Leading life insurance companies such as HDFC Life, Birla Sun Life and ICICI Prudential have shown interest in purchasing HSBC's stake in its three-cornered JV with two public sector banks. Advisor to HSBC have approached the insurance companies, and the matter is under consideration. Oriental Bank of Commerce and Canara Bank, HSBC's partners in the joint venture, have not yet decided whether to sell or not, and they may take a call depending upon the price being offered by the bidders. Ernst & Young is advising the seller while HDFC Life, jointly promoted by India's largest lender HDFC Bank and British life insurer Standard Life Plc, has appointed investment banker Credit Suisse. (The Economic Times)
Manipal to buy back investors for INR 1,450cr: Manipal Global Education Services will buy back all the financial investors, including tech czars Azim Premji and N R Narayana Murthy, in a deal worth $270 million, or Rs 1,450 crore. Four investors — Capital International, IDFC, Azim Premji and Narayana Murthy together own about 22% stake in the Bangalore-headquartered company. The Ranjan Pai-spearheaded Manipal would execute the buyback through a combination of internal accruals and debts raised from a consortium of banks. Deutsche Bank, Nomura, ICICI Bank and Standard Chartered will extend a line of credit, while the promoters would plough in about $65 million (about INR 350 crore) for the buyback. Premji and Murthy's investment funds combined have 9% stake, while IDFC and Capital International together own about 13%. (The Times Of India)
Neyveli plans 5% divestment in Q1FY14: Neyveli Lignite has received a letter from the Department of Disinvestment (DoD) on 5% stake sale in the company. The company has given a commitment to the government that in the first quarter, i.e. April-June. (Moneycontrol.com)
IndianOil sets its sights on Haldia Petro: Indian Oil Corporation (IOC) indicated his interest in the eastern India’s biggest petrochemical company. Currently, Indian Oil holds 8.89% stake in HPL by virtue of an INR 150-crore investment made in 2004. The West Bengal government, which holds close to 40% stake in HPL, has started its share sale drill and has appointed Delloite India to execute the divestment plan and a valuation process is going on. Delloite India is expected to file its report by March. However, TCG chief, Purnendu Chatterjee , a majority shareholder in HPL, will have the first right of refusal once the final auction price is decided. (Business Standard)
Power Grid Corporation plans to raise INR 3,000cr: Power Grid Corporation of India is planning to raise INR 2,000-INR 3,000 crore ($371.68 million - $557.5 million) this week by way of private placement of bonds. According to the merchant banker, it will be a strip bond and the maturity tenure will range between four and 15 years. (Business Standard)
Courtesy: VCCEdge
