Four-S Private Equity Track

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1 Four-S Private Equity Track Issue: Your Eye to Indian Private Equity PE activity for the week The year 2014 has so far aggregated $840.5 mn of PE investments across 111 deals compared to $1.4 bn (80 deals) during the same period last year. During the week ended 08 th March, there were 7 PE/VC deals worth $44.8 mn compared to 12 deals worth $94.0 mn in the previous week , , The largest disclosed transaction during the week was by Warburg Pincus and HDFC Standard Life Insurance Ltd investing $29.0 mn in Capital First Ltd. Private Equity: Investment Summary during the week Investor (s) Warburg Pincus and HDFC Standard Life Insurance Co Ltd IFC, Bessemer Venture Partners Aavishkaar Venture Management Ventureast Life Fund III Target Stake (%) Equity Check in ($Mn) 0 YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) No. of Deals Type of Deal Sector Industry Segment Capital First Ltd NA 29.0 PIPE Services BFSI NBFC Nephrocare Health Services Pvt Ltd NA 10.0 Growth Services Healthcare Health Clinics Mela Artisans Inc NA 3.0 Growth Services Retail Retail Polygenta Technologies Ltd NA 2.3 Growth Services IT/ITeS Software SRI Capital Red Sprout Foods Pvt Ltd NA 0.5 Early Services Retail Food chain IvyCap Ventures, Accel India Ventures Vinculum Solutions Pvt Ltd NA NA Growth Services IT/ITeS Software Lightspeed Venture Partners Oravel Stays Pvt Ltd NA NA Growth Services IT/ITeS Internet Services Source: Four-S PE Database Warburg Pincus, HDFC Life Insurance investing in Capital First Private equity major Warburg Pincus and HDFC Standard Life Insurance Co Ltd are together investing around $29.0 mn in the NBFC Capital First Ltd, formerly known as Future Capital Holdings Ltd. The two companies are subscribing up to 11.6 mn shares on a preferential basis at a share price of Rs Warburg Pincus, through its associate company Cloverdell Investment Ltd, will be allotted 8.3 mn equity share worth $21.3 mn while HDFC Standard Life Insurance Co will be allotted 3.2 mn equity shares worth $8.3 mn. YTD (from 01 st Jan to 08 th March) NephroPlus secures funding in Series B round International Finance Corp, the private sector lending arm of World Bank group, is leading a Series B investment of $10 mn in Nephrocare Health Services Pvt Ltd, which runs a dialysis chain under the brand NephroPlus. IFC may bring in upto $7.0 mn in the company with existing investor Bessemer Venture Partners bringing in another $3.0 mn. The company had first secured Series A funding of around $4.0 mn from Bessemer Venture Partners in Hyderabad-based NephroPlus has 19 centres across nine states in the country. The company runs dialysis units in multispecialty hospitals as well as stand-alone dialysis centres. 0

2 Mela Artisans raises funding from Aavishkaar Aavishkaar Venture Management, a venture capital firm focused on India s rural areas and bottom-of-the-pyramid (BoP) space, has infused around $3.0 mn into luxury apparel, jewellery, home furnishing and accessories brand Mela Artisans. US-based Mela Artisans, which procures products from artisans groups in Indian states like Uttar Pradesh and Rajasthan among others, will utilise the money to augment its distribution channels in India and overseas, and grow its collections and reach out to a wider range of artisans in India. Polygenta Technologies raising funding Ventureast Life Fund III, a fund managed by Ventureast Fund Advisors India Ltd, is putting in up to $2.3 mn more in Polygenta Technologies Ltd through a preferential allotment. Polygenta is issuing 9.5 mn non-convertible redeemable preference shares (NCRPS) to Ventureast at Rs 15 each. This is part of a larger issue in which the promoters are putting in around $9.0 mn through NCRPS. The issue of NCRPS will not change the equity shareholding pattern because the preference shares are not convertible into equity shares. SaaS firm Vinculum raises Series B funding Vinculum Solutions Pvt Ltd, a SaaS (Software as a Service)- based software products developer for e-commerce and multi-channel retailers, has raised an undisclosed amount in Series B round from IvyCap Ventures with participation of existing investor Accel India Ventures. The Noida-based company, which has made inroads in the Southeast Asian markets besides India is looking to expand to the US. Accel Partners, an active early stage investor in India, had invested in the Series A funding round of Vinculum three years ago. Oravel raises funding from Lightspeed Venture Partners Delhi-based Oravel Stays Pvt Ltd, the company behind the online short-stay accommodation portal Oravel.com, has received an undisclosed amount in funding from Lightspeed Venture Partners. This funding comes a little over a year after the firm secured funding from a consortium of investors, including startup accelerator Venture Nursery, Everest Flavours MD and active angel investor Anand Ladsariya and Nirvana Venture Advisors co-founder Amit Patni. Hello Curry raises seed funding Hyderabad-based fast food chain operator Red Sprout Foods Pvt Ltd, which currently operates take-away centres at its home city under the Hello Curry brand, has raised $0.5 mn in seed funding from SRI Capital. The company will use this money for marketing besides augmenting its food menu. The firm is now looking to raise around $10.0 mn in the second round of funding to fund expansion plans which includes rolling out multiple retail outlets across Hyderabad, Chennai and Bangalore by December next year. Fund Raising & Liquidity Events Motilal Oswal hits first close of second domestic realty fund Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity, has made the first close of its second real estate dedicated private equity fund at $36.0 mn, the company announced. The fund is looking to raise $83.3 mn, including a green-shoe option of $33.3 mn. IntelleGrow raises funds led by Omidyar Network Venture debt lender IntelleGrow Finance Pvt Ltd (IGF) has raised $4.5 mn from Omidyar Network with participation of existing investor Michael & Susan Dell Foundation (MSDF). In this round, Omidyar will invest $4.2 mn with MSDF bringing in $0.5 mn. This investment will help IntelleGrow achieve its target of lending to more than 250 companies across India. IGF extends debt financing to early-stage enterprises with a turnover of less than $10.0 mn and at least 12 months of track record. It provides customised financing solutions using flexible repayment schedules linked to cash flows. Warburg Pincus offloads stake in Amtek Auto Private equity major Warburg Pincus has offloaded half of its remaining stake in automotive component supplier Amtek Auto Ltd over the last three months for nearly $8.0 mn via open market transactions.the exit is expected to be a loss for the PE fund. In 2010, Warburg Pincus had exited another Amtek group auto component firm Amtek India with an estimated 63% haircut.

3 Private Equity News Mumbai Angels backed NowFloats Plans fund raise Hyderabad-based NowFloats is in talks with few VC firms to raise Series A round to expand its footprint in domestic and international markets. Last year, it had raised first round from Mumbai Angels, Blume Ventures and few angel investors. Founded in 2012, NowFloats helps SME to create an online presence by simply using SMS. The website can also be updated by sending regular SMS or mail which can be delivered to the loyal customers of that business which helps them to understand the customer queries and improvise the same. Nexus Venture Partners raising new fund Nexus Venture Partners, an India-focused venture capital firm with around 50 investments to its credit, is raising a new fund christened Nexus Opportunity Fund Ltd. The fund is participating in the latest funding round in e- commerce marketplace Snapdeal.com, which recently raised a $134.0 mn funding led by ebay Inc, from the new fund. Exhilway looks to invest as much as $5 bn in India by 2019 Exhilway Global, a US-based investment group that runs private equity and hedge funds, has announced that it will invest as much as $5 bn in India in the next five years. The investment will be done in tranches with around $1 bn expected to be invested in 2014 itself. Headed by Ajay Garg, Rahul Kumar, Joy Ghosh and Ketan Mehta in India, the investment will be made via Exhilway Global Opportunities Fund I (EGO I). EGO - I will have a shorter tenure of five years compared with the industry average of 8-10 years. Nava Bharat Ventures to raise funds for power project Hyderabad based Nava Bharat Ventures is planning to raise funds for its coal-fired power project in Zambia. About 65% work on the project, being developed by Nava Bharat s unit Maamba Collieries Ltd, has been completed. It has entered into power purchase and transmission agreements with Zambian state power company Zesco for the 300-Mw project. Nava Bharat Ventures Limited is a diversified organization with interests in power generation, ferro alloys, mining and agri-business with operations spread over India, South East Asia and Africa. Brahma Investments close to sealing a realty deal in Bangalore Brahma Investments, an India-centric private equity firm with a focus on real estate market, is close to sealing an investment deal in Bangalore. The firm, which has been focused on India, is now also looking at investing in developed markets. Octaga Green Power and Sugar looking to raise funds Mumbai-based Octaga Green Power and Sugar Co Ltd, which produces industrial and potable alcohol, is looking to raise $10.0 mn. The firm has two bottling lines which manufacture and market blended scotch whiskey, vodka and rum. Evolvence Life Science to exit Dr Agarwal's healthcare PE fund Evolvence India Life Sciences is planning to exit its investment in eye care chain Dr Agarwal s Eye Hospital Limited. This will be the PE firm s fourth exit after it sold its stake in Gland Pharma to PE fund KKR for $200.0 mn in 2013 and in Sutures India and Healthcare Global to Temasek in the past 12 months. Evolvence had invested $10.0 mn in the eye care chain for a 20% minority stake in the company and the PE firm is in the process of raising a new life science fund. Wheebox looks to raise funding Gurgaon-based Integrated Learning Solution Pvt Ltd, which runs an online skill assessment venture under Wheebox.com, is looking to raise up to $3.0 mn for its next phase of expansion. The company is backed by educationfocused VC firm Lumis Partners and HR company PeopleStrong. RG Stone in talks with investors to raise $16M RG Scientific Enterprise Pvt Ltd, which operates a chain of urology and laparoscopy hospitals in the country, is in talks with two to three private equity investors to raise $16.7 mn. The firm is looking to expand its its chain of hospitals to different parts of the country. Omaxe seeks to raise PE funding Omaxe Ltd, a north-based listed realty company which has largely been associated with the residential segment of the market, is looking to push up the proportion of commercial properties in its project portfolio. The

