PE firm AION Capital set to become single-largest shareholder in DHFL

The home financier is looking at various options to raise money.

Private equity firm AION Capital – a joint venture between Apollo Global Management and ICICI Venture – is poised to become the single largest shareholder in troubled mortgage lender Dewan Housing Finance Corp. Ltd (DHFL) in a transaction that involves a possible rights issue after an initial investment by the firm founded by Leon Black. Lone Star is also said to be in the race.

Negotiators are also debating whether the profitable portion of DHFL’s business could be carved out for better value, said people aware of the development. DHFL may have signed a non-binding agreement, they said. The regulator has also been approached, they said.

“DHFL is in advanced talks to sell a stake to AION Capital, a JV between Apollo Global Management and ICICI Venture,” said one of the persons. “The promoter has approached the regulator seeking a nod for the same.” DHFL is looking to sell a large part of the wholesale loan business to Oaktree Capital while the retail business is likely to be sold to private equity firms.

DHFL has been facing a cash crunch since September, when Infrastructure Leasing & Financial Services (IL&FS) defaulted on payment obligations and triggered a liquidity squeeze on nonbanking finance companies (NBFCs).

The home financier is looking at various options to raise money. Apart from selling stakes to private equity funds, it’s also selling loan portfolios. It has already sold assets through securitisation. It recently raised Rs 900 crore by selling loan portfolios to pay investors in commercial papers and short-term debt instruments.

Over the past few weeks, Crisil, Icra and CARE have downgraded DHFL’s debt securities to ‘D’, or default category, citing the delay in interest payments to bond holders.
“The company has engaged with large potential entities to identify and onboard the right strategic partner and is in advanced stages of discussions to achieve the same over the next 90 days,” DHFL chairman and managing director Kapil Wadhawan had said on May 7.
Other PE funds including Lone Star are reported to be in the race to buy stakes in DHFL, which is also looking to offload equity in DHFL Pramerica Life Insurance Co., of which it owns 51 per cent. The company has sold its affordable housing arm Aadhar Housing Finance to Blackstone for about Rs 2,700 crore. It’s also looking to sell its direct selling agents business to raise capital.
Between September 24 last year and May 10, the company has made over Rs 30,000 crore in principal and interest payments to creditors, including fixed deposit holders.

After allegations of wrongdoing in its loan segment surfaced, DHFL has been looking to rope in a strong strategic investor to ease concerns. Wadhawan has agreed to step down from active management once such an investor enters.
DHFL shares slumped on concerns about solvency on Friday, dropping 4.51 per cent to Rs 80.45 on the Bombay Stock Exchange.

https://economictimes.indiatimes.com/markets/stocks/news/pe-firm-aion-capital-set-to-become-single-largest-shareholder-in-dhfl/articleshow/69819075.cms

Warburg Pincus, Blackstone & Apax Partners may invest up to $750m in Yes Bank

The buyout firms are looking to invest between $500 million and $750 million in Yes Bank, depending on the final

Private equity investors Blackstone Group, Apax Partners and Warburg Pincus are seeking more details of Yes Bank’s exposure to stressed loan accounts before committing to an equity infusion, potentially delaying the lender’s fundraising plan, two people directly aware of the negotiations said.

The buyout firms are looking to invest between $500 million and $750 million in Yes Bank, depending on the final valuation, the people said on condition of anonymity.

Yes Bank is considering an equity infusion from private equity funds along the lines of the Bain Capital-Axis Bank deal in 2017, which saw Axis Bank raise Rs 11,625.8 crore through a private placement of shares to a clutch of investors led by Bain Capital, Mint reported on May 21.

An equity infusion is expected to help Yes Bank boost investor confidence and improve its ability to absorb future losses at a time when the bank’s CEO, Ravneet Gill, is effecting a cleanup of its balance sheet, resulting in the lender reporting its first quarterly loss of Rs 1,506 crore. The cleanup may have been necessitated because of the bank’s high exposure to struggling non-bank lenders and real estate companies.

