Policy
Tax Policy - According to new scrutiny norms by Central Board of Direct Taxes (CBDT), a company which has introduced fresh capital exceeding Rs 50 lakh last fiscal could come under the tax scanner. The new norms are also against invoking of the Right to Information (RTI) Act, reports Hindu Business LIne.
Delisting Norms - A proposal to change delisting norms has been sought, which states that if public shareholding is marginally above the mandatory requirement for remaining listed (10 per cent of equity) would be able delist only if at least half of the existing public shareholders respond to its buyback offer. The change in guidelines has been sought to ensure that promoters do not indulge in frivolous delisting from stock exchanges, reports Economic Times.
Private Equity
General Atlantic Enters Fray For Wockhardt Stake – US-based private equity firm General Atlantic LLC has entered the fray to pick up 20 per cent stake Wockhardt Hospitals, reports Financial Express. The deal could be valued between $80 million to $100 million and other private equity giants Blackstone and Carlyle are also said to be in the race. Wockhardt had withdrawn its $155 million IPO in February this year and is now eyeing PE investments to meet its expansion plans.
Yes Bank In Advisory Pact With Australian Co – The bank has entered into a strategic and financial advisory deal with Australia’s Windlab Systems to help the latter find joint venture partners to set up wind energy projects in India, reports Reuters. Yes Bank will provide debt financing to these JVs and may also make private equity investments in these JVs. Yes Bank is raising a $300 million cleantech fund along with Global Environment Fund.
BCCL Picks Up Stake In House of Laptops - Bennett, Coleman & Co Ltd (BCCL) has picked up a stake in House of Laptops (India) Pvt Ltd (HOL), an integrated showroom for laptops, reports Times of India. The company currently has four showrooms in Pune and plans to expand nationwide by 2010.
Pune Co in Talks with Six PE Players - Universal Construction Machinery and Equipment, which manufactures and sells construction equipment, is talking to six private equity funds to dilute 20 per cent stake. The company, which had revenues of Rs 130 crore in 2007-08, is also planning to go public soon. The funds will be deployed for capacity expansion at manufacturing and assembling plants in western and northern India.
Mergers & Acquisitions
China’s Sinopec Enters Race For Imperial Energy - China’s state-run energy co Sinopec has entered the race to acquire UK-based Imperial Energy, and is in the process of conducting due diligence, reports Reuters. India’s Oil & Natural Gas Corp has also bid for Imperial and the company has been valued at $2.2 billion. Due the acquisition bids the shares of the company have shot up by 8 per cent.
Daiichi Gets SEBI, FIPB Nod - Japanese drug maker Daiichi Sankyo has received approval from the market regulator SEBI and the Foreign Investment Promotion Board to acquire 34.8 per cent stake in Ranbaxy Laboratries, reports Financial Chronicle. Daiichi Sankyo has also received the approval for its open offer to acquire 20 per cent stake in Ranbaxy. The open offer begins on August 16 and closes on September 4, and will be made at Rs 737 per share, the same price which Daiichi Sankyo paid to the promoters.
Apollo To Buy Two Delhi Pharma Chains – Apollo Hospitals is in talks to buyout two Delhi-based pharmacy chains for Rs 20 crore, reports Economic Times. The two chains are 98.4 and CRS and the deal might be finalized by next week. In another report, Apollo Hospitals is planning to spin off its pharmacy business into a separate unit.
ArcelorMittal Acquires US Plant – Global steel giant ArcelorMittal has acquired US-based Koppers Monessen Coke Plant from Koppers Inc for $160 million. The 70-year old plant produced 3.2 lakh tons of metallurgical coke in 2007. The acquisition will provide ArcelorMittal upstream self sufficiency in metallurgical coke production, reports Financial Chronicle.
Amtek India Merger – The board of directors of Amtek India Ltd have approved its merger with Amtek Auto Ltd (AAL), the company informed the Bombay Stock Exchange. The swap ratio for the merger is 44 equity shares of face value of Rs 2 each of Amtek Auto Ltd for every 100 shares of Rs 2 each of Amtek India Ltd.
Deferred IPOs
Reliance Infratel - The telecom infrastructure division of Reliance Communications has deferred its IPO. Reliance Infratel had received approval for the IPO on May 12 of this year, and had to close the IPO within 90 days of approval. That period will expire on August 11.
Multi Commodity Exchange - The largest commodity exchange in the country by turnover has also deferred its Rs 600 crore IPO, Economic Times. MCX had applied for the IPO in February this year and is withdrawing it due to poor market conditions.
Expected IPOs
Speciality Restaurants Private Limited - Anjan Chatterjee promoted restaurant chain company is planning an IPO in 2011, reports Business Standard. The IPO will be a exit route for SAIF Partners, who picked up a 20 per cent stake for Rs 90 crore earlier this year. Speciality Restaurants operates two popular restaurant chains Mainland China and Oh! Calcutta. The company has also earmarked Rs150-200 crore to acquire regional brands in mediterranean, continental and south Indian cuisines this fiscal.
Ferns ‘N’ Petals - The florist chain is planning to hit the capital markets in 2010 to raise around Rs 250 crore, reports Business Standard. The issue could see promoters diluting about 30 per cent stake. Ferns ‘N’ Petals plans to use these funds for overseas acquisition and also enhance its delivery services and making it more technologically savvy. It has 80 outlets at the present with a turnover of Rs 100 crore.
