Private Equity key deals:
Flipkart raised $1.2 billion from Wallmart led investor group:
Flipkart group raised $1.2 billion from Wallmart led existing Investors in July valuing the company at $24.9 billion post money. Amount will be funded in two tranches in the fiscal year. In 2018, Wallmart Inc invested $16 billion for majority stake in Flipkart. The investment comes at the time when Flipkart and Amazon, existing players of E-commerce space are looking at fierce competition by the entry of JioMart, E-commerce platform of RIL, JIO Platforms Ltd.
Google invests in RIL JIO Platforms Limited
Further to our last month’s detailed analysis of PE investments in JIO platforms Limited, the Google LLC and RIL Jio Platforms on 15th July announced the signing of binding agreements for an investment of ₹ 33,737 crore by Google into Jio Platforms. This investment by Google values Jio Platforms at an equity value of ₹ 4.36 lakh crore. Google’s investment will translate into a 7.73% equity stake in Jio Platforms on a fully diluted basis. With this, the total investment from financial and strategic investors into Jio Platforms stands at ₹ 1,52,056 crore (Over $20 Billion).
Merger & Acquisitions key deals:
KKR to Acquire J.B. Chemicals & Pharmaceuticals
Private Equity Fund KKR announced in July 2020 that it has entered into a definitive agreement purchase a controlling stake in J.B. Chemicals & Pharmaceuticals Ltd. KKR will make the investments through its three funds and will acquire 54% stake from founding Mody family of J. B. Chemicals at Rs. 745 per share, a premium of 4% over its last closing BSE Price, for approx. Rs. 3200 Crore. Further KKR will, in accordance with Regulation 3(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 norms, make an open offer for an additional 26% of the company.
J.B. Chemicals is an Indian pharmaceutical company supplying products to more than 40 countries in the cardiac, gastrointestinal and anti-infective therapeutic areas across the branded formulations market. The Company’s portfolio includes four flagship brands in India, Cilacar, Metrogyl, Nicardia and Rantac. KKR is a global Investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.
Flipkart to buy a significant minority stake in Arvind Youth brands
Flipkart group has invested Rs. 260 Crore to purchase significant minority stake in Arvind Fashion Limited’s recently formed subsidiary Arvind Youth Brands which owns the Flying Machine brand. The flying machines is a 40 year old leading denim brand in India. The investment aims to grow the Arvind youth brand’s product portfolio and enhance its brand equity.
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