Four-S Private Equity Track

Transcription

1 Four-S Private Equity Track Issue: 9 th 14 th September 2013 Your Eye to Indian Private Equity PE activity for the week The year 2013 has so far aggregated $5.98 bn of PE investments across 342 deals compared to $6.66 bn (344 deals) during the same period last year. During the week ended 14 th September 2013, there were 10 PE/VC deals worth $109.4 mn compared to 10 deals worth $58.3 mn in the previous week. The largest disclosed transaction during the week was by Red Fort investing $57 mn in a real-estate project of Lotus Green Developers Pvt Ltd , ,657 5,982 YTD 2011 YTD 2012 YTD 2013 PE Investments ($mn) YTD (from Jan 01 to 14 th September) No. of Deals Private Equity: Investment Summary during the week Investor (s) Red Fort Target Lotus Green Developers Pvt Ltd Stake (%) Equity Check in ($Mn) Type of Deal Sector Industry Segment NA 57.0 Project Construction Real-estate Real-estate Health Services Surgical Equipments TPG Growth Sutures India Pvt Ltd NA 25.0 Growth Manufacturing AION Jyoti International Pvt Partners Ltd NA 23.0 Growth Services EPC Power EPC SIDBI Venture Health Glocal Healthcare Pvt Ltd NA 4.2 Growth Services Services Hospitals ARK Challenge (VC Langhar Food Services Internet NA 0.2 Early Services Group) Pvt. Ltd Services Internet Retail Indian Angel Consumer Household Mukunda Foods Pvt Ltd NA NA Early Manufacturing Network Durables Durables SIDBI Venture Atishya Technologies Pvt Internet NA NA Early Services Ltd (npasource.com) Services Bidding portal Shopsense Technologies Internet Kae Retail Pvt Ltd NA NA Early Services Services Analytics SIDBI Venture Swadhaar FinServe Pvt Ltd NA NA Growth Services BFSI Micro finance Rajasthan Venture Food Chatha Foods Pvt Ltd NA NA Early Manufacturing Food Fund Processing Source: Four-S PE Database

2 Red Fort invests in township project of Lotus Greens Developers Real estate dedicated private equity firm Red Fort has invested $57 mn in a Gurgaon-based project of privately held property developer Lotus Greens Developers Pvt Ltd. The investment has been made in the form of private placement of listed non-convertible debentures (NCD) of Bright Buildtech Pvt Ltd (BBPL), a part of the Lotus Greens Developers. Brickwork Ratings (BWR) has assigned BWR B+ rating for the unsecured NCD issuance of BBPL, as per a note by the rating agency. Sutures India raises funds from TPG Growth PE firm TPG Growth has acquired a minority stake in Bangalore-based surgical equipment maker Sutures India Pvt. Ltd from investor Evolvence India life Sciences fund for $25 mn. The investment will give Sutures India an opportunity to scale up its production.the funding will help Sutures India to introduce new products including special orthopedic implants, plastic casts and surgical instruments. It manufactures medical products like absorbable and non-absorbable sutures, eyeless needles, surgical meshes and disposable surgical gloves. AION acquires minority stake in Jyoti International AION Partners, a JV between Apollo Global Management and ICICI Ventures has made an investment of $23 mn in Jyoti International, to acquire an minority stake in the company. As a part of deal, Kalpesh Kikani, MD at AION, will also join the Jyoti board as a nominee. The fund would be invested in tranches and the money would be utilized by the firm for expansion in its overseas subsidiary in the US and also to re-establish itself in the power EPC business in India and develop governance and operating processes to strengthen its business. SIDBI Invests in Sequoia backed Glocal Healthcare Glocal Healthcare, a rural hospital chain in Kolkata, has received $4.2 mn investment from SIDBI Venture. The fund has made investment through its fund Samriddhi. The funds would be used to support expansion plans which comprise setting up new hospitals with 100 beds built on 15,000 sq.ft with a G+6 structure having all the medical facilities. In 2011, Sequoia and Elevar had invested $1.33 mn in the company. Langhar.com gets funding from ARK Social eat out platform Langhar.com has secured second installment of funding of $0.2 mn from the ARK Challenge, a Northwest Arkansas-based entrepreneurial bootcamp challenge. The ARK, a 14 weeks programme, which recently completed its second year, is a federally funded startup bootcamp and part of the Department of Commerce Jobs and Innovation Accelerator Challenge. Dosamatic maker Mukunda Foods raises funds from IAN Mukunda Food, manufacturer of automatic Dosa machine Dosamatic, has raised funds from Indian Angel Network. The details of the funding have not been disclosed. However the funds are expected to be utilized for developing the DosaMatic, establishing it as a brand, streamlining the manufacturing and creating sales and service channels. Mukunda Foods is a design & development startup that makes equipment for use in the Indian food retail segment. The startup s first product, Dosamatic, is a table top Dosa making machine specifically designed for the commercial foodservice industry. Shopsense receives Seed investment from Kae Mumbai-based Shopsense has raised seed round funding led by Kae, group of angels under Powai Lake ventures and angel investor Jehaan Mehta to build smart technology for retailers. However the amount of fund raised is not disclosed. The funding will allow the company to set up an efficient development team, which will improve their technology further. NPASource.com raises funds from SIDBI Ahmedabad-based Atishya Technologies Pvt Ltd, which runs NPASource.com, an aggregation portal listing nonperforming (or bad) assets of lenders, has raised an undisclosed amount of funding from SIDBI. The funds are expected to be utlized for improving technological advancements and increasing the team size. The portal expects to undertake over $10 mn worth of e-auctions of various banks NPAs in from the current $16.7 mn. Swadhaar raises equity funding from SIDBI Accion-backed micro finance firm Swadhaar FinServe Pvt Ltd (SFPL) has received equity investment from Small Industries Development Bank of India (SIDBI) which would boost its capital as the firm aims to increase its loan book size. The company's loan book crossed the Rs 100 crore mark last fiscal which means it will have to adhere to lower margin cap as per new RBI norms.

3 RVCF invests in food processing firm - Chatha Foods Rajasthan Venture Fund has invested undisclosed amount in Chandigarh based Chatha Foods Pvt Ltd, a frozen and ready to eat (RTE) meat foods manufacturer. The company plans to use the funds to increase capacities, introduce newer products and service the QSRs more efficiently. The Jaipur based RVCF has invested in Chatha Foods for a significant minority stake through its SME Tech Fund, which invests pan India in IT/ITes, education, healthcare, agro products, and other high growth sectors. Fund Raising & Liquidity Events LeapFrog makes first close of its second fund at $204 mn Emerging markets impact investment firm LeapFrog Investments has announced the first close of its second fund at $204 mn. The fund will invest in companies in Africa, South Asia and Southeast Asia that provide financial services such as insurance, savings, pension and investment products to emerging consumers.leapfrog Indian investments include Mahindra Insurance Brokers and Shriram Credit Company. 500 Startups closes second venture fund Silicon Valley based incubator-cum-seed fund 500 Startups has closed its second fund with $44.1 mn in capital commitments. This marks a climb-down for the fund from its original target of $50 mn and poses a question mark over the concurrent fundraising for separate country specific micro funds including one for India. Mumbai-based Wellspring Healthcare Pvt Ltd, which provides primary healthcare services under its brand Healthspring, is in the initial stage of talks with various private equity players to raise around $7.8 mn. Shalby Hospitals in talks with PE firms to raise money Ahmedabad-based multispecialty hospital chain Shalby Ltd is in talks with various private equity players to raise $24-39 mn to boost its expansion. The company plans to invest $10 mn to have 1,800-2,000 beds by KKR to invest in Gland Pharma Global buyout fund KKR is planning to acquire a third of Hyderabad based, Gland Pharma for a consideration of $ mn valuing the company at $500 mn. The deal would provide the pharma company with fresh equity as well as an exit to its existing investor, Evolvance India Life Science Fund. The funds received would be utilized for augmenting the manufacturing capacity of the firm and the balance would provide an exit route to EIF. Tata to launch Africa-Focused PE fund Tata is planning to launch Africa focused PE fund with a corpus of about $300 mn focusing on sectors such as consumer goods, agriculture, agri-processing, energy segment, including renewables, light manufacturing and financial services. The company plans to use Mauritius, which has been promoting itself as a gateway to Africa for companies and investors from India and other countries, as a platform for its Africa initiatives. Tata had raised $600 mn from institutional investors from North America, Asia and the Middle East for a PE fund to invest in India. Private Equity News Healthspring in initial talks with investors to raise around $7.8 mn Narayana Healthcare plans PE fund raise Narayana Healthcare, Bangalore based healthcare service provider, is planning to raise $40 mn from PE investors to fund its expansion plans in other countries as well as in the west and northern part of India. Narayana Hrudayala, part of the Narayana Halthcare had raised $40 mn each from

4 AIG( now PineBridge) and JP Morgan in 2008 giving them a combined 25% stake in the hospital chain. The PE investment may be raised from its existing investors or a new investor may come in as the the lock-in period of JP Morgan ceased on February TPG, Carlyle may buy minority stake in Allied Blenders PE firms TPG and Carlyle Group are planning to acquire a minority stake in Allied Blenders and Distillers for a consideration of $100 mn. The company is owned by the veteran liquor industry businessman Kishore Chhabria, who owns 95% in the company and is expecting a valuation of $750 mn. The rest 5% equity interest is held by the CEO Deepak Roy. ABD is india s third largest spirit company with 38 manufacturing / bottling units in 19 States with 14 sales offices across the country. The company s flagship brand includes Officers Choice which is the largest selling whisky brand in the world. Its other popular brands include Grain Vodka, Class 21, Jolly Roger and Wodka Gorbatschow. IPO & Other offerings Godrej Properties raises $110 mn in rights issue Godrej Properties, the real estate arm of Godrej Industries, has successfully closed its rights issue on Wednesday. The company was looking to raise close to $110 mn through the issue. The funding is expected to be utlized for developing townships based out in Mumbai while maintaining the current debt-equity ratio.

5 M&A Activities Acquiror Target Business Stake (%) Deal value ($ mn) Deccan Fine Chemicals Pvt Ltd Bayer CropScience Ltd (Gujurat Unit) Agro Chemical Bollore Africa Logistics Pvt Ltd ABG Container Handling Pvt Ltd Logistics Aurobindo Pharma Ltd Hyacinths Pharma Pvt Ltd Pharmaceutical Ogilvy & Mather PennyWise Solutions Pvt Ltd Digital Advertising NA Kuliza Technologies Pvt Ltd Adepto Solutions Pvt Ltd Internet Software 100 NA Tractebel Engineering Pvt LtdConsulting Engineers Ltd Engineering Servic 100 NA Stock Market Updates During the week ended 14 th September, 2013, there were 6 M&A deals worth $31.2 mn (Size of 3 deals was not known). In the largest transaction during the week, Deccan Fine Chemicals Pvt Ltd acquired the Gujurat manufacturing unit of Bayer CropScience Ltd for $21.2 mn. Key Domestic Indices Index Indian Market Movements 52 Week 09-Sep Sep-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 09-Sep Sep-13 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

6 About Four-S Services Four-s is a boutique firm focusing on cutting-edge Financial Research, Business Advisory and Investment Banking services for clients. Through our deep research into India's high growth industries and accurate and objective advice we have helped many marquee institutional investors take informed investment decisions in private equity and public markets. Four-S has proven success in business advisory, investment banking and investor relations mandates with 100+ corporate clients and large PE funds. For further information on the company please visit Disclaimer The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information, projections or opinion contained in this document or upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability, whatsoever with respect to the use of this document or its content. This document has been distributed for information purposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be reported or copied or made available to others. The Company may from time to time solicit from, or perform consulting, or other services for, any company mentioned in this document. For Further details/clarifications please contact: SeemaShukla - seema@four-s.com Address: Gurgaon Four-S Services Pvt. Ltd. 214, UdyogVihar Phase-I, Gurgaon Haryana, INDIA Tel: Mumbai Four-S Services Pvt. Ltd. 501, A C Market, Tardeo Mumbai Tel: