PE firm Avigo plans to sell stake in Spykar Lifestyle
Private equity firm Avigo Capital Partners has initiated talks with a host of buyout funds and strategic players to sell its 40 percent stake in denim maker Spykar Lifestyle. Avigo is looking at a deal size of about Rs 80 crore, which puts the valuation of the Company at around Rs 200 crore. The Company sales slowdown after the global financial meltdown and it missed the deadline it had set to tap the capital market in 2009. Spykar is privately held company that makes Jeans, T-shirts and other casual wear and accessories for men and women. Spykar currently has over 1,000 retail points which includes about 140 large formats and 275 exclusive brand outlets. As much as 60 percent of its sales come from exclusive brand outlets.
As per textile industry experts, apparel makers are set to attract private equity interest as investment in the sector are backed by accelerating economic growth and higher middle-class spending. The Indian apparel market is currently pegged at Rs.32,000 crore and growing at 15-20 percent annually.
SBI to set up 600 financial inclusion centres
State Bank of India has decided to set up 600 financial inclusion centres across the country, to give back-end support to business correspondents operating in rural areas and also exercise administrative control on them. The move to set up FICs is aimed at powering the bank's drive to reach basic and affordable banking services to 12,421 out of the 72,315 unbanked villages having a population of over 2000 for each village.
According to the Government and the Reserve Bank of India's directive, banks, especially from the public sector, have to ensure that all identified villages have appropriate banking services by Mar-end 2012. These services have to be provided using the business correspondent (BC) and other models with appropriate technology back-up. Each FIC will support and control 25 BCs. India's biggest lender has marshalled the services of 14,000 odd BCs, including those working with third-party technology service providers, for fulfilling its financial inclusion mandate. By Mar-end 2011, SBI will have 300 FICs. Last month, the bank set up 22 FICs in Andhra Pradesh and four in the National Capital Region. Overall, it will establish 600 FICs by Mar-end 2012.
India to grow by 8.8 percent, inflation a concern: IMF
The International Monetary Fund (IMF) expects Indian economy grow by 8.8 percent during the current financial year, up from 7.4 percent a year ago. This mainly driven by robust growth in farm sector and pick up in consumption. Indian economy is projected to grow by 8.8 perecnt in 2010-11. This year's growth is already benefiting from the rebound in agriculture and pick up in private consumption and employment prospects have improved and disposable income continues to rise. IMF has projected moderation in growth form the current high levels to 8.1 percent next fiscal. IMF said, the RBI could take more monetary steps to contain inflationary expectations.
Unitech promoters infuse Rs 380 crore to increase stake
Unitech promoters pumped Rs 380 crore into the company in December to convert the last tranche of warrants held by them into equity, which increased their stakeholding to 48.58 percent. Unitech is a widely held company with over 600,000 shareholders. FIIs' holding in the company stands at 34.2 percent and remained constant during the previous quarter.
(An article by DAS CAPITAL MANAGEMENT AND ADVISORS Pvt Ltd)