Deals Buzz: GoJavas deal swings in favour of Pigeon Express

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Aditya Birla to merge Nuvo, Grasim

The Aditya Birla Group is merging two of its main companies, Aditya Birla Nuvo Ltd (Nuvo) and Grasim Industries Ltd, both of which also serve as holding companies, in an attempt to create a stronger entity, and unlock shareholder value by spinning off and listing one of Nuvo’s subsidiaries, Aditya Birla Financial Services Ltd, reported Mint. The merger will create an entity with yearly revenue of Rs.59,766 crore, net profit of Rs.4,245 crore and earnings before interest, tax, depreciation and amortization, a measure of operating profitability, of Rs.12,000 crore. The merger, announced on Thursday, will also mean the end of Nuvo’s existence. Aditya Birla Nuvo emerged in 2005 after the Aditya Birla Group decided to rename Indian Rayon and Industries Ltd (a company founded in 1956) and make it a vehicle to hold its businesses in the areas of finance, apparel and fashion, telecom and information technology (IT).

Earlier on Thursday, Mint reported that the boards of Grasim Industries Ltd and Aditya Birla Nuvo Ltd, which were meeting on Thursday to review their June quarter earnings, will also consider a multi-phase restructuring plan involving the merger of the two firms and listing of the financial services business by way of a part demerger.

Pigeon Express in talks to acquire GoJavas

Courier service provider Pigeon Express Pvt. Ltd is in advanced talks to acquire e-commerce focused logistics service provider GoJavas (Quickdel Logistics Pvt. Ltd), which suspended operations last week amid an organisational overhaul, in a cash and stock deal, reported Mint. GoJavas, which counts Snapdeal (Jasper Infotech Pvt. Ltd) as a key investor, had started scouting for possible suitors after a bid by Snapdeal for a complete buyout fell through. Besides Pigeon Express, the company had also held talks with another Delhi-based courier service provider, Trackon Couriers Pvt. Ltd. However, the deal has swung in favour of Pigeon Express.

Hero FinCorp set to close PE fund-raising worth $100 million

Hero FinCorp Ltd, the financial services arm of India’s largest two-wheeler maker Hero MotoCorp Ltd, is close to raising around $100 million from private equity (PE) investors, reported Mint. Singapore investment firm Temasek Holdings Pte. Ltd and India-focused PE fund ChrysCapital LLC are in the final stages of talks with Hero, one of the two persons said. The deal could be closed within a couple of days. Hero FinCorp promoters, who had initially planned to sell 15% stake for $85 million may instead sell about 20-25% stake for $100-120 million.

In November, Mint had reported that Hero FinCorp had hired global investment bank Credit Suisse to find buyers and had started discussions with a clutch of global PE funds.

Shapoorji Pallonji, Piramal to invest Rs.300 crore in Mumbai project

Ajay Piramal’s Piramal Fund Management and Shapoorji Pallonji Real Estate Development will pump in about Rs.300 crore in a real estate project launched by Mumbai-based developer Ornate Spaces, reported The Economic Times. The duo, along with Ornate, will construct a 1 million sq.ft residential project titled Grove Towers at Oshiwara in suburban Mumbai. The project managers claim to have received necessary approvals to start work on the site. Out of the planned outlay, Rs.275 crore is debt-type funding by the Piramals, while the rest is an equity investment by Shapoorji Pallonji Real Estate.

Innovaccer raises $15.6 million in series A funding

Big data start-up Innovaccer has raised $15.6 million in series A funding led by Westbridge Capital Partners, reported The Economic Times. The round also saw participation from other angel investors, including former Yahoo CTO Raymie Stata, founder of RouteScience Technologies Herb Madan and former SAIF Partners principals Rohit Jain and Mukul Singal, who invested through their new fund Pravega Ventures. Innovaccer helps large enterprises access and manage organisational data through a dashboard using its flagship product Datashop. The company plans to use the funds to further strengthen its product.

Intel Capital going slow on India start-up investments

Intel Capital, the venture capital investment arm of chip maker Intel Corp. is going slow in investing in Indian start-ups as part of a change in strategy, reported Mint. The move is in line with the company’s overall strategy of restructuring, where it has decided to slim down operations. The US will continue to be a prime market for Intel Capital, which has decided to apply the brakes on investments in some markets, including India. All members of Intel Capital’s six-member India investment team have already quit, barring Amit Behl, who will be responsible for portfolio management. Intel Capital’s investments include e-commerce firm Snapdeal, online travel agency Yatra Online Pvt. Ltd and on-demand entertainment firm Hungama.

UTI AMC gets majority nod for listing

UTI Asset Management Co. (AMC) could well become the first mutual fund (MF) to be listed in the stock market, reported Business Standard. Two shareholders—Punjab National Bank (PNB) and Bank of Baroda (BoB)—have given it a “listing notice” recently. US-based T Rowe Price International, which has a 26% stake, had given permission earlier. UTI AMC has five shareholders—State Bank of India (SBI), Life Insurance Corp. of India (LIC), PNB, BoB and T Rowe Price.

In March, Mint reported that UTI Asset Management Co. Ltd, the country’s fifth largest mutual fund manager, had proposed an IPO plan to the government to provide an exit to its four state-run sponsors—State Bank of India, Life Insurance Corp. of India, BoB and PNB.

Richfeel Health & Beauty in talks with PE funds to raise Rs.100 crore

Richfeel Health & Beauty Pvt. Ltd, which runs a pan-India chain of hair and scalp care clinics, is in early talks with PE funds to raise about Rs.100 crore to fund expansion plans, reported Mint. The company, which expects a valuation of Rs.400-450 crore, plans to dilute 20-25% promoter stake. Chennai-based boutique investment bank Veda Corporate Advisors Pvt. Ltd has been hired to find a suitable buyer.

Milestone Capital Advisors raising Rs.1,400 crore commercial real estate fund

Milestone Capital Advisors Ltd is raising its third commercial real estate private equity fund of almost Rs.1,400 crore, reported Mint. “We are in the process of raising a new commercial fund, which will be of Rs.1,400 crore. The principal component is around Rs.700 crore, while there is a green shoe option to go up to another Rs.700 crore,” said Rubi Arya, executive vice-chairman at Milestone. Funds are being raised from both domestic and overseas investors, with Milestone expecting overseas investors, including non-resident Indians (NRIs) and institutional investors, to contribute around Rs.500 crore to the fund. Milestone expects to achieve a first close of the fund by the end of the current calendar year.