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 $266 mn of PE investments across 55 deals compared to $305 mn across 39 deals during the same period last year. During the week ended 01 st February, there were 17 PE/VC deals worth $118.8 mn compared to 8 deals worth $39.0 mn in the previous week. The largest disclosed transaction during the week was by Tata Opportunities Fund investing $60 mn in Varroc Group Private Equity: Investment Summary during the week YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) No. of Deals YTD (from 01 st Jan to 01 st Feb) Investor (s) Tata Opportunities Fund Target Stake (%) Equity Check in ($Mn) Type of Deal Sector Industry Segment Varroc Group NA 60.0 Growth Manufacturing Automotive Auto-ancillary India Value Fund ISS Hicare Pvt Ltd Buyout Manufacturing WestBridge Capital Partners Oman India Joint Investment Fund Helion Venture, Nexus Venture Ventureast Tenet Fund, Angel Investors Aavishkaar India II Chemical & Allied Pest Management DFM Foods Ltd Growth Manufacturing F&B Salted Snacks NCDEX Ltd Growth Services BFSI Eye-Q Vision Pvt Ltd NA 4.5 Growth Services Healthcare Onebreath India Pvt Ltd NA 3.0 Early Manufacturing Healthcare HR Food Processing Pvt Ltd NA 2.5 Early Manufacturing F&B Stock exchange Eye-care Hospitals Medical Devices Food Processing DSG Consumer Saraf Foods Pvt Ltd Partners Growth Manufacturing F&B Frozen Food Aavishkaar India II CAOS Apparels Pvt Ltd NA 1 Early Manufacturing Textiles Apparels Aavishkaar India II MHealth Ventures India Pvt Ltd NA 1.1 Early Services Healthcare Online Health Aavishkaar India II Nalanda Learning Systems Pvt Ltd NA 0.6 Early Services Education Pre-School Angel Investors OurHealthMate Inc Internet NA 0.4 Services Angel Investors Turtle Yogi Technologies Internet Pvt Ltd NA 0.4 Services

2 ThinkVidya Learning Pvt Learning Angel Investor Early Services Education Ltd NA NA Platform CIIE, Angel Cobboc Pvt Ltd Mobile Investors (Eashmart) NA NA Payment Mobile Angel Investors ikaaz Software Pvt Ltd NA NA Payment GTI Capital Brattle Foods Pvt Ltd NA NA Growth Services Logistics Food Logistics Source: Four-S PE Database Tata Opportunities Fund invests in Varroc Group Tata Opportunities Fund is acquiring a minority stake in Aurangabad based auto component maker Varroc group for $60.0 mn. The money will be utilized to build new products and to expand the company s presence in Europe and emerging markets; while some capital will go towards expanding its Visteon business. Varroc Group has diversified its product portfolio; it now offers a variety of electrical, polymer-based engineering assemblies and subassemblies. India Value Fund buys out ISS Hicare Buyout India Value Fund and ex-godrej Consumer Products MD and serial entrepreneur Arumugham Mahendran are buying out pest control services company ISS Hicare from its Danish parent for $20.0 mn. The total investment by IVF would be $25.0 mn out of which $20.0 mn will be to fund the acquisition and remaining to fuel the company s growth plans post acquisition. A majority of 90% stake will be held by IVF while the residual interest will lie with Mahendran. With a presence in over 30 cities and 50 service centers across India, ISS Hicare offers complete Pest Management Solutions in commercial as well as residential premises. WestBridge Capital invests in DFM Foods WestBridge Capital Partners has picked up nearly 25% stake in DFM Foods, the maker of salted snacks under the 'Crax' brand from its promoters for $10.8 mn. The public markets focused investment firm bought nearly 2.5 mn shares from Mohit Jain, the vice chairman and managing director of the company and another family member. The promoter holding has shrunk to around 45% stake after the transaction. As a part of the transaction, DFM Foods has also inducted WestBridge Capital co-founder Sandeep Singhal as an additional director. Oman India Joint Investment Fund invests in NCDEX Oman India Joint Investment Fund (JV betweekn Oman s sovereign wealth fund State General Reserve Fund and India s largest lender State Bank of India), has picked up another 5.3% stake in India s largest agri-commodity derivatives exchange National Commodity & Derivatives Exchange Ltd (NCDEX) from Jaypee Capital Services Ltd for $7.9 mn. Helion, Nexus invest in Eye-Q Eye-Q Vision Pvt Ltd, which runs eye care hospitals in North and West India, has raised $4.5 mn from Helion Venture Partners and Nexus Venture Partners. The company plans to build 100 hospitals with an investment of $41.6 mn crore in five years. Ventureast Tenet Fund invests in OneBreath Bangalore-based medical devices company OneBreath has raised $3.0 mn from Ventureast Tenet Fund and angel investors. The funds will be used to expand the company's footprint into India, Africa and Eastern Europe and also to get regulatory approvals in the US and Europe. OneBreath is a medical device company which is developing an innovative low-cost, portable mechanical ventilator that improves ICU care for patients. DSG Consumer Partners invests in Saraf Foods Mauritian PE firm, DSG Consumer Partners has acquired 29% stake for $1.6 mn in Gujarat based Saraf Foods, a manufacturer of freeze dried fruits, vegetables and herbs. The company plans to invest newly invested capital to boost its capacity. Established in 1992 as a 100% export oriented unit, Saraf Foods today supplies nearly eight volume-based freeze-dried products such as sweet-corn green peas, onions, green pepper, banana and potato and about 25 other need-based products. Edu-Startup ThinkVidya gets Angel investment Online education community portal ThinkVidya has secured investment from a US based serial entrepreneur and angel investor which would help the startup to expand its physical presence, user base and boost its sales and marketing efforts. The company also plans to increase its workforce to 70 from the current 30 by year end. Founded

3 in 2012, ThinkVidhya serves as a platform to connect students with teachers under various categories. CIIE, Angels Invest In Eashmart CIIE and two unnamed investors have invested an undisclosed amount in an angel round of funding in Delhi based Cobboc which owns POS payment system called Eashmart. The company plans to use the infusion for product development and increase its marketing efforts. Eashmart is an CIIE incubate since September 2013 and was also among the finalist of IQ Bootcamp. Mobile payments startup ikaaz gets seed funding A group of angels led by Ananda Kallugadde, MD of Neobytes Softwares have invested an undisclosed amount in mobile payments solution provider ikaaz to help the startup expand its operations in India and Africa. The company is also planning its Series A to the tune of $5.0 mn. Bangalore based ikaaz, provider of mobile payments platform for enterprises, business correspondents and merchants was founded in Aavishkaar Invests In Four Startups Impact fund Aavishkaar India II has invested a total of $5.2 mn in four startups HR Foods, CAOS Apparels, Mera Doctor, Nalanda Learning Systems. (1) It has invested around $2.5 mn in HR Foods. HR Foods is a Ranchi-based dairy products company which aims to use this capital to expand its network across the state of Jharkhand and setting up milk processing plant in Ranchi. (2) In COAS Apparel, the fund has invested $1.0 mn. COAS Apparel manufactures organic, Fairtrade-certified garments. The company plans to increase its capacity with the recently invested funds. (3) In MeraDoctor, Avishkar has invested $1.1 mn. Mumbai-based MeraDoctor, founded in 2011, provides healthcare services like consultation with physicians over the phone. The company at present receives medical enquiries from 13 states across the country and plans to use funds to expand its geographical coverage. (4) In Kolkata-based pre-school venture Nalanda Learning Systems, Avishkar has invested $0.6 mn. The company operates under the name Little Laureates. Nalanda, which currently runs 11 centres, plans to use this fund to set up more than 300 pre-schools across eastern India. OurHealthMate secures seed funding OurHealthMate, an online healthcare service provider has raised $0.4 mn in seed round. The proceeds will be used to increase the staff from 6 to 16 members across office in India and Singapore and to introduce the platform to more cities across Asia. Launched in Jan 2013, OurHealthMate is an online platform that allows NRI to book and pay for health checkups on behalf of their families and also hospitals and clinics can manage their interactions with patients. Turtle Yogi gets seed funding 1Click.io a cloud-based video infrastructure product owned by Turtle Yogi Technologies has raised around $0.4 mn in seed funding round from Blume Ventures and other angels. The funding will be use to extend its existing offerings and to boost up its B2B sales. Founded in 2012, 1Click.io, enables users to conduct face-to-face conversations, across browsers and mobile platforms, without downloading the software or app. GTI Capital infuses additional funds into Brattle Foods Private equity firm GTI Capital has invested additional funds in Delhi-based food logistics firm Brattle Foods Pvt Ltd, adding to its existing exposure to the company. While details of the latest round of funding is not disclosed, Brattle received around $5 million from GTI Capital in Fund Raising & Liquidity Events IIFL s wealth management arm raises realty fund IIFL Wealth Management has raised $118.0 mn for its real estate fund called - IIFL Income Opportunities Fund-Series 'Special Situations' to invest in residential properties in India. The fund launched in August 2013 is a close ended fund aiming at gross returns of 22-24%. With a tenure of 4 years and a deployment period of 18 months the fund is planning an equity commitment of $8.0 to $12.0 mn per transaction. IIFL has mandated ealty investment firm Indiareit Fund Advisors (Indiareit) to manage its mint fresh real estate fund. Raj Bagri's investment arm part exits Tecpro Systems London-based Indian businessman Raj Bagri, who coinvested in material handling company Tecpro Systems

4 along with private equity firm Avigo Capital almost eight years ago, has part exited the firm with a deep haircut. The quantum of sold stake is not disclosed. Private Equity News Tiger Global mulling new global VC fund Tiger Global Management LLC, the hedge fund managed by industry mogul Charles Coleman, has kicked off process to raise its eighth venture capital fund focused on laterstage, privately-held technology companies. At present it has seven VC funds with assets of over $6.0 bn which will rise to over $7.5 bn. In India it has backed firms like Flipkart, Olacabs, Caratlane, Myntra, Freshdesk, Babyoye, Commonfloor, Zovi, Just Dial and MakeMyTrip among others. IvyCap Ventures aims to launch second VC fund IvyCap Ventures, which is on its way to close its maiden venture capital fund at around $40 million within three months and expects to deploy all the capital by mid-2014, has started putting together plans for its second VC fund with a target corpus of $100.0 mn. Around 20 per cent of the corpus of its debut fund was from money committed by alumni of IITs and IIMs. Supertech looking to raise funds from Kotak Realty Fund Kotak Realty Fund is in advanced stage of negotiations to invest $16.6 mn in a residential project of Delhi NCR-based realtor Supertech Ltd. The realtor is also looking to close its transaction with Xander for a project in Gurgaon. Supertech is also in talks with various PE firms to raise a total of $166.7 mn to fund its ongoing projects. Star CJ plans PE fund raise Home shopping network Star CJ Network India is seeking to induct a PE player to fuel its expansion into the Hindispeaking belts of the country along with the Eastern region and South India. Currently loss making the network, a JV between Rupert Mudroch-run News Corp and