SoftBank invests at least $2.5 bn in Flipkart; biggest ever investment in Indian internet space

Flipkart said the SoftBank investment, which is the biggest-ever private investment in an Indian technology company, will make the Vision Fund one of the largest shareholders in the online retailer. Photo: Hemant Mishra/Mint

India’s largest Internet firm Flipkart Ltd has raised a fresh round of capital from SoftBank Vision Fund—$2.5 billion, three people said—increasing the company’s cash reserves to more than $4 billion, which will help in its battle against arch-rival Amazon India.

Flipkart didn’t disclose the amount but said that the SoftBank investment comprises a mix of primary (investment in the company) and secondary capital (purchase of shares from existing shareholders).

The three people, who asked not to be identified, said the investment was at least $2.5 billion.

Mint had reported earlier that SoftBank would invest more than $1.5 billion in Flipkart by putting in fresh capital and buying shares from Tiger Global Management, Flipkart’s largest shareholder.

The SoftBank investment, which has been reported by Mint and other publications for months, comes after Flipkart’s proposed takeover of Snapdeal, SoftBank’s portfolio company, collapsed last week.

“This is a monumental deal for Flipkart and India. Very few economies globally attract such overwhelming interest from top-tier investors. It is recognition of India’s unparalleled potential to become a leader in technology and e-commerce on a massive scale. SoftBank’s proven track record of partnering with transformative technology leaders has earned it the reputation of being a visionary investor,” Flipkart co-founders Binny Bansal and Sachin Bansal said in a joint statement.

Flipkart said the SoftBank investment, which is the biggest-ever private investment in an Indian technology company, will make the Vision Fund one of the largest shareholders in the online retailer.

The investment is part of the latest financing round into Flipkart, which had raised $1.4 billion from Tencent, eBay and Microsoft in April.

“We want to support innovative companies that are clear winners in India because they are best positioned to leverage technology and help people lead better lives. As the pioneers in Indian e-commerce, Flipkart is doing that every day,” said Masayoshi Son, chairman and CEO of SoftBank Group Corp.

The investment will likely make SoftBank the largest investor in Flipkart.

Source:-livemint

JSW Steel plans to raise up to $2 bn from foreign investors

Sajjan Jindal-led JSW Steel will approach shareholders to raise up to $2 billion from global capital markets to meet its long-term capex requirement and loan refinancing, among others.

The steelmaker will place the enabling resolution before its shareholders next month, the company said in a regulatory filing. It is in the interest of the company to raise long-term resources with convertible option so as to optimise capital structure for future growth, it said.

“The proceeds of the issue will be used for long-term funding to meet the planned capital expenditure and for other corporate purposes, including refinancing of expensive debt to reduce interest costs and to meet any unlikely shortfall in unforeseen circumstances,” it added.

The firm said it intends to raise additional long-term funding through issuance of non-convertible foreign currency denominated bonds not exceeding $2 billion in aggregate in the international capital market.

The firm can also opt for issue of shares and/or fully convertible debentures/partly convertible debentures/optionally convertible debentures/non-convertible debentures along with warrants and/or convertible securities other than warrants convertible into equity shares.

These will be issued to eligible qualified institutional buyers, in one or more tranches, through a qualified institutions placement not exceeding a sum of Rs 4,000 crore, it added.

Explaining the rationale behind the fund raising, JSW Steel said the Indian economy is poised for robust growth backed by strong macroeconomic factors and government’s pro-growth policies.

“The company has just completed its present brownfield expansion to reach 18 million tonne per annum (MTPA) capacity. It has a strategic vision to reach 40 MTPA capacity by 2025 with significant investment in mineral resources i.e. iron ore and coal,” it added.

Kanye West requests Facebook’s Mark Zuckerberg for $1 bn investment

After talking about his personal financial problems on Twitter, Kanye West took to the social networking platform again to talk about the $1 billion request, reports femalefirst.co.uk. (AP)

Rapper Kanye West has asked Facebook founder Mark Zuckerberg to invest $1 billion in his “ideas”, shortly after claiming that he is $53 million in debt.

After talking about his personal financial problems on Twitter, West took to the social networking platform again to talk about the $1 billion request, reports femalefirst.co.uk.

“Mark Zuckerberg invest $1 billion into Kanye West ideas…after realising he is the greatest living artist and greatest artist of all time,” read the post.

Before the post, West’s net worth was thought to be around $100 million.

The 38-year-old has two children daughter named North West and a month old son, Saint West with reality TV star Kim Kardashian.

[Source:- Financialexpress]