In other news, Canada’s Public Sector Pension Investment Board has tied up with Abu Dhabi Investment Authority-National Investment and Infrastructure Fund consortium to buy 49% of GVK Airport Holdings Ltd, through a combination of equity and debt, for about ₹6,000 crore
Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country.
Sachin Bansal invests ₹200 crore in Piramal Enterprises’ debt
Flipkart co-founder and tech entrepreneur Sachin Bansal has invested ₹200 crore in debt paper issued by Piramal Enterprises Ltd, Mint reported citing a person aware of the development. The funds raised via non-convertible debentures (NCDs) issued at an interest coupon of around 9.5% and a repayment period of two years, would be used in Piramal’s financial services business. Bansal’s loan to Piramal Enterprises follows investments by him in debt deals worth more than $100 million. Besides the debt deals, he has invested $100 million in Ola and has led a $51 million funding round in electric vehicle maker Ather Energy.
Canada’s PSP investments partners with ADIA-NIIF for 49% stake in GVK Airport
Canada’s Public Sector Pension Investment Board (PSP Investments) has tied up with Abu Dhabi Investment Authority-National Investment and Infrastructure Fund (ADIA-NIIF) consortium to buy 49% of GVK Airport Holdings Ltd, through a combination of equity and debt, for about ₹6,000 crore, The Economic Times reported citing people directly involved in the deal. The deal, that values Mumbai International Airport Ltd (MIAL) at ₹12,000 crore, is higher than Gautam Adani’s possible bid to take over GVK’s crown jewel at a valuation of ₹9,500 crore. The stressed airport infrastructure firm had said in April it entered into a non-binding agreement with NIIF-ADIA for its airports business to reduce debt of up to ₹5,750 crore. With PSP now on board, a final agreement is due to get signed this month. The GVK Group has been selling stakes in various subsidiaries over the past few years to reduce debt of about ₹24,000 crore and fund upcoming projects such as the Navi Mumbai airport.
Unicorn India Ventures launches ₹400 crore tech-focused fund
Unicorn India Ventures has launched a ₹400 crore fund, its third venture capital fund, to back companies at the pre-Series A and Series A stage, Mint reported citing an interview with the fund’s managing partner Anil Joshi. The fund, which has already received commitments worth ₹50 crore, aims to invest exclusively in business-to-business technology startups, including software-as-a-service, artificial intelligence, machine learning, and Internet of Things (IoT). The new fund’s strategy is also in line with its recent crop of investments, all tech-based and aimed at businesses, rather than individuals. The firm, which was set up by Joshi and Bhaskar Majumdar in 2015, had previously raised a ₹100 crore first fund. This was followed up with a second cross border fund, Unicorn Ascension Fund, in partnership with London-based Ascension Ventures, with an aim to invest £5 million per year.
Swiggy heads to Korean funds to seek $500 million
Food delivery startup Swiggy is in talks with South Korean funds including Korea Investment Partners, Mirae Asset Management, STIC Investments and Neoplux to raise about $500 million, The Economic Times reported citing two people aware of the development. The financing round, that may be led by Tencent and Swiggy’s largest investor Naspers, is expected to value the company at around $4 billion, up from its $3.3 billion valuation previously. The company may raise both primary capital, along with a secondary sale of shares that is also being worked out. Swiggy’s investment conversations come at a time when it is locked in a discounting war to fend off closest competitor Zomato, with both clocking about a million orders a day. Both have been burning up to $40-50 million monthly to acquire users in a cash-guzzling sector that has been reliant on discounting to ratchet up growth.
Tata Sons to raise $500 million via offshore loans
Tata Sons is looking to raise $500 million in the first tranche of its scheduled offshore borrowings, the proceeds from which will likely be used to fund multiple ongoing expansion and restructuring plans, The Economic Times reported citing three people with knowledge of the matter. The loan, which may be priced after adding 115 basis points over and above the London Interbank Offered Rate, would mature in three or four years. The proceeds from the borrowing, according to one of the persons ET quoted, would be used to refinance Tata Sons debt, as opposed to earlier when the refinancing was done through domestic borrowings. Tata Sons will continue to tap the foreign loan market to raise an estimated $2.5 billion as part of the group’s financing strategy. Eight global lenders, including Standard Chartered Bank, DBS Bank, MUFG, Sumitomo Mitsui Banking Corporation (SMBC) and Scotiabank, are expected to syndicate this loan.
