market regulator Securities and Exchange Board of India as early as February. (The Wall Street Journal)
Micro Labs eyes global expansion: Bangalore-based drug maker Micro Labs is close to buying pharmaceutical manufacturing units in Egypt and Indonesia. The move is part of the company’s global expansion plans that also include other major markets such as the US and South Africa. The firm is in advanced stage of talks with a company in Egypt to buy a dermatology formulation manufacturing facility. The deal would be announced in around four weeks. According to Surana, the company is also eyeing a facility in Indonesia and is in the final stage of discussions there as well. (Business Standard)
Prestige fixes IPP price at Rs 160 per share: The Institutional Placement Programme ( IPP) committee of Bangalore-based publicly-held realtor, Prestige Estates Projects, has finalised the issue price of its IPP at INR 160 per equity share. The company is looking to raise around INR 350 crore ($65.32 million) through the Institutional Placement Programme to comply with Sebi norms, which calls for public float of at least 25%. The promoters hold a little over 80% in the company. The issue, which closed January 23, 2013, was managed by CLSA India and J P Morgan India. Prestige Estates would offer close to 20 million shares and additional shares of close to 2 million in case of over-subscription. Post this move, the promoters will hold 75% in the company. (Business Standard)
Rallis India to up stake in Zero Waste Agro to 51% by FY14: Leading crop protection firm Rallis India is planning to aise stake in Zero Waste Agro Organics to 51% by next financial year. During the quarter ended December 31, 2012, the Tata Group firm acquired 22.81% stake in Zero Waste Agro Organics. Early last year, Rallis had entered into definitive agreements for the acquisition of the company. Meanwhile, the company has acquired additional shares in Metahelix Life Sciences (Metahelix) during the third quarter, increasing its shareholding to 77.02% as on December 31, 2012, from 75.64%. (Business Standard)
Syndicate Bank raising Rs3,500Cr to fund expansion: Syndicate Bank is preparing to raise about INR 3,500 crore ($653.29 million) capital, including INR 1,500 crore ($279.98 million) of Tier I and about INR 2,000 crore ($373.31 million) in Tier II. The company board of directors also approved the fundraising. The state-owned bank would make use of theINR 1,500 crore Tier I capital, which is expected to be raised before March, to improve its capital adequacy ratio (CAR). The bank had raised about INR 1,000 crore through issuance of Tier II bonds in 2012. It had also issued overseas bonds to raise about $500 million. (DNA)
Tata Communications launches INR 2,200-cr bond issue in Singapore: Tata Communications, an arm of the Tata Group, has launched a benchmark INR 2,200 crore ($410.64 million) ssue in the Singapore market, providing a further boost to domestic corporates raising funds overseas, according to merchant banking sources. The benchmark issue from Tata Communications Netherlands, a subsidiary of Tata Communications, denominated in Singapore dollars, has an initial pricing guidance of 4.250-4.375%. The bond sale has a maturity of three years. (Business Line)
Mukesh Ambani's RIL arm may buy stake in Anil's RCOM tower subsidiary Infratel & lease 50k towers: The telecom arm of Reliance Industries, owned by billionaire MukeshAmbani, may buy a stake in Reliance Infratel, a company belonging to his brother Anil that operates telecom towers, in a complex deal that also includes leasing as many as 50,000 towers. One part is a leasing arrangement valued at INR 8,500-10,000 crore over a 10-year period. The second component of the deal being negotiated between the two Reliance groups consists of RIL's Infotel Broadband, a 100% arm of RIL, buying 15-25% in Reliance Infratel, RCOM's tower and passive infrastructure arm. The stake sale is being negotiated at an enterprise value of $3.5-4 billion (INR 18,789 – INR 21,471 crore). The funds would be used to retain debt. (The Economic Times)
Reliance Communications in talks with domestic lenders to raise INR 6,500Cr: Reliance Communications (RCOM), is in talks with domestic lenders to raise INR 6,500 crore ($1.21 billion) which it will have to repay over seven years. The money is being raised for meeting operating expenses, capital expenditure and converting some short-term loans into long-term loans. According to the official of the bank, State Bank of India (SBI) has agreed to lend about INR 1,650 crore. The telecom company is in talks with other banks to raise the balance amount. (The Economic Times)
Embassy Property Developments, JP Morgan in talks to raise INR 500Cr: Bangalore-based Embassy Property Developments is in talks with global financial services group JP Morgan to raise INR 500 crore ($93.32 million) for two projects in the city. The negotiations are expected to firm up over the next few weeks. The ongoing talks pertain to a premium villa project and a IT-cum-residential development on Bellary Road. Embassy is willing to divest up to 20% stake at project level. Recently, the comapnt raised $200 million ((NR 1,000 crore) from Blackstone for a 50% stake in three of its business parks in the city. (The Economic Times)
L&T Infra may fund BLP’s acquisition of DLF wind power biz: L&T Infrastructure Finance Co. Ltd may fund Bharat Light and Power’s (BLP) acquisition of real estate developer DLF Ltd’s wind power business in a deal valued at a potential INR 900 crore ($168 million). BLP is promoted by Tej Preet Chopra, former president and chief executive of GE India. DLF, which is seeking to raise money by selling assets that aren’t integral to the main business, has been trying to sell its wind assets in Gujarat, Rajasthan, Tamil Nadu and Karnataka. L&T Infrastructure Finance is in talks on the deal. (Live Mint)
Courtesy: VCCEdge
