Entries in the ‘Financial Services’ Category:

Sequoia Capital makes 8 times return in Manappuram capital

Sequoia Capital has sold its 11% stake in Manappuram General Finance & Leasing for Rs. 300 crores in open market.

About Sequoia Capital – Manappuram capital deal

A bulk of the shares were purchased through convertible preference shares at Rs 100 a piece. Sequoia later also invested in another group firm Manappuram Finance (Tamil Nadu) Limited, that eventually merged with Manappuram General Finance.

Post amalgamation, Sequoia held as much as 3.9 million shares and is believed to have sold all its shares, in one of the single largest PE exits in recent times. Although the company is yet to make disclosure of the same and details of share sale will be clear later in the evening, there was trading of as many as 4.2 million share of the firm at BSE alone against the two week average of 30,000.

The shares traded around between Rs 740 and 796 a piece on Friday, which means Sequoia would have netted close to 8x returns on its less than year-old-investment.

Other investors in Manappuram General Finance include Hudson Equity, a fund managed by India Equity Partners that co-invested with Sequoia in 2007. Thereafter the NBFC raised further rounds of investments from US-based private equity fund Granite Hill besides UK-based Alchemy Ashmore– a joint venture between Alchemy and Ashmore.

Services offered by Manappuram include deposits, gold and vehicle financing, forex and general and life insurance. It had also entered into an alliance with IDBI Fortis Life Insurance Company Ltd to provide wealth building and insurance products to customers in Kerala.

Source: VCCIRCLE

Tata Motors selling stake in Tata Motors Finance

Tata Motors is selling stake in Tata Motors Finance.

Rumours are that SBI is in fray to get 50% stake in TMFL.

TMFL is the largest financier of vehicles made by Tata Motors with over two million customers financed. A media report had said SBI may pick up a 49% stake in the financing arm.

Shriram Pension Plan from Shriram Life Insurance

Shriram Pension Plan from Shriram Life Insurance

Shriram Life Insurance (SLIC) on Tuesday launched a unit linked premium plan – Shriram Pension Plan which gives clients varied options to
invest their money and receive maximum returns post-retirement.

The plan gives a unique feature of no life cover, which provides clients who do not require further life cover (or do not qualify for life cover for medical reasons) with the option of a savings only, the company said in a statement.

The other feature under the plan is Auto Transfer, which reduces the risk of investing the full premium into a fund with a volatile NAV by allowing premiums to be invested in a low risk fund (Secure Plus) and gradually transferring the money into the chosen investment portfolio.

The plan also offers low risk fund like Secure plus (a debt linked fund for those desiring stability) and Tyaseer fund, a Shariah friendly investment fund.

“With this plan we aim to provide our clients varied options to invest their money so that they can receive maximum returns in their future,” Shriram Life Chief Executive Officer (New Channel), Gerhard Joubert, said.

Future Ventures IPO

Future Ventures India is the next Big Bang IPO from private sector.

Future Ventures India is promoted by Kishore Biyani’s Future Group and its his Venture capital arm. Kishor had said in an interview that he is going to raise Rs.1000 crores for this company through IPO.

FVIL is in the process of filing Draft Red Herring Prospectus (DRHP) with market regulator SEBI.   Future Ventures has already received a sum of Rs 325 crore from Pantaloons for business operations.

THe company plans to invest in new areas and the real estate projects of the Futur group.   FVIL is also expected to invest and execute the Future group’s joint ventures and investments, which were so far done by the listed entity Pantaloon. However Future capital is the fund manager for Future venture.   More details on Future Ventures IPO will be posted here soon like IPO date, Allotment status , Allocation chances , Listing date , Price and Grey market premium.

L&T Finance Rs 1000 Crore retail bond issue

L&T Finance Rs 1000 Crore retail bond issue.

L&T Finance  said it plans to raise up to 1000 crore  rupees via a retail bond sale that opens on Tuesday. The funds will be used to lend and invest, and for other operations including capital expenditure and working capital requirements.

“Currently there is no plan of inorganic growth in L&T Finance,” Larsen & Toubro’s Chief Financial Officer Y.M. Deosthalee told reporters at the conference on Monday. L&T Finance, which plans to enter the general insurance business, will sell five-year bonds with an annualised yield of 9.85 percent, seven-year (88-month) bonds with an annualised yield of 9.95 percent and 10-year bonds with an annualised yield of 10.50 percent.

The bonds are rated ‘AA-plus’ by CARE and ‘LAA-plus’ by ICRA, indicating high credit quality. The issue, which aims to raise at least 5 billion rupees and has a greenshoe option to retain extra bids worth another 5 billion rupees, is scheduled to close on Sept. 4. Of this amount, 35 percent is allocated for retail investors, 30 percent for non-institutional investors, and another 25 percent for qualified institutional buyers, which includes 10 percent allocated to pension, provident and superannuation funds.

The company said it has chosen the retail route to broaden its investor base, and bankers said a private placement of the bonds would have been about 25-40 basis points cheaper. Another commercial vehicles financier, Shriram Transport Finance Co Ltd, last week closed its 10-billion-rupee retail bond sale, which bankers say was oversubscribed over 4.5 times within a day of opening.

Shriram Transport, also rated ‘AA-plus’ by CARE and ‘AA’ by Fitch, had sold tenors ranging from three- to five-years, with a maximum yield on redemption of 11.50 percent. Bankers say the lower yield on the L&T Finance bonds is due to the strong reputation of its top-rated parent, with further comfort provided by the oversubscription of the Shriram issue.

“That issue showed that there is solid demand for these debentures in the public space if the yield is competitive,” said a banker. SBI Capital Markets, J.M. Financial Consultants and Standard Chartered Bank are lead managers to the L&T Finance retail issue.

Peerless Mutual Fund : Peerless to lauch MF soon

Peerless Mutual Fund

Peerless is set to launch Mutual Fund by next year,

Peerless has got in-principle approval from SEBI

The company has been planning to launch a mutual fund for quite some time.

Meanwhile, Peerless signed a pact with private sector insurer Max New York Life Monday for distribution of Max Vijay insurance cum savings policies.

Max New York has targeted sales of over 500,000 such policies in one year through the Peerless network.

‘We have so far sold 20,000 policies,’ said Max New York chief executive officer and managing director Rajesh Sud.

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Indbank Merchant Banking launches Indbankonline Stock Trading Point at Ernakulam

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Ascent Exim India reports net profit of Rs 0.02 crore in the January 2009 quarter

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Vyapar Industries appoints additional directors

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Williamson Magor & Company’s director resigns

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