Four-S Private Equity Track

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1 Four-S Private Equity Track Issue: 16 th Dec 21 st Dec 2013 Your Eye to Indian Private Equity PE activity for the week The year 2013 has so far aggregated $7.86 bn of PE investments across 504 deals compared to $8.12 bn (472 deals) during the same period last year. During the week ended 21 st December, there were 21 PE/VC deals worth $329.0 mn compared to 15 deals worth $48.0 mn in the previous week. The largest disclosed transaction during the week was by AION Capital Partners investing $150.0 mn in Avantha Holdings. Private Equity: Investment Summary during the week , ,128 7,862 YTD 2011 YTD 2012 YTD 2013 PE Investments ($mn) YTD (from Jan 01 to 14 th December) No. of Deals Investor (s) Target Stake (%) Equity ($Mn) Type of Deal Sector Industry Segment AION Capital Partners Avantha Holdings NA Growth Manufacturing Diversified Diversified Uniquest Infra Ventures SEW Navayuga Barwani Tollways Growth Construction Construction & allied activities CPCI Mauritius Indusind Bank Ltd NA 20.3 PIPE Banking Banking CDC Group Equitas Holdings NA 16.0 Growth NBFC Micro Finance Bertelsmann Online India Property Online Pvt NA 12.0 Growth Property Ltd Search Sequoia Capital Wildcraft India NA 11.7 Growth Manufacturing Retail Accessories SAIF Partners Speciality Restaurants PIPE Retail Restaurants Asia Participation BV Qualcomm Ventures, Sabeer Bhatia Ltd Electronic Payments and Deck App Technologies NA 5.5 Growth Misc. services NA 0.6 Early IT/ITeS Roads ATM Outsourcing Acumen Fund, Michael & Susan Dell Foundation LabourNet India NA NA Growth Education Vocational Persistent Venture Fund DxNow Inc NA NA Early IT/ITeS Software Kae Capital and Mumbai Angels Squeakee Media NA NA Early IT/ITeS Ennovent, Ankur Capital ERC Eye Care NA NA Growth Healthcare Eye Care

2 Unitus Seed Fund Welcare Health Systems NA NA Growth Healthcare Eye Care IAN Impact Gocoop Solutions NA NA Early IT/ITeS India Quotient, Startup Superfuel, Others Bain Capital SEAF India Agribusiness Fund Relevant E-solutions Pvt Ltd Emcure Pharmaceuticals Madhya Bharat Phosphate NA NA Early 13.1 NA Growth Manufacturing NA NA Growth Manufacturing Chemical & Allied Chemical & Allied Online Pharmaceutical Fertilizer Gaurav Burman itbit Pte Ltd NA NA Early IT/ITeS Bitcoin exchange Carlyle Group Global Health 28 NA Growth Healthcare Hospital Quadria Capital, DEG, Swedfund Medica Synergie NA NA Growth Healthcare Hospital Source: Four-S PE Database AION Capital invests in Avantha Holdings AION Capital Partners, a special situations investor, has invested around $150 mn in the holding company of Gautam Thapar-promoted Avantha Group. AION is a JV between Apollo Global Management and ICICI Venture. The funds will be used by the $4 bn group, whose companies include paper maker Ballarpur Industries Ltd and electrical appliances maker Crompton Greaves, to repay debt and release pledged shares of the promoters. As a part of the transaction, Kalpesh Kikani, managing director at AION Capital, has joined Avantha Holdings board. Uniquest Infra acquires stake in SEW Navayuga Barwani Tollways Hyderabad-based SEW Infrastructure along with Navayuga Engineering Company is divesting 67% stake in Khalghat road project, SEW Navayuga Barwani Tollways Private Ltd to Uniquest Infra Ventures to raise liquidity for the estimated $130 mn project. The road project was taken up in JV by two companies SEW Infra and Navayuga Engineering holding 74% and 16%, respectively. CPCI Mauritius invests in IndusInd Bank CPCI Mauritius acquired lac shares of IndusInd Bank at Rs 414 from Ashok Leyland and IDL Specialty Chemicals on BSE valuing the transaction at $20.3 mn. IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. Equitas Holdings gets investment from CDC Group Chennai based Equitas Holdings Private Limited has received an equity investment of $16 mn from UK s development finance institution, CDC Group. The investment from CDC would help Equitas boost its growth plans, expand its reach to more unbanked customers with a wider range of services. The investment from CDC which is part of a financing package of $36 Mn that includes additional funding from FMO (the Dutch DFI) and other investors. IndiaProperty raises series B from Bertelsmann Real estate online portal IndiaProperty.com has raised $12 mn in Series B round of funding led by Bertelsmann, with participation from existing investors Canaan Partners and Mayfield Fund. The company plans to use the proceeds to improve technology to accommodate more home searchers on its Website, widen in brand reach, and expand into tier-ii