Violet Arch Advisors' founder Varun Bajpai has quit the financial services firm he started in mid-2011. Bajpai, the former head of SBI Macquarie Infrastructure fund, is in the process of selling his 80% stake to Sanju Verma, who is now Violet Arch's new commander-in-chief. Kolkata-based infrastructure finance institution SREI holds 19% stake in Violet Arch, which began operations by purchasing the stock broking business of Alchemy, while US-based investment bank Berenson & Co holds a miniscule 1% stake. Bajpai is no longer involved in the management of Violet Arch for the past several weeks now. According to the agreement between Bajpai and SREI, the former will be forced to relinquish and forfeit all his rights as a shareholder by virtue of stepping down as CEO. Verma, who is the first employee at Violet Arch and the architect behind the Alchemy deal, will take controlling interest in the financial services firm shortly. (The Times Of India)
Pipavav in talks with French ship builder for stake sale: Nikhil Gandhi, chairman of Pipavav Shipyard is in talks with a French company for a strategic stake sale. The partnership is primarily aimed to bring in the technological knowhow and proprietary knowledge of military hardware into the country. SAAB AB of Sweden has already a stake in Pipavav. SAAB AB and the new partner, if the stake sale goes through, will together own 15% stake in the company. The promoter stake would come down from 45% to around 41%. (Moneycontrol.com)
GMR to sell technology park in Chennai for INR 150Cr: Infrastructure major GMR Group is set to sell its technology park in Chennai, housing Nasdaqlisted Cognizant Technology Solutions, for about $30 million (INR 150 crore). GMR Varalakshmi Tech Park located in Chennai's IT corridor of Old Mahabalipuram Road (OMR) is more than 400,000-sqft , and completely leased out to Cognizant . The technology park is held by one of GMR Group's subsidiary companies. GMR is offloading non-core investments as it looks to deleverage in a slowing economy. (The Times Of India)
WNS fixes ADS offer price at $12.75: Business process outsourcing firm WNS has fixed he pricing of public offering of 1.26 crore American Depository Shares (ADS') by Warburg Pincus at $12.75 per ADS. Based on the price, the offering could mop up $185.12 million (INR 996 crore). Warburg Pincus has also granted the underwriters of the offering a 30-day option to purchase up to an additional 18.94 lakh ADSs, representing 15 per cent of the total offering size, to cover over-allotments, if any. The offering is expected to close on or around February 15, subject to customary closing conditions. (Business Line)
IDFC looking to sell a slice of NSE stake: Infrastructure Development Finance Company (IDFC), one of the original promoters of National Stock Exchange (NSE), is planning to sell a slice of its stake in the country's largest bourse. Along with IDFC, a few other NSE shareholders may also pare their stakes in the exchange to get a sense of the valuation, and generate funds. Investment bank IDBI Capital is managing the share sale process. The proposed transactions could value the unlisted stock exchange at over INR 20,000 crore. The Tata Group, Vedanta, Barclays, Life Insurance Corporation (LIC) and the State Bank Group among others have been enquiring about the proposed sale for which bids have to be submitted soon. IDFC owns 6.55% in the exchange, which may now come down to 3.55%. LIC and State Bank of India are the largest shareholders in NSE with a 10% stake each. Other financial institutions holding shares of NSE are Goldman Sachs, General Atlantic, SAIF Partners, IFCI and Stock Holding Corporation, with each holding 5%. (The Economic Times)
Ennore Port plans to raise up to INR 2.5 billion via tax-free bonds: Ennore Port has invited 30 arrangers to participate in a fund raising of up to INR 250 crore ($46.5 million) via a private placement of tax-free bonds. The firm is issuing 10-year bonds at 7.03% and 15- year bonds at 7.19%. Qualified institutional buyers, corporates and high net worth individuals would be allowed to invest in the bond sale. The base size of the issue is INR 1.5 billion, as per the document. (The Economic Times)
Cash-strapped Lilliput plans to float IPO: Strapped apparel company Lilliput Kidswear plans to cash in on the booming stock market. The company is in talks with merchant bankers to float an initial public offering (IPO) the next financial year. The firm has plans to raise INR 400 crore ($74.34 million) through the IPO. The company was also in talks with a few private equity players, including Chinese ones, to raise another round of funds. In 2011, Bain and TPG had accused promoter Narula of fudging the books and not providing auditors access to financials. In October, Sanjeev Narula, who had approached the company law board, withdrew all the cases against the investors, after they sold their 45% stake to Narula, with no returns. Bain and TPG had together invested $86 million in Lilliput in 2010. (Business Standard)
Omaxe promoters plan to dilute over 14% stake next month to meet norm: Realty firm Omaxe's promoters plan to dilute over 14% stake in the company worth about INR 400 crore ($74.34 million) next month to meet the market regulator SEBI's guidelines of 25 per cent minimum public shareholding. At present, promoters hold 89.14% stake in the company and they need to dilute at least 14.14% stake in the company to meet the norm. As per the guidelines, at least 25 per cent of the shareholding in private sector firms should be with the public by June 2013. The company is also in the process of appointing merchant bankers. The firm is looking at all options including follow-on-public offer, institutional placement programme, qualified institutional programme and offer for sale. (The Economic Times)
Motherson Sumi plans to raise funds through QIP: Motherson Sumi Systems Ltd. is looking to raise funds through qualified institutional players through issue of shares to qualified institutional buyers. The company would issue 7.5% of existing equity shares. The firm has received the board approval for the proposed fundraising. (BSE)
Courtesy: VCCEdge
