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BIGGEST PE DEALS
Golden handshakes
Get savvy about the biggest private equity deals over the last year, the biggest dealmakers and what Venture Capitalists look for when zeroing in on potential start-ups! Also in this package, meet the stalwarts at Saif Partners and Bessemer Venture Partners to get a grip on their India strategy. Plus, columns by entrepreneurs who made it big with timely PE investments...
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 Investee: Lodha Group
Investor: Deutsche Bank
Investment Value: $425 mn
Abhisheck Lodha, Director, Lodha Group, believes, “Under this transaction, the investors have invested $425 million in the Lodha Group’s Special Purpose Vehicle (SPV) for the development of three of our FDI compliant projects, located in and around Mumbai. The investors will receive a stake in these projects.”
A clutch of PE investors led by Deutsche Bank Singapore invested $425 million in the real-estate developer, Lodha Group in September 2007, marking the single largest investment in a city-based developer in India. The demographics of India’s boom in the real estate sector, is extremely compelling for global investors. Established in 1980, Lodha Group is headquartered in Mumbai and is currently developing in excess of 25 million sq. ft. of prime real estate over 27 projects in and around Mumbai. The group has also recently kicked off its geographic expansion by winning 13 acres of premium property in central Hyderabad. The company’s portfolio consists of residences, office spaces, IT campuses, townships, weekend retreats and also the very high potential SEZs. The group professes to abide by quality and timely delivery of projects and currently employs over 500 professionals. The bid is to expand ferociously and boost employee strength to 5,000 over the next few years. Following DLF’s example, the Lodha Group too aspires to come out with a Rs.8,000 crore IPO in the first half of 2008.
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 Investee: MCX
Investor: Citigroup, Merrill Lynch, et al
Investment Value: $160 mn
Joseph Massey- DMD, MCX told 4Ps B&M, “The investments by global financial services majors like the Citi Group and Merrill Lynch signify the confidence that foreign investors are demonstrating in the ongoing reforms in the country’s economy in general and in the commodity futures markets in particular, as well
as in the potential of the Indian commodity market. These investments also demonstrate the global phenomenon of consolidation and collaboration in market place to ensure presence in all important markets and time zones. As India integrates with rest of the world, post convertibility of currency, we feel these collaborations could encourage greater inboard and outbound business to the advantage of both countries and markets. The FTIL Group plans to invest the proceeds from the sale in organic and other growth opportunities including the development of the Exchange infrastructure and greenfield ventures such as National Spot Exchange, an electronic spot trading market, and National Bulk Handling Corporation, which offers warehousing and procurement services, thus strengthening the entire commodity eco-system.”
It was a deal which saw Financial Technologies, the Promoters of Multi Commodity Exchange (MCX), dispose off 15% stake in the exchange. The sale was done by India’s largest commodity bourse to institutions like Citigroup, Merrill Lynch, et al for a sum total of $160 million. Recently, another 9.55% stake in the exchange was sold (for Rs.470 crores) to ICICI Ventures, IL&FS and Kotak, with each getting 3.55%, 5% and 1%, respectively. The company has also sold stake to NYSE EURONEXT lately and is expecting to leverage best exchange practices and global know-how. There are plans like creating and strengthening a ‘pan-India commodity eco system’ too, which needs further development of exchange infrastructure.
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