January 6th, 2024
MergerDomo’s weekly Newsletter brings you the latest on M&As, JVs, Investments, IPO and noteworthy partnerships that are shaping the future of businesses in India.
This week's M&A highlights in India feature significant deals, such as -
Amber Group's expansion in the electronic manufacturing services (EMS) sector sees ILJIN Electronics, a company under Amber, acquiring a 60% stake in Ascent Circuits Pvt. Ltd. this move aims to fortify local value addition and backward integration into passive components for printed circuit boards (PCB) assemblies. Aligning with Make in India and Atmanirbhar Bharat initiatives, the acquisition positions Amber as a key player in EMS applications like aerospace, defense, medical, telecom, consumer electronics, and automotive. With a focus on R&D and PCBA manufacturing capabilities, Amber anticipates substantial growth, backed by government support for domestic manufacturing.
Read more lessThe Competition Commission of India has approved Punjab State Power Corporation Ltd's (PSPCL) groundbreaking acquisition of GVK Power (Goindwal Sahib), marking the first-ever takeover of a private electricity generator by a state-run distribution company. Valued at INR 1,400 crore, PSPCL, a fully owned Punjab government undertaking, is set to acquire a 100% stake in GVK Power, currently undergoing insolvency resolution. The move signals a landmark development in the power sector, establishing a new precedent for state entities participating in the acquisition of distressed private power assets.
Read more lessBharti Airtel Services, a subsidiary of Bharti Airtel, is set to acquire a 97.1% stake in Beetel Teletech for INR 669 crore, emphasizing its 'Make in India' commitment. The deal supports Airtel's indigenization strategy within the telecom product ecosystem, aligning with the government's vision. Beetel Teletech, a Bharti Group company, brings valuable distribution and service capabilities, notably in enterprise business. This strategic move enhances Airtel's position in the market, fostering self-sufficiency and aligning with the 'Production Linked Incentive (PLI) Scheme.
Read more lessAnsa Folding Carton (AFC) makes a significant stride in the paper conversion landscape with the acquisition of a strategic stake in Rich Printers Private Limited (RPL) for INR 117 crore. The deal positions the combined entity as a powerhouse in pharmaceutical folding carton production, boasting five manufacturing plants in India. This strategic move not only enhances AFC's Folding Carton vertical but synergizes with its Pharma Flexible sector, solidifying its market presence across key Indian states. The partnership reflects AFC's commitment to circular and sustainable solutions, aligning with its vision of becoming a global supply hub for converted paper products.
Read more lessSterlite Power, a key player in power transmission, acquires Neemrana II Kotputli Transmission in Rajasthan from PFC Consulting for a notable sum, marking its 20th project under the Tariff-Based Competitive Bidding process. This green energy initiative on a Build, Own, Operate, Transfer basis encompasses a 35-year period. The project involves vital components like a 6,000 MVA substation and extensive transmission lines, contributing to the evacuation of 20 GW of renewable energy from key zones in Rajasthan. This strategic move bolsters Sterlite Power's position in the sustainable energy transition, adding to its impressive green energy portfolio.
Read more lessTata Group's aviation strategy takes flight in 2024 as Air India Express initiates the merger process with AIX Connect, formerly AirAsia India. The move, currently in the National Company Law Tribunal, aims to consolidate operations under a single license by March. This strategic maneuver sets the stage for a potential larger-scale merger, involving Vistara, contingent on Air India reaching specified operational milestones. Tata Group's streamlined approach targets enhanced connectivity and operational synergy, positioning it as a key player in the evolving aviation landscape.
Read more lessReliance Industries, led by Mukesh Ambani, and Walt Disney progress toward a potential merger in the Indian media and entertainment space, signaling a major entertainment alliance. The conglomerates have initiated antitrust due diligence, appointing law firms Khaitan & Co, Shardul Amarchand Mangaldas, and AZB & Partners. With each holding substantial streaming services and a combined 120 TV channels, the merger aims to create an entertainment powerhouse in India. While facing potential antitrust challenges, the deal could reshape the nation's TV and streaming landscape, making it a pivotal development in the industry.