“The PE investors have raised concerns about some stressed accounts, which they fear can create a bigger-than-expected hole in the bank’s balance sheet unless resolved suitably,” said the first person cited earlier. “For some of these accounts, the bank has begun provisioning, but a final outcome is still awaited in many of these cases.”

While a spokesperson for Yes Bank did not respond to requests for comment, both people cited earlier said the bank has significant exposure to several stressed companies, some of which have recently defaulted on debt repayments.

While Apax Partners and Blackstone declined to comment, an email sent to Warburg Pincus remained unanswered until press time.

Among stressed loan accounts, the bank has an exposure of over Rs 2,600 crore to various special purpose vehicles of Infrastructure Leasing and Financial Services, which is being investigated for fraud.

Mint reported on November 27 that the Reserve Bank of India began inspecting Yes Bank’s exposure to Dewan Housing Finance Corporation, Indiabulls Group and Sudhir Valia-promoted entities Fortune Financial Services India and Suraksha ARC, among others. At the end of the fourth quarter, Yes Bank’s gross non-performing assets stood at 3.22% against 2.11% in the preceding quarter.

“The prevailing uncertainty could delay the bank’s fundraising plans from PE investors and could potentially rule out any hopes of a premium over the current market price,” said the second person cited earlier.

On 13 June, Yes Bank lost its place on the list of India’s 10 most valued lenders after brokerage firm UBS India cut its target price by over 47%. UBS India cut the target price to Rs 90 a share from Rs 170 earlier.

https://www.moneycontrol.com/news/business/warburg-pincus-blackstone-apax-partners-may-invest-up-to-750m-in-yes-bank-4105081.html

Vedanta drops 3% as firm loses $200 million in profits in a year

India faced a crunch in the availability of refined copper due to Vedanta’s Tuticorin smelter closure.

Shares of Vedanta fell nearly 3 per cent to Rs 164.80 in Monday’s session after the Chairman’s statement that the firm has lost about $200 million in profits ever since its copper plant in Tamil Nadu was shut.

A PTI report quoted the Group Chairman Anil Agarwal saying that Vedanta lost about $200 million in profits ever since its copper smelter plant in Tamil Nadu was shut more than a year back after police fired on protesters and killed 13 people.

The report also added Vedanta’s statement in its annual report for 2018-19 as, “India faced a crunch in the availability of refined copper due to Vedanta’s Tuticorin smelter closure. Chinese smelter output increased by 4.2 per cent in 2018, despite the closure of some smelters for maintenance during the fourth quarter.”

The Tamil Nadu government had in May last  year ordered permanent shutdown of the copper smelter after bloody protests at the plant in Thoothukudi culminated in the police opening fire on demonstrators.

Vedanta wants the plant to be reopened, pointing to the economic pressures from the closure. As many as 20,000 direct and indirect jobs have been lost due to the shutting of the smelter and about 98,400 more were affected in the consumer or downstream industries.
Shares of Vedanta traded 2.09 per cent down at Rs 166.05 on BSE around 10:15 am.

https://economictimes.indiatimes.com/markets/stocks/news/vedanta-drops-3-as-firm-loses-200-million-in-profits-in-a-year/articleshow/69820430.cms

Piramal Enterprises sells entire stake in Shriram Transport Finance for approximately Rs 2,305 cr

“The company has sold its entire direct investment of 9.96 per per cent in the fully paid-up share capital of Shriram Transport Finance Company to third party investors on the floor of the stock exchange,” Piramal Enterprises said in a regulatory filing.

Piramal Enterprises on Monday said has divested its entire stake in asset financing firm Shriram Transport Finance Company for approximately Rs 2,305 crore.