markets. Wildcraft gets investment from Sequoia Capital Sequoia Capital has invested $11.7 mn in the outdoor gear retail chain Wildcraft. The funds will be used to increase its production capacity over the next four years. Wildcraft started in 1992 by Dinesh KS is today an internationally recognized brand. It manufactures outdoor gear like rucksacks, backpacks, travel gear, camping gear, tents, sleeping bags, camera bags and accessories. The Bangalore-based retailer has 41 exclusive stores across the country. SAIF Partners raises stake in Speciality Restaurants Multi-stage investor SAIF Partners has increased its holding in fine dining chain operator Speciality Restaurants, buying approximately 3.2% from the markets on Monday. SAIF Partners picked up the stake from Glix

3 Securities, another pre-ipo investor for around $3.0 mn. With this purchase, SAIF holds 13.84% stake in Speciality Restaurants. EPS raises funds from Asia Participation BV Mumbai based E-Payment processing firm Electronic Payment Service (EPS) has raised $5.5 mn from Netherland s fund Asia Participation BV. This is the second round of funding that EPS has received this year. In August, the company had received an investment of $6.0 mn from Aavishkar Capital. Electronic Payment Service (EPS) helps in developing and implementing Banking and financial Infrastructure for electronic banking and payments for the banks and its customers. The company manages ATM operations for public sector banks in Maharashtra, including their installation and maintenance. Qualcomm Ventures, Sabeer Bhatia invest in Deck App Presentation app maker Deck App Technologies has secured $0.6 mn in its seed round of funding by existing investor Qualcomm Ventures and a group of angel investors led by Sabeer Bhatia, Hotmail co-founder. The company plans to expand its workforce and its presence internationally using the capital infusion. It had last year received funding of $0.1 mn from Qualcomm Ventures in prize money for winning the India Edition of Qualcomm Ventures QPrize in the form of convertible note funding. Carlyle Group invests in Global Health The Carlyle Group has acquired a minority stake in Indian hospital and healthcare provider Global Health Private Ltd. Avenue Capital, which holds a 27.96% stake in the company, was exploring a potential exit from Medanta. Global Health owns Medanta-the Medicity, a superspecialty hospital, in Gurgaon. It provides super-specialty care in cardiology, neurology, gastro, liver transplant and orthopedics with prominent doctors in each field. Madhya Bharat Phosphate gets funding from SEAF Fund Bhopal based fertilizer manufacturer, Madhya Bharat Phosphate has raised an undisclosed amount of funding from SEAF India Agribusiness Fund, an India focused fund investing in agriculture related businesses. The funding which marks the first of its kind PE Investment in the Indian fertilizer sector would be utilized for expanding the company s current capacities as well as for inorganic growth. LabourNet gets funding from Acumen and Michael & Susan Dell Foundation Social venture capital investor Acumen Fund, along with Michael & Susan Dell Foundation which focuses on improving lives of impoverished children through education and health, has invested an undisclosed amount in Bangalore-based LabourNet India. LabourNet provides work- integrated job training to informal sector workers in trades like construction, manufacturing, leather and beauty among others. The company has enabled livelihoods through training for over 50,000 people to date and plans to train over 125,000 workers annually in five years. DxNow gets funding from Persistent Venture Fund Persistent Venture Fund, the investment fund of Pune based IT player Persistent Systems, has made its second investment within a month of its launch in Boston based DxNow, a company which is developing microfluidic and imaging technologies for point-of-care diagnostic solutions. Founded early this year DxNow s products and technologies will be initially applied to applications in renal dialysis diagnostics and later extended male fertility, global health, and rapid detection of microbial species in the environment, contributing to public safety and health in the applied life sciences. Squeakee gets funding from existing Investors Mumbai-based Squeakee announced an additional funding from Kae Capital and Mumbai Angels along with other investors to raise Series A in mid It had raised seed funding from the investors last year. Squeakee is a Location - Aware - Promotion search engine, which understands its users location requirements and helps its users discover the most relevant promotional offers, discounts and specials in & around their locality. Ennovent, Ankur Capital invests in ERC Eye Care Assam-based ERC Eye Care has raised funds form Ennovent Impact Investment Holding and Ankur Capital along with participation from angel investor Sadeesh Raghavan and Ennovent Circle. The company would use the funds for expanding number of vision centres and to launch its first hub hospital. It also aims to further scale ERC s IT systems, telemedicine facilities and its quality standards. Relevant E-Solutions secures Seed funding Relevant E-solutions Private Limited which owns two portals Roposo and Giveter has raised first round of

4 funding from India Quotient, Startup Superfuel, Fashionandyou ex-ceo Pearl Uppal and Flipkart cofounder Binny Bansal. The startup would utilize the investment in building a good tech-fashion team, foster the product & algorithm, and build mobile apps. Unitus Seed Fund invests in Welcare Health System Chennai based affordable eye screening services company, Welcare Health Systems Private Limited has raised an undisclosed amount of funding from seed stage VC fund Unitus Seed Fund. The eyecare solution provider who currently serves in Amritsar and Vijaywada apart from Chennai plans to use the funds to expand its presence across the country. Welcare s solution aims to make eye screening services available to large numbers of diabetics and other high risk low-income patients at a cost they can afford and at a convenient location. GoCoop secures investment from IAN Impact Cooperatives marketplace GoCoop has received an undisclosed amount of funding from IAN Impact, an arm of IAN which invests in ventures which serve the base of the economic pyramid. The investment which was led by IAN member Nagaraja Prakasam will be utilized to further develop the company s platform and boost its marketing efforts. Founded in 2011 by Siva Devireddy, a former executive of Accenture, GoCoop serves as a marketplace for cooperatives and community-based enterprises to list and sell their produce online. Springr secures angel funding from TiE Kerala based art platform Springr has received an angel funding in the form of interest free loan of $6,000 from TiE (The Indus Entrepreneurs). The funding which needs to returned in a year s time was announced at the TiE conference. The startup aims to scale up the crowdfunding platform which has been developed to help people raise funds. It is also planning a community-based art project with the involvement of local people. Quadria, DEG, Swedfund invest in Medica Synergie Quadria Capital along with German and Swedish Development finance has invested an undisclosed amount in Medica Synergie for a majority stake. The investment will be utilized to facilitate the growth of Medica's hospital network to over 1,300 beds and provide greater access to high-quality medical care in the region. The investment also provides an exit to ICICI Venture which held nearly 50% stake in the healthcare chain through its investment arm I-Ven Medicare. Gaurav Burman invests in Singapore-based itbit Gaurav Burman, managing partner of Elephant Capital, has invested in his personal capacity an undisclosed amount in itbit Pte Ltd, a Singapore-based Bitcoin exchange. Burman, who picked a minority stake in itbit, is planning to bring the platform to India. Fund Raising & Liquidity Events IL&FS gets funds for its Infra Debt Fund IL&FS Infra Asset Management, a JV between IL&FS Financial and LIC has raised $120.9 mn for its infrastructure debt fund. The funds will be utilized for purchasing loans that bank lends to companies for developing infrastructure projects, such as power plants, roads and airports. Last year, IL&FS and LIC planned to build a corpus of around $2 bn for the IDF but poor investor appetite led it to cut the initial size to just $125 mn. It is now planning to raise a total of $5 bn by the end of Inventus Capital Partners achieves final close of Fund II Inventus Capital has closed its second fund - Inventus Capital Partners Fund II raising a little over its targeted corpus of $100 mn. The fund which has made six investments till date counts global financial institutions, pension funds, family offices and individuals from the US and Europe among its LP s. Bain Capital buying out Blackstone s stake in Emcure Pharmaceuticals PE major Blackstone is selling its equity stake in Punebased pharmaceutical major Emcure Pharmaceuticals Ltd to Bain Capital for an undisclosed amount. Blackstone had invested in Emcure through convertible shares and held 13.1% stake. Earlier Blackstone was looking to part exit Emcure in its proposed IPO.

