Soros’ Quantum fund hikes stake to 5.1% in Reliance Capital

Legendary investor George Soros, through his Quantum investment fund, has hiked his stake in Reliance Capital from 4.8% to 5.1%. The fund has bought nearly 500,000 shares of Reliance Capital to take its total holding in the company to 11.3 mn shares worth about Rs. 700 crores. As of December-end, Quantum was holding about 10.8 mn shares in the financial services firm. Reliance Capital and George Soros could co-operate to launch an offshore real estate fund which would invest in the Indian realty sector. In addition to the 5.1% stake in Reliance Capital, George Soros also holds about 11% in Reliance ARC.

Read the article in The Times of India.

Reliance Capital picks up 31% stake in logistics firm BLR

Reliance Capital has picked up a 31% stake in BLR India, one of the top five logistics companies in India, for an undisclosed amount. Reliance Capital already owns a 44% stake in the courier and cargo business of DTDC.

BLR offers manifold transport and logistics services and is among the largest players in corporate surface transportation. It owns over 250 vehicles including a truck fleet of more than 130. It contracts another 800 on a daily basis. It has a network of more than 50 offices across the country.

BLR’s specialized services include over-dimensional cargo (ODC) and export-import transportation as well as government-approved bonded warehousing and bonded trucking services. The company is expected to use the funds raised through this transaction for investing in warehouses, trucks and trailers. Tower Capital was the investment advisor to the deal.

For more details, read DNA Money.

Norwest Venture Partners to acquire IT companies in India

Norwest Venture Partners (NVP), the California-based venture capital firm that recently invested $20 mn in Indian KPO firm Adventity, is scouting for buyout opportunities in the Indian IT space. Though NVP does not have a dedicated India fund, it intends to invest $300 mn in India over the next three years, and is targeting companies in the range of $25-30 mn operating in the services and product development space for acquisitions.

The fund currently has invested $50 mn in four IT companies in India and is planning to invest in other 10-15 companies over the next 2-3 years. Apart from Adventity, NVP had earlier invested $13.8 mn in Persistent Systems and another $10 mn in social networking site Sulekha.com. It also invested in online travel portal Yatra.com along with Reliance Capital and the TV18 Group.

NVP is working on a hybrid model, where companies across geographies can be merged together depending on the synergies. Even for its existing portfolio companies in India, the fund is open to merging it with any of its existing investee companies. Though internationally, NVP has made investments in a number of industries, in India, the fund will invest in semi-conductors, consumer internet and media companies.

Read The Economic Times for comments from Mr. Promod Haque, Managing Partner-Norwest Venture Partners.

Reliance India Power Fund buys 15% in KRYFS Power Component

Reliance India Power Fund has acquired a 15% stake in KRYFS Power Component for an undisclosed sum. Reliance India Power Fund is a 50:50 JV between the Reliance-ADAG financial services subsidiary Reliance Capital and Singapore-based private equity firm Temasek Holdings. The corpus of the fund is $200 mn and has been set up to invest in Indian power ancillary companies. Su-Kam Power Systems, EMI Transmission, and Ravin Cables are some of its investee companies.

The fund invested Rs. 45 crores in Delhi-based Su-Kam Power Systems for a 20% stake and Rs. 50 crores in Mumbai-based EMI Transmission, an unlisted power equipment company, for a 23% stake.

KRYFS Power Component is a Rs. 300-crore manufacturer of transformer cores and patented sling-set twin path slings. It will utilize the funds for capacity expansion and diversifying into newer businesses through organic and inorganic means. The company manufactures high-tenacity fiber slings in collaboration with Slingmax, Inc. of USA and currently has a capacity to produce nearly 12,000 mt of transformer cores, wound cores and built up cores.

Read The Economic Times article for more details.