Private Equity Fund Investments

Commercial vehicle financier Kogta to raise Rs 150-Cr

Mint

Kogta Financial (India) Ltd is in talks with private equity funds to raise up to INR 150 crore. The Ajmer, Rajasthan-based company offers financing for commercial vehicles, tractors and cars, besides loans against property, and loans to micro, small and medium enterprises (MSMEs). It operates across Delhi, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh. The fundraising will help the company expand its loan book and enter new geographies. Equirus Capital is advising the company on the fundraise.

Incorporated in 1996, Kogta has about 65 branches, 600 employees and 50,000 customers.

From the Venture Intelligence PE-VC Deal Database: In October 2016, Kogta had raised INR 26 Cr from IIFL VC. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)

Used car marketplace Spinny in talks to raise up to $15-M

Mint (E-Paper)

Used car marketplace Spinny is in talks to raise $10-15 million from Accel Partners and Sequoia Capital. Spinny Cars, run by Yellow Drive Technologies Pvt. Ltd, is an online platform for buying and selling used cars.

The Gurugram-based company has so far raised $1 million. Spinny Cars counts Blume Ventures, Similie Venture and Partners, Indian Angel Network, through its member Hari Balasubramanian, and Freecharge co-founders Kunal Shah and Sandeep Tandon as investors. It had acquired Delhi-based start-up Hopcar to strengthen its position in the market.

Snacks start-up Sattviko to raise Rs.40-Cr Series A

Business Line

Delhi-based packaged snacks start-up Sattviko is looking to raise INR 40 crore in Series A funding from institutional investors. It aims to expand to the top 20 cities and target a topline of INR 9 crore a month. Sattviko plans to set up a manufacturing facility near Delhi by March 2020

From Venture Intelligence Angel Deals Database: Existing investors in Sattviko include Swastika Co. Ltd, Raman Roy, Yogesh Andlay, Ravishankar G, Kevin Freitas, N Ravikiran, G Karthik, Arvind Uppal, Sonu Bhasin, Ashish Gupta and Sunil Chandiramani.

SoftBank-backed Kabir Misra’s fund to make India debut with Meesho, Acko

DealStreetAsia

RPS Investment Fund, set up by SoftBank Investment Advisers managing partner Kabir Misra, is set to pick up stakes in social commerce startup Meesho and insurance provider Acko. The USD 200-250 million fund counts SoftBank Group Corp. as the anchor limited partner. Russian investor Yuri Milner may participate in the proposed funding round.

Bengaluru-based Meesho last raised USD 11.5 million in a Series B round from Sequoia India, SAIF Partners, Y Combinator and Venture Highway. It has received a total funding of about USD 15 million so far. RPS Investment Fund is also talking to Acko to invest USD 5 million in the company.

IPOs

Penna Cement files for Rs.1,550-Cr IPO

Economic Times

Hyderabad-based Penna Cement filed for a INR 1,550 crore initial public offering (IPO) with the markets regulator Sebi to raise funds for expansion and for paying off debt. The IPO will consist of a fresh issue of INR 1,300 crore and an offer for sale of up to INR 250 crore by the company's promoter PR Cement Holdings. The book running lead managers for the issue are Edelweiss Financial Services, IIFL Holdings, JM Financial and Yes Securities (India).

Neogen Chemicals files for IPO

IndiaInfoline

Neogen Chemicals Limited, a Thane-based manufacturer of bromine-based, and lithium-based specialty chemicals , has filed its DRHP with SEBI. The Initial Public Offer (IPO) comprises of a fresh issue of INR 70 crores by the company and an offer for sale by promoters. INGA Advisors and Batlivala & Karani Securities India are the book running lead managers.

M&A

Avendus in talks to acquire IDFC Mutual Fund for Rs.2,000-Cr: report

Mint

Avendus Capital has offered to acquire the mutual fund business of IDFC Ltd for about INR 2,000 crore, compared to IDFC’s expectations of INR 3,500-4,000 crore. As on 30 September 2018, the AUM of IDFC Asset Management Company stood at INR 69,483 crore, up 4.7% from INR 66,361 crore a year ago. The net profit of the asset management business as on 31 March 2018 stood at INR 54 crore, down from INR 97 crore a year ago.

Petronet, ONGC Videsh eye stake in Tellurian project

Reuters

Petronet LNG and ONGC Videsh are jointly in talks to buy a stake in Tellurian Inc’s proposed Driftwood project in Louisiana. Tellurian is offering a 60-75% equity interest in Driftwood Holdings, which comprises Tellurian’s upstream company, its pipeline and the upcoming terminal that will be able to export 27.6 million tonnes a year of LNG.

