In other news, US-based private equity (PE) firm Advent International on Monday said it has signed a definitive pact to buy a majority stake in DFM Foods Ltd from its promoters and existing investors, including WestBridge Crossover Fund, LLC, for an estimated ₹852 crore.
Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
CPPIB acquires 8% stake in logistics firm Delhivery
Canada Pension Plan Investment Board (CPPIB) has bought an 8% stake in logistics company Delhivery Pvt. Ltd for $115 million from an undisclosed existing investor, Mint reported. Canada’s largest pension fund manager acquired the stake at a valuation of around $1.5 billion, roughly the same as its previous round in March. The Competition Commission of India had approved the transaction last month. CPPIB invested in Delhivery through its Fundamental Equities Asia Group, which invests in Asian companies for the long term. Other investments by CPPIB’s Fundamental Equities Asia include Kotak Mahindra Bank, Alibaba Group, Ant Financial and Samsung Electronics. In the past year, Delhivery has traversed 17,500 pin codes across India, launched three new businesses and hired over 10,000 employees while delivering strong financial returns to its early investors. In March, Delhivery had raised a $413 million Series F round led by SoftBank Vision Fund, along with existing investors Carlyle Group and Fosun International. The funding catapulted the logistics provider into the coveted unicorn club with a valuation of $1.5 billion.
PE investor Advent to buy Crax maker DFM Foods
US-based private equity (PE) firm Advent International on Monday said it has signed a definitive pact to buy a majority stake in DFM Foods Ltd from its promoters and existing investors, including WestBridge Crossover Fund, LLC, for an estimated ₹852 crore, Mint reported. Under the share purchase agreement, Advent will buy a 67.90% stake from the promoters Delhi Flour Mills and existing investors, including WestBridge, Aravali Investment Holdings, and Jwalamukhi Investment Holdings. The packaged snacks company, which began selling Crax chips in 1984, later expanded its portfolio to add namkeen and wheat puffs under the ‘Natkhat’ brand. WestBridge, which took a stake in DFM in 2014, will fully exit the company. The acquisition will trigger an open offer to DFM’s public shareholders for an additional 26% stake in the company in line with rules of the Securities and Exchange Board of India. The open offer will be made at ₹249.50 per share and based on its response, Advent could end up paying between ₹852 crore and ₹938 crore for the entire deal.
Fogg maker Vini in talks to raise fresh capital to fund growth plan
Vini Cosmetics, maker of Fogg deodorants, is in talks with several investment firms, including its existing private equity investor WestBridge Capital, to raise money and fund its next growth plan, Mint reported citing founder and promoter Darshan Patel. The fundraising plan, which may involve dilution of promoter stakes, is in line with its strategy to expand its product portfolio and double its revenue to ₹2,000 crore in the next three years. “We are in talks with several investors. We want to bring in strategic investors who can help take this company to another level...from a small to a midsize company," Patel told Mint over the phone. As part of the growth plan, the Ahmedabad-based firm would look at both the organic and inorganic route to expand its product portfolio. At present, the company earns more than 80% of its revenue from the Fogg deodorant brand, while the rest comes from other products, such facial powder White Tone and facial cream Glam-Up. Patel launched Vini Cosmetics in 2010 after spending two decades at Paras Pharmaceuticals, which he co-owned with his brothers. Patel had a 24% stake in the company. In 2006, he sold his stake to private equity firm Actis Capital for $43 million following differences with his brothers. He later exited the company, which was acquired by Reckitt Benckiser Group Plc in 2010 for ₹3,260 crore.
Roadis in Talks to buy out partner Soma in Indian Venture
Roadis, which builds and operates highways globally, is in talks to buy out partner Soma Enterprises in their equally-owned joint venture in India, The Economic Times reported citing two people aware of the matter. The discussions are at an initial stage and it is yet to be decided whether the assets are to be kept independently under the Roadis platform or its newly formed JV with National Investment and Infrastructure Fund (NIIF). The JV, Soma Roadis, has four highway concessions under the build-operate-transfer model in India, stretching 710 kilometres — Panipat-Jalandhar (291 km), Kishangarh-Ajmer-Beawar (94 km), Surat-Hazira Port (133 km) and Varanasi-Aurangabad (192 km). Roadis was previously known as Isolux Infrastructure, a subsidiary of Spanish group Isolux Corsan. Soma Enterprises formed the JV with Isolux Infrastructure in 2009. Canadian pension investment manager PSP Investments acquired Isolux Infrastructure in 2016 and renamed it Roadis. Roadis’ JV with NIIF, the country’s sovereign wealth fund, was formed in April. It seeks to invest up to $2 billion in toll-operatetransfer projects, acquisitions of existing road concessions and other opportunities in the sector with an aim to create a large roads platform in India.
Edtech Firm WhiteHat Jr bags $10 million in Series A
dtech startup White-Hat Jr has raised $10 million (about ₹72 crore) in its Series-A round, led by existing investors venture capital firm Nexus Venture Partners and Omidyar Network, the philanthropic investment firm set up by Ebay founder Pierre Omidyar, The Economic Times reported. Also joining the Mumbai-based company’s cap table is Owl Ventures, the Menlo Park-based, edtech-focused investment firm. This is the second edtech bet placed by Owl Ventures in India in the last three months, having earlier participated in market leader Byju’s $150 million equity financing round, alongside Qatar Investment Authority in July. Proceeds from the latest round will be used by the company to further strengthen its technology platform, along with adding to its course curriculum, as well as towards marketing and branding.
New Silk Route looks to exit Rolex Rings
Rajat Gupta and Parag Saxena-promoted private equity fund New Silk Route is making a last-ditch attempt to recover money from its troubled portfolio, The Economic Times reported citing persons with direct knowledge of the deal. After several failed attempts to exit the firms, including an IPO which did not go through due to valuation mismatch, the fund has initiated the sale of its 45% stake in Rolex Rolled Rings and has invited investment bankers to manage the sale process. While the deal is still at a very nascent stage, the company is currently being valued at ₹2,000 crore. New Silk Route (NSR) bought around 26% stake in the Rajkot, Gujarat-based company for $40 million in 2007. The fund subsequently increased its shareholding in the company to 45%. The promoters Manesh Madeka and family that own around 55% stake in the company are also keen on selling their stake.
