Four-S Private Equity Track

Transcription

1 Four-S Private Equity Track Issue: 19 th May 24 th May 2014 Your Eye to Indian Private Equity PE activity for the week The year 2014 has so far aggregated $2.3 bn of PE investments across 237 deals compared to $5.0 bn (185 deals) during the same period last year. During the week ended 24 th May, there were 10 PE/VC deals worth $174.2mn compared to 9 deals worth $67.5mn in the previous week. The largest disclosed transaction during the week was by BlackRock Financial & others investing $100.0mn in Snapdeal ,016 3,316 2,274 YTD 2012 YTD 2013 YTD Pvt Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in ($Mn) Type of Deal BlackRock, Temasek, Others SnapDeal NA Growth PE Investments ($mn) No. of Deals Sector Industry Segment E- Commerce YTD (from 01 st Jan to 24 th May) Internet Retail Diversified WestBridge Vistaar Finance NA 27.3 Growth BFSI NBFCs MSME Finance Everstone Capital Samara Capital Apax Partners Mayfield Dominos' Indonesian Franchise Paradise Restaurant Persistent Systems Securens Systems 51% 20.0 Growth Retail Retail Restaurants NA 12.0 Growth Retail Retail Restaurants 1.5% 9.8 PIPE IT/ITeS IT Services Diversified NA 5.0 Early IT/ITeS Infotech/Hardware ADIA MT Educare 1% 0.7 PIPE Education Education Matrix Partners Chumbak NA NA Early Pearson Affordable Learning Fund e- Commerce Online Retail Zaya Labs NA NA Early Education Education Security Systems Educational Services Diversified Educational Services Unitus Seed Fund Jiffstore NA NA Early e- Commerce Internet Retail Specialty Retail -Grocery Source: Four-S PE Database

2 BlackRock, others invest in Snapdeal Delhi-based Jasper InfotechPvt Ltd, which runs the online marketplace Snapdeal.com, has secured $100.0mn in a fresh round of funding from a group of new investors including US-based BlackRock Financial Management, Temasek, Myriad Asset Management and Tybourne Capital Management, besides PremjiInvest, the personal investment vehicle of Wipro chairman AzimPremji. The new funding comes barely three months after the e- commerce player raised $133.7mn led by existing investor ebay Inc. WestBridge buys stake in Vistaar Finance NBFC Vistaar Pvt Ltd has raised Series C investment of $27.4 from WestBridge along with its existing PE investors Elevar, OmidyarPvtLtd and Saama capital. The funds will be used for expanding its branches. The investment, led by WestBridge Crossover Fund, would help the NBFC to expand its network to 250 plus branches over the next four years. Founded in 2012, Vistaar provides loans to the underserved micro and small enterprise market. Everstone invests in Dominos' Indonesian Franchise India and South East Asia focused PE investor Everstone has acquired a controlling 51.0% stake in Indonesian franchise of Dominos Pizza, PT Dom Pizza Indonesia for $20.0 mn. The fund will be used to expand its existing operations of 60 branded pizza outlets in six Indonesian cities, including Jakarta and Bali. The PE firm would make the investment through its specialized arm F&B Asia Ventures which maintains a portfolio of food & beverage brands across India and South Asia. Samara Capital invests in Paradise Restaurant PE firm Samara Capital has invested approximately $12.0 mn in Hyderabad-based restaurant chain Paradise Food Court. Paradise restaurant was founded in 1953 as a small cafe serving tea and snacks. It has now transformed into a large restaurant chain, synonymous with good food, which serves traditional Hyderabad, Indian and Chinese continental food. Apax Partners invests in Persistent Systems Global private equity investor Apax Partners has invested $9.8 mn to buy 1.5% stake in Pune-based Persistent Systems Ltd, a software product and technology services provider. The transaction was through Apax Partners Europe Managers, which has lately got active in buying stakes in Indian firms through open market transactions. It is a public market investment vehicle for the PE firm and operates separate from Apax s core private equity and buyout team. Mayfield invests in Securens Systems Venture capital firm Mayfield Fund has invested a little over $5.0mn in Mumbai-based ATM e-surveillance firm Securens Systems PvtLtd. Securens is a Mumbai company with a vision of being the largest provider of Monitoring of Intrusion Alarm Systems in India. The Company offers unique and distinctive Monitored Intrusion Alarm solutions to meet the needs of high value asset protection. Abu Dhabi investment authority invests in MT Educare Abu Dhabi Investment Authority, the sovereign wealth fund of the emirate of Abu Dhabi, has picked up 1 % stake in coaching services provider MT Educare for $0.67 mn via block deal. The firm offers coaching for Std IX-Std XII students, besides engineering and medical entrance tests, as well as CA CPT, CS, CWA and professional CA (IPCC and Final) exams. It has also diversified into preschool and day-care services through Global Champs. Matrix Partners invests in Chumbak Bangalore-based Chumbak Design Pvt. Ltd, the company behind Chumbak.com, a design-led consumer products e-tailer, has raised an undisclosed amount in funding led by Matrix Partners India, with participation from existing investor Seedfund. With this round of funding, the company plans to expand its footprint and also enter into new product categories. The firm previously raised $2 mn from Seedfund. Pearson invests in Zaya Labs Mumbai-based Zaya Learning Pvt Ltd, which operates under the brand name Zaya Labs, has received an undisclosed amount in funding from Pearson Affordable Learning Fund (PALF), an education fund run by UKbased education company Pearson Plc, for a minority stake in the company. The company will use the capital for product development. The firm was founded in 2010 by Neil D Souza, an alumnus of North Carolina State University, and Soma Vajpayee, an IIM Ahmedabad

