October 21st, 2023
MergerDomo’s weekly Newsletter brings you the latest on M&As, JVs, Investments and noteworthy partnerships that are shaping the future of businesses in India.
In a decisive move, the National Company Law Tribunal (NCLT) has granted its approval for Steel Strips Wheels to acquire AMW Autocomponent, marking a significant milestone in the insolvency resolution process. The liability of AMW Autocomponent, amounting to over INR 1,675 crore, contrasts with the successful bidder's commitment of INR 138 crore upfront. The NCLT's approval, binding all stakeholders, underscores the strategic value in merging these two wheel manufacturing giants, transcending geographic boundaries. With 98.55% of creditors supporting the revival plan, this acquisition promises to maximize value for all, fulfilling the core objective of insolvency law.
Read more lessIn a game-changing move, the National Company Law Tribunal (NCLT) has given the green light to Amalgam Steel and Power Limited for its acquisition of Topworth Steel and Power Pvt Ltd. Prior to the NCLT's approval, the lenders of Mumbai-based Topworth Steel and Power had already given their nod to the resolution plan. This significant development came after Topworth admitted a liability of approximately INR 3,499 crore, with the successful bidder proposing to pay around INR 260 crore, defying conventional expectations.The average liquidation value of Topworth Steel and Power was INR 238 crore, while the average fair value of the company stood at INR 345 crore. Amalgam Steel and Power's revival plan, proposing INR 260 crore, falls between the liquidation and fair market values, offering a higher payout than liquidation but lower than the fair market value.
Read more lessIndian proptech powerhouse, Blox, is on the verge of acquiring a commanding stake in Justo, a mandate brokerage firm deeply entrenched in Maharashtra. This game-changing deal, valued at INR 3.5 billion, is anticipated to be sealed through a blend of cash and stock, marking a pivotal moment in India's real estate landscape. With annual mandate businesses each worth approximately INR 35 billion, Blox is set to enhance its status as a top proptech firm in India, boasting a consolidated Gross Merchandise Value (GMV) of around INR 80 billion. The acquisition grants Blox a majority stake in Justo, opening doors for Justo's brokers and developers to leverage Blox's cutting-edge artificial intelligence (AI) sales and marketing technology.
Read more lessPetronas, the Malaysian energy giant, in collaboration with Indonesia's Sun Energy and global commodities leader Vitol, is reportedly in negotiations to acquire Fourth Partner Energy, a renewable energy firm specializing in commercial and industrial solutions, supported by TPG Capital's Rise Fund. The potential sale of a majority stake could value the company between USD 450 million and USD 500 million. TPG, holding nearly 50% of the company, seeks a complete exit, with the incoming investor expected to inject fresh capital for the company's ambitious expansion plans, targeting a 3.5 GW asset base by 2025.
Read more lessIn a significant development in the insolvency proceedings of Ujaas Energy Limited, the National Company Law Tribunal (NCLT), Indore Bench, has orally approved the Resolution Plan submitted by SVA Family Welfare Trust and M&B Switchgears, the Resolution Applicants. This resolution plan, endorsed under Section 31 of the Insolvency and Bankruptcy Code, 2016, outlines share capital reduction and other provisions. While the written order from NCLT is pending, this marks a pivotal step in Ujaas Energy's financial restructuring process, signifying a turning point in its corporate future.
Read more lessDorf-Ketal Chemicals India Pvt. is making a significant move in the M&A arena by becoming the primary bidder for Aquapharm Chemicals Private Limited. Dorf-Ketal, a global chemical manufacturer specializing in crude oil treatment, plans to raise INR 3,800 crore through the sale of 8.5-9% interest-bearing non-convertible debentures. Aquapharm's owners are aiming to fetch INR 4,000-INR 4,400 crore from the stake sale. Competing for Aquapharm alongside Dorf-Ketal are Tata Chemicals Ltd. and RP-Sanjiv Goenka Group's PCBL Ltd. Dorf-Ketal Group, boasting over USD 1 billion in annual revenues, has been actively expanding its global presence through strategic acquisitions. This intense bidding war has sparked widespread curiosity, with investors and industry insiders eagerly awaiting the outcome.
Read more lessThe Adani Group is on the verge of concluding a USD 3.5 billion debt refinancing for their ACC Ltd and Ambuja Cement acquisition. A consortium of 18 banks, including industry leaders like Barclays, Deutsche Bank, and Standard Chartered, is orchestrating this significant financial maneuver for a substantial M&A transaction within India's building materials sector. This event marks the Asia-Pacific's most extensive refinancing in the current fiscal year The move will simplify debt structures, improve the group's credit rating, and support its ambitious expansion plans in the cement sector. Disbursements are anticipated to commence soon.
Read more lessDalmia Bharat Refractories and Himadri Speciality Chemicals have achieved a momentous M&A victory with the National Company Law Tribunal (NCLT) approving their revival plan for beleaguered Birla Tyres. Backed by 82.48% of creditors and surpassing the liquidation value of Rs 347.03 crore, the Rs 1,100 crore debt resolution plan signals a turning point for Birla Tyres, once part of Kesoram Industries. This marks the revival of an iconic brand under new stewardship. Despite objections, the NCLT's ruling solidifies Dalmia-Himadri's commitment to rejuvenate this iconic brand.
