Four-S Private Equity Track

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1 Four-S Private Equity Track Issue: 2 nd June 7 th June 2014 Your Eye to Indian Private Equity PE activity for the week The year 2014 has so far aggregated $2.8 bn of PE investments across 260 deals compared to $5.4 bn (202 deals) during the same period last year. During the week ended 7 th June, there were 7 PE/VC deals worth $97.0 mn compared to 16 deals worth $413.8 mn in the previous week. The largest disclosed transaction during the week was by India Value Fund and Olympus Capital investing $ 60.0 mn in Aster DM Healthcare Pvt Ltd. Private Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in ($Mn) Type of Deal 218 3, , ,809 YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) No. of Deals Sector Industry Segment India Value Fund, Aster DM Healthcare Pvt Pharma & NA 60.0 Growth Healthcare Hospitals Olympus Capital Ltd Healthcare Power Grid Corporation Electricity IFC NA 20.4 PIPE Electricity Transmission India Ltd Distribution Sequoia Capital Octro Inc NA 15.0 Growth IT/ITeS Software Gaming Kae Capital Indian Angels, Mumbai Angels, GrowX Ventures Undisclosed Angel Investors Source: Four-S PE Database Fortune Payment Solutions India Pvt Ltd Novix Media Technologies Pvt Ltd (AdSparx) FSN E-Commerce Ventures Pvt Ltd (Nykaa) The Shirt Company India Ltd Aster DM Healthcare gets additional funding Aster DM Healthcare Pvt Ltd has raised $60.0 mn from its existing investors India Value Fund and Olympus Capital divesting a minority stake in the healthcare firm. With its HQ located in Dubai the company runs hospital chains in Maharashtra and Kerala and is on the way of setting up more units in southern and western India. The company is seeking to grow its presence in the country through acquisitions and was in talks with hospitals in Hyderabad and Bangalore for a possible acquisition. NA 1.0 Early e-commerce IT Services Cloud Services NA 0.6 Early e-commerce YTD (from 01 st Jan to 7 th June) Internet Services Others 20.0 NA Growth e-commerce Internet Retail Internet Retail NA NA Early Manufacturing Textiles RMG IFC invests in Power Grid Corporation Inter-state and inter-regional transmission utility, Power Grid Corporation India Limited has raised $20.4 mn in equity from the IFC to fund its ongoing capex plans for FY This would be IFC's first equity investment in the company. IFC had lent $400 mn in 2012 for financing transmission projects to be undertaken by Power Grid. IFC s participation is part of the FPO which the state owned company has made to finance its $16 bn capex plans that comprises of several transmission lines and substations across parts of India,

2 Octro raises Series A round from Sequoia Capital Delhi based mobile gaming company, Octro, which has developed games like Teen Patti and Tambola is raising Series A round of $15.0 mn from early stage investor Sequoia Capital. Proceeds from the latest round will be used to expand into other geographies as well as to add new titles in the pipeline. Founded in 2006, Octro s mobile games are amongst the top ten apps on both Android and Apple's ios store in India. FortunePay raises angel funding Bangalore-headquartered e-payment processing solutions startup Fortune Payment Solutions India Pvt Ltd, which operates under the brand FortunePay, has secured around $1.0 mn in angel round of funding, led by existing investor Kae Capital, with participation from Mumbai Angels and Delhi-based Growx Venture Management. The company will use the capital for platform certification and product deployment. AdSparx secures angel funding Pune based AdSparx, a video ad technology platform for streaming internet videos owned by Novix Media Technologies Pvt Ltd, has raised $0.6 mn in an angel round led by Indian Angels along with the participation from Mumbai Angels and GrowX Ventures. The proceeds from the latest round will be used to expand its footprint into domestic as well as into international markets and also increase its existing customer base. Nykaa raises PE funding Mumbai-based FSN E-Commerce Ventures Pvt Ltd that runs Nykaa.com, a beauty e-commerce portal, has raised an undisclosed amount from investors including a big business family and a hedge fund for a 20% stake in the company. The company will use the funds to expand its online business as well as for setting up its first offline retail store at Terminal 3 of New Delhi's airport. Bombay Shirt Company raises seed funding Amit and Arihant Patni, sons of Patni Computer co-founder Gajendra Patni, have picked up a significant stake in Bombay Shirt Company (BSC), an online custom shirt retailer, for an undisclosed amount. The funds will be used to further scale up the startups' custom shirt platform. BSC offers its customers made-to-measure shirts that are accessible to virtually anyone. Customers can choose one of the ready-to-order BSC designs, or start from scratch and customise the shirts to their specific taste. Fund Raising & Liquidity Events Exfinity Technology Fund Achieves First Close Exfinity Technology Fund formed by senior IT professionals has raised $16.6 mn in the first round of funding. The fund would make early stage investments in the technology sector to back innovative ideas. Reservior Investment Managers, who is the sponsor of Exfinity Fund is looking to make a final close with a green shoe option of $4.1 mn with a total corpus of $20.1 mn. Clearwater exits Diamond Power Infrastructure PE firm Clearwater Capital Partners has part exited Diamond Power Infrastructure by selling 5.5% stake or almost half of its holding for $4.7 mn to a bunch domestic investors via open market on Monday. The firm sold the shares at Rs 90.3 per share to three investors, namely, Antique Finance, Antique Sectrade and Saraswati Commercial. Greater Pacific exits Edelweiss Private investment firm Greater Pacific Capital (GPC) has partially exited its eight-and-half-year old investment in financial services firm Edelweiss Financial Services Ltd for $11.8 mn via an open market transaction on Thursday. Touchstone Private Equity Trust raising News debut fund Attero to raise PE funding Electronics asset management company Attero Pvt Ltd is planning to raise $50.0 mn from PE funds to finance its expansion plans. The funding is likely to be through debt instruments. Founded in 2008, Attero serves as a recycling platform offering various services like customized end to end solutions for e-waste management, electronics asset recovery, data security and electronics reverse logistics along with repair, refurbishment and retailing of electronics. Everstone to invest in Fun Republic Atul Kapoor and Sameer Sain led PE firm Everstone is in talks to pick up close to 30% stake in Essar group's mall operator Fun Republic. Fun Republic began its first mall in

