Latest news with #Temasek-backed
Time of India
a day ago
- Business
- Time of India
Lendingkart Finance reports losses, breaches bond covenant for 2024-25
Mumbai: Singapore's Temasek-backed digital lender Lendingkart Finance has reported losses before tax for 2024-25, a development that has triggered a breach of covenant on bonds raised by the company in January 2024, said people with knowledge of the matter. Lendingkart Finance had raised ₹75 crore senior secured two-year bond at 11.25% on January 30, 2024. One of the covenants of the bond is that during the tenure of the bond, the company must post profits before taxes. Having breached this covenant, the fintech sought a waiver from the bondholders last week, said the people. The breach of covenant in this case implies that the bondholders can seek accelerated payments of all their dues or even terminate the credit facility, according to the bond document. Bonds Corner Powered By Lendingkart Finance reports losses, breaches bond covenant for 2024-25 Lendingkart Finance, backed by Temasek, faced losses before tax in 2024-25, breaching a covenant on its ₹75 crore bonds. The company is seeking a waiver from bondholders, who are likely to grant it given the guarantee from Lendingkart Technologies and Temasek's increased stake. Despite the losses and a shrinking loan book, investors are comforted by Temasek's commitment and past investments. India's index-linked bonds see record foreign selling in May on profit-booking, currency swings India bond yields resume decline as all eyes on RBI decision this week JPMorgan CEO Dimon backs US taxing carried interest, warns of bond market trouble Adani Ports taps its largest ever domestic bond - Rs 5,000 crore 15-year NCD Browse all Bonds News with However, the bondholders are likely to waive the covenant since there has been no default in coupon payment, said people in the know. Secondly, these bonds are also guaranteed by the holding company Lendingkart Technologies Pvt Ltd (LTIL), bond documents showed. Besides, investors have the comfort that Fullerton Financial Holding Pte, a wholly-owned subsidiary of Temasek Holdings, has increased its stake in LTIL to 44% from 37% for ₹77 crore. "We remain committed to meeting all our financial obligations in a timely manner," Lendingkart Finance said in response to ET's queries. The unlisted fintech, which specialises in giving unsecured loans to small and medium companies, reported losses before tax of ₹396 crore against a net profit of ₹80 crore a year ago. Live Events Higher provisions on stressed loans and lower revenue from lending resulted in Lendingkart Finance reporting a net loss of ₹288.3 crore for 2024-25, a sharp reversal from its ₹60 crore net profit in the previous financial year. Its loan book shrank 35% to ₹1,382.3 crore while provisions on bad loans doubled to ₹523.5 crore from ₹256.3 crore during this period. Agencies Lendingkart Finance's tier 1 ratio declined to 22% in September 2024 from 34% in March 2024 after the Reserve Bank of India stated that the first loss default guarantee (FLDG) provided to the co-lending partners has to be deducted from tier 1 capital, according to a rating report by ICRA . The FLDG provided by the company stood at ₹172 crore at the end of September 24, the report said. The investors include Harshvardhan Lunia, a co-founder of Lendingkart Group, Fullerton, Saama Capital, Mayfield India, India Quotient, Bertelsmann India Investments, Sistema Asia Fund and Darrin Capital Management. In October 2024, Temasek issued a ₹150 crore standby letter which Lendingkart Finance can draw down to meet any financial commitments. The group has received investment of ₹799 crore from Fullerton since October 2019.
Economic Times
a day ago
- Business
- Economic Times
Lendingkart Finance reports losses, breaches bond covenant for 2024-25
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Singapore's Temasek-backed digital lender Lendingkart Finance has reported losses before tax for 2024-25, a development that has triggered a breach of covenant on bonds raised by the company in January 2024, said people with knowledge of the Finance had raised ₹75 crore senior secured two-year bond at 11.25% on January 30, 2024. One of the covenants of the bond is that during the tenure of the bond, the company must post profits before breached this covenant, the fintech sought a waiver from the bondholders last week, said the people. The breach of covenant in this case implies that the bondholders can seek accelerated payments of all their dues or even terminate the credit facility, according to the bond the bondholders are likely to waive the covenant since there has been no default in coupon payment, said people in the know. Secondly, these bonds are also guaranteed by the holding company Lendingkart Technologies Pvt Ltd (LTIL), bond documents investors have the comfort that Fullerton Financial Holding Pte, a wholly-owned subsidiary of Temasek Holdings, has increased its stake in LTIL to 44% from 37% for ₹77 crore. "We remain committed to meeting all our financial obligations in a timely manner," Lendingkart Finance said in response to ET's queries. The unlisted fintech, which specialises in giving unsecured loans to small and medium companies, reported losses before tax of ₹396 crore against a net profit of ₹80 crore a year provisions on stressed loans and lower revenue from lending resulted in Lendingkart Finance reporting a net loss of ₹288.3 crore for 2024-25, a sharp reversal from its ₹60 crore net profit in the previous financial year. Its loan book shrank 35% to ₹1,382.3 crore while provisions on bad loans doubled to ₹523.5 crore from ₹256.3 crore during this Finance's tier 1 ratio declined to 22% in September 2024 from 34% in March 2024 after the Reserve Bank of India stated that the first loss default guarantee (FLDG) provided to the co-lending partners has to be deducted from tier 1 capital, according to a rating report by ICRA . The FLDG provided by the company stood at ₹172 crore at the end of September 24, the report said. The investors include Harshvardhan Lunia, a co-founder of Lendingkart Group, Fullerton, Saama Capital, Mayfield India, India Quotient, Bertelsmann India Investments, Sistema Asia Fund and Darrin Capital October 2024, Temasek issued a ₹150 crore standby letter which Lendingkart Finance can draw down to meet any financial commitments. The group has received investment of ₹799 crore from Fullerton since October 2019.