Read more lessA consortium of global and domestic private equity giants, including Apax Partners, TPG Capital, TA Associates, and Kedaara Capital, is in early-stage talks to acquire Inventia Healthcare, a Mumbai-based pharmaceutical firm, valuing it at INR 2,600 crore ($300 million). The deal involves the exit of current private equity investors, InvAscent Capital and Jacob Ballas, alongside the promoters. The promoter family will retain a minority stake and continue to manage the business. Initial bids are expected in the first week of November. Currently, investors collectively hold a 40% stake, with the rest owned by promoter Janak Shah and family.
Read more lessTata Motors is set to acquire a 26.79% stake in Freight Tiger for INR 150 crore, with an option to invest an additional INR 100 crore over two years. Freight Tiger operates as a digital platform facilitating end-to-end logistics solutions in India, connecting shippers, carriers, and logistics providers. Tata Motors' investment aligns with its goal to enhance road logistics efficiency through innovative solutions like Fleet Edge and Freight Tiger. The partnership aims to create a comprehensive digital ecosystem for the logistics value chain and reduce India's logistics costs. The transaction is subject to customary conditions.
Read more lessSeed fund Venture Highway has made headlines by selling 1.5% of its stake in e-commerce platform Meesho at a remarkable enterprise valuation of approximately USD 3.5 billion. This transaction signifies a stunning 50-fold return on Venture Highway's initial investment. The seed fund, which invested in Meesho's early stages, recently concluded a secondary sale of its shares to India-focused investment fund WestBridge Capital. While specific financial details remain undisclosed, Venture Highway's belief in Meesho's disruptive potential in India's e-commerce landscape remains unwavering. The Indian startup ecosystem continues to attract investor interest despite the ongoing funding challenges.
Read more lessTata Motors Ltd (TML) is set to divest a 9.9% stake in IPO-bound Tata Technologies Ltd (TTL) for INR 1,613.7 crore to private equity fund TPG Rise Climate SF and an endowment trust linked to Tata Trusts Chairman Ratan Tata. TPG Rise Climate takes the lead in this deal, valuing TTL at INR 16,300 crore. This move aligns with TML's debt-reduction strategy and advances its electric passenger mobility ambitions, with TPG Rise Climate being a strategic partner. The transaction is slated to conclude within two weeks, pending customary closing processes, further bolstering TTL's highly anticipated IPO.
Read more lessIn a strategic move towards expanding philanthropic horizons, the Ratan Tata Endowment Foundation, established by Ratan Tata in September 2022, has made its first investments. The foundation acquired a 1% stake in Tata Digital, valued at over USD 15 billion, and slightly less than 1% in Tata Technologies. To fund the latter investment, a loan from Tata Capital was utilized. These investments are part of a broader plan to generate funds for philanthropic activities, which are rapidly expanding, covering sectors like health, education, sanitation, and rural development. By creating this foundation, Ratan Tata aims to build institutions capable of competing with global charitable entities and ensure a legacy of giving. This endowment structure allows for a broader focus on charitable objectives while benefiting from perpetuity and higher governance standards.
Read more lessShares of Orient Cement experienced a remarkable 14.5% surge, hitting a new 52-week high of ₹214.8, attributed to reports of CK Birla, the Chairman of CK Birla Group, approaching Gautam Adani to sell his promoter stake in the company. Birla had reportedly declined offers from other domestic players that didn't meet his valuation requirements. This development, ongoing for several months, could reshape the Indian cement industry as Adani Group, with its recent acquisition of Sanghi Industries, continues to expand its cement capacity, currently standing at 110 MTPA. Birla's valuation demand, however, could be a potential deal-breaker.
Read more lessThe Indian government is gearing up to divest up to seven percent of its stake in the Housing & Urban Development Corporation (HUDCO) at a floor price of INR 79 per share. This Offer For Sale (OFS) involves more than 14.01 crore shares, with institutional investors participating on Wednesday and retail investors on Thursday. Notably, the government has included a Green Shoe Option of 3.5 percent, which allows for potential additional shares to be sold in case of higher-than-expected demand. The floor price, lower than the recent closing price, aims to raise around Rs 1,000 crore while reducing the government's stake to 74.8 percent, under the permissible cap of 75 percent.
Read more lessIn a recent legal twist, Vir Kotak, a promoter of JM Baxi Group, has taken the German shipping giant Hapag-Lloyd AG to Bombay High Court over its acquisition of a stake in JM Baxi Ports & Logistics Ltd (JMBPL). This move comes after Kotak, based in Singapore, alleged exclusion from the transaction process, including the sale of his own shares, potentially jeopardizing his rights. The company aims to increase its shareholding in JMBPL to 40% by acquiring 35% from a Bain Capital Private Equity affiliate and subscribing to a capital increase. While the closure of the JMBPL transaction is pending regulatory approval and customary conditions, the outcome of this legal battle could influence the course of Hapag-Lloyd's strategic journey in the bustling Indian market.
Read more lessIn a strategic move to transition towards a cleaner and more sustainable energy future, the Indian Oil Corporation (IOC) has committed INR 1,660.15 crore as equity in a joint venture with NTPC Ltd. This partnership, known as Indian Oil NTPC Green Energy Pvt Ltd, is dedicated to establishing renewable power plants. The collaboration aims to meet the round-the-clock energy requirements of IOC's refineries, marking a pivotal step in reducing carbon emissions and promoting self-sufficiency in power generation.
The decision, driven by environmental concerns and India's growing energy demand, aligns with the nation's broader objectives of enhancing energy security, reducing greenhouse gas emissions, and fostering a green and sustainable energy sector. As the joint venture endeavors to harness India's abundant solar PV and wind resources, it sets a significant example for a greener and more energy-efficient future.