3 alumnus. Zaya has developed a blend of online and faceto-face teaching model for learning in schools. Jiffstore secures funding from Unitus Seed Fund Bangalore-based startup, Jiffstore, a mobile commerce retail platform, has raised an undisclosed amount of funding from impact investor Unitus Seed Fund. Proceeds from the latest round will be used to further develop its technology platform and increase its customer base of small shops. Founded in 2013, Jiffstore is an app which helps local kirana stores to connect with customers for online grocery ordering and home delivery. It simply enable buyers to order household provisions from neighborhood local stores with home delivery. Fund Raising & Liquidity Events Stanley, has part exited its seven year old investment in Mumbai-based Oberoi Realty. They had invested $152 mn in Oberoi Constructions is a leading Indian real estate developer, focusing on residential, commercial, retail and hospitality projects. TransUnion buys Sundaram Finance's stake in CIBIL Central Bank Of India Ltd, Punjab National Bank and another shareholder Sundaram Finance Ltd have sold stake in the CIBIL to US-based consumer credit reporting agency TransUnion International Inc, the company said in filing with BSE without disclosing the consideration it got. Sundaram held a minority of 2.5% interest in the information provider. Recently, Central Bank Of India sold its entire holding of 5% and PNB had offloaded its 5% holding to TransUnion. With the latest transaction, the holding of Transunion rises to 40%. Transunion is likely to acquire more stake in the company. Touchstone Private Equity Trust raising News debut fund 3i part exits Adani Power with a haircut Global PE firm 3i Capital has partially exited its almost seven-year-old investment in Adani Group s power venture Adani Power at a loss. The firm sold a little over 2.0% stake in the company in small. 3i isthe world's largest Indiadedicated infrastructure fund. Future Group exits Capital First Kishore Biyani-led Future Group has sold off its remaining stake in non-banking finance company Capital First (formerly Future Capital) by offloading its remaining holding through open market transactions on Tuesday. Future Retail (formerly Pantaloon Retail) sold its entire 7.84 % stake for $19.51 mn while a private promoter holding arm sold 1.38 % for $3.47 mn. This comes just around two years after the group decided to divest controlling stake in the NBFC to private equity major Warburg Pincus. Warburg Pincus acquired % stake in the financial services firm for Rs 27 bn in the open offer. It had been slowly adding more shares through open market purchases. Morgan Stanley Real Estate part exits Oberoi Realty Morgan Stanley Real Estate, the real estate focused asset management arm of financial services giant Morgan Sula s Ravi Viswanathan to raise $200M PE fund Singapore-based private investor Ravi Viswanathan, who has just struck his second deal in the wine business in India to pick a stake in Sula Vineyards, is scripting a broader play to invest in the consumer sector in India. Better known as wine connoisseur and investor, Viswanathan has previously invested in Grover Zampa and has just sealed a deal to invest in Sula Vineyards. Sterlite Technologies to raise funds Pune-based Sterlite Grid, a subsidiary of optical fiber manufacturer Sterlite Technologies, is looking to raise between $50 mn and $75 mn in equity funding to execute its two transmission projects. Sterlite Grid bagged two transmission projects worth $112mn from state-run power projects financier Power Finance Corp in September last year. Leela venture calls off talks with KKR Luxury hospitality player Hotel Leelaventure Ltd s proposed deal to raise a bridge loan from an arm of Pvt equity giant Kohlberg Kravis Roberts (KKR) has fallen through as the company did not agree to terms offered by the PE major, it announced in stock exchange today. As the terms could not be finalized to satisfaction of the company, KKR and CDR Lenders, it was communicated by