Read more lessDigital payments and financial services firm MobiKwik demonstrates resilience by filing a INR 700 crore IPO through a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). This marks MobiKwik's second IPO attempt, rebounding from a previous cancellation due to unfavorable market conditions. The move underscores the company's commitment to navigating challenges, presenting a significant development in its journey toward a successful public listing.
Read more lessPlant-based specialty products company, Sanstar Ltd, plans to raise INR 425-500 crore through an IPO, filing its draft papers with SEBI. The IPO comprises a fresh issue and an Offer For Sale (OFS), featuring up to 80 lakh shares from promoters. Proceeds will fund Dhule facility expansion, debt repayment, and general corporate purposes. Sanstar, a major player in plant-based specialties, manufactures products enhancing taste, texture, and functionality in food. The IPO, managed by Pantomath Capital Advisors, positions Sanstar for significant growth and potential market listing on BSE and NSE.
Read more lessGujarat-based Jyoti CNC Automation is set to open its INR 1,000 crore IPO on January 9, becoming the inaugural public issue of 2024 on BSE and NSE. With plans to list shares for the second time in nearly a decade, the three-day IPO closes on January 11. The funds raised, entirely through a fresh equity issue, will support debt repayment, long-term working capital, and general corporate purposes. Jyoti CNC Automation, a leading CNC machine manufacturer, boasts notable clients like ISRO and Tata Advanced System Ltd, further enhancing its market position.
Read more lessIBL Finance's pioneering IPO, opening on January 9, marks the SME segment's debut. The entirely fresh issue offers 67.25 lakh equity shares at INR 51 each, aggregating INR 34.3 crore. Leveraging technology, IBL Finance provides swift digital personal loans up to INR 50,000. With a robust financial performance in 2023, the IPO aims to strengthen the tier-1 capital base. Fedex Securities leads the issue, and Link Intime India is the registrar. The IPO, with 50% reserved for retail investors, sets the stage for listing on the NSE SME platform.
Read more lessKaushalya Logistics' SME IPO witnessed overwhelming response, oversubscribed 390 times, led by NII investors at 400 times, followed by NIIs at 297 times and QIBs at 33 times. With shares trading at a premium of INR 55 in the unlisted market, the IPO, offering shares at INR 71-75 apiece, aims to raise INR 36.6 crore. The allotment process is underway, with the listing expected on January 8. Kaushalya Logistics, engaged in clearing and forwarding services, plans to utilize the net proceeds for loan repayment, working capital, and general corporate purposes, positioning itself in India's thriving logistics and e-commerce sectors.
Read more lessVraj Iron and Steel, through its IPO, aims to raise INR 171 crore via a fresh equity issue for expanding its manufacturing capacity in Sponge Iron, MS Billets, and TMT bars. Operating in Chhattisgarh with two plants, the company plans to increase its installed capacity and enhance the captive power plant. With a strong financial performance, the net proceeds will fund capital expenditure for expansion. Aryaman Financial Services leads the issue. Additionally, Shree Tirupati Balajee Agro Trading's IPO seeks funds for debt repayment, working capital, and corporate purposes in the FIBC manufacturing business. PNB Investment Services manages the offering.
Read more lessRays Power Infra, a Mumbai-based solar EPC company, has filed for an IPO to raise funds. The IPO includes a fresh issuance of equity shares worth up to INR 300 crore and an offer for sale component of up to 29.95 lakh shares by its promoters. The funds will support incremental working capital needs and general corporate purposes. The company, a leading integrated solar power firm, may undertake a pre-IPO placement. Anand Rathi Advisors and Unistone Capital lead the offering. Rays Power Infra's equity shares are proposed to be listed on BSE and NSE.
Read more lessThis week's M&A news reflects the dynamic nature of India's corporate landscape, featuring diverse transactions in Electronic Manufacturing Services (EMS), Telecommunications, Power Transmission, Energy, Packaging, Aviation and Entertainment sectors. Stay updated on India's M&A developments as we continue to bring you the latest news and insights.
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