“The company has sold its entire direct investment of 9.96 per per cent in the fully paid-up share capital of Shriram Transport Finance Company to third party investors on the floor of the stock exchange,” Piramal Enterprises said in a regulatory filing.

As on March 31, 2019, Piramal Enterprises held 2.26 crore shares amounting to 9.96 per cent stake in Shriram Transport Finance Company.

Based on Monday’s opening share price of Shriram Transport Finance Company of Rs 1,020 per scrip, the stake sale is estimated to have to fetched Piramal Enterprises Rs 2,305 crore.

https://www.moneycontrol.com/news/business/piramal-enterprises-sells-entire-stake-in-shriram-transport-finance-for-approximately-rs-2305-cr-4105331.html

Birla Corporation Ltd. 

Birla Corporation Ltd. 

Cement and Cement Products

FV – Rs 10; 52wks H/L – 818.75/440; TTQ – 2522 Lacs; CMP – Rs 623.70 (As On June 17, 2019);           

Market Cap – Rs 4802.82 Rs. Cr.

 

Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

Birla Corporation Ltd.
Company Equity Capital Net Worth Long Term Debt Total Sales PAT BV EPS P/E P/BV Industry P/E Promoter’s Holdings
  Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs       %
2019 77 4495 3623 6627 256 583.7 33.2 18.8 1.1 41.2 62.9
2018 77 4280 3830 6013 154 555.7 20.0 31.2 1.1 41.2 62.9

 

Consolidated Financial Trends (Rs. Cr):

Particulars FY19 FY18 FY17 FY16
Equity Paid Up 77 77 77 77
Networth 4495 4280 3305 2925
Total Debt 3648 3895 4070 932
Net Sales 6549 5939 4981 3762
Other Income 78 74 147 177
PAT 256 154 219 168
Book Value (Rs) 583.7 555.7 429.2 379.9
EPS (Rs) 33.2 20.0 28.5 21.8

 

Management:

Harsh V. Lodha : Chairman

Bachh Raj Nahar : Managing Director

A. Saraogi : Chief Financial Officer

 

 

Major Non- Promoter Holdings:

Company No. of Shares Held % of Shares Held
RELIANCE CAPITAL TRUSTEE COMPANY LIMITED 5,386,405 6.99
Bodies Corporate 4,152,884 5.39
Life Insurance Corporation of India 2,708,172 3.52

 

 

Daily Bulletin (14th June, 2019)

There are no current notifications of our companies on this date.

https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190614-53

1. Scrip code : 539524
Name : Dr. Lal Pathlabs Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
Please take note that the Board of Directors of Company’s Wholly Owned Subsidiary viz. PathLabs Unifiers Private Limited, in their meeting held on June, 13, 2019, approved signing a binding term sheet for acquisition of 70% equity stake in a ‘New Company to be incorporated’ by Mrs. Vinita Kothari and Mrs. Sushila Dalal. According to the Term Sheet, the ‘New Company to be incorporated’ will house the business of: 1. M/s. ‘Central Lab, Indore’ a Partnership concern having Mrs. Vinita Kothari and Mrs. Sushila Dalal as its partners and engaged in Pathology Business in the State of Madhya Pradesh. 2. M/s. ‘Vinita Kothari’ a Proprietorship concern of Mrs. Vinita Kothari, a Histopathologist engaged in processing of Histopathology samples. before PathLabs Unifiers Private Limited buys 70% stake of ‘New Company to be incorporated’.

2. Scrip code : 532129
Name : Hexaware Technologies Ltd.
Subject : Announcement under Regulation 30 (LODR)-Acquisition
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that Hexaware Technologies Inc., a wholly owned subsidiary of Hexaware Technologies Limited, India has acquired 100% shares of Mobiquity Inc. and Hexaware Technologies Limited has acquired 100% shares of Mobiquity Softech Private Limited (wholly owned subsidiary of Mobiquity Inc.) Please find below the disclosure in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the detailed press release.