4 KKR in the meeting of the CDR Lenders held on May 20, 2014 that they would not be providing the bridge loan to the company. Eldeco Group to raise funds for Mathura township SK Garg Construction Pvt Ltd, a company owned and managed by the chairman and one of the co-promoters of listed real estate company Eldeco Housing and Industries Ltd, is looking to raise Rs $ mn for a 150- acre project that is located near Mathura refinery and will be formally launched by the end of the year. SKS Trust to acquire 70% stake in OFS India Biksham Gujja-led SKS Trust, the single-largest shareholder of the SKS Microfinance, is acquiring 70 % stake in Outreach Financial Services India (OFS India), a Hyderabad-based financial services startup promoted by former employees of SKS Microfinance. Vikram Akulafounded SKS Trust will hold 70 % stake and the remaining 30 % will be held by its founder Surya Kumar, employees and some private investors like Sarath Sura, co-founder of information technology company Sierra Atlantic. Lightbox, Nexus in talks to exit MapmyIndia At least two of the three venture capital investors of Delhi-based C.E. Info Systems Pvt Ltd, a provider of online maps, geographic information system and navigable map solutions under the MapmyIndia brand, are in talks to exit the company. The firm has four external investors including three VC firms Lightbox Ventures, Nexus Venture Partners and Qualcomm Ventures. It also has a strategic investor in the form of Zenrin, a Japanese firm engaged in the production and sale of the database of maps. MapmyIndia has attracted four rounds of funding between 2006 and 2011 totaling over $42 mn from investors like Kleiner Perkins Caufield& Byers (KPCB), Sherpalo India Advisors, Qualcomm Ventures, Nexus Venture Partners and Zenrin Co. Future Consumer to invest in Karnataka Food Park Future Consumer Enterprise Ltd, the food and FMCG arm of Kishore Biyani-led Future Group previously known as Future Ventures, is acquiring 73.89% in Integrated Food Park PvtLtd, which is setting up a food park measuring about 110 acres at Tumkur, Karnataka, as per a stock market disclosure.the firm did not disclose the deal or the structure of the transaction. Integrated Food Park Pvt Ltd (IFPPL) is a Public Pvt Partnership (PPP) project which has been approved by the Ministry of Food Processing Industry (MFPS) to set up a Mega Food Park (MFP) in Karnataka with Future Group s flagship Future Retail, Capital Foods and Bangalore-based Salarpuria Group s real estate firm Sattva as its promoters. SpiceJet in advanced talks to raise funding India's fourth-biggest carrier by domestic market share SpiceJet Ltd is in advanced stages of discussion to raise money, as part of its efforts to reduce debt and strengthen balance sheet, the company said in a statement after registering its biggest annual loss.fundraising has become essential for the budget carrier as accumulated losses have eroded the company s net worth. With entry of new players such as AirAsia, the competition is only going to rise. The budget carrier, controlled by billionaire Kalanithi Maran's Sun Group, needs at least $207mn to stay afloat, as per a recent report by Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA). Power major CLP Group may exit India Hong Kong's largest electricity supplier CLP Group, which operates in India through its wholly owned subsidiary CLP India Pvt Ltd, is evaluating options to pull out of Indian power sector. The Hong Kong-based group claims it has invested over $2500mn, spread across renewable energy, supercritical coal, and gas-fired generation in India over the last twelve years. One97 Communications earmarks funds Noida-headquartered One97 Communications Ltd, running digital goods and services marketplace Paytm, has set apart $25.6 mn to fund acquisitions of at least two consumer facing technology companies. The acquisitions will help the company grow Paytm, which had launched its mobile marketplace earlier this year. Handset maker Maxx Mobile plans PE Fund Raise Mumbai based handset maker Maxx Mobile Ltd is planning to raise between $9-17 mn by September end to fund its working capital requirements and daily operations. The PE fund raise would also see a minority stake divestment.the deal would also involve the participation of existing investor Star Asia Holdings Pte Ltd which had committed $10.3 mn to the company of

