The Banking and Strategy Initiative

Chillin' out till it needs to be funded

India Infrastructure and Reliance (ADA)

On the other hand Mukesh Ambani is currently bidding for the Mumbai Metro, GMR has 
closed funding for two UMPPs for Rs 50000 crores or $10 billion and 
PFC and Power Grid have toned down results in 2008 but still are in line 
for a mega jump in 2009; and Rural Electrification Corp has surprised everyone with 
low cost of funds and maximum results(financial results for FY2009)

A sweet summary of everything else in Infrastructure |

The information was so rich, i kept all the results, take your time through the snippets

StanChart IL&FS picks up 4.5% in Ramky Enviro

Hyderabad: Private equity fund, Standard Chartered IL&FS Asia Infrastructure Growth Fund has bought a minority stake of less than 5 per cent in Ramky Enviro Engineers Ltd, a waste management company of the Rs 2,500 crore (US$ 531.2 million) Ramky Group, by investing Rs 200 crore (US$ 42.5 million).

June 05, 2009

Kinfra proposes solar energy park in Palakkad

Chennai/Kochi: The Kerala Industrial Infrastructure Development Corporation (KINFRA) has proposed to set up a solar energy park in Palakkad district under the Central Financial Assistance scheme.

June 04, 2009

Gujarat Govt, IL&FS sign pact with Cisco

Ahmedabad: Gujarat International Finance Tec-City Company Ltd (GIFTCL) and Infrastructure Leasing and Financial Services Ltd (IL&FS) have signed a memorandum of understanding (MoU) with Cisco for the proposed Gujarat International Finance Tec-City (GIFT) project.

June 04, 2009

GVK Power seeks to raise Rs2,500 crore

Hyderabad: GVK Power and Infrastructure Ltd plans to raise about Rs 2,500 crore (US$ 529.8 million) by selling equity to institutional buyers and use the funds to invest in its subsidiaries.

June 04, 2009

Cement sector hopes to keep despatch momentum going

Mumbai: Having clocked the highest growth in dispatches in five years, during April 2009 at over 13 per cent, the cement industry is hoping to sustain the growth momentum in the months ahead.

June 04, 2009

Norwest Venture buys 2.11% in NSE for Rs 250 cr

New Delhi: US-based Norwest Venture Partners has bought 2.11 per cent stake in National Stock Exchange of India (NSE) from IL&FS Securities Services for Rs 250 crore (US$ 53 million), valuing the exchange at Rs 11,848 crore (US$ 2.5 billion).

June 04, 2009

Indian economy better placed than China’s, says Roach

Mumbai: India has made a lot of improvement in recent years on macro developments as compared to China, according to Stephen S Roach, Chairman, Morgan Stanley Asia, who expressed his optimism on the prospects for the Indian economy.

June 04, 2009

BSNL readying WiMax tender for rural broadband project

New Delhi: To boost its plans to roll out WiMax-enabled broadband services in the rural areas, state-owned Bharat Sanchar Nigam Ltd plans to launch a Rs 1,500 crore (US$ 318.3 million) project to buy 7,000 WiMax base stations to set up Common Service Centres (CSC) across the country.

June 03, 2009

Financial Services

According to the latest Central Statistical Organisation (CSO) data, financial services and real estate sector in India rose by 9.5 per cent in the first quarter of 2009-10.

June 03, 2009

GMR Infra to invest Rs 2k cr in road biz

Bangalore: GMR Highways, the road construction division of Bangalore-based infrastructure company GMR Infrastructure Ltd, is planning to invest Rs 2,000 crore (US$ 427 million) in the next two-three years to develop various road projects in the country.

June 03, 2009

via Infrastructure for Brand India

Filed under: Financial Markets , Acquisitions, Amitonomics, Credit Crisis, DealBook, Financial Markets, India, India Infrastructure, Indian Economy, Infrastructure, Investments, Private Equity, Venture Capital

