Four-SPrivateEquity Track

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1 Four-SPrivateEquity Track Issue: 19 th August 24 th August, 2013 YourEyetoIndianPrivateEquity PE activity for the week The year 2013 has so far aggregated $5.76 bn of PE investments across 313 deals compared to $6.3 bn (326 deals) during the same period last year. During the week ended 24 th August 2013, there were 9 PE/VC deals worth $14.1 mn compared to 14 deals worth $195.6 mn in the previous week. The largest disclosed transaction during the week was by Pragati India investing $6.3 mn in PTC Industries Ltd , , ,757 YTD 2011 YTD 2012 YTD 2013 PE Investments ($mn) No. of Deals Private Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in ($Mn) Type of Deal YTD (from Jan 01 to 24 th August) Sector Industry Segment Pragati India PTC Industries Ltd NA 6.3 Growth Manufacturing Castings Alloy Castings Aavishkaar Electronic Payments and ATM NA 6.0 Growth Services Pvt Ltd Services Other Services outsourcing Emerge Ventures MedGenome Labs NA 1.5 Growth Services Diagnostics Diagnostics David Bell, other SocioSquare Pvt Ltd NA 0.3 Early angel investors Services M&E Digital Media Kalaari Capital The Label Corp Pvt Ltd NA NA Early Services Retail Internet Retail Kae Capital, angel SaaS startup Memetic investors Labs Technologies NA NA Early Services IT/ITeS Consulting Chennai Angels, Blume Ventures, Purplle.com NA NA Early Services Retail Internet Retail Mumbai Angels Apurva Salarpuria, Peter Rajsingh, Shripad Nadkarni Hokey Pokey Icecreams NA NA Early Services Retail Times Internet Skift Inc NA NA Early Services IT/ITeS Ice cream retail Internet services - travel site Source: Four-S PE Database Pragati India Fund investing $6.3 mn in Lucknowbased PTC Industries Pragati India Fund, a private equity fund targeting economically underdeveloped and low-income states of India, is picking up a stake in Lucknow-based PTC Industries Ltd. PTC Industries manufactures customised high alloy castings for application in oil and gas, power and marine sectors. Aavishkaar infuses second round of funding in EPS 19th August 24thAugust, 2013

2 PE fund Aavishkaar has invested $6 mn in ATM outsourcing company Electronic Payments and Services. This is the second round of funding for the start-up which has received the mandate to set up machines all over Maharashtra by public sector banks.last year, Aavishkaar invested $4 mn in EPS through two of its funds - Aavishkaar Goodwell II a financial inclusion fund and Aavishkaar II a rural and semi-urban India focused fund. MedGenome raises $1.5 mn from Singaporebased Emerge Ventures Bangalore-based high-end diagnostics services company MedGenome Labs Pvt Ltd has raised $1.5 mn from Singapore-based VC fund Emerge Ventures and is raising more funds to bankroll an upcoming lab in its home city, Bangalore. MedGenome is a division of SciGenom Labs Pvt Ltd and specializes in genetic testing.it uses sequencing technologies with other established clinical technologies to identify the molecular genetic basis of complex diseases. MedGenome has ongoing Research Collaborations with some of the Healthcare Providers in the country which include Tata Memorial Hospital, Bombay; KIMS Hospital, Trivandrum; Mohan s Diabetes Centre, Chennai. SocioSquare gets Angel investment SocioSquare, a social media marketing company, has received an angel investment of $0.3 mn from a group of investors based in US, UK and Turkey led by David Bell, a professor at the Wharton School. The company plans to utilize the funds for developing and launching products to make advertising more effective and content creation easy. it offers services like social media advertising & fan engagement; social media optimization; analytics; SEO; and development of applications for facebook / mobile. Airwoot gets funded by Kae Capital led investor group Airwoot, which tracks brand mentions on social media and provides the brand with tracking and customer support services has received undisclosed investment from Kae Capital and other participants including angel investors Rajan Anandan, Sasha Mirchandani, Sunil Kalra and Samir Sood. The money will be used for technology development and talent acquisition.airwoot is a customer support social media tool, under the SaaS provider Memetic Labs Technologies, was until now in the stealth mode and went all out since past couple of months. Purplle.com receives first round of investment Mumbai Angels along with The Chennai Angel and Blume Ventures has invested undisclosed amount in first round of funding in Purplle, an online beauty and personal care firm. It plans to use the funds to offer more services and products to customers and scale up the salon finder platform to more cities.founded in 2012 by Manish Taneja and Rahul Dash, Purplle offers personal care products ranging from make-up to electronics from over 400 global brands. The company has previously raised a seed round from undisclosed investors. Hokey Pokey Icecreams raises pre-series funding Hokey Pokey Icecreams - Mumbai-based chain of ice cream parlours has received pre series A funding and has plans to raise more funds by end of the year. The company has raised less than a million dollars from investors led by Peter Rajsingh, a partner at New York-based Castellar Partners and Professor at New York University.Other investors include Shripad Nadkarni, a former marketing head at Coca-Cola India and an investor in Hector Beverages, and Apurva Salarpuria, director at the Salarpuria Group and investor in the Mast Kalandar restaurant chain. Times Internet invests in Skift.com Times Internet has invested an undisclosed amount into Skift.com, a New York based travel intelligence and information portal, as part of Skift s last fund raising round. The company plans to expand its data services, build its initial sales infrastructure and increase its workforce from 5 to 10. This is the second investment by the technology arm of Times Group into an international company. Lifestyle e-com venture The Label Corp raises Series A from Kalaari Capital Mumbai-based The Label Corp Pvt Ltd, a startup owning and operating several lifestyle e-commerce brands, has closed its series A round from Bangalore-based VC fund Kalaari Capital (earlier known as Indo-US Venture Partners). The startup owns and operates several lifestyle e-commerce brands. The funding is expected to be utlized in expanding the product lines and to expand the distribution presence.