5 which it had received half of the committed capital and the second tranche is expected soon. SAIF Partners to acquire stake in Atul SAIF Partners is in talks to acquire 10% stake in a Lalbhai Group Company, Atul Ltd, for $ mn. Post the deal, the PE firm would become the largest nonpromoter entity in the company.the PE firm has already initiated the purchase of stake from the open market and is expected to pick up 10% by end of June. Its other shareholders include Finquest Financial (2.79%), The New India Assurance, Reliance Capital, Ajax Investments among others. Reliance Mutual Fund picked up stake in the company last year and currently holds 3.05% and the promoter holding stands at 50.62% stake in the company. Gujarat based Atul Ltd is engaged in the manufacture and sale of chemical products in India and internationally. Its international business contributes approximately 50% of its total revenue. Realty Firm Casa Grande to Raise Funds Avenue Venture Real Estate Fund is planning to invest as much as $17.2mn in the equity of project level ventures being developed by Casa Grande PvtLtd. of the proposed $17.2mn the firm has already disbursed 8.5mn towards two projects being developed by the Chennai based developer. It has invested close to $4.3mn in May last year at Casa Grande project at Thoraipakkam in Chennai while the second was for another project in surburbanpadur. Casa Grande PvtLtd is a Chennai based real estate enterprise started in 2004 and has developed over 2.5 MnSq.ft of area. Sapience Analytics plans Series B Round Pune-based software solutions provider, Sapience is planning to raise its Series B round in the coming two or three months for expanding its footprint into international markets like US. In 2011, the company raised $0.78mn in Series A round from Seed Enterprises. Prior to this, it raised early stage investment of $0.36mn from Indian Angel Network and angel investor RehanYar Khan. Founded in 2009 by Madhukar Bhatia, Swati Deodhar and Hemant Joshi, Sapience provides software solutions to measure and analyze enterprise effort and time productivity analyses. Its software help the companies to increase work output for 15-20% requiring any change in existing process or additional management effort. Speciality Restaurants may invest in SK Restaurants BSE listed Speciality Restaurants Ltd is planning to pick up stake in celebrity chef Sanjeev Kapoor s SK Restaurants PvtLtd. Backed by health club owners Talwalkars and PE firm TVS Shriram the EV of the company is pegged at around $ mn. Formerly known as Indian Cookery PvtLtd, SK Restaurants operates Khazana, The Yellow Chilli, Pin Yin, Signature by Sanjeev Kapoor and Sura Vie Lounge chains of restaurants. Headed by Rajeev Matta, SK Restaurants which manages the The Yellow Chilli chain and Sanjeev Kapoor's other restaurant brands already opened 30 outlets and would be adding substantial numbers. China's Citic to acquire stake in RCom's undersea cable business Citic Telecom, part of the Chinese industrial and financial conglomerate, Citic Group, is likely to pick up a 50% stake in Reliance Communication's undersea cable business housed under Global Cloud Xchange. The deal which is expected to be concluded this month would value the cable assets at $1bn. Profit Shastra seeks Angel Investment Pune based Profit Shastra, a classroom and real-time live online financial training provider, is looking to raise funds upto $0.2 mn in angel investment. The funding will also be utilized for advertising, marketing, hiring new talent, infrastructure and content development. It also plans to establish centers worldwide through a franchise model. Founded in 2012 by Shashank Shringi, Profit Shastra is a CFA exam coaching and an investment consulting company. TPG, Carlyle in talks to buy stake in Allied Blenders Allied Blenders & Distillers (ABD) will sell up to 12 % stake to PE firms TPG and Carlyle Capital for about $250 mn, as per a PTI report citing its vice chairman and chief executive Deepak Roy. ABD will use the funding for both organic and inorganic expansion and is in talks to buy Tilaknagar Industries but the deal is struck on the valuations.

6 Merger & Acquisitions During the week ended 23 rd May, 2014, there were 3 M&A deals worth $143.6mn (Value of 6 deals is not disclosed). The largest deal during the week was Flipkart acquiring Myntra for $100.0 mn. Acquiror Target Business Stake (%) Deal value ($ mn) Flipkart Myntra e-commerce Jaypee Group Andhra Cements Building Material OnMobile Systems OnMobile Global Mobile VAS Tata Global Beverages Bronski Eleven Beverages NA Bharti SoftBank Y2CF Digital Media Mobile VAS NA Mr. Uday Kumar NalasAappakadai Restaurants 51.0 NA UST Global Kanchi Technologies Engineering Services NA NA PubMatic Mocean Mobile Mobile VAS NA NA Pace Power GE Power Electronics Capital Goods NA NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 19-May May-14 Change (%) High Low BSE Sensex % S&P CNX Nifty % CNX Nifty Junior % Nifty Mid Cap % CNX IT % Bank Nifty % CNX Infra % CNX Realty % Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 19-May May-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source:Yahoo Source: Yahoo Finance Finance

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