Andhra Bank to sell its stake in JVs

BSE

Publicly listed Andhra Bank is set to divest its stake in full or in part in its Joint Venture investments in ASREC lndia Ltd, lndia lnternational Bank (Malaysia) Bhd and lndiaFirst Life lnsurance Co ltd.

EICL in talks with Riddhi Siddhi to sell starch-making biz

Mint (E-Paper)

Karan Thapar-owned English Indian Clays Ltd (EICL) is in talks with Ahmedabad-based Riddhi Siddhi Gluco Biols Ltd, an agriculture and metal commodities trading company, to divest its industrial starch manufacturing business. The sale of business by EICL will help in debt reduction. Bengaluru-headquartered EICL provides clay-based product solutions to various industries including paper, paints, rubber, plastics, ceramics, adhesives, dyes, cable insulations and soaps, and insecticides. EICL posted operating profit of INR 64.84 crore in 2017-18, compared to INR 65.97 crore a year-ago.

The transaction, once closed, will mark Riddhi Siddhi’s re-entry into the starch business, which it had exited in 2012. The company had sold its production facilities to Roquette Freres, a French company, at a valuation of INR 985 crore.

India Ahoy!

Home furnishing co Danube Home opens first store in Hyderabad

Economic Times

Dubai-based Danube Home, part of the Danube Group, has forayed into India’s home furnishings market by opening its first store in Hyderabad. The Danube Home store, spread over 60,000 square feet, is located in Sarath City Capital Mall, in the Gachibowli area of Hyderabad.

Malaysian restaurant chain Momo King opens first outlet in Gurgaon

ANI

Malaysian restaurant chain Momo King has opened its first Quick Service Restaurant (QSR) in India in Gurgaon. The chain plans to open three additional restaurants by the end of 2018 in Bangalore, Pune and Mumbai.

Expansion/Diversification

QSR chain PitaPit to enter South, West Indian markets

Business Line

Quick service restaurant chain, PitaPit, is all set to enter into South Indian market with its first restaurant in a new mall in Hyderabad. Pitapit offers customised Pita Sandwiches and provides an alternative to high carb, high fat, fast food. It recently opened a restaurant at the Delhi Airport and RMZ Ecoworld, a Tech Park in Bengaluru.

Burdy launches cab-hailing services in Delhi-NCR

Business Line

Noida based Burdy, a new cab-hailing app, has launched operations in Delhi-NCR. It will soon be extended to other metros.Unlike its rivals Uber and Ola, the company will get its revenue from a licensing fee rather than commission per ride from drivers. At present, cash is the only payment option but other options, such as cards, BHIM, UPI and Paytm, will be available soon. The company has got 12,000 drivers on board in Delhi-NCR.

People

ELP hires Tushar Ajinkya from DSK Legal

Press Release

Mumbai-headquartered Economic Laws & Practice (ELP), a full-service law firm with offices in six cities around India, has hired DSK Legal veteran Tushar Ajinkya and his team of three. Tushar was most recently Senior Partner at DSK Legal, Mumbai in the corporate and commercial practice. Prior to joining DSK, he was working at Nishith Desai Associates where he was a part of the core team sent to set up the Silicon Valley office of NDA.

Over the past 2 years, ELP has hired 12 Partners and Associated Partners (besides many at other levels).

Jason Kothari quits Infibeam

Inc42

In less than six months of a stint as the president of Ahmedabad-headquartered Infibeam, ex-Snapdeal Chief Investment Officer, Jason Kothari, has called it quits. However, Kothari will continue to be associated with the company as a senior advisor.

Fortis Healthcare CEO Bhavdeep Singh quits

Economic Times

Fortis Healthcare Chief Executive Officer Bhavdeep Singh has resigned from his post for "professional and personal" reasons. He has agreed to continue in his current capacity till such time his succession planning is crystallised.

Regulatory News

RBI tweaks norms to help NBFCs refinance debt

Mint

The Reserve Bank of India (RBI) has allowed banks to provide partial credit enhancement (PCE) to bonds issued by systemically important non-deposit taking non-banking financial companies (NBFCs) registered with the RBI and housing finance companies (HFCs) registered with the National Housing Bank. The move is aimed at enhancing the credit rating of the bonds and enabling these NBFCs to access funds from the bond market on better terms.

IndusInd Bank moves NCLAT to recover unpaid interest from IL&FS

Business Standard

IndusInd Bank has moved the National Company Law Appellate Tribunal (NCLAT) to relax the conditions related to lien on IL&FS and its subsidiaries’ assets. The lender has asked the NCLAT to allow it to appropriate the amount already lying with the bank towards interest due as of October 31 and after. The bank has an exposure of Rs 2,400 crore to Chenani-Nashri Tunnel and IL&FS.