Mint
4 days ago
- Business
- Mint
Temasek backed Cloudnine leads race to acquire ART Fertility for $400 mn
Mumbai: Temasek-backed Cloudnine Hospitals is leading the race to acquire Art Fertility, a UAE-based IVF treatment chain, signalling a growing interest among financial and strategic investors for single-specialty healthcare companies. The deal, valuing Art Fertility at $400 million, has also seen interest from IVI, a European strategic investor, four people with knowledge of the development said on the condition of anonymity. 'The binding bids have come in. There are two final bidders. Cloudnine is likely the frontrunner," the first person cited above said. The deal will give existing investor Gulf Capital an exit. Also read: Temasek, ADIA race to invest up to $300mn in medical equipment firm Micro Life 'Temasek is expected to double down on its investment in Cloudnine to help the company fund the acquisition," the people cited above said. 'The acquisition involves ART Fertility's entire business, comprising Middle Eastern and Indian divisions." Investment bank Moelis & Co. is running the mandate for the transaction. While spokespersons for Temasek and Moelis declined to comment, queries emailed to Cloudnine, ART Fertility and Gulf Capital did not elicit any response. Temasek's new capital infusion comes less than a year after the Singapore government's investment arm bought nearly a 20% stake in Bengaluru-based Cloudnine for around $125 million. The deal, which valued the specialist mother and baby care hospital at around $600 million, gave early-stage venture capital firm Peak XV an exit from the company after 11 years. Founded in 2006 by Dr. R Kishore Kumar, Rohit M.A., M. Ramachandra and Vidya Kumar, Cloudnine is a chain of super-specialty hospitals catering to fertility, maternity care, gynaecology, paediatrics, neonatology, baby care and stem cell banking. Currently, it has 34 centres across Indian cities, including Bengaluru, Delhi, Mumbai, Pune, Chennai, Gurgaon, Ludhiana and Chandigarh. Twelve of the centres are in Bengaluru. Also read: Bain held on to Emcure after the IPO. Here's what's next. ART Fertility was established as an extension to IVI RMA Global, a company focused on assisted reproduction technology (ART), in 2015 under the brand name IVI Middle East. About five years later, Gulf Capital bought IVI RMA's stake and rebranded the company to ART Fertility. For Cloudnine, the acquisition comes at a time when it's realigning its cap table ahead of a public listing that is expected later this year. This would be the hospital chain's second attempt at an initial public offering (IPO). In 2022, it had filed draft papers for a ₹1,200 crore IPO. Cloudnine will leverage ART Fertility's presence in Abu Dhabi, Al Ain and Dubai, alongside 11 clinics across India in cities including Delhi, Chennai, Mumbai and Ahmedabad. Its clinics have seen a swift expansion to become one of the leading players in the Middle East and the Indian subcontinent, with plans to extend services further across the globe, Gulf Capital said in a statement in November 2023. Kids Clinic India Ltd, which operates Cloudnine, reported a consolidated revenue of $145.3 million in FY24 as compared with $119.8 million a year earlier. It narrowed its losses to $3.4 million from a loss of $5.3 million in FY23, according to data from Tracxn. Also read: Dialysis chain NephroPlus engages bankers for a $200-250 mn IPO ICRA noted last year that Kids Clinic will benefit from healthy revenue growth on a steady ramp-up at the existing centres and improving revenue share from new centres. The diversification of its presence across various parts of northern, western and southern India, coupled with plans to set up more units in metros and tier I cities, will also add to its growth. With continuous expansion in recent years resulting in a sizable loss from new centres, its return on capital employed (ROCE) has been low in FY23 and FY24, ICRA said in the note. However, a robust scale of operations, gradual improvement in profit margins of new centres and stable margins of existing areas will support the improvement in ROCE over the medium term, the credit rating firm said.