3 Andheri, one of Mumbai s suburbs during the early 2000 taking advantage of the economic boom. However post that the fund raising efforts of the company have not fructified due to the economic slowdown in the recent years. KKR to pick majority stake in Avantha Powers KKR is likely to pick up majority stake in Gautam Thapar controlled Avantha Power And Infrastructure Limited for $110.0 mn. After this investment, KKR will hold 55% stake in the company.the funding will help the firm to complete the two thermal power plants project of 660 mw each located in Chhattisgarh and Madhya Pradesh. SAIF Partner targets eight fresh investments India-and China-focused PE Firm SAIF Partners is planning to make eight fresh investment this year, double of what it did last year. The investment would be spread across sectors in listed and unlisted space with an active focus on the seed stage. SAIF invests between $200K to $500K in early stage companies and $30 mn to $35 mn in mature ventures with a typical holding period of 7-10 years. Rollmaal QSR chains, is backed by London-based Blue Sky Capital. Shriram group to raise funding for non-financial business Chennai-based diversified business conglomerate Shriram Group is in talks with private equity players to raise as much as $75.0 mn for its non-financial services holding arm Shriram Venture Ltd. Shriram group had to split its business in 2012 and create a new holding arm Shriram Venture for non-financial businesses to meet the Reserve Bank of India s norms and apply for a banking licence. Realty Compass to raise angel funding Chennai-based Blitzkrieg Technology Pvt Ltd, the company that owns and operates property search engine Realty Compass, is in talks with three investors to raise pre-series A funding. The firm plans to expand into Mumbai and Pune in three months. Realty Compass had earlier received angel funding from Svapnas Holding Pvt Ltd. Japan s Netprice to invest $10 mn in India Japanese consumer internet incubation cum investment firm Netprice.com Inc is planning to invest $10 mn in Indian startups in the next one year. The firm, which is being renamed as Beenos, has previously backed online marketplace ShopClues besides Citrus Payments. Biotz close to raising Series A round funding Biotz Intelligent Technologies, a Kerala-based startup which develops 3D printing solutions for enterprises, is close to securing its Series A round of funding from a group of investors, including Gurgaon-based private equity firm Ncubate, among others. Biotz had previously raised $50 K in seed funding from an angel investor last year. Kerala government launches angel fund The government of Kerala is rolling out a $1.6 mn angel fund to support innovative startups based out of the state this financial year. Kerala State Industrial Development Corporation would offer a maximum seed capital of Rs 25 lakh each for innovative projects. Mamagoto looks to raise PE funding Delhi-based Azure Hospitality Pvt Ltd, which runs a Pan Asian casual dining chain under the Mamagoto brand, is looking to raise $8.4 mn for expansion of the flagship brand. The firm, which also runs Speedy Chow and

4 Merger & Acquisitions Acquiror Target Business Stake (%) Deal Value ($ mn) Speciality Restaurants Ltd Love Sugar and Dough Pvt Ltd F&B 51 0 Homair Vacances HolidayBreak Ltd (Cox and Kings Ltd) Travel & Tours German industrial group Micro Precision Products Pvt Ltd Manufacturingtools en-japan Inc New Era India Consultancy Pvt Ltd HR Consultancy 60 6 Manufacturingtools Ceratizit (Günther Wirth) GW Precision Tools India Pvt Ltd 25 NA Hofincons Infotech and Industrial IKYA Group HR Consultancy 100 NA Services WPP Inc Temple Advertising Pvt Ltd M&E 100 NA IL&FS Transportation Network Srinagar Sonmarg Tunnel Ltd Construction 35 NA Ltd Rentokil Initial India Pvt Ltd PestconePlus Pvt Ltd Chemical & Allied 100 NA CRIF SpA High Mark Pvt Ltd IT/ITeS NA NA Ezetap Mobile Solutions Pvt Ltd During the week ended 7 th June, 2014, there were 12 M&A deals worth $195 mn (Value of 8 deals is not disclosed). The largest deal during the week was by Homair Vacances acquiring 100% stake in Holidaybreak Ltd for $147.2 mn. Clinknow (Gharpay Technologies Services Pvt Ltd) Mobile-VAS NA NA Varkey Group AHC GCC Investment Education NA NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 02-Jun Jun-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

5 Key Global Indices Index Global Market Movements 52 Week 02-Jun Jun-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance 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: