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Solara Becomes Bigger

2 months ago  
Business / Blogs/ M&A Critique  
Indian Pharmaceutical Industry is witnessing sea changes. With China + 1 strategy, India Pharma Companies are at inflection points. Amidst this, Indian Pharma companies are trying to expand its wings to strengthening their operations to make most of the current scenario. In a similar move, Solara Active Pharma Science Limited announced amalgamation of Aurore Life Sciences Private Limited along with the other two companies. Solara Active Pharma Sciences Limited (“Solara”) is an API manufacturer. It has a legacy of over three decades and traces its origins to the API expertise of Strides Shasun Ltd. and the technical know-how of human API business from Sequent Scientific Ltd. It has 140+ scientists working at two R&D centres and 6 API manufacturing facilities armed with global approvals and 2 dedicated R&D facilities. Solara has formed in 2018 under the demerger scheme of the select API business of Strides Shasun Limited (Strides) and the human API business of Sequent Scientific ..
                 

HT Media Limited: Consolidating Businesses

2 months ago  
Business / Blogs/ M&A Critique  
HT Media Limited (HTML) is a public listed company. HTML publishes ‘Hindustan Times,’ an English daily, and ‘Mint,’ a business paper and undertakes commercial printing jobs. HTML is also engaged in the business of providing entertainment, radio broadcast and all other related activities through its Radio Stations operating under the brand name ‘Fever 104’, ‘Fever’ and ‘Radio Nasha’. The digital business of HTML comprises of various online platforms such as ‘shine.com,’ 'VCCircle,' etc. Digicontent Limited (DCL) is a public listed company engaged in the business of Entertainment & Digital Innovation Business. DCL is also a fellow subsidiary of HTML. The Hindustan Times Limited, holding company of HTML owns 69.51% stake in DCL. Next Mediaworks Limited (NML) is a public listed company engaged in the business of FM broadcasting and presently has the "Radio One" FM brand in 7 cities of the country being Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, and Ahmedabad. The company operate..
                 

Embassy group listing its real estate business without going through IPO process

6 months ago  
Business / Blogs/ M&A Critique  
The proposed merger of Indiabulls Real Estate Ltd.'s (IBREL) with two subsidiaries of Bengaluru-based Embassy Group will create one of India’s leading listed real estate development platforms with launched/planned area totalling to 80.8 Mn Sq. Ft, having 53% commercial and 47% residential assets, and 30 projects with key geographical focus in Mumbai (MMR), NCR, and Bengaluru. The Amalgamated Company will have a strong market leadership potential, post Amalgamation, with: Net surplus from Residential projects (including launched and planned projects) of ₹18,592 Cr Potential Annual rent on completion of planned commercial projects of ₹4,241 Cr Land Bank (with future development potential) of 3,353 acres This transaction seems to be in line with group’s vision of consolidation of the real estate business with an earlier merger transaction announced by the group last year and covered in our September issue. Indiabulls Real Estate Limited (IBREL) is a listed company and is engaged in the ..
                 

Electrosteel Castings and Srikalahasthi Pipes merge to consolidate its position

8 months ago  
Business / Blogs/ M&A Critique  
In order to consolidate its position in the ductile iron (DI) pipe industry, the boards of Kolkata-based Electrosteel Castings (ECL) and its associate company Srikalahasthi Pipes (SPL) approved a scheme of amalgamation, proposing that shareholders of SPL receive 59 equity shares of ECL for every 10 equity shares held in SPL. The scheme would be subject to stakeholders’ and regulatory authorities’ approval and the merger process is likely to be completed by the end of this fiscal’s third quarter. Both ECL and SPL are listed with the BSE and NSE. Electrosteel Castings Limited (ECL) is a listed company and it engaged in the manufacture and supply of Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast iron (CI) Pipes as its core business and produces and supplies Pig Iron, in the process. It also produces Metallurgic Coke, Sinter and Power for captive consumption. Srikalahasthi Pipes Limited (SPL) is a listed company and it engaged in the manufacture and supply of Ductile Iron Pi..
                 