5 Private Equity News Unitus Seed Fund looking to raise new fund Unitus Seed Fund (USF), a seed-stage investment firm based in Bangalore (India) and Seattle (US), has registered its impact investment VC fund Unitus Seed Fund India (USFI) with market regulator SEBI, and is now looking to raise the investment corpus. USF plans to raise a total of $9-12 mn from local investors to take minority positions in Bottom of Pyramid (BoP) startups, or startups serving lowincome consumers. Blackstone to hike stake in MCX Blackstone GPV Capital Partners (Mauritius) VI FII Limited has secured FMC s approval to hike its stake in India s first listed exchange MCX upto 4.99% through secondary market transactions. Blackstone GPV also holds 7.02% stake in MCX promoter entity, Financial Technologies. Motilal Oswal eyes first close of new realty fund Motilal Oswal Private Equity Advisors, the private equity arm of Motilal Oswal Financial, has launched its second domestic fund and plans to mark its first close at $32.0 mn by February. The fund is aiming to scoop more than double of what it raised through its maiden outing which is now fully deployed. IDFC Alternatives to raise domestic realty fund IDFC Alternatives, the private equity arm of financial services firm Infrastructure Development Finance Company Ltd (IDFC), is planning to raise a real estate dedicated fund from the domestic market with a targeted corpus of $80.0 mn. It will be the fund house s maiden outing for a realty fund in the domestic market. KKR to buyout Motichand Finance KKR India Asset Investment Pte is acquiring 100% stake in Chennai based NBFC, Motichand Finance. However the deal value is not disclosed. KKR is an existing shareholder in the NBFC. As per the deal KKR India Asset Investment would be subscribing to more 50% of total equity share capital, post which the current holding of KKR Capital Markets would also be transferred to KKR India Asset Management. Manipal Global Education) and V Balakrishnan (a senior board member of Infosys) are launching the VC fund with a corpus of $20.3 mn. It will be managed by CEO and MD of Azure Capital Advisors Shailesh Ghorpade. Kotak to raise investment for its debt fund Kotak Investment Advisors, a subsidiary of Kotak Mahindra is looking to raise the money from both overseas & local investors for its $641.6 mn Special Situation Credit Opportunity Fund. The company plans to raise $516.3 mn from foreign investors or overseas HNI s and $125 mn from local and domestic investors for its debt fund. Golden State Capital to raise funds India and US-focused private equity firm Golden State Capital (GSC) is looking to raise over $500 mn through a real estate investment trust (REIT) in Singapore to acquire office properties in India. Islamic NBFC Cheraman Financial to launch VC fund Cheraman Financial Ltd (CFSL), a Kochi-based Sharia-compliant non-banking finance company (NBFC), has received market regulator SEBI s approval to launch a VC fund with a corpus of $40 mn. The fund will invest in startups as well as infrastructural projects. Dancing Turkeys eyes PE Funding Gurgaon-based Dan Turk Farms &, which is engaged in turkey meat products and operates under the banner of Dancing Turkeys, is looking to raise $32 mn for its expansion needs. The company is also open to rope in a strategic investor for further expansion. IFC to back Abraaj Capital s healthcare fund International Finance Corp, the private sector lending arm of World Bank group, has committed to back Dubaiheadquartered PE firm Abraaj Capital s new healthcare sector dedicated fund, Abraaj Global Healthcare Fund (AGHF), targeting a corpus of $1 bn. IT professionals to launch Exfinity Fund Technology veterans: Girish Paranjpe (former Wipro co- CEO), Deepak Ghaisas (earlier CEO of i-flex Solutions), Mohandas Pai (former Infosys director and now with

6 M&A Activities Acquiror Target Business Stake (%) Deal value ($ mn) GDF Suez Meenakshi Energy Power Gujarat Apollo Industries Ltd Credo Minerals Industries Ltd Mining Inflexionpoint Acquisition Corporation Iris Computers Ltd Retail 100 NA Dewan Finance Corporation Ltd Pramerica Life Insurance Company Ltd Insurance 74 NA Industrial Investment Trust Ltd (IITL) Future General India Life Insurance Company Ltd Insurance 23 NA Future Lifestyle Fashion Re-source World Exim Retail 27.5 NA WPP Inc RC&M Media & Entertain 100 NA Allcargo Logistics Ltd FCL Marine Agencies Inc Logistics NA NA Stock Market Updates Key Domestic Indices During the week ended 21 st December, 2013, there were x M&A deals worth $x mn. The largest deal during the week was by Torrent Pharmaceuticals Ltd acquring Domestic formulation buisness of Elder Pharmaceuticals Ltd for $334.0 mn. Index Indian Market Movements 52 Week 16-Dec Dec-13 Change (%) High Low BSE Sensex % S&P CNX Nifty % CNX Nifty Junior % Nifty Mid Cap % CNX IT % Bank Nifty % CNX Infrastructure % CNX Realty % Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 16-Dec Dec-13 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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