• 5:16 AM 0

Reliance ADA – Life Insurance worth 12000 crore

Reliance Capital who stock is almost up by more than 45 percent in just 4 trading session has informed that its looking to divest up to 26 percent in its insurance arm Reliance Life Insurance through an IPO as well as by inducting a strategic investor. Reliance Capital holds 100% in Reliance Life Insurance. Reliance Life Insurance would be valued well in excess of Rs 12,000 crore and they will have more clear picture on it in another 3 to 4 months.
Reliance Life insurance is considered to be 4th strongest in line next to ICICI, SBI Life and Bajaj Allianz. They have almost more than 10 percent share in the indian insurance market.
via <a href=’’>Rupya</a>

zyakaira notes: The 3-4 insurance IPOs including ICICI Bank IPO for separating capital structures and governance would themselves bring companies with a valuation of INR 120000 Crores or around $25 Billion to the listed markets at BSE and NSE. Along with the PSUs and Infra stocks we may be adding market cap equivalent to India’s GDP in these 1-2 years and raising more than $10 billion from the markets

Filed under: Film making, Financial Markets, Home and away, India, Investments, Mergers & Restructuring , 49% FDI, Amitonomics, Bank Stocks, Banking, Business, Economy, Finance, Financial Markets, Financial Services, Global investing, India, India Infrastructure, Indian Economy, Infrastructure, Insurance, Investments, IPO, IRDA, RBI, Reform, Reliance ADA, SEBI

• 5:11 AM 0

Bharti-MTN a Dream Deal for SingTel –

After a long and fruitless hunt for acquisitions, Singapore Telecommunications is in sight of a growth booster. And going by its involvement in the Bharti Airtel-MTN Group merger talks, it is determined to grab it.

SingTel’s current business model depends on its foreign holdings, including Indian associate Bharti Airtel, to generate profit growth, with operations in Australia and Singapore yielding cashflow. But some of its foreign mobile associates are under pressure from increasing market competition while others are posting losses.

Bloomberg News/Landov

A Bharti-MTN merger would be a godsend for SingTel.A combination of Bharti and MTN would thus be a godsend for the Singapore company — Tuesday SingTel said it will “continue to be actively involved in due diligence and key aspects of the transaction,” emphasizing its interest.

If the $23-billion merger deal goes through, SingTel could own a piece of an outfit that would have more than 200 million subscribers in Asia, the Middle East and Africa combined, generating more than $20 billion in annual revenue. That’s almost twice SingTel’s revenue during the fiscal year that ended March.

Although the deal could dilute SingTel’s holding in Bharti to 19%-20% from the current 30.4%, SingTel could get as much 12% of MTN.

via Bharti-MTN a Dream Deal for SingTel –

Filed under: Financial Markets, Home and away, India, Investments, Mergers & Restructuring , Acquisitions, Amitonomics, Business, Financial Markets, Global investing, India, India Infrastructure, Indian Economy, Infrastructure, M&A, Obamanomics, Private Equity

JUNE 7, 2009 • 3:13 PM 0

Reliance ADA to launch film/TV outsourcing unit |

Adlabs Films, India’s largest multiplex chain, controlled by billionaire industrialist Anil Ambani, is launching one of the country’s biggest outsourcing businesses to service the global movie and television industries.

The new unit will digitise films and television shows from clients’ archives or libraries, restore old prints and adapt content for use in different formats, such as DVDs or mobile phones.

Its first contract is from the state-run National Film Archive of India in Pune to digitise and restore 1,000 films.

“One [area of work] is the old legacy content, which has to be converted into digital, including all these studio classics – Paramount, Mickey Mouse and all of that – and then there is all of the television content,” said Anil Arjun, chief executive officer of Adlabs.

Mr Ambani’s Reliance group is not the first Indian company to target media outsourcing, but it claims to be the largest effort yet attempted, with a dedicated workforce starting at 300 people and scaling up to 1,200 in one year.

The company says India’s competitive advantage is outsourcers’ ability to build quickly the scale necessary for large projects, such as the contract from the National Film Archive of India.

Adlabs operates 430 multiplexes in India, the US and Malaysia and has a film and media services unit specialising in post-production and processing among other things.

The company is a unit of Mr Ambani’s Reliance ADAG group, which also has a tie-up with Stephen Spielberg’s DreamWorks. It argues that its 25-year history in the film industry will enable it to trump competition from existing operators that are more experienced in outsourcing.

These include a joint venture between outsourcing company Genpact and media group NDTV, and a separate tie-up between another conventional outsourcing group Infosys BPO and TV 18, a media conglomerate.

The joint venture between Infosys and TV 18, Source18, does not have a dedicated team for media outsourcing but instead assembles teams as necessary when contracts come in.

via / India.