Growth strategy for the Digital Age: HCL acquires Australian IT company DWS

8 months ago  
Business / Blogs/ M&A Critique  
HCL Technologies Ltd will acquire Australian information technology and business consulting company DWS Ltd. In a regulatory filing, the company said the total equity value pay-out will be 158.2 million Australian dollars (about Rs 850.33 crore) after considering a total number of shares at 131.83 million on a fully diluted basis. The shareholders of DWS will also get a dividend of 0.03 Australian dollars per share which was declared by the company in its recent announcement of Annual Corporate Earnings for FY20 (June-end). The filing noted that 100% shares will be acquired through a Scheme of Arrangement after approval by DWS shareholders. The acquisition is subject to regulatory approvals and is expected to complete by December this year. The deal will augment HCL’s capacity to service the growing demand for digital strategies in the Australian and New Zealand markets. HCL has invested in the region for over two decades -- at present, it employs 1,600 people in major cities like Canb..
                 

Infosys on acquisition spree to regain bellwether tag

9 months ago  
Business / Blogs/ M&A Critique  
Infosys Ltd, the country’s second-largest software services provider, which regained lost ground and demonstrated consistent performance, is on an acquisition spree as it has set its sights on the next goal to become the industry bellwether once again. This calendar year (2020) till September end, Infosys has acquired three companies abroad clearly demonstrating the company’s commitment to complement its present services to its clients and fill the technology gap. In September, Infosys announced the acquisition of Czech Republic-based enterprise service management consultancy GuideVision for $35.5 million. In the same month, Infosys headed by Salil Parekh announced to buy Kaleidoscope Innovation, an Ohio, US-based company that designs and develops medical devices as well as consumer and industrial products for $42 million. In March this year, Infosys announced that it completed the acquisition of Simplus (Outbox Systems Inc), one of the fastest-growing Salesforce Platinum Partners in t..
                 

Unacademy acquires four companies this year, ed-tech sector booms

one year ago  
Business / Blogs/ M&A Critique  
At a time when most sectors are reporting a slowdown in business because of the Covid-19 pandemic, online education business or ed-tech is booming. More and more students are attending virtual classrooms and educational institutions are adopting digital learning. The ed-tech sector is now drawing the attention of investors as digital learning will grow and consolidate. Facebook-backed Unacademy, a leading online learning platform in the country, has acquired a majority stake in the K-12 learning-focussed platform Mastree for $5 million (Rs 38 crore). This will be the company's fourth acquisition. In June, it acquired medical education platform PrepLadder for $50 million, acquired online exam preparation startup Kreatryx in March and also acquired CodeChef, an online platform for coders. For the records, in 2018, early-stage venture capital WaterBridge Ventures, which had invested $1 million in Unacademy in 2016, exited. It got a return of five times on its investment. Unacademy paid th..
                 

M&A deals perk up in health insurance

one year ago  
Business / Blogs/ M&A Critique  
Mortgage lender HDFC Ltd has completed the acquisition of a majority stake in Chennai-based Apollo Munich Health Insurance Company Ltd for Rs 1,495.81 crore. Last year, TTK Group had exited from the Cigna TTK Health Insurance joint venture by selling its 31.5% stake to Manipal Group for Rs 500 crore. Similarly, Max India has sold its 51 per cent stake in Max Bupa Health Insurance Company to private equity firm True North. The consolidation in the health insurance business is perking up. Four out of six standalone health insurance companies in the country have seen either full buyouts or stake sale being bought by private equity investors or strategic players. There were actually seven standalone health insurance companies, but the Insurance Regulatory and Development Authority of India (IRDA) had directed Reliance Health Insurance in November last year to transfer its entire portfolio to Reliance General Insurance and stopped it from selling new policies as the company's solvency ratio..
                 

Mangalam Timber merges with Mangalam Cement

one year ago  
Business / Blogs/ M&A Critique  
The BK Birla group-controlled Mangalam Cement Ltd and Mangalam Timber Products Ltd have been merged to attain value of scale. The consolidation will help in efficient utilization of their resources, reduction in overheads and other expenses and improvement in other parameters. Mangalam Timber Products Limited (MTPL), a listed company primarily engaged in the manufacture of Medium Density Fibre Board (MDF) and sells its products under the brand name “DURATUFF”. MDF is used in making furniture, Particle board, Doors and all kind of carpentry all kinds of carpentry work. Mangalam Cement Limited (MCL), a listed company having registered office in Kota Rajasthan. A well-established cement manufacturing company having two cement manufacturing plants located at Morak, Rajasthan and Aligarh, Uttar Pradesh producing Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) and marketed under the brand name of "Birla Uttam". MCL has also set up two Captive Thermal Power Plants of 17.5 M..
                 

