India Digest: INDASDA may buy Moshe’s; Kedaara to trim stake via Mahindra Logistics IPO, Janalakshmi Fin funding

New Silk Route is likely to sell Moshe’s Fine Foods to INDASDA Group, while Kedaara Capital is looking to sell part of its stake in Mahindra Logistics through the company’s IPO. Also, Janalakshmi Financial is in talks to raise funds.

NSR likely to sell Moshe’s Fine Foods to INDASDA Group

Private equity firm New Silk Route is likely to soon sell its majority stake in food and beverages company Moshe’s Fine Foods to Mumbai-based INDASDA Group, taking a haircut in the process.

According to a report in The Economic Times quoting sources, NSR has reached an agreement to sell its 90 per cent stake in Moshe’s for Rs 15-20 crore, a sharp decline from the estimated Rs 50 crore overall investment it made in the company.

NSR had picked up a majority stake in 13-year old Moshe’s in October 2013 through South Asia Gastronomy Enterprises LLC, its food and beverage portfolio company.

The proposed deal, which also includes liabilities of Rs 8-9 crore, is yet to get a go ahead from Moshe Shek, the founder who holds the remaining 10 per cent of the company.

Kedaara Capital looks to sell stake in Mahindra Logistics in IPO

Mahindra Logistics is planning to float an initial public offering by October, through which domestic private equity firm Kedaara Capital is looking to sell part of its holding, said a report in The Economic Times quoting sources.

Kedaara Capital had bought a 23 per cent stake in Mahindra Logistics in April 2014 for Rs 200 crore.

The Mahindra Group is also likely to sell a stake in its subsidiary in the IPO, through which the company is looking to raise Rs 600-700 crore.

Axis Capital and Kotak Investment Banking have been mandated to manage the issue, said the sources.

Janalakshmi Fin in with Goldman Sachs, Credit Suisse to raise funds

India’s largest microfinance company Janalakshmi Financial Services is in talks with global investors Goldman Sachs and Credit Suisse to raise fresh equity of about Rs 1,000-1,200 crore, said a report in The Economic Times quoting sources.

The company, which had received the final small finance bank licence in April, had raised its biggest funding round of $210 million from financial institutions last year at a  4,800-crore valuation.

As per the news report, existing investors led by TPG, GIC of Singapore, Morgan Stanley Private Equity Asia are likely to infuse another  Rs 600-700 crore in the Bengaluru-based company.

According to sources quoted in the report, Janalakshmi is facing financial stress and may have to write off loans worth Rs 1,500-2,000 crore before transforming into a small finance bank.

 

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