Private Equity Track

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1 1 S T - 7 T H O C T 1 2 R e s e a r c h 4 I n d i a W e e k l y u p d a t e o n t h e I n d i a n P E S e c t o r PE Activity for the week The year 2012 has so far aggregated $6.40bn (340 deals) of PE investments compared to $9.68bn (324 deals) during the same period last year. During the week ended 7th Oct, 2012, there were 3 VC deals worth $1mn compared to 7 deals worth $213.8mn in the previous week Out of the 3 deals, the value for only one was disclosed - Omnivore Capital s $1mn investment in Frontal Rain Technologies. 0 Till date 2011 Till date 2012 PE Investments No. of Deals 0 PE Deals During The week Investor (s) Target Stake (%) Value ($mn) Stage Sector Industry Segment Omnivore Capital Frontal Rain Technologies NA 0.95 Early Services IT/ITeS Software Omnivore Capital Khedut Agro NA NA Early Manufacturing Intel Capital Hungama.com NA NA Early Services Capital Goods Media & Entertain ment Agri equipments Digital media Source: Four-S PE Database Omnivore Capital invests in agri-tech startup FrontalRain, agri equipment firm Khedut Agro Early-stage VC fund Omnivore Capital has made two fresh investments. It has put in Rs 50mn ($0.95mn) in Bangalore-based agri-tech startup Frontal Rain Technologies and has invested an undisclosed sum in Rajkok-based agri equipment maker Khedut Agro. FrontalRain provides Rain+, a group of food supply chain software on Cloud that can address specific needs of agribusinesses, food processing plants, cold chains, warehousing companies, distributors, retailers, commodity traders and professional agri service providers. Khedut Agro Engineering Pvt Ltd is engaged in manufacturing and export of tractor drawn, ox operated, manual/ hand operated automatic seed drill, seed planter, dumper, cultivators and other tractor attachments. Intel Capital invests in Hungama.com Intel Capital has put in a fresh investment in Mumbai based digital entertainment company Hungama. The investment is specifically into Hungama.com, which will own the music tracks, movies, music videos and mobile content. The investment is a part of the $40mn bulk amount that the VC firm has decided to invest in 10 innovative companies across the globe. Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. For subscription / custom queries, please contact Seema Shukla at seema@four-s.com.

2 Fund Raising & Liquidity Events Nalanda Capital exits Shree Cement Nalanda Capital has sold approximately 1.61% in Shree Cements, the largest cement manufacturer in North India, for Rs 2.14bn ($41.4mn). Nalanda Capital had picked up shares in Shree Cement during July-September quarter last year, when the shares were trading between Rs 1,718 to Rs 1,825 per unit. This put its total cost of acquisition between Rs 1.95bn- Rs 2.10bn. With the current sale the PE firm seems to have recovered its investment cost in the firm. Nalanda Capital still holds 1.64% stake in the firm. Carlyle exits HDFC for $840mn, makes over 2x Carlyle Group has sold its entire stake in India s largest mortgage lender Housing Development Finance Corp (HDFC) in one of the largest exits in country's PE history. The buyout giant sold 3.7% stake in HDFC on Friday for $840mn (Rs 43.38bn). With this exit, Carlyle has made over $1.11bn on its $650mn investment made over five years ago in Carlyle had purchased 5.22% stake in HDFC, a part of which was sold in February this year for $271mn or Rs 13.55bn. Carlyle s average investment price comes at Rs 344 per share. The latest sale was at Rs per share, as against Rs a share in the February sale. Thus it made over 2x return on investment with the latest sale. Fulcrum Ventures makes debut exit from Casa Grande Chennai based early-stage sector-agnostic investment firm Fulcrum Ventures India (FVI) has marked its first exit from its portfolio by selling out its stake in a small property developer Casa Grande Pvt Ltd to the management The company had invested Rs.50mn in Casa Grande in fiscal year 2004 for a 50% stake. The management of Casa Grande has bought back the stake for about Rs.500mn. The sale fetched the investor an internal rate of return of 54.5%. Casa Grande has developed over 1.5 million sq. ft. of land and has achieved sales of Rs.940mn. StanChart PE s 4x exit from PI Industries Standard Chartered Private Equity made over 4x exit on its three-year-old investment in PI Industries Ltd, an agri-input and custom synthesis firm. The private equity firm sold a 4.5% stake for Rs 645.5mn on the bourses. Standard Chartered Investments & Loans (India) Ltd sold 1.13 million shares on National Stock Exchange and Bombay Stock Exchange at Rs 570 a piece. The average acquisition cost is estimated to be Rs 130 per unit, thus giving 4.4x return on investment. IDFC Alternatives sells 4% in Gujarat Pipavav for $18.7mn Two private equity funds managed by IDFC Alternatives have sold over 4% stake in Gujarat Pipavav Port Ltd for $18.7mn (Rs 1bn). IDFC's India Development Fund and IDFC Private Equity Fund II sold 10 million shares each in Gujarat Pipavav at Rs and Rs 50.25, respectively. The investor still holds a little over 1% stake in the firm. TVS Capital raises over Rs 5bn for top-up fund TVS Capital Funds Ltd, which manages TVS Shriram Growth Fund-IA, has raised commitments of over Rs 5bn for its top-up fund with backing from large family offices. TVS Capital launched TVS Shriram Growth Fund-IB last year and expects to make a final close at Rs 5.5-6bn in the next days. Sponsors -- TVS Group and Shriram Group -- have committed around Rs 65 crore. Family offices have chipped in Rs 200 crore, institutions around Rs crore and the rest came from ultra high net worth individuals (UHNWIs). Research4India 2

