Weekly Finance and Economic News

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Top Headlines
Omni Hospitals gets $10M funding from ASK Pravi
IFC invests $2.3M in education finance firm Avanse.
Micromax co-founder Rajesh Agarwal arrested by CBI on bribery
charges.
Aavishkaar makes final close of second venture fund at $94M.
Indiabulls Housing Finance buys back Amaprop’s 42.5% stake in
subsidiary for $42.5M
JSW Energy eyes acquisition of power units after putting on hold
new projects
DLF in talks with PEs and international hotel operators for Aman
Resorts sale.
Indiareit marks interim close of sixth domestic fund at $50M
Inside The Story
Omni Hospitals gets $10M funding from ASK Pravi
ASK Pravi, a joint venture between ASK Group and Pravi Capital, has invested $9.8
million (Rs 60 crore) in Hyderabad-based Omni Hospitals for a significant minority
stake. Through this funding, Omni Hospitals plans to expand operations to south and east
India.The company, which is promoted by INCOR Group, operates two hospitals located
at Hyderabad and Visakhapatnam at present. INCOR Group, which has interests in real
estate, IT and infrastructure apart from healthcare, is founded by Anand Reddy Gummadi
and Surya Reddy Pulagam.
IFC invests $2.3M in education finance firm Avanse
IFC, a member of the World Bank Group, is investing $2.3 million (Rs 14 crore) as
equity in start-up firm Avanse Financial Services Pvt Ltd to expand its ability to provide
loans to Indian students pursuing higher education in India and overseas. Avanse is an
associate company of Dewan Housing Finance Corporation Ltd.IFC’s investment could
help Avanse extend education loans to an estimated 90,000 students over seven years. In
addition to providing start-up capital, IFC will advise Avanse to strengthen its credit
appraisal and underwriting processes, and risk management systems.

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Micromax co-founder Rajesh Agarwal arrested by CBI on bribery
charges.
Rajesh Agarwal, co-founder of Gurgaon-based mobile handset firm Micromax
Informatics Ltd, and Manish Tuli, a senior official of the company, have been arrested by
the Central Bureau of Investigation (CBI) on alleged graft charges, according to a report
published in the Times of India. The CBI issued an official release regarding the matter,
but it refrained from naming Aggarwal and Tuli. Instead, they have been mentioned as
‘owner and partner’ of a Gurgaon-based private firm.We have contacted the company
and are awaiting its official response in the matter. Keep track of this space as we keep
updating the story and bring you the latest developments.
Aavishkaar makes final close of second venture fund at $94M.
Aavishkaar Venture Management, a venture capital firm focused on India’s rural areas
and bottom-of-the-pyramid (BoP) space, has made the final close of its second venture
capital fund Aavishkaar India II Company Ltd at $94 million. The venture fund, aiming
to invest in underserved India, got lead investments coming from Kfw (the German
Development Bank), Impact Investment Trust and other institutional
investors.Aavishkaar India II’s predecessor raised $14 million in January 2009 and the
larger second fund will ensure that the firm will be able to write bigger cheques and
invest across various stages of its portfolio companies.
Indiabulls Housing Finance buys back Amaprop’s 42.5% stake in
subsidiary for $42.5M
Indiabulls Housing Finance Ltd has acquired the entire 42.5 per cent holding of Amaprop
Ltd in its subsidiary, Indiabulls Finance Company Pvt Ltd for Rs 260 crore ($ 42.5
million), as per a market disclosure.With the buyback, Indiabulls Finance has become a
wholly owned arm of Indiabulls Housing Finance, one of the largest private housing
finance firms in the country. Indiabulls Housing Finance has a loan book of Rs 37,000
crore (having grown at a CAGR of 26 per cent in the last five years).

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JSW Energy eyes acquisition of power units after putting on hold
new projects
Having put on hold all new projects due to the policy and regulatory uncertainties in the
power sector, Sajjan Jindal-led JSW Energy is now eyeing acquisition of distressed assets
to grow its portfolio. The only project it plans to go ahead with is the 240 mw-hydro
power project in Kutehr, Himachal Pradesh. The company has seen a few proposals but
valuations are still high for these distressed projects. The firm would like to acquire a
project of 500 mw or above as looking at adding scale to our generation.
DLF in talks with PEs and international hotel operators for Aman
Resorts sale.
India's largest real estate firm DLF Ltd., has ended its "exclusivity contract" to sell luxury
hotel chain Aman Resorts to the original owner and founder Adrian Zecha and has begun
talks with a clutch of private equity funds and international hotel operators, which
includes Blackstone and Carlyle. DLF had announced the sale of its luxury hotel chain
Aman Resorts for Rs 1,650 crore to the Indonesian hotelier Zecha in December 2012 as
part of the company's non-core asset sale strategy to reduce its debt that had crossed the
INR 23,000-crore mark. The original deadline of the deal was February 2013, which was
extended to June 30. But when the buyer was unable to close the deal, the company
decided to begin talks with other players. The company had expected its debt to come
down to INR 18,500 crore by the end of March 2013 with the closure of the Aman
Resorts deal as well as the sale of its wind power assets.
Indiareit marks interim close of sixth domestic fund at $50M
Indiareit Fund Advisors, the real estate private equity arm of Piramal Enterprises, has
marked an interim close of its sixth domestic real estate fund at Rs 300 crore.The
Domestic Scheme V of the fund has a targeted corpus of Rs 1,000 crore, and the scheme
is the sixth in the series of funds raised by Indiareit which manages and advises a total
corpus of Rs 4,343 crore across five earlier funds and two third-party mandates.The fund
is targeting structured returns and it has an equity trigger option too.

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