Filed under: Bollywood, Film making, Financial Markets, Global, India, Investments, Media and Entertainment, US , Finance, Financial Services, Financial Markets, NDTV Profit, Outsourcing, Infrastructure, office space, India Infrastructure, Films, Infrastructure Financing, Spielberg, Reliance ADA, Indian Stocks

MAY 27, 2009 • 8:11 AM 0

Reliance Power may earn Rs 4,000 cr from carbon credit sale

zyakaira notes:  RPOWER recently completed Financial Closure for its 5 CR per unit SASAN UMPP Project. Carbon Credits are already selling for €26 per unit. This is a positive sign

The Anil Ambani-controlled Reliance Power is expected to earn more than Rs 4,000 crore over the next 10 years by selling carbon credits from its upcoming Sasan power project in Madhya Pradesh, according to people familiar with the development. The company is expected to get the UN-managed Clean Development Mechanism executive board’s nod for 37.5 million of carbon credits by June, said an official who wished not to be named.

When contacted, a spokesman for R-Power said the validation process for carbon credits is going on. The project has received the host country approval from the Indian government and German agency TUV Nord has been appointed as the designated operation entity for evaluating the eligibility for the credits, he added.

According to R-Power’s project design documentation with the UN body, the Sasan project qualifies the eligibility for generating 3.75 million units of carbon credits per annum — which would gross 37.5 million units in 10 years — at 80% plant load factor by saving green house gas emissions. Analysts with several research agencies such as the New Carbon Finance and Barclays have rated carbon credit prices in the range between 17 euros and 26 euros per unit and estimate the prices to move even higher due to limited supply of carbon credits.

Even at a conservative estimate of e17 per unit made by analysts of New Carbon Finance, R-Power could earn about Rs 4,000 crore at current exchange rates, that is close to its equity contribution of Rs 4,850 crore for the Sasan project.

Under the Kyoto Protocol of United Nations’ Framework on Climate Changes, industrialised nations can invest in clean energy projects in developing countries and in return receive carbon credits which can be used for credit compliance, or sold to buyers. Potential buyers of credits are often individual companies who expect their emissions to exceed the standard levels.

As per as the requirements under the CDM, R-Power’s project design document was web hosted for global stakeholder consultation, on the website of United Nations’ Framework on Climate Changes and has so far not received any objection, said an official familiar with the issue. He said the project is in the final stages of validation and would be submitted to the CDM executive board for registration in this quarter.

R-Power recently completed its financial closure for the 4,000 megawatt Sasan ultra mega power project.

The power project with an estimated investment of about Rs 19,500 crore has a debt equity ratio of 75:25. The debt would come from a consortium of 12 state-owned banks and lenders led by SBI and other financial institutions.

via Reliance Power may earn Rs 4,000 cr from carbon credit sale.

Ping this!

Filed under: Financial Markets, Home and away, India, Investments , Amitonomics, GII, Global investing, India, India Infrastructure, Indian Economy, Infrastructure, Infrastructure Financing, Investments, SBI

APRIL 7, 2009 • 10:11 AM 0

Macquarie SBI Infra Fund Announces First Close At $1B | VCCircle

Macquarie SBI Infrastructure Fund (MSIF) has taken off with initial investor commitment of $1.037 billion. According to a disclosure made to the stock exchange by SBI, international investors have already committed $887 million while SBI is going to bring $150 million to the fund.

The fund, which is a tri-party joint venture between financial services firm Macquarie, SBI and World Bank’s private sector financing arm IFC, is targeting to raise $2-3 billion in total and will continue to seek money from prospective investors through 2009.

The fund is targeting so called ‘traditional’ infra assets which generate long term identifiable cash flows. These include roads; airports; seaports; power generation, transmission and distribution; telecom and logistics. The investments will be aimed at both greenfield and existing projects.

Though there were reports earlier, that the fund may revise it targeted $2 billion target size to $1-1.5 billion, the sponsors are still optimistic of sticking to a higher corpus. The three partners had signed a JV agreement last October after signing an MoU for the proposed infra fund in April 2008.

SBI joins a growing list of financial firms planning or setting up large infrastructure funds for India. IDFC-Citigroup sponsored mega $5 billion India Infrastructure Fund is already in the process of raising funds (the fund size has a revised equity ceiling of $1.25 billion as against the $2 billion originally) and Blackstone which pulled out of the above mentioned India Infrastructure Fund is looking to come up with its own standalone infrastructure fund for India.