3 Fund Raising & Liquidity Events Indiabulls Real Estate buys out Farallon's stake in seven projects for $187 mn Indiabulls Real Estate Ltd (IBREL), the Mumbai-based public listed realtor, has bought out the entire stake held by US-based investment fund Farallon Capital in a string of seven projects spread across Gurgaon, Sonepat and Chennai for a total consideration of $187 mn. FIM, an investment entity of hedge fund Farallon Capital, held 49% equity stake in these joint ventures and had invested in 2006 and 2008.Although it has exited with 38% return on its principal investment amount in local currency, on repatriation it would see the value of its investment dip. Private Equity News Baring Asia to buy 42% in Hexaware from promoter, General Atlantic for over $260M Baring Private Equity Asia is buying 41.8% stake in Hexaware Technologies Ltd for $242 to $260 mn. Baring Asia said the total investment, including the open offer, could be as much as $465 mn for the transaction. If it happens, it will be one of the largest buyout transactions in the Indian information technology space. Baring Asia will buy 27.7% stake in the company from promoter group led by Atul Nishar and another 14.1% stake from General Atlantic, aggregating to 41.8%. Red Fort Capital looking to raise $1 bn realty fund for India Red Fort Capital is all set to initiate the process to raise its third real estate dedicated fund for India and has set its eyes on a record amount as the target for any single realty fund in India ever. The fund is looking at raising $1 bn for it. This will be the third offshore fund for the real estate dedicated private equity firm. Warburg Pincus, Norwest to pick stake in fashion apparel firm Biba Private equity firms Warburg Pincus and Norwest Venture Partners have entered the fray to invest in Biba Apparels Pvt Ltd, a retailer of ethnic wear for women under the brand BIBA. The deal would mark a multi-bagger exit for Future Ventures. The saleis a part of Biyani s efforts to restructure and revive his retail empire that paid the price for rapid, and debt-fuelled expansion. The restructuring, and the ensuing stake sales are part of a larger effort to reduce debt. General Atlantic close to buy stake in designer apparel firm AND Designs Private equity firm General Atlantic is in the advanced stage of buying a significant minority stake in fashion apparel firm AND Designs India Ltd (ADIL) by acquiring the stake held by Kishore Biyani-controlled Future Ventures India Ltd. In addition to the above noted deal, this is yet another strategy that Future Group is targetting to pair down its debt level. Future Ventures is likely to make over 25x on its five-year-old investment. OrbiMed cuts size of second Asian healthcare fund, seeks to raise $300 mn New York-based healthcare focused private equity firm OrbiMed has initiated the process to raise $300 mn for its second pan-asia healthcare fund. The firm is looking to complete fundraising for OrbiMed Asia Partners II within a year. The PE player was earlier planning to scoop around $500 mn of which as much as two-thirds could have been committed to India. IFC Backed Equitas Holdings plans PE fund raise Micro-finance institution Equitas Holdings is in talks with PE investors for its largest fund raising close to $48.4 mn. Last year, Equitas Holdings had raised $28 mn from IFC, Micro Ventures and Caspian.Founded in 2007, Chennaibased Equitas is a microfinance company. In the last two years, the company has also set up separate business for providing finance for purchase of used commercial vehicles and housing loans for self employed through wholly owned subsidiaries. Ketan Mehta's Maya Digital to get PE funding Film maker Ketan Mehta's Maya Digital Studios is likely to raise $10 mn from PE investors for funding its expansion and growth plans. The company expects to close one of