3 Private Equity News CX Partners to acquire stake in Transaction Solutions PE firm CX Partners is planning to invest R150 Cr in Transaction Solutions International (India) Private Limited, a ATM outsourcing and payment company. The fund is negotiating to acquire above 70% stake in the company. Transaction Solutions will use these funds to expand its operations in the ATM space. Currently, it manages over 850 ATMs across the country for both public and private sector banks, including Punjab National Bank, Tamilnad Mercantile Bank and HDFC Bank. Seed fund provider - 5ideas to raise funds Startup Superfuel Fund 5ideas is planning to raise around $10mn. The fund will be used to fuel 40 technology start-up ventures for scaling the business in the next three years. Founded by Fashionandyou.com co-founder Pearl Uppal and dealsandyou.com co-founder Gaurav Kachru, 5ideas start-up superfuel fund is the first seed fund cum accelerator program in India for early stage digital businesses. The fund will invest anywhere between Rs 50 lakhs Rs 25mn in a start-up and will become their operating partners, working with them for about six to 12 months. Seedfund backed MyDentist to raise Series B round MyDentist, a dental clinic chain in Mumbai is planning to raise $10 Mn Series B round to expand its network of clinics to 130 by March MyDentist was incubated by Seedfund in 2010 by initial investment of $0.2mn which was followed by Series A round of investment last year. MyDentist is a chain of specialised dentist clinics and currently runs 30 clinics in Mumbai. Letsintern plans to raise Series A funds Student-corporate connecting portal Letsintern is in talks with VC funds and HNIs to raise Series A funds by start of next year. The portal is engaged in providing a platform for students, colleges and organizations to connect mainly for internships along with other peripheral services and offline training modules. IPO, other offerings Apollo Tyres to raise funds through QIP Apollo Tyres is planning to raise $150mn (rs 8bn) through qualified institutional placement to Qualified Institutional Buyers. The board members have approved a hike in investment limit of foreign institutional investors to 40% from 30% earlier. Set up in 1972, Apollo Tyres manufactures automotive bias and radial tyres, and tubes. The company has plants in Kochi, Vadodara, Pune, and Chenna. LIC Housing to raise funds Mortgage Lender LIC Housing Finance is planning to raise around $250 mn - $270 mn through share sale. Promoted by Life Insurance Corporation of India, LIC Housing Finance is engaged in housing finance business. Presently, LIC continues to be the largest shareholder in LICHF, with around 40.31% shareholding. Recently, the company was planning for an QIP to raise around Rs 12bn by selling 46mn equity. Executive Tracking Nikhil Gahrotra moves to BanyanTree from 3i Capital Nikhil Gahrotra has joined in BanyanTree as Director, the advisor to BanyanTree Growth Capital, a $250mn PE fund. Nikhil has almost a decade of financial services experience with the last seven years leading the growth capital function of 3i Capital in India. Nikhil joined 3i from Q Investments, a $4 Bn American multistrategy fund, and is based in Mumbai. Prior to that, he was with the India I-Bank team of Citigroup Research4India 3

4 M&A Activity for the Week During the week ended 7th Oct, 2012, there were 5 M&A deals worth $598.8mn (size of 2 deals were not known). In the largest deal during the week, BG Group is selling its majority stake in public listed Gujarat Gas Company Limited (GGCL) for approximately $470mn to GSPC Distribution Networks Limited, a subsidiary of Gujarat State Petroleum Corporation. Acquiror Target Sector GSPC Distribution Networks Limited Oil India Ltd (OIL) and Indian Oil Corporation (IOC) Source: Four-S PE Database Gujarat Gas Company Limited - BG Group's stake Carrizo Oil & Gas Inc s shale assets in the Denver Stake (%) Deal value ($ mn) Oil & gas Oil & gas NA 82.5 Quippo Oil and Gas Infrastructure LtdQuippo Prakash Oil & gas What s-on-india Media Private Limited Autodesk Inc Middle East Co Media & Entertainment NA NA Pramati Technologies - enterprise social collaboration software business IT/ITeS NA NA Market Update Key Domestic Indices Indian Market Movements 52 Week Index 28-Sep-12 5-Oct-12 Change (%) High Low BSE Sensex 18, , % 18, , S&P CNX Nifty 5, , % 5, , CNX Nifty Junior 11, , % 10, , Nifty Mid Cap 50 2, , % 2, , CNX IT 6, , % 6, , Bank Nifty 11, , % 11, , CNX Infrastructure 2, , % 2, , CNX Realty % Key Global Indices Global Market Movements 52 Week Index 28-Sep-12 5-Oct-12 Change (%) High Low NASDAQ 3, , % 3, , Dow Jones Industrial Average 13, , % 13, , S&P 500 1, , % 1, , NIKKEI 225 8, , % 10, , Hang Seng 20, , % 21, , Straits Times Index 3, , % 3, , FTSE 100 5, , % 5, , Source: Google Finance, Yahoo finance Research4India 4

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7 About Research4India Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. These reports will be available on our upcoming site as well as from leading international research sellers like Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc. 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 opinions 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 contents. 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: Seema Shukla Gurgaon Office: 214, Udyog Vihar, Phase I, Gurgaon Tel: Ajay Jindal Mumbai Office: 101,Nirman Kendra, Opposite Star TV, Off Dr E Moses Road, Mahalaxmi, Mumbai Tel: Research4India 7

Private Equity Track

Private Equity Track 1 7 T H - 2 3 R D S E P T 1 2 R e s e a r c h 4 I n d i a W e e k l y u p d a t e o n t h e I n d i a n P E S e c t o r PE Activity for the week The year 2012 has so far aggregated $6.18bn (330 deals)