3. Scrip code : 500520
Name : Mahindra & Mahindra Ltd.
Subject : Announcement under Regulation 30 (LODR)-Acquisition
With reference to the captioned subject, we would like to inform you that, the Company has today signed a Share Subscription Agreement for subscribing up to 300 Common shares and 30,469 Series B Preferred Shares (‘Shares’) which on an as-converted to Common shares basis would result into 11.25% of the Share Capital of Gamaya SA, Switzerland, on a fully diluted basis.

4. Scrip code : 513023
Name : Nava Bharat Ventures Ltd
Subject : Corporate Action-Updates on Buy back
Sub: Information regarding the shares bought-back via open market through Stock Exchanges With reference to the subject cited above, we hereby submit the daily report pursuant to Regulation 18(i) of the SEBI (Buy Back of Securities) Regulations, 2018 regarding equity shares bought back by Nava Bharat Ventures Limited on June 14, 2019.

5. Scrip code : 539978
Name : Quess Corp Limited
Subject : Update On The Letter Of Offer Made By Conneqt Business Solutions Limited Along With Quess Corp Limited To The Shareholders Of Allsec Technologies Limited.
This is an update to our stock exchange intimation dated June 3, 2019 wherein we had stated that the Conneqt Business Solutions Limited, which is a subsidiary of Quess Corp Limited, has acquired equity shares of Allsec Technologies Limited , representing 61.35% of the total share capital. Please note that the Letter of Offer has been dispatched to the shareholders of Allsec Technologies Limited in relation to the open offer made to such shareholders by Conneqt Business Solutions Limited, a subsidiary of the Company (the “Acquirer”), along with the Company (which is acting as a person acting in concert with the Acquirer in relation to such open offer). Kindly take the above information on your record.

6. Scrip code : 530075
Name : Selan Exploration Technology Ltd.
Subject : Announcement under Regulation 30 (LODR)-Daily Buy Back of equity shares
Daily Buyback Reporting

7. Scrip code : 532819
Name : MindTree Limited
Subject : Updates on Open Offer
Axis Capital Ltd & Citigroup Global Markets India Pvt Ltd (“Managers to the Open Offer”) has submitted to BSE a copy of Advertisement in accordance with Regulation 18(7) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (as amended) and Corrigendum to the Detailed Public Statement with respect to the Open Offer to the Shareholder of MindTree Ltd (“Target Company”).

8. Scrip code : 539450
Name : S H Kelkar and Company Limited
Subject : Outcome of Board Meeting
The Board has approved buyback of 33,00,000 equity shares of the Company and acquisition of remaining equity shake of Creative Flavours and Fragrances (CFF)

Caplin Point Laboratories Ltd.

Caplin Point Laboratories Ltd.
Pharmaceuticals
FV – Rs 2; 52wks H/L – 535/304.75; TTQ – 4274 Lacs; CMP – Rs 425 (As On June 14, 2019);
Market Cap – Rs 3215 Crs

 

Caplin Point Labs
Company Equity Capital Net Worth Long Term Debt Total Sales PAT BV EPS P/E P/BV Industry P/E Promoter’s Holdings Beta
Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
2019 15.1 597 0.29 668 176.56 78.9 23.3 18.3 5.4 28.0 69.0 0.99
2018 15.1 364 0.32 539.8 144.64 48.1 19.1 22.4 8.9 28.0 69.0 0.99

Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

 

Consolidated Financial Trends (Rs. Cr.):

Particulars FY19 FY18 FY17 FY16
Equity Paid Up 15.1 15.1 15.1 15.1
Networth 597 364 224 128
Total Debt 0.29 0.32 0.48 0.73
Net Sales 648.69 539.84 401.64 238.72
Other Income 19.03 12.67 9.83 3.66
PAT 176.56 144.64 96.05 45.77
Book Value (Rs) 78.9 48.1 29.7 17
EPS (Rs) 23.3 19.1 12.7 6.1