4 company is looking at raising PE funding to support its commercial properties plans. Dighi Port plans fund raise Dighi which is located in Raigad district of Maharashtra is scouting for investors to raise around $33.3 mn for the port s expansion. The company is raising capital to complete the first phase of port development, after which the total installed capacity of the port will be around 30 mn tonnes. The port is in talks with many port firms and PE firm Carlyle Group for fund-raising activity. The fund raise will be aided by IL&FS Transportation Networks, an investor in Dighi Port with 23.0% holding, looking to acquire an undisclosed stake in the port company s road connectivity project. Country Club India plans fund raise Leisure and entertainment major Country Club India is scouting for investors to fund its expansion plans by divesting around 15% stake in the company. The promoters, who currently hold a 75% stake in the company, are willing to reduce it to 60%. It is also looking to liquidate some of its non-core assets to fund its expansion plans. Country Club India Limited is a leisure infrastructure conglomerate which provides clubbing facilities, family holiday packages and entertainment events. It offers global clubbing and holiday access to 175 franchises Former head of 3i Asia Anil Ahuja floating Indiafocused hedge fund Private equity firm 3i Group Plc s former Asia head Anil Ahuja is looking to garner $100 mn for an India-focused hedge fund from institutional investors by the end of this year. The fund will invest in stocks, bonds and currencies, primarily related to Indian companies. The hedge fund will be officially managed by a unit of India Infoline Ltd, which will charge a 1% annual management fee and 10% as carry. Ahuja floated IPEplus Fund 1 with $10.0 mn of his own money and is now seeking to garner $40.0 mn by mid-2014 as the first milestone. Manipal Group to acquire stake in GMR Infra Ranjan Pai led Manipal Group is in talks to acquire around 2.5% stake in GMR Infrasructure through its group company Skyron Eco Ventures. Skyron Eco Ventures will be allotted around 2 mn CCPS (compulsorily convertible preference shares) close to $35.0 mn which will make him the second largest investor after Singapore s Temasek Holdings. GMR Infra is issuing these CCPS to Skyron, Temasek and two other investors in an effort to infuse capital into its group companies as well as to consolidate its shareholding in its group companies. Sequoia Capital to exit GVK Biosciences Sequoia Capital is planning to exit its investment in GVK Biosciences by divesting 20% stake in the company. Sequoia Capital had invested around $20.0 mn in 2007 for a 20% stake in the company. Currently, the stake is valued at about $50.0 mn, valuing the company around $250.0 mn. The promoters may also divest further stake to raise capital for company s growth plans. Hyderabad based GVK Biosciences is a biotech research and development outsourcing company. Apollo, ICICI Venture set to complete raising $750 mn India fund ICICI Venture, the private equity arm of No.2 Indian lender ICICI Bank and U.S. private equity giant Apollo Global Management LLC, will this month complete raising a $750.0 mn fund to invest in distressed assets in India. The fund has received commitment of $675.0 mn so far from investors including large sovereign and pension funds to invest in distressed assets.

5 M&A Activities Acquiror Target Business Stake (%) Deal Value ($ mn) Taqa, Indo-Infra Inc and IDFC Jaiprakash Power Ventures Ltd (two Alternatives hydro power assets) Hydro Power Mcleod Russel India Ltd Tea Processing Factory in Vietnam Consumer Hitachi Systems Ltd Micro Clinic India Pvt Ltd IT/ITeS 76.0 NA Godrej Consumer Products Ltd Darling Group Holdings Consumer 4.6 NA Reichle & De-Massari Advanced Fiber Systems Pvt Ltd Manufacturingcable NA United Phosphorus Ltd UPL do Brasil Chemical & Allied 22.0 NA TransUnion International Inc Central Bank of India Ltd (CIBIL Ltd) IT/ITeS 5.0 NA Narayana Hrudayalaya Pvt Ltd Stock Market Updates Key Domestic Indices During the week ended 08 th March, 2014, there were 8 M&A deals worth $1.6 bn. The largest deal during the week was by Taqa, Indo-Infra Inc (Canadian Institutional Investor) and IDFC Alternatives acquiring two hydro power assets from Jaiprakash Power Ventures Ltd for a sum of $1.6 bn. Jubilant First Trust Healthcare (two hospitals) Healthcare NA Index Indian Market Movements 52 Week 03-Mar Mar-14 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 03-Mar Mar-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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