CG Power to sell non-core assets, raise fresh equity
The board of Gautam Thapar-promoted CG Power and Industrial Solutions Ltd is considering selling non-core assets and exploring various fundraising avenues to deleverage the company and optimize its operations, Mint reported. In an investor presentation, the board said it is evaluating divestments of non-core assets, including the sale of the Kanjurmarg land and CG House, where its headquarter is located. The board is also considering other fundraising avenues, including an equity raise for bridging cash flow gaps and meeting working capital requirements to avoid business disruption. It is also reviewing its international operations which span Europe and South-East Asia (SEA). CG Power’s stock crashed 20%, the maximum permissible daily limit for the stock, on 20 August after its board disclosed that it has found “suspect” transactions that have led to significant understatement of the company’s liabilities and advances to related and unrelated parties. CG Power’s stock has crashed 80% since January to ₹9.70 apiece on Tuesday.
Rapido raises funds in fresh round led by WestBridge
Bike taxi startup Rapido has raised around ₹400 crore in a round led by WestBridge Capital. New investors, Alibaba’s BAce Capital and Shunwei Capital, have also participated in the round, along with existing investor Nexus Venture Partners, shows regulatory filings with the ministry of corporate affairs, sourced from Paper.vc. Founded by Rishikesh S.R., Pavan Guntupalli and Aravind Sanka in 2015, Rapido operates in 13 cities. The firm had raised $10 million in January in a round led by Nexus and Integrated Capital. Mint reported on 13 August that Rapido is in talks to raise $50 million in a round led by WestBridge. The investment comes at a time when mobility startups have been garnering strong investor interest. Micro mobility firms, such as Bounce and Vogo, are also in the process of raising funds.
DSG Consumer Partners closes $65 million third fund
Early stage consumer-focused investor DSG Consumer Partners has closed its third venture capital fund at $65 million, said two people aware of the matter, requesting anonymity. Mint reported on March 31st that it had marked the first close of the fund, then planned at $50 million, at $30 million. DSG had raised its first venture capital fund of $24 million in 2012 and followed it up with a $50 million fund in 2017. It is known for making early bets on hotel chain start-up Oyo Rooms, point-of-sale (POS) services provider MSwipe and Raw Pressery cold-pressed juices. The third fund will invest in seed and Series A rounds of $500,000 to $2 million, and will invest a maximum of 15% of the fund in any one company In addition to the third fund, DSG is also raising its second add on fund- a fund dedicated to backing the best companies from its own portfolio, as they raise Series B rounds and beyond. Along with the third fund’s close, it has also marked the first close of its add-on fund at $35 million.
TPG in early talks to buy Coffee Day Global
Private equity firm TPG is in preliminary discussions on a possible acquisition of Coffee Day Global Ltd, which owns the Café Coffee Day (CCD) chain founded by the late VG Siddhartha, The Economic Times reported citing two people familiar with the development. However, talks are still at an exploratory stage and may not lead to a transaction. The proposed transaction is expected to value the coffee chain between ₹3,500 and ₹4,000 crore. The transaction will not include its vending machine business. The late entrepreneur had been seeking a valuation of ₹8,000 to 10,000 crore. Listed CDEL owns nearly 89.6% of Coffee Day Global, which houses a chain of about 1,750 stores across India, nearly 600 Value Express kiosks and 60,000 vending machines that dispense coffee in corporate workplaces and hotels under the brand. The divestment is aimed at making the group debt free and also releasing some cash for the promoter’s family. Earlier this month, CDEL had announced that gross debt on its books was ₹4,970 crore. In addition, there is some debt in the promoter’s holding company. The family owns about 54% of CDEL; 75.7% of the stake has been pledged. Coffee Day Global has debt of about ₹1,100 crore.