 

Management:

Mr. C. C. Paarthipan: Chairman

Dr. Sridhar Ganesan: Managing Director

Muralidharan D: Chief Financial Officer

Vinod Kumar S: Company Secretary

 

Major Non – Promoter Holdings:

Non – Promoters No. of Shares held % shares held
MATTHEWS INDIA FUND 3,870,311 5.12
IEPF 1,460,631 1.93
Bodies Corporate 1,372,737 1.82

 

Overview:

  • Caplin Point was established in 1990 to manufacture a range of ointments, creams and other external applications.
  • The Company was listed in 1994 following its Initial Public Offering (IPO) which was oversubscribed 117 times, the proceeds of which were deployed in setting up a manufacturing facility at Pondicherry. Thereafter, the Company expanded its product range and increased its production capacity.
  • The Company focused on the emerging markets of Latin America, Caribbean, Francophone and Southern Africa and is today one of the leading suppliers of Pharmaceuticals in these regions, with over 2800 product licenses across the globe.
  • The Company is entering into the Regulated Markets for Injectables through its state of the art manufacturing facility, capable of handling Liquid Injectables in Vials, Ampoules, Lyophilized Vials and Ophthalmic dosages. The facility is approved by US FDA, EU-GMP, ANVISA-Brazil and INVIMA-Colombia.

Gruh Finance plunges 7% as HDFC mulls reducing stake

Gruh Finance traded with volumes of 72,19,000 shares, an increase of 10,413.24 percent compared to its five-day average of 68,666 shares on the BSE.

Gruh Finance shares fell 7.5 percent intraday on June 14 after media reports indicated that HDFC might sell part of its stake in the company ahead of Bandhan Bank merger.

On June 13, CNBC-TV18 reported that HDFC could offload 4.2 percent stake in Gruh Finance on June 14 and the base deal size could be around three crore shares with an upsize option.

HDFC has been gradually paring stake in Gruh to meet RBI conditions for Bandhan Bank merger. The housing finance company recently sold 4.47 crore equity shares representing 6.10 percent of paid-up capital of Gruh.

Of the 4.47 crore shares sold, 1.22 crore were sold at an average price of Rs 260.07 on March 28 and 3.25 crore shares at Rs 310.126 per share on May 24.

“The Corporation being a shareholder of Gruh is entitled to 14.96 percent of post-amalgamation paid-up capital of Bandhan, based on the share exchange ratio. However, the RBI has directed the corporation to hold 9.9 percent or less in Bandhan Bank post the merger. The sale reported under the disclosure is a part of the said transaction,” HDFC had said in an exchange release announcing the offloading of the stake in May.

The RBI had in March granted its approval for the proposed scheme of amalgamation between Gruh Finance and Bandhan Bank.

The stock was quoting at Rs 288.35, down Rs 20.15, or 6.53 percent while Bandhan Bank, too, was down 2 percent at the time of publishing this copy.

https://www.moneycontrol.com/news/business/markets/gruh-finance-plunges-7-after-hdfc-mulls-reducing-stake-4097431.html

Hexaware Technologies acquires US firm Mobiquity, share price rises after three days

Mobiquity group revenue stood at $70 million for the year ended December 31, 2018.

Hexaware Technologies share price rose in early trade today after the Mumbai-based firm announced the acquisition of 100% stake in US firm Mobiquity for a total consideration of $182 million (Rs 12,657 crore) to expand its cloud and automation service offerings. Hexaware Technologies share price rose up to 3.64% to Rs 358.55 compared to the previous close of Rs 345.95 on BSE.

Hexaware Technologies share has gained after three days of consecutive fall.  Hexaware Technologies share price has fallen 20% during the last one year and gained 7% since the beginning of this year.

Rakesh Jhunjhunwala, wife Rekha have earned Rs 915 crore with Titan Company stock since March this year

The deal will help Mumbai-based Hexaware gain traction in its banking and pharmaceutical verticals, through Mobiquity’s digital products.

