Deals Buzz: What does ONGC’s acquisition of GSPC stake mean?

Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

State-run Oil and Natural Gas Corp. Ltd (ONGC) has agreed to over $1.2 billion for the acquisition of debt-laden GSPC’s entire 80% in KG-basin natural gas block, which is struggling to start commercial production despite trial outputs starting nearly two-and-half years back.

ONGC will pay $995.26 million for the three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014. Another $200 million will be paid as advance consideration of six other discoveries, for which GSPC has been finalizing an investment plan from bringing them to production.

Apart from the payout to GSPC, ONGC will have to pay for the entire development cost of the six discoveries which may run into at least a couple of billion dollars.

Fairfax, US buyout funds vie for stake in IndiGo Tech arm

India-born Canadian billionaire Prem Watsa’s Fairfax Holdings has emerged as the new contender for the controlling stake InterGlobe Technology Quotient, the travel reservation arm of Inter-Globe Enterprises that runs Indigo Airlines, in a $500 million deal, The Economic Times reported citing sources.

Blackstone Group, Carlyle Group, Warburg Pincus and TPG Capital Management are the other players that are in talks to acquire the Delhi-headquartered technology outsourcing firm.

Investment bank Moelis & Co is running a formal process to sell the company, partly owned by Rahul Bhatia. Three private equity funds managed by Standard Chartered, DBS and Credit Suisse collectively own 36% stake in the company.

Tata Housing, Macquarie form Rs 2,000 crore fund

Realty major Tata Housing has joined hands with private equity firm Macquarie Group to float a Rs 2,000 crore fund to be used for the company’s luxury housing projects, as per a PTI report.

Australia-based Macquarie Group will put in Rs 1,400 crore while the Tata group firm will contribute Rs 600 crore. Macquarie will have 70 per cent stake in the fund.

According to sources, the investments will be in the form of equity infusion into the fund to expand Tata Housing’s presence across premium and luxury projects in the top 8 cities in the country over the next 3-5 years.

Warburg Pincus seeks RBI’s nod to retain 22% stake in Au Financiers

Private equity firm Warburg Pincus has sought the Reserve Bank of India’s nod to retain its 22% stake in Au Financiers, a finance company that received regulatory clearance to start a small finance bank.

Au Financiers will be renamed Au Small Finance Bank and is set to start banking operations in April 2017. “The message we get from the stakeholders is that none of them want to dilute the stake in Au Financiers,” Sanjay Agarwal, founder and managing director of Au Financiers, said.

“Warburg Pincus may seek RBI approval on grounds that they would be a noninterfering, silent investor and would renounce their voting rights to retain their stake,” the Press Trust of India reported citing a person familiar with the matter.

GMR Enterprises raises Rs220 crore from VTB Capital

GMR Enterprises Pvt. Ltd, holding company of the infrastructure conglomerate GMR Group, has raised Rs220 crore in structured debt financing from Russian bank VTB Capital, said two people aware of the development.

The fund raising is part of GMR’s debt restructuring efforts. Mint had reported on 23 November that GMR Enterprises was in talks to raise up to Rs300 crore to refinance debt obligations.

GMR Enterprises and the promoters own a 60.1% stake in the listed firm GMR Infrastructure Ltd, stock exchange data show.

The GMR Group has three airports in operation, 10 power generation plants with a gross operational capacity of about 4,600 megawatts and eight road projects covering around 600km. GMR Infrastructure is developing two special investment regions. The group also owns the Delhi Daredevils franchise of the Indian Premier League.

ICICI Venture to raise Rs 500-cr realty fund

ICICI Venture, the largest domestic private equity (PE) firm, is looking to raise a new real estate fund, after almost a gap of five years, The Times of India reported citing a source.

The fund manager recently got in-principle approval from capital markets regulator Securities and Exchange Board of India (Sebi) and would start marketing the fund in a couple of months.

The total corpus of the domestic fund would be Rs 500 crore and the fund would mostly invest in residential real estate projects.

“Some of their last investments have made returns of 19-20 per cent, which is pretty decent. That’s why they are looking to raise a new fund,” the source told the paper.