Business Times
27-05-2025
- Automotive
- Business Times
Denso in talks to buy Temasek-backed seed maker for US$500 million
[TOKYO] Denso is in final talks to buy a Temasek-backed seed supplier for around US$500 million, as the Japanese vehicle parts supplier deepens its expansion into the agriculture sector, sources familiar with the matter said. Singapore investment firm Temasek, which owns almost half of Axia Vegetable Seeds Group, is set to generate a profit from the sale, the sources said, asking not to be identified because the negotiations are private. Representatives for Denso and state-owned Temasek declined to comment. Netherlands-based Axia did not immediately respond to a request for comment made outside of normal office hours. A purchase would align with Denso's ambition to become a key supplier of industrialised greenhouses capable of producing food in any climate. The company is seeking to generate 20 per cent of its revenue from 'new value business' including food and agriculture, it said in 2023. The auto business currently accounts for more than 98 per cent of its revenue, according to data compiled by Bloomberg. Denso acquired greenhouse maker and horticultural solutions provider Certhon Build BV in 2023, and has been developing robots able to pick fruits and vegetables such as tomatoes. It has said its share of the 700 billion yen (S$6.3 billion) market for greenhouses and adjacent segments is only about 2 per cent, with room to grow. For Temasek, Axia is the latest in a series of asset sales involving its investees and subsidiaries. Axia also sold its open-fields seeds business to India's Namdhari Seeds earlier this year. Olam Group, a Temasek-owned food and agriculture trader, agreed to sell a controlling stake in its agribusiness unit to Saudi Agricultural & Livestock Investment in a US$1.8 billion deal in February. BLOOMBERG
Mint
26-05-2025
- Business
- Mint
Warburg bet on this company three years ago. Now Temasek, ADIA are lining up.
Warburg Pincus-backed Micro Life Sciences Pvt. Ltd is in advanced talks to raise capital from Singapore's Temasek Holdings and the UAE's Abu Dhabi Investment Authority (ADIA) ahead of a planned initial public offering (IPO), three people aware of the development said. 'The current funding round is expected to be around $250-300 million," one of the people cited above said. The company is likely to go public over the next 12-18 months, the second person added. 'The (valuation) ask is around ₹65,000 crore, which is more than 40 times its Ebitda," the third person said, adding the company reported an earnings before interest, tax, depreciation and amortization or Ebitda of around ₹1,300 crore in FY25. All three people spoke on the condition of anonymity. Also read | Temasek-backed Manipal Health eyes a $1 bn IPO, calls banker pitches Temasek, ADIA, and Warburg Pincus declined to comment on Mint's queries, while a response from Micro Life was unavailable until press time. The Vapi, Gujarat-based Bilakhia family founded Micro Life Sciences in 2006. The company has multiple subsidiaries, with the most prominent being Meril Life Sciences. The Bilakhia group, founded by Gafurbhai Bilakhia, is now managed by his three sons, Yunus Bilakhia, Jakir Bilakhia and Anjum Bilakhia. The company operates in healthcare, investment and real estate through its subsidiaries. Individually evaluating 'Investment firms are individually evaluating, and bids are likely to go in next month," the third person added. At a valuation of ₹65,000 crore, Warburg Pincus, which invested $210 million in Micro Life three years ago at a valuation of over $1.8 billion, may be sitting on a fourfold gain in its investment. 'At that value, only a sovereign fund or a state-backed investor can do a deal, given their cost of capital is low," the third person said. Also read | IDFC First Bank to raise ₹7,500 crore from Warburg Pincus, ADIA Meril, a key subsidiary of Micro Life, makes coronary stents, peripheral stents, balloon catheters, and heart valves. Micro Life Sciences reported a total income of ₹3,495 crore in FY24, against ₹2,359 crore in FY23, according to a Care Ratings report dated 8 October, 2024. It reported a profit after tax of ₹333 crore in FY24, against ₹505 crore in FY23. Profit in FY23 included a 'fair value gain of ₹298 crore from the derecognition of JV investment,' Care Ratings said. 'In terms of sales mix, in FY24, Micro earned ~40% of its revenue from cardiac implants (major products: stents, balloon and heart valves), 40% from orthopaedic implants (major products: knee implants, hip implants, and surgical robots) and 10% each from the diagnostic segment and the surgical segment (major products: sutures and mechanical closures)," the note said. The report added that in some segments, the company saw 'stable to marginally higher sales realization", leading to better gross margins. Micro's gross margins improved to 72.80% in FY24 from 64.64% in FY23 on better product mix. Arms in 25 countries The Micro group has subsidiaries in more than 25 countries including Germany, Turkey, the US, Russia, South Africa, Brazil, Bangladesh, Australia, China, and the UK. The company sells its products in over 100 countries directly and through its overseas subsidiaries, with export sales realization being much higher than domestic. Also read | Haldiram's confirms stake sale to IHC, Alpha Wave Global post Temasek deal The Indian medtech ecosystem has seen tremendous investor interest in recent years. In 2024, KKR won a bidding war to acquire Healthium from Apax Partners, while Warburg Pincus invested over $300 million in Appaswamy Associates. Morgan Stanley Private Equity Asia invested ₹1,000 crore in Maiva Pharma, an injectables maker.