Hexaware will pay $131 million upfront to Mobiquity and a deferred consideration of $51 million will be paid based on earnouts, the company said.

US-based Mobiquity makes digital products for partners including Amazon’s AWS, Netherlands-headquartered software company Bankbase, Rabobank, Philips, Wawa, Backbase and Otsuka.

Mobiquity group revenue stood at $70 million for the year ended December 31, 2018.

This acquisition would help gain traction in banking and pharma verticals, which are the focus areas for Hexaware. It also, brings in valued partnerships particularly with AWS and Backbase, the Indian firm said. Mobiquity adds to Hexaware’s global delivery footprint with its centers in Florida, Boston, Philadelphia, New York, Amsterdam, Pune and Ahmedabad.

This stock was valued just Rs 4 in 2009, now it’s worth over Rs 650!

Mobiquity is an independent customer experience consulting firm specializing in creating frictionless multi-channel digital experiences and leveraging cloud technologies.

Commenting on the deal, R Srikrishna, CEO of Hexaware Technologies said “Hexaware enters an exciting new phase of growth and capability with the acquisition of Mobiquity Inc. Mobiquity strengthens two of our key strategic offerings: Cloudify Everything and Customer Experience Transformation. We are seeing a strong demand for these capabilities and, with this acquisition, we will be able to further accelerate our contributions to our customers’ business growth. Both Hexaware and Mobiquity have created very strong impact for their clients and have a mutually complementing position. Our combined capabilities will enhance our market positioning and opportunity to make an impact for our clients. ”

John Castleman, CEO of Mobiquity Inc said he is excited about the growth prospects. “Today we start a bold new chapter in Mobiquity’s growth story. joining hands with Hexaware gives us added scale, a broader portfolio of offerings that are relevant to our clients’ digital journeys, and the opportunity to strengthen the Mobiquity brand.”

https://www.businesstoday.in/markets/company-stock/hexaware-technologies-buys-us-firm-mobiquity-share-rises-amazon-bse/story/356018.html

Dr Reddy’s to sell 2 neurology branded products to Upsher-Smith Labs for over $110 mn

“Under the agreement, Dr Reddy’s will receive USD 70 million as upfront consideration, USD 40.5 million in near-term milestones and additional financial considerations including, existing contractual obligation and inventory,” the company said in a regulatory filing.

Dr Reddy’s Laboratories on Friday said it has entered into a definitive agreement with Upsher-Smith Laboratories to sell the US and select territory rights of its neurology branded products — Tosymra and Zembrace — for over USD 110 million (approx Rs 765 crore).

“Under the agreement, Dr Reddy’s will receive USD 70 million as upfront consideration, USD 40.5 million in near-term milestones and additional financial considerations including, existing contractual obligation and inventory,” the company said in a regulatory filing.

Subsequently, Dr Reddy’s said it will receive sales-based royalties on a quarterly basis.

Both the products are commercialised through Dr Reddy’s wholly-owned subsidiary, Promius Pharma.

The company said Tosymra and Zembrace were designed and developed with the goal of addressing unmet needs of large but discrete segments of patients suffering from episodic migraine who need options other than their current therapies.

Dr Reddy’s Laboratories Co-Chairman and CEO GV Prasad said, “This is a testament to our strong research and development capabilities, and delivering solutions to unmet needs of patients. In a short time, we created a well-recognised migraine specialty business in the US and we look forward to our partnership with Upsher-Smith”.

The closing of the transaction is subject to various customary closing conditions, the company said.

Shares of Dr Reddy’s were trading 1.44 per cent lower at Rs 2,549 apiece on the BSE.

https://www.moneycontrol.com/news/business/dr-reddys-to-sell-2-neurology-branded-products-to-upsher-smith-labs-for-over-110-mn-4097521.html