Tata Capital raises $800-mn for PE fund

Last year, Tata Capital had said it would raise $1 billion for its private equity fund by December 2011

Tata Capital, a wholly-owned subsidiary of Tata Sons, today said it has raised $800 million for its private equity fund.

Last year, the company had said it would raise $1 billion for its private equity fund by December 2011.

“We have already raised $800 million till March 2011, against our target of raising $1 billion for private equity fund by December 2011,” Tata Capital’s managing director and CEO Praveen Kadle said.

Of the $800 million, $220 million has been raised from domestic banks and financial institutions and $580 million was raised from international investors, which includes 40% of fund from Japanese investors. The company has not yet approached the US investors, Kadle said.

“Once we get $1 billion from good quality investors, we may go beyond that figure as we have already raised 80% by March,” he said.

Kadle pointed out that the company has invested $150 million, and plans to make the balance of investments over the next three-to-five-years and is looking at a return on equity of about 18%. Typically, the company remains invested for 7-10 years.

So far, the company has put money into six companies, two of which are Tata Group companies and the rest from outside the group. It has invested $30 million in Tata Technologies.

Of the $150 million, 11% has been invested in the engineering sector, 12% in autos, 21% in information technology and IT-related, 48% in consumer and 8% in healthcare, he added.

Commenting on its investment strategy, Kadle said that in line with economic growth, sectors like IT services, healthcare, education, engineering and manufacturing and logistics supported areas have good investment potential. However, it is not making investment in real estate and infrastructure sector, he said.

“We are into the fund management business and going ahead we may raise more funds,” he said, adding that the firm aims to be among the top five PE fund managers in India.

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BSE to include Future Ventures in IPO Index

Kishore Biyani owned firm Future Ventures Ltd has raised Rs750 crore through initial public offer last month

The Bombay Stock Exchange (BSE) said it will include Future Ventures India Ltd (FVIL) in its BSE IPO Index effective from 12th May.

Kishore Biyani owned investment and business management firm Future Ventures Ltd, has raised Rs750 crore through initial public offer (IPO) last month.

FVIL, which invests in businesses that seek to sell to India's growing middle-class, plans to use a large part of the funds to acquire new businesses; a small part of the proceeds will be used to grow the existing businesses.

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Servalakshmi Paper debuts at 3% premium on BSE

Servalakshmi Paper scrip opened at Rs30 a piece, up 3.44% from the issue price on the BSE

Shares of Servalakshmi Paper debuted with a premium of over 3% on the Bombay Stock Exchange (BSE) today vis-a-vis their issue price of Rs29 per share.

The scrip opened at Rs30 a piece, up 3.44% from the issue price on the BSE. Within minutes, the stock zoomed up by 21% to touch an early high of Rs35.10.

On the National Stock Exchange, the scrip opened at Rs29 apiece, but soon jumped to Rs35.20.

On the volume front, over six crore shares of the company were traded in the first few minutes of trade.

Servalakshmi Paper, which is in the business of manufacturing, printing and writing paper, had entered the capital market with a price band of Rs27-Rs29 per share through a Rs60 crore public issue.

The company will use the proceeds from the issue for capacity expansion and to meet its working capital requirements, among other things.

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