December 30th, 2023
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 -
Pune's EKA Mobility has inked a landmark deal, attracting a USD 100 million investment from Japan's Mitsui & Netherlands-based VDL Groep. This partnership aims to revolutionize India's electric vehicle landscape. Mitsui and VDL will jointly acquire 'significant' minority stakes in EKA, facilitating a massive production expansion. EKA plans to manufacture 5,000 electric buses and 6,000 light commercial vehicles annually initially, scaling to 12,000 each in the medium term. With an eye on aUSD 2 billion turnover in five years, EKA also targets markets in Africa, Asia, and Latin America, accelerating India's e-mobility transition.
Read more lessThe Competition Commission of India (CCI) has given the nod to Alpha Alternatives Group's acquisition of a 10% stake in Dilip Buildcon, valued at INR 400 crore, under the green channel route. The deal involves Alpha Alternatives Holdings subscribing to warrants, acquiring 9.99% equity stake, and investing in non-convertible debentures of Dilip Buildcon's Special Purpose Vehicles (SPVs). Additionally, CCI approved the purchase of M&G Plc's 11% stake in Trustroot Internet, a deal facilitated by Catalyst Fund, Asia Pacific Fund, and Prudential Assurance Company, enhancing the e-commerce platform 'Udaan.'
Read more lessIn a significant move, CLEAR Premium Water is set to acquire a majority stake in KELZAI Volcanic Water, renowned for its premium natural mineral water. The strategic deal, facilitated by CLEAR's parent company, Energy Beverages, aims to elevate the dining experience in fine establishments and cater to a broader luxury audience. With a focus on distribution through an extensive network, this acquisition positions CLEAR as a dominant force in the luxury water segment. The partnership signals remarkable growth for KELZAI and reinforces CLEAR Premium Water's commitment to meeting the rising demand for natural mineral water.
Read more lessThe Competition Commission of India (CCI) has approved Phillips Carbon Black Limited Ltd's (PCBL) acquisition of a 100% stake in Aquapharm Chemicals through the green channel route. PCBL, a major player in specialty chemicals, is set to acquire Aquapharm Chemicals for a significant INR 3,800 Crore. Post-transaction, Aquapharm Chemicals will become a wholly-owned subsidiary of PCBL. The deal involves no significant competition concerns, as per CCI. PCBL, previously Phillips Carbon Black Ltd, expands its footprint into specialty chemicals with this strategic acquisition, marking a substantial move in the sector.
Read more lessTata Power has successfully acquired a 100% equity stake in Bikaner III Neemrana II Transmission, a special purpose vehicle (SPV) dedicated to a power transmission project in Rajasthan. The transaction, completed at INR 18.6 crore, involves cash consideration and settling outstanding debt. The SPV, established in June 2023, aims to construct, operate, and transfer electrical power transmission systems between Bikaner and Neemrana. With power ministry approval for share transfer, Tata Power continues its strategic moves in the energy sector.
Read more lessAdani Energy Solutions (AESL) has entered a strategic partnership with Esyasoft Holdings, backed by Abu Dhabi's International Holding Company, to bolster its smart meter business globally. The collaboration involves a joint venture with AESL's arm, Adani Transmission Step-Four, focusing on smart metering projects in India and worldwide. Esyasoft Holdings brings intellectual property rights for software products and solutions to enhance smart meters. Simultaneously, AESL secures a INR 3,000 crore deal to build and operate the 301 km Halvad transmission line, connecting the world's largest RE park, Khavda, Gujarat, solidifying AESL's market-leading position in the renewable energy sector.
Read more lessThe National Company Law Tribunal (NCLT) has granted approval to Thermax for the demerger of its subsidiaries, Thermax Cooling Solutions and Thermax Instrumentation, in a strategic move. The demerger, valued at INR 1,200 crore, aims at enhancing coordination and flexibility for Thermax Instrumentation through vertical integration. The consolidation streamlines complementary businesses, fostering scalability and operational efficiency while eliminating administrative duplications, leading to cost savings. Thermax's diversified portfolio in clean air, energy, water, and chemicals positions this demerger as a pivotal step for focused management and business optimization.
Read more lessThe Reserve Bank of India (RBI) has granted approval for the reverse merger of IDFC Ltd with its banking subsidiary, IDFC First Bank, in a landmark INR 27,000 crore deal. Under the composite scheme, IDFC FHCL merges with IDFC, followed by the merger of IDFC into IDFC First Bank. Shareholders are set to receive 155 shares for every 100 shares held in the bank, elevating the bank's standalone book value by 4.9%. The merger, subject to regulatory nods, positions IDFC First Bank as a promoter-less entity, fully owned by institutional and public shareholders.
Read more lessTata Coffee and Tata Consumer Products are set to conclude their merger on January 1, 2024, as part of a reorganization plan initiated in March 2022. The scheme involves the demerger of Tata Coffee's plantation business into TCPL Beverages and Foods and the subsequent merger of the remaining business with Tata Consumer Products. Approved by the National Company Law Tribunal, the process will result in the dissolution of Tata Coffee, with its shareholders receiving new equity shares of Tata Consumer Products in return. The board will finalize share allotments on January 15, 2024.
Read more lessBrainbees Solutions, the operator of FirstCry, has filed for an IPO with the Securities and Exchange Board of India (Sebi). While the IPO size is undisclosed, it features a fresh issue of shares valued at up to INR 1,816 crore. The offer for sale (OFS) involves the offloading of 54.4 million shares by existing investors such as SoftBank, Mahindra & Mahindra, and TPG. Notable sellers include Ratan Tata and FirstCry CEO Supam Maheshwari. The IPO proceeds will fund store expansion, technology, marketing, and international growth in Saudi Arabia.
Read more lessAhead of its stock market debut, Innova Captab's shares command a premium of INR 61 in the unlisted market. The initial public offering was oversubscribed 55.26 times, with strong demand across all investor categories. The grey market premium suggests a potential listing premium of 14% over the IPO price. Innova Captab, an integrated pharmaceutical company, plans to utilize the IPO proceeds for loan repayment, subsidiary investment, working capital, and general corporate purposes. The company's robust performance in the pharmaceutical value chain positions it well in the market.
Read more lessKay Cee Energy & Infra's IPO, opened on December 28, is met with robust demand, subscribed 23 times on the first day, with shares commanding a premium of INR 45 in the grey market,, driven by significant interest from retail investors. The grey market reflects strong enthusiasm, with shares trading at an 83% premium to the issue price. The company, specializing in EPC services for power transmission projects, plans to raise approximately INR 15.9 crore through the IPO, which will close on January 2. The net proceeds will be allocated for capital needs and general corporate purposes.
Read more lessAutomotive components manufacturer Emmforce Autotech is set to go public with an IPO, aiming to raise funds exclusively through a fresh issue of 55,00,000 equity shares. The company, after IPO completion, intends to list its shares on the SME Platform of BSE Ltd. Emmforce plans to allocate the IPO proceeds towards expanding its subsidiary, Emmforce Mobility Solutions Pvt Ltd (EMSPL), targeting untapped global markets. The firm specializes in producing automotive drivetrain parts like differential housings, spindles, axles, and shafts. The IPO will also support working capital needs and general corporate purposes.
Read more lessElectro Force marked its NSE SME platform debut, showing a 7.5% premium post-listing, with shares later locked in a 5% upper circuit at INR 105. The IPO, priced at INR 93 per share with a face value of INR 10, was an entirely fresh equity issue, raising INR 81 crore. Specializing in electrical components and metal contact parts, Electro Force operates on a B2B model, offering end-to-end product solutions. The proceeds from the IPO will support additional working capital, inorganic growth, and general corporate purposes. The company's revenue for the period ending September 2023 was INR 23 crore.
Read more lessIn the bustling IPO landscape, HRH Next Services, a BPO industry player, has initiated its IPO subscription from December 27 to December 29. The offering comprises a fresh equity issue of up to 26.58 lakh shares at INR 36 per share. The financial outlook reveals revenues of INR 21.52 crore and a net profit of INR 1.5 crore for the period ending September 2023. The IPO's net proceeds, totaling INR 9.57 crore, are slated for service expansion, capex, working capital, and general corporate needs. HRH Next Services anticipates listing on the NSE SME platform around January 3.
Read more lessThis week's M&A news reflects the dynamic nature of India's corporate landscape, featuring diverse transactions in Electric Mobility, Infrastructure, Beverage, Energy, BFSI, Consumer Goods, FMCG, and Chemicals sectors. Stay updated on India's M&A developments as we continue to bring you the latest news and insights.
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