Inox Leisure Ltd, India’s second largest multiplex chain, is in talks to buy Satyam Cineplexes Ltd in a transaction that may be valued at Rs 220 crore ($36 million), signalling further consolidation in the movie exhibition business. Inox Leisure will sell treasury stock to raise funds for the acquisition, said three people familiar with the transaction. Yes Bank Ltd has been given the mandate to sell the treasury stock and look for acquisitions. The acquisition of Satyam Cineplex will strengthen Inox Leisure’s presence in North India. Ajay Bijli-controlled PVR overtook Inox by acquiring Cinemax India Ltd in November 2012 to become the largest multiplex operator in India. (Live Mint)
PE funds find ethnicwear firms a perfect fit: With retail czar Kishore Biyani earning a 22-fold return on his investments in ethnic apparel major Biba, private equity (PE) firms are now eyeing a slew of such companies. Even as PE firm Everstone Capital picked up a small stake in designer Ritu Kumar’s fashion house last month despite its losses, saree and salwar retailers such as Jashn, Soch and Bawree are set to sew up deals with a new set of PE investors. Apart from Biba, the other big deals in the ethnicwear category include Fabindia (with L Capital and Premji Invest), TNCS Clothing (with Matrix) and Global Desi (with General Atlantic). Another ethnicwear brand, Seven East, floated by Sanjay Bindra, a former promoter of Biba, is also hoping to attract PE funds if required. (Business Line)
SIS Security in talks to raise Rs 500 crore: Private security services firm Security and Intelligence Services India (SIS Security) said it is in talks to raise about Rs 500 crore ($82 million) to build a war chest to step up acquisition. SIS, which has investors like CX Partners, said it would also use the funds to scale up its existing businesses in areas such as cash management, security and surveillance, and also facility management. Last year, the Ajay Relan led-CX Partners had invested close to Rs 300 crore. It had acquired hedge fund player DE Shaw’s 20% stake in SIS Security. The firm is currently looking to raise funds through debt and would be deployed towards making acquisition in various areas of business,†he added. (Business Line)
Ballarpur Ind arm eyes overseas listing to raise funds: A step-down Dutch subsidiary of Ballarpur Industries Ballarpur International Graphic Paper Holdings (BIGPH) is evaluating and exploring options with International Finance Corporation for receiving a potential investment. The company is also exploring the possibility of listing of equity shares of BIGPH at an overseas stock exchange. IFC is a financial lending arm of the World Bank group. Any proposed investment would be subject to IFC’s management and board approval, the company informed the stock exchanges. (Business Line)
BPCL scouts for tech partners for Kochi plant: Bharat Petroleum Corp. Ltd (BPCL) is talking to companies in Japan and China for technology to manufacture propylene-based products at its proposed petrochemicals complex in Kochi in Kerala. Two persons familiar with the talks confirmed that the country’s second biggest state-owned oil refiner was in discussions with one company each in Japan and China. A final decision is likely in two months, they said. This is BPCL’s second attempt in tying up technology for the industrial raw material, after talks with South Korea’s LG Chem Ltd failed in August 2013. (Live Mint)
NBCC plans tie-ups with sick PSUs to boost real estate business: State-run engineering and construction firm National Buildings Construction Corp. Ltd, or NBCC, is planning to tie up with at least half a dozen sick public sector undertakings as it seeks to accelerate its real estate development business across the country. NBCC, which secured the coveted navratna status recently, is also exploring joint ventures (JVs) with companies in West Asia, Europe and the CIS (Commonwealth of Independent States) countries. The company, under the ministry of urban development, has already signed a JV deal with a company in Oman and is in advanced discussions with two to three companies in Turkey. (Live Mint)
Amazon looks to fund Indian startup story: Even as the e-commerce juggernaut Amazon ramps up operations here, the $74-billion online retailer is quietly identifying Indian startups in the tech and internet space to boost its local ecosystem. The Seattle-based internet giant is working with its India unit to scout for startups, which could be of strategic interest, people familiar with the matter said. Crunchbase data suggests that Jeff Bezos-led Amazon has made 26 such investments globally. While Amazon looks at these proprietary investments through a strategic eye, it would not necessarily lead to future acquisitions always. (The Times of India)
Gridle in talks to raise Rs 1 crore: Gridle, a start-up, which provides a communication and collaborative platform to enterprises, is in talks with institutional investors and high net worth individuals (HNIs) for another round of funding. It hopes to raise $170,000-200,000 (Rs 1-1.2 crore) in a month. A couple of parties have expressed interest and we are considering our association with them. The funding will aid us in mobile and pad presence. We are also looking forward to re-sellers for Gridle from across the world and are actively considering a tie-up with an Australia-based sales company," he added. (Business Standard)
Capillary Technologies to raise $15 million: Bangalore-based cloud software services provider Capillary Technologies is in the process of raising around $15 million (about Rs 90 crore) from its existing investors Norwest Venture Partners, Qualcomm Ventures, Sequoia Capital, and American Express Ventures, the corporate venture arm of American Express. The fund-raising is likely to be completed by mid-July, after which the company will make an announcement, sources said. “Several new investors had shown interest to invest in the company and the management received term-sheets from others. In 2012, Capillary Technologies had raised $15.5 million from Norwest Venture Partners, Qualcomm Ventures and Sequoia Capital. In February this year, American Express Ventures made a strategic investment in Capillary Technologies, which was reportedly of $4 million. This was American Express Ventures’ maiden investment in India. (Business Standard)
IFCI to offload 26% in Madhya Pradesh road project: Government-owned IFCI seems to be on a drive to liquidate non-core investments. After deciding to reduce its holding in National Stock Exchange (NSE) and sell its broking unit, it now plans to put on the block its 26% equity stake in Jaora Nayagaon Toll Road Company Private Ltd (JTCL), a special purpose vehicle for a Rs 900-crore ($147 million) toll road project in Madhya Pradesh. IFCI Managing Director and Chief Executive Officer Malay Mukherjee said the company expected to complete the JTCL stake sale by September. Other key stakeholders in the project include Srei Venture Capital Trust (33.98% stake) and Ashoka Concessions (23%). t also plans to divest its entire holding in IFCI Financial Services Ltd, its broking and financial product distribution arm. (Business Standard)
Courtesy: VCCEdge