Last year, UK-based 3i (which scooped $1.2 billion) was the first to raise a billion dollar infra fund dedicated for India.The interest in infrastructure sector stems from a Planning Commission report which projected that India requires infrastructure investments to the tune of $450-500 billion by 2012.

With the new fund SBI could well be on its way to challenge the dominance of ICICI(which operates through ICICI Venture Funds) in the PE business in the country. SBI already has a $100 million VC fund with Soft Bank of Japan since 2006. It had earlier bought a 20% stake in Mumbai-based Sage Capital Fund Management’s $250 million special situations fund and had also indicated plans to float a real estate fund.

via Macquarie SBI Infra Fund Announces First Close At $1B | VCCircle.

zyakaira notes: Once a stable UPA/Congress government is in place in June 2009, we also see a new era for deficit financing budgets as the infrastructure gap requirement is unlikely to be solved as easily as we solved the telecom superstructure issue. Power, Roads, Aviation and the Others would need to become spending and thrust centers. More on this in coming posts as we look to the election to establish the direction and find that cornerstone on which future budgets would now be built ( which would be as acceptable to MSA and Manmohan Singh & P Chidambaram ) and run alongside debates for the not so palatable segments of Indian polity and society.  China has also jumped a lead on us.

Filed under: Bank Stocks, Elections, Financial Markets, India, Investments, Meltdown , Citi, Deutsche Bank, Finance, Financial Markets, India, India Infrastructure, Indian Economy, Infrastructure, Liquidity Crisis, VCCircle, Venture Capital

NOVEMBER 29, 2008 • 12:27 AM 2

For those in India – Tune In

Hi Amit,

Thank you for your interest in VCC Investment Forum Hyd.

This is to let you know that NDTV Profit will telecast a special series on INVESTING IN PERFECT STORM, at these times

29th Nov. – 11:00pm
30th Nov. – 4:30pm

Do tune in.


Ben V Mathew
011 65090934

Filed under: India , Credit Crisis, Financial Markets, India, India Infrastructure, Obamanomics, Private Equity, Venture Capital

NOVEMBER 26, 2008 • 9:42 AM 1

DLF Assets To Raise $450M From JPMorgan, TPG? | VCCircle

DAPL raised $450 million from Symphony Capital, a London based investment firm in May this year.

DLF Assets (DAL), the property fund of DLF, will raise around $450 million from a cluster of private equity investors including JP Morgan Asset Management, Texas Pacific Group and others, reports CNBC-TV18, quoting investment banking sources. An email sent to TPG spokesperson did not elicit any response till the time of writing this report.

The DAL PE deal, in which JP Morgan and Texas Pacific will together put in $200 million, is likely to be signed in the next few days, and DAL will receive money by January-end, sources added, adds the report.

DAL owes Rs 4,804 crore to DLF as on September 30, 2008 and was targetting capital raising to the tune of $400–500 million.

via DLF Assets To Raise $450M From JPMorgan, TPG? | VCCircle

Filed under: Bank Stocks, India, Investments , Acquisitions, Dealmakers, India Infrastructure, J P Morgan, Mergers, Priuvate Equity, Venture Capital

NOVEMBER 15, 2008 • 4:54 AM 1

Aviation Infrastructure – India: Jet Plans Equity Sale, Rs 1,000 Crore Debt From Abu Dhabi Fund | VCCircle

Jet Airways reportedly plans equity sale to Temasek, and Rs 1,000 crore debt from UAE Fund.

Jet Airways, the country’s largest airlines, is desperately seeking funds as losses continues to pile up with dropping air traffic and higher operating costs. While it is reportedly (The Economic Times) in talks with Temasek to sell 10% stake it appears that the airlines is also seeking loans from overseas entities to keep the business running. Acoording to Mint and Business Standard reports, Jet is in talks with Mubadala Development Co, an investment firm of the emirate of Abu Dhabi, for a Rs 1,000 crore(~$210 million) loan to meet working capital and other expansion needs.

The Temasek deal being negotiated is believed to be worth around Rs 250 odd crore which values the airlines at Rs 2,500 crore, much higher than its current market cap of Rs 1,680 crore.

via Jet Plans Equity Sale, Rs 1,000 Crore Debt From Abu Dhabi Fund | VCCircle

Filed under: Bank Stocks, Financial Markets, Global, India , Corporate Bank, Economy, Finance, India Infrastructure, Institutional Investors, Obamanomics, Pension Funds

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