Uttam Galva increased by 16 per cent to INR 122 on unconfirmed news that ArcelorMittal plans to buyout the entire stake of the promoters. Currently, Lakshmi Mittal-owned ArcelorMittal owns 33.80% stake in Uttam Galva, while the promoter Miglani family has 37%. In 2009, ArcelorMittal acquired a stake in Uttam Galva. The Mittals have picked up a stake in Uttam Galva after their attempt to set up a steel plant in India hit a wall. The company also invested INR 647 crore (including the open offer of INR 77 crore) for buying out 58.35% in Lloyds Steel, which has a steel production capacity of one million tonnes per annum. (Business Line)
Diabridge Pharmacy plans to start ‘Health Hubs’ in Kerala: Diabridge Pharmacy, a subsidiary of Diabridge Health Management Systems, plans to start ‘Health Hubs’ in various parts of Kerala, initially with 29 such facilities in Ernakulam in the first three years, at a total cost of up to INR 4 crore. The company is also looking to raise private equity funds for the project from groups interested in investing in the medical field. (Business Line)
Shriram City Union plans to raise $186.2 million: Shriram City Union Finance Ltd. is planning to raise approximately $186.2 million (1,000 crore). The funds would be raised through qualified institutional placement or follow-on offer or private placement or any other security linked to share or any other convertible instruments or securities including foreign currency convertible bonds. (BSE)
Yes Bank eyes acquisitions for business expansion: Yes Bank Ltd. is looking for possible acquisitions in banking, broking and asset management businesses, even as its organic growth plans are sufficient to meet its near-term target. The company also received approval from RBI to set up a retail broking business. The bank had first announced its 'Version 2.0' goal in April 2010, wherein it set a target of 2015 to achieve 750 branches, 3,000 ATMs, 12,000 employees, INR 1,25,000 crore deposit base, INR 1,00,000 crore of loan book and INR 1,50,000 crore of balance sheet. (mydigitalfc.com)
Power Finance plans to raise INR 1.5 bn via bonds: Power Finance Corp Ltd is planning to raise at least INR 1.5 billion ($27.91 million) through six-year bonds at 8.72%. The firm would issue bonds redeemable in three equal installments. Each bond would offer separately transferable redeemable principal parts (STRPP) at the end of 4th, 5th and 6th year respectively. The unsecured bonds are rated "AAA" by Crisil, ICRA and CARE and the pay-in date has been scheduled on Wednesday and Thursday.
Dewan Housing Finance plans to raise funds through debt: Dewan Housing Finance Corporation Ltd. is looking to raise approximately $558.66 million (INR 3,000 crore) by way of private placement of secured debentures in one or more tranches. The company is also planning to raise $186.22 million (INR 1, 000 crore) by way of issue of unsecured redeemable non-convertible subordinated debentures. (BSE)
Electrosteel may look for investors for Bokaro plant: The Kolkata-based Electrosteel group may rope in fresh investors in Electrosteel Steels Ltd. This is to bridge the finance gap in ESL’s upcoming 2.2-million-tonne integrated steel plant at Bokaro in Jharkhand. The estimated INR 9,562-crore greenfield project is facing cost overruns after over a year’s delay in commissioning. The company is also exploring options to raise nearly $250 million (INR 1,300 crore) in the overseas market. The promoter group currently holds 39.64% interest in ESL, while institutions, both foreign and domestic, hold an aggregate of 1.81% stake in the target company. (Business Line)
Mahindra plans to consider IT acquisitions: Business conglomerate Mahindras would consider possible acquisitions in IT space within and outside India after merger of Tech Mahindra and Mahindra Satyam, but only if they bring strategic value on table and not for the purpose of just 'bulking up' the business. The company is looking for both organic and non-organic growth. (The Economic Times)
IL&FS backed infra debt fund targets $1bn corpus: The Infrastructure Debt Fund, backed by IL&FS and Life Insurance Corporation of India (LIC), is initially planning to raise up to $1 billion (INR 5,369 crore) from overseas and domestic investors. The fund would use trust structure (mutual fund route) for this venture since it provides flexibility to invest in green-field projects also. Besides, power, ports and road projects, IDF may look at healthcare and education projects as well. The funds start to raise money after getting final approval from Securities and Exchange Board of India. In May, last year, the company planned to set up an infrastructure debt fund with a targeted corpus of $2 billion. (Business Standard)
Govt eyes over INR 2500 crore from Oil India stake sale: The government expects to raise more than INR 2,500 crore ($468.7 million) by selling a 10% stake in Oil India Ltd on Friday. Selling down its shareholding in companies is central to the government's plan to cut its fiscal deficit to 5.3 per cent of GDP in the current financial year from 5.8 per cent in 2011-12. The government aims to raise INR 30,000 crore by selling shares in the 2012-13 fiscal year to March. (Moneycontrol.com)
IOB to raise INR 1,542 cr via pref. issue: Indian Overseas Bank (IOB) would raise up to INR 1,542 crore ($289 million) by way of preferential allotment of shares to the Government of India and Life Insurance Corporation of India (LIC). While the bank has not indicated how much each would be allotted, it is expected that the exercise would be completed before the end of the current fiscal. The company has received the approval from the board for the proposed fundraising. (Business Line)
Puravankara set to offload Rs 400-crore stake to institutions: Bangalore-based builder Puravankara Projects is planning to raise about INR 400 crore ($75 million) through institutional placement programme, and increase its public shareholding to 25%. The company is expected to offload 15% holding of its promoters to meet stock market regulator Sebi's deadline of June 2013 to bring down promoters' shareholding to 75%. Currently, the promoters hold 89.96% stake in the target company. (The Economic Times)
Bajaj partner KTM in talks to buy BMW’s Husqvarna: Austrian motorcycle company KTM, part-owned by Bajaj Auto, is reported to be in advanced negotiations with BMW for the sale of its group subsidiary Husqvarna. BMW bought Italian firm Husqvarna from MV Agusta in 2008. The final announcement could come in the next one week or so. If the deal goes through it will offer Bajaj Auto with a range of serious off-road products with proven credentials and a pipeline for the future as well. (The Times Of India)
Ratnakar Bank finalizes PE investors: Kolhapur-based Ratnakar Bank Ltd is set to raise INR 300 crore ($56.24 million) from a group of domestic and global private equity (PE) investors by issuing 30 million new shares. Domestic investors Aditya Birla PE, ICICI’s Emerging India Fund, IDFC Spice, Ascent Capital and Faering Capital have confirmed they will invest in the bank. International Finance Corp., a member of the World Bank Group, and US-based Argonaut Ventures Llc. are yet to confirm participation. The company has received the shareholder approval for the sale of fresh shares at an extraordinary general meeting in Kolhapur on Tuesday. (Live Mint)
Courtesy: VCCEdge