Titagarh Wagons Ltd moves ahead with consolidation of three entities

one year ago  
Business / Blogs/ M&A Critique  
TITAGARH Group is a leader in manufacturing of heavy engineering equipment, like freight wagons, railway castings – bogies and couplers. The group is operated in India and Europe through several subsidiaries and joint ventures. Titagarh Wagons Limited (TWL) is in the business of manufacturing of rail rolling stock including railway wagons, passenger coaches, steel castings of various configurations, shipbuilding, bridges and special projects for defence establishment of India and other heavy engineering equipment/ product. The Shares of the TWL are listed on NSE and BSE. The market cap of TWL is around Rs 600 crore. CIMMCO Limited (CIMMCO) a public limited company incorporated in the year 1943 under the Companies Act, 1913 under the name Texmaco (Gwalior) Limited. Thereafter the name of the company changed several times with the current name changed in the year 2010. The shares of CIMMCO are listed on NSE and BSE. The majority shares of CIMMCO (74.89%) are held by TWL. The market Cap o..
                 

Indiabulls merges its real estate business with Embassy Group

10 months ago  
Business / Blogs/ M&A Critique  
Making a complete exit from real estate business, Gurugram-based Indiabulls Group has decided to merge Indiabulls Real Estate Ltd.'s (IBREL) all ongoing, completed and planned residential and commercial projects with two subsidiaries of Bengaluru-based Embassy Group. The merger will be done through a cashless scheme of amalgamation as the two Embassy Group’s subsidiaries—NAM Estates (NAM) and Embassy One Commercial Property Developments (NAM Opco) -- will swap shares with IBREL. NAM shareholders will get 6.6 shares of IBREL for every 10 shares of NAM and NAM Opco shareholders will get 5.4 shares of IBREL for every 10 shares in NAM Opco. IBREL’s shares are being valued at Rs 92.5 per share, a 25.7% premium to closing price of August 18, 2020. The combined entity, to be called Embassy Developments Ltd, will catapult into one of the country’s leading real estate players. The merger will create one of the leading market players among listed companies in the real estate sector in terms of ..
                 

Hindalco closes acquisition of Aleris; becomes world’s largest aluminium company

one year ago  
Business / Blogs/ M&A Critique  
Hindalco Industries Limited, the Aditya Birla Group metals flagship company, has become the world's largest value-added aluminium downstream player in the world with a global footprint spanning 49 state-of-the-art manufacturing facilities in North America, Europe and Asia. This feat was achieved after the company’s wholly owned subsidiary Novelis Inc, completed the acquisition of Ohio-based Aleris nearly two years after signing the deal for an enterprise value of $2.8 billion, slightly higher than the initial estimate of $2.58 billion. The deal in indeed a long-term strategic bet, much like Novelis was in 2007, a point which Kumar Mangalam Birla, Chairman of the Aditya Birla Group has underlined. Aleris will be Hindalco’s second acquisition in the US after Novelis, which it had bought for $6 billion in 2007. Hindalco’s purchase of Novelis was the second biggest overseas deal by an Indian entity after Tata Steel’s $13 billion acquisition of Corus. Aleris was privately held by private e..
                 

Madura Micro Finance to merge with Credit Access Gramin

one year ago  
Business / Blogs/ M&A Critique  
Madura Micro Finance Ltd. (MMFL), an unlisted NBFC – MFI (Micro Finance Institution), is going to get amalgamated into Credit Access Grameen Ltd. (CAGL) a listed NBFC-MFI. It is going to be part cash - part stock deal, divided into 2-steps. Earlier, in 2018, MMFL was in advanced talks with Federal bank, a listed commercial banking company. Those talks fell through and now CAGL is all set to acquire 100% of MMFL. Credit Access Grameen Ltd. (CAGL) formerly known as Grameen Koota Financial Services Pvt. Ltd is listed on the NSE and BSE with MCap of approx. Rs. 12,300 Crores. CAGL, founded by Vinatha Reddy and Suresh Krishna in 1999, offers a variety of financial products like Group Lending, Retail Finance and Insurance. It provides micro-credit loans to support business enterprises, home improvement, family welfare and emergencies. As a strategy, they mainly target women borrowers from rural and low-income households. As of September 2019, CAGL has 887 branches, spread across 13 states ma..
                 

