December 9th, 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.
This week's M&A highlights in India feature significant deals, such as -
Blackstone, the global alternative asset giant, is making an exit from India's distressed assets sector by selling its controlling stake in a five-year-old joint venture involving prominent partners like the Tata Group, HDFC Bank, and ICICI Bank. Mathew Cyriac, ex-Blackstone India private equity co-head, is poised to acquire a 51% stake in International Asset Reconstruction Co. Pvt. Ltd (IARC). The deal, valued around INR 200 crore, signifies a shift in Blackstone's focus. With retail loans gaining prominence, IARC's unique position as a retail-focused player adds strategic value amidst evolving regulatory landscapes.
Read more lessIn a strategic move, Warburg Pincus-backed Great Terrain Investment Ltd recently concluded a significant exit from Computer Age Management Services (CAMS), relinquishing its entire 19.87% stake for a substantial sum of INR 2,700 crore through an open market transaction on the BSE. This exit foreshadows Warburg Pincus's broader strategy, hinting at planned stake sales in IDFC First Bank and Bharti Airtel. The impending deals, valued at USD 100 million and USD 211 million, respectively, signal a strategic reshaping by the private equity giant in the Indian financial landscape.
Read more lessConstruction materials provider Infra.Market has divested a 10% stake in its subsidiary, RDC Concrete, to public market investors led by Ashish Rameshchandra Kacholia for USD 20 million. The move is a strategic step toward taking RDC Concrete public in the near future, valuing it at USD 225 million. Since Infra.Market's acquisition in September 2021, RDC Concrete has expanded its ready-mix concrete (RMC) plants, with plans to reach 180 plants by FY25. The deal enhances Infra.Market's financial position, aligning with its vision for RDC Concrete's continued growth and a potential INR 2,000 crore revenue target by FY24.
Read more lessIndia's leading banking and smart card manufacturer, Manipal Technologies, plans to bring in a financial partner, valuing the eight-decade-old Pai family-owned business at INR 4,000-4,200 crore. The Pai family aims to raise INR 1,000 crore, offering an exit to minority shareholders and fueling expansion plans. Rothschild is spearheading the stake sale, engaging private equity funds. With diverse operations spanning secure transactions, printing, and government services, Manipal Technologies, led by Gautham Pai, targets growth and innovation in the evolving landscape of secure data printing and technology solutions.
Read more lessAmbuja Cements, led by billionaire Gautam Adani, successfully concludes the acquisition of Sanghi Industries at a revised offer price of INR 121.90 per share, giving Ambuja a controlling stake of 54.51%. Funded entirely through internal accruals, the enterprise value stands at INR 5,185 crore. This move enhances Ambuja's production capacity to 74.6 MTPA, reinforcing its coastal footprint. The acquisition aligns with Ambuja's coastal strategy, leveraging Sanghi's low-cost clinker strength. The expansion plan includes increasing capacity to 15 MTPA over the next 30 months, solidifying Adani's position in India's competitive cement industry.
Read more lessWipro Consumer Care and Lighting (WCCL) strategically acquires soap brands Jo, Doy, and Bacter Shield from VVF Limited, marking its third acquisition in a year. With a combined revenue of over INR 210 crore during FY23, these brands enhance Wipro's presence in the dynamic soap market. The move aligns with WCCL's expansion strategy into diverse sub-segments. The addition fortifies WCCL's position as a major player in personal wash products, leveraging a robust distribution network. This deal reflects WCCL's commitment to innovation and growth in the evolving consumer goods landscape.
Read more lessJSW Infrastructure announces a strategic move in the maritime sector, acquiring a majority stake in PNP Maritime Services (PNP Port) from Shapoorji Pallonji Group for INR 270 crore. The deal values PNP Port at an enterprise value of INR 700 crore, positioning JSW Dharamtar Port to enhance its logistics services. With plans to expand capacity from 5 MTPA to 19 MTPA, JSW aims to leverage synergies and cater to a growing share of third-party customers. The strategic location of PNP Port on India's west coast provides direct access to major cargo centers, reinforcing JSW's footprint in the sector.
Read more lessPrivate equity firm ChrysCapital has acquired a significant 75% stake in Bengaluru-based ProHance Analytics, a leading business-to-business Software-as-a-Service (SaaS) platform specializing in workforce analytics and operations enablement. Valued at over USD 50 million, this strategic move marks ChrysCapital's foray into the SaaS sector, expanding its technology services portfolio. ProHance Analytics, a workplace analytics and operations management platform, provides crucial insights to enterprises and SMEs. ChrysCapital sees substantial growth potential in Indian SaaS, positioning the acquisition as a key driver for their continued expansion in the technology landscape.
Read more lessAdani Ports and Special Economic Zone (APSEZ) are reportedly in advanced discussions to acquire Shapoorji Pallonji Group's Gopalpur port in Odisha for an estimated INR 1,100-1,200 crore in equity value. If successful, this move would mark Adani Ports' sixth acquisition along India's eastern coast, aligning with its strategy to own ports across both the western and eastern water margins. The deal, part of a string-of-pearls approach, is subject to ongoing due diligence, reinforcing Adani's position as India's leading maritime company. SP Group aims to utilize the proceeds to repay debenture holders, emphasizing strategic asset optimization.
Read more lessTV18 Broadcast Ltd, owned by Reliance, unveils a merger with Network18 effective April 2023, forming India's leading platform-agnostic news media powerhouse. The consolidation merges TV and Digital news businesses, spanning 20 news channels, digital assets, and Viacom18's portfolio. Shareholders holding 172 shares of TV18 will exchange for 100 shares of Network18. Subject to approvals, the merger establishes a formidable entity with the widest language-diverse footprint in TV and Digital news, solidifying Reliance's position in India's media landscape. The move aligns with Reliance's strategic vision for a comprehensive and influential media presence.
Read more lessL&T Finance Holdings concludes the merger of its subsidiaries – L&T Finance Limited, L&T Infra Credit Limited, and L&T Mutual Fund Trustee Limited – creating a streamlined 'Single Lending Entity' effective from December 4. The consolidation aligns with market dynamics and a vision for sustained growth, housing all lending businesses under a unified Non-Banking Financial Company (NBFC). Approved by the Reserve Bank of India in March, the merger enhances governance, fostering innovation and long-term success, thereby unlocking new avenues for growth and delivering superior value to stakeholders.
Read more lessCarDekho Group, a frontrunner in auto-tech solutions, announces the acquisition of a majority stake in Revv, a Gurugram-based shared mobility platform. The merger enriches the CarDekho ecosystem, incorporating Revv's shared mobility services into its House of Brands, which includes CarDekho, BikeDekho, Gaadi.com, and others. This strategic move reinforces CarDekho's commitment to technological integration, catering to diverse mobility needs. As the majority shareholder in Revv, CarDekho aims to elevate shared mobility experiences, aligning with Revv's focus on flexibility and affordability, and fostering a seamless, transparent, and customer-centric automotive journey.
Read more lessThis week's M&A news reflects the dynamic nature of India's corporate landscape, featuring diverse transactions in real estate, finance, construction materials, secure data printing, cement, consumer care, infrastructure, private equity, ports, media, finance, and automotive sectors. Stay updated on India's M&A developments as we continue to bring you the latest news and insights.
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