India Dealbook: Shriram Properties IPO; Mcleod Russel exits tea estate; Sekura & CLP eye Kalpataru assets

Initial Public Offering (IPO). Image: DEALSTREETASIA

The IPO market is hotting up with PE-backed Shriram Properties securing approval from market regulator SEBI to raise Rs 1,250 crore ($180 million). As far as deals are concerned, Mcleod Russel India Ltd has decided to exit from Pfunda Tea Company Ltd by selling its existing 45 per cent stake to Scotland-registered Rwanda Tea Investments Ltd, while Sekura and CLP are in separate talks to acquire Kalpataru’s power transmission assets.

PE-backed Shriram Properties gets SEBI nod to launch IPO

Bengaluru-headquartered Shriram Properties is all set to make a debut on the bourses. The realty major, that had approached market watch dog SEBI in December 2018, has got an approval to launch an IPO with an issue size of about Rs 1,250 crore ($180 million), a PTI report stated.

A further breakdown of numbers (according to its draft papers) show that the IPO will comprise a fresh issue amounting up to Rs 250 crore and an offer for sale of up to 42,403,271 shares by existing shareholders, such as Tata Capital Financial Service and TPG Asia.

The company, that is being advised by Axis Capital, Edelweiss Financial Services, JM Financial, and Nomura Financial Advisory and Securities, is also looking to launch a pre-IPO placement of up to Rs 100 crore, the report further stated.

It is understood that the funds raised will help Shriram Properties repay certain borrowings that it had availed for general corporate purposes.

Mcleod Russel exits Pfunda Tea Company

Kolkata-based company Mcleod Russel India Ltd has decided to exit from Pfunda Tea Company Ltd by selling its existing 45 per cent stake to Scotland-registered Rwanda Tea Investments Ltd, it announced in a stock-exchange filing. The deal size is Rs 54.65 crore ($7.88 million).

McLeod Russel, which had acquired a controlling 90 per cent stake in Pfunda Tea about 5 years ago, divested 45 per cent stake in Pfunda earlier this year in February. Apart from India, Mcleod Russel has a presence in countries such as Uganda and Vietnam, among others. Over the past few years, the company has been divesting its holdings in tea gardens to cut down on its debt.

According to media reports, Mcleod has amassed quite a bit of debt over the years and as on September 2018, it stood at around Rs 1,500 crore.

Rwanda Tea is owned by Kolkata-based Luxmi Tea Company Pvt. Ltd and The Wood Foundation Africa. While Luxmi Tea, which owns the Makaibari brand, owns 75 per cent in the company, the remaining 25 per cent is held by The Wood Foundation.

Sekura, CLP in talks to acquire Kalpataru’s power transmission assets 

Power majors Sekura Energy and China Light & Power (CLP) India have separately evinced interest to acquire the power transmission assets of Kalpataru Power Transmission (KPTL), according to an ET report.  The deal size is estimated to be about $200 million, the reported further added quoting its sources.

While Sekura, that focuses solely on the power sector, is promoted by Edelweiss Infrastructure Yield Plus Fund, CLP is backed by CDPQ.

KPTL is amongst the largest players firmly entrenched in the global power transmission and infrastructure EPC space.