The petition was in response to the court's October 15 order that stayed certain actions against IL&FS and its 346 companies. The NCLAT order had granted moratorium on dues by IL&FS and its firms. The NCLAT had barred banks and financial institutions from exercising the right to set off, or lien against amount with creditors, against any of IL&FS' obligations.

Bankruptcy

Dena, Kotak Bank withdraw pleas against Alok Industries RP

Mint

Dena Bank and Kotak Mahindra Bank Ltd, two dissenting financial creditors of debt-ridden textile maker Alok Industries Ltd, have withdrawn their applications against the resolution professional (RP) from the bankruptcy court, after being assured of recovery at par with lenders who had approved the resolution plan.

Both banks had earlier objected to Reliance Industries (RIL)-JM Financial ARC resolution plan for Alok Industries which envisaged buying the company, which owes lenders INR 29,600 crore, for just INR 5,050 crore. The liquidation value of Alok Industries is INR 4,200 crore.

NCLT orders insolvency proceedings against Empee Distilleries

Business Line

A Division Bench of the National Company Law Tribunal (NCLT), Chennai, has ordered starting of Corporate Insolvency Resolution Process against liquor manufacturing company Empee Distilleries. The Bench has also appointed V Venkata Siva Kumar as the Interim Resolution Professional to take charge of the company’s affairs immediately.

The Bench passed the order based on a petition filed by Union Bank of India (UBI). UBI claimed a default of INR 10 crore from the company as on December 31, 2015. The financing was done through a multi-banking arrangement with 60 per cent from Andhra Bank and the rest by UBI. The financing was mainly for the company’s alcohol plant and import and exports.

Others

B2B marketplace Wydr shuts down: report

Entrackr

Delhi-based B2B marketplace Wydr, a company backed by Bessemer Venture Partners and Stellaris Ventures, has shut down its operations. Lack of funds and competition are being cited as the reasons for the shutdown. Wydr had raised capital across multiple tranches from six investors including Bessemer, Stellaris and Jungle Venture.

Wydr used to be a marketplace for wholesale buying and selling across categories including electronics, fashion, automotive and home.

Sebi bans Satyam’s Ramalinga Raju, others for 14 yrs from mkt

Times of India

Sebi has banned Ramalinga Raju, Rama Raju, Suryanarayana Raju and SRSR Holdings - all erstwhile promoters of Satyam Computers - from the stock market for 14 years. The action came over for the Rs 8,000-crore fraud they had cooked up over several years till January 2009. The markets regulator also directed them to disgorge Rs 813 crore of illegal gains. Of this amount, SRSR Holdings will pay Rs 675 crore, while Suryanarayana Raju will pay nearly Rs 82 crore, Rama Raju almost Rs 30 crore and Ramalinga Raju will pay Rs 27 crore.

In July 2014, Sebi had barred the Rajus, along with some other former executives of the company, from the securities market for 14 years. Besides, they were together to disgorge Rs 1,849 crore worth of unlawful gains with interest. This order was challenged in the Securities Appellate Tribunal and then at the SC. The revised order was passed under the directions of the SC.

Economic Laws Practice ("ELP") is a leading full-service Indian law firm established in the year 2001 by eminent lawyers from diverse fields. The firm’s Private Equity & Venture Capital practice brings onboard a unique understanding of commercial matters and legalese to be able to provide effective solutions to all stakeholders in a transaction. The team looks at providing a bespoke legal service experience, which is sector agnostic in nature and driven towards successful consummation of the relevant transactions.

ELP advises clients on all aspects of private equity and venture capital transactions, whether from a fund formation perspective or a potential portfolio investment or a relevant exit transaction. Our services include right from conceptualising a structure, to conducting the legal due diligence exercise, to the preparation of the relevant documentation, to providing assistance to the final closure including negotiations and corporate secretarial assistance.

ELP is the firm of choice for clients because of its in-depth expertise, continuous availability, geographic reach, transparent approach, competitive pricing and most importantly the involvement of partners in every assignment.

Basiz is a high end and specialized fund accounting service provider with international footprints, with offices in Mumbai, Chennai and Coimbatore in India, besides Singapore, London and New York. Basiz primarily focuses on servicing Fund administrators, Hedge Funds, Mutual Funds, Private Equity / Venture Capital Funds, Family Offices, REIT Funds, Insurance Portfolios and Managed Accounts.

Contact Information

Sesh A.V ACA, Managing Director
Basiz Fund Services Pvt. Ltd
M: +918286008554, E: sesha@basizfa.com
http://www.basizfa.com

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