Blackstone to acquire stake in Ramoji Group

MUMBAI: The US-based private equity fund Blackstone Group is close to buying 26% stake in Hyderabad-based Ramoji group's Ushodaya Enterprises for $150 million, a source said. Ramoji group runs Asia's biggest film studio, a 12-channel TV network, the country's bestselling Telugu newspaper and South India's biggest chit fund.
The transaction, if it goes through, reflects the growing appetite of foreign funds investing in India, the world's third-fastest growing economy.This would be Blackstone's second investment after the launch of its private equity business in India in the middle of last year. The firm, which invested $50 million in Pune-based Emcure Pharmaceuticals in July, has earmarked $1 billion for India.
When contacted G Srinivas, company secretary of Ushodaya Enterprises said,"We are in the process of exploring ways and means to unlock value in the company. However, as of now, there is no such proposal." Akhil Gupta, chairman and managing director of Blackstone India declined to comment on the matter.
The Ramoji group plans to use the money raised through the proceeds to fund expansion plans of the Rs 750 crore UEL, which publishes Eenadu newspaper, ETV network and pickles business Priya Foods. The group also owns Ramoji Film City, a sprawling film-making complex in Hyderabad, and runs a chain of hotels under the Dolphin brand.
The Ramoji group's roots lie in finance business, Margadarsi Chit Funds, which is going through a rough patch with RBI asking it to stop accepting deposits from the public as it was an unincoporated entity owned by a Hindu undivided family.