Hinduja Group restructures media & communications business

one year ago  
Business / Blogs/ M&A Critique  
The Hinduja Group via its main holding company Hinduja Ventures had originally started with the communication business and now has multiple businesses via its subsidiaries and investments. The media and communication arms have been tallying up losses for the last few years the group started to consolidate its HITS and Broadcaster and DAS services via demerger and mergers. The restructuring of its media and communication business will enable the group to expand its digital offerings in the rural market and reach of the group’s entire product portfolio to smaller towns and cities. The board of directors of Hinduja Ventures approved integration of IndusInd’s Media and Communications (IMCL – demerged company) with Hinduja Ventures. Hinduja Ventures Ltd (HVL) –is a listed public company incorporated in the year 1985 is in the business of Media & communication, Real Estate, Treasury & Investment, through its various subsidiaries and also have dark Fibre Leasing business and close to ..
                 

Mehta Group’s Cement Companies to streamline Promoter holding in listed companies

11 months ago  
Business / Blogs/ M&A Critique  
The board of Directors of Mehta Group Companies, Gujarat Sidhee Cement Limited and Saurashtra Cement Limited has decided to merge a promoter holding company of respective companies. Both schemes are twins in all aspects and hence discussed together. Gujarat Sidhee Cement Limited (GSCL) is a Mehta Group Company involved in the manufacturing of Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC) types of cement and clinker. The Company markets cement under the brand name “Sidhee”. The company is listed on BSE Limited & NSE Limited. Saurashtra Cement Limited (SCL) is a Mehta Group Company involved in the manufacturing of Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC) types of cement and clinker. The Company markets cement under the brand name “Hathi”. The company is listed on BSE Limited. Bhadra Textiles and Trading Private Limited (“Bhadra Textiles”) is a promoter group company holding 55.82% stake in GSCL. Villa Trading Company Private Limited (“Villa Tr..
                 

Powerhouse in the making: RIL merges media content and distribution with Network18

one year ago  
Business / Blogs/ M&A Critique  
In a move to consolidate its media and distribution business spread across multiple entities and reduce the number of listed entities, Reliance Industries Limited (RIL) has announced Scheme of Arrangement (Scheme) whereby, TV18 Broadcast Limited, Hathway Cable & Datacom Limited and Den Network Limited will get merged (Amalgamation) into Network18 Media & Investment Limited. Further, immediately after the Amalgamation, as a part of the same Scheme, the cable business undertaking, the ISP Business Undertaking and the Digital Business Undertaking of the amalgamated Network18 Media & Investment Limited will be transferred to the Wholly-Owned Subsidiaries (“WoS”) of the Network18 Media & Investment Limited. Network18 Media & Investments Limited (Network18) has presence in several media and entertainment businesses directly and through its subsidiaries like general news channels in Hindi, English and other regional languages, business news channels in Hindi, English and G..
                 

Government merges BSNL and MTNL

one year ago  
Business / Blogs/ M&A Critique  
In what seems to be last attempt, government has finally decided to revive by merging the two loss-making state-owned telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL). The two telecom companies have been bleeding and their subscriber base dwindling as competitors such as Bharti Airtel, Vodafone Idea and Reliance Jio had rolled out pan India 4-G services and cut prices on voice and data. MTNL, which is largely present in cities such as Delhi and Mumbai, will act as a unit of BSNL until the merger is completed. While MTNL is listed, BSNL is not listed. The two companies have a total debt of Rs 40,000 crore. The merger bill will be about Rs 70,000 crore which includes voluntary retirement scheme (VRS), capital infusion, goods and service tax and bond guarantee. The Centre will raise Rs 15,000 core through sovereign bonds to strengthen the two-state run telecom companies and the government will monetise telecom assets worth of Rs 38,000 crore. The ..
                 

Infibeam Avenues takes demerger route to pursue independent growth strategies

one year ago  
Business / Blogs/ M&A Critique  
The board of Infibeam Avenues approved demerger of E-commerce business of NSI Infinium and its Theme park & Software business into Suvidhaa and DRC Systems respectively, which will be listed at a later date. The demerger has been done by the board as a part of Infibeam’s broader business restructuring plan. These strategies will pave the way for the management of each firm to chalk out growth strategies. Infibeam Avenues Limited (IAL) is in the business of digital payments, E-commerce services, software business, e-commerce technology platforms and provides a comprehensive suite of web services spanning digital payments solutions, data centre infrastructure, software platforms, etc. The equity shares of the company are listed on BSE and NSE. Suvidhaa Infoserve Private Limited (SIPL) is a private limited company. However, for the conversion into public company resolution has been passed on August 27, 2019. SIPL engaged in the business of provide facility to make payments for a host ..