4 the deals next quarter. It proposes to utilise the funds to increase its capacities, expand into new areas like gaming and create an animation film fund that would aim at international co-production with Indian partners, besides augmenting its intellectual property (IP) base. Fidelis World to acquire stake in Technology Frontiers as Avigo looks at exiting Technology Frontiers is likely to sell stake to Dubai based Fidelis World, a deal which would result in dilution of founder MS Muralidharan s stake and provide an exit to Avigo Capital. If the deals gets through it would value the entire company at $100.5 mn while Avigo would exit pocketing a return of 1.5 times its investment.currently Muralidharan holds 40%, Avigo 37% and a group of ultra HNI s hold around 20% stake in the company. Dhoni backed Fitsoul plans fund raise MS Dhoni backed sports and fitness retailer Fitsoul is looking to raise funds with the plans to open around 350 stores across the country within 5 years. The company is in talks with various investors and PE players to pare minority stake in the company.fitsoul began its operations earlier this year and at present has six operational stores. The company also has plans to venture into premium sports equipments and gears such as golf equipments for which it would need finance to support its growth plans. Sequoia to invest in Wildcraft Sequoia Capital is likely to invest $10 mn into an outdoorgear retail chain - Wildcraft, thus valuing the company at $50 mn. The fund raising is a part of the strategy to transform Wildcraft from mostly a technical outdoor gear to a broader lifestyle and leisure business. Mohan Breweries plans fund raise for expansion Mohan Breweries and Distillers Ltd is foraying into power sector through a 100% subsidiary, Mohan Power Ltd for which it is raising $242 mn through debt and equity instruments. The debt instruments will be at 250 basis points over LIBOR. The money will be raised for a 10-year period.the company has opted for hybrid securities through placements overseas by a major US fund house. The fund raising is said to begin in the later part of September by venture capital fund Exhilway Global Opportunities Fund L.P. Varun Beverages to raise PE funding Varun Beverages, a part of the RJ Corp Group, is in talks with PE firms to sell a minority stake for $48.4 mn. The company plans to use the funds for expanding its operations overseas. GIC Singapore, Temasek, Apax Partners and Blackstone have been approached independently and are in preliminary stages of discussion. The company is also planning an IPO in FY15 to widen its capital base. IDFC PE, OIF to buy Jaypee Capital s stake in NCDEX Delhi-based broker Jaypee Capital Services is in talks with IDFC PE and Oman Investment fund for divesting 14.7% stake in agri future exchange National Commodity & Derivatives Exchange Ltd for around $21.3 mn. Jaypee Capital holds 22.4% stake in the multi-commodity exchange.idfc PE may acquire 5% stake whereas other 9.7% would be sold to OIF. The two deals would value NCDEX at $147.1 mn. However, of the $21.3 mn that Jaypee would receive, $6.9 mn will have to be paid by the shareholder to NCDEX because of the investor's inability to ramp up volumes on the bourse over three years from November IDFC PE may invest in Manpasand Beverages IDFC PE is palnning to invest $24.2 mn in Manpasand Beverages for 10% stake. The company is in final stage of negotiations with PE fund and plans to utilise the raise funds to expand its product portfolio in towns and villages.in 2011, the company had raised $10 mn from Saif Partners by selling minority stake.earlier, Manpasand Beverages was also in talks with Warburg Pincus and Everstone Capital to raise funds. IPO & Other offerings Prabhat Telecom Files DRHP On BSE-SME Prabhat Telecom (India) Limited is planning an IPO through the SME platform of BSE to raise $4.1 mn by issuing 3. 3 mn equity shares of the company to public at Rs 80 each.the issue consists of 27.9% of the post issue equity capital and the proceeds of which the company plans to utilize for setting up new assembly lines and of expansion of existing assembly lines, setting up quality control and testing laboratories, enhancing its distribution network, enlarging its retail chain format and setting up of a regional office in New Delhi.

5 M&A Activities Acquiror Target Business Stake (%) Deal value ($ mn) Indiabulls Real Estate Ltd FIM's Stake in secen project subsidiaries Real Estate NA Viva Holdings Fortis Hoan My Medical Corporation, VOF Healthcare PE holdings Ltd NA 80.0 Spenta Multimedia Pvt Ltd MW.com India Pvt. Ltd, Rolling Stone India Media NA NA Tractebel Engineering Pvt Cethar Consulting Engineers Ltd Consulting NA NA Ltd Thomson Reuters Inc Omnesys Technologies Pvt Ltd ITeS NA NA Bajaj Corp Ltd Ozone Ayurvedics' Nomarks Brand FMCG NA NA IndiaMART's Biztradeshows Playcez Technologies Pvt Ltd ITeS NA NA Stock Market Updates During the week ended 24 th August, 2013, there were 7 M&A deals worth $260 mn (Size of 5 deals was not known). In the largest transaction during the week, Indiabulls Real Estate acquired entire stake of US based FIM Ltd in seven real estate project subsidiaries for $180 mn. Key Domestic Indices Index Indian Market Movements 52 Week 19-Aug Aug-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 19-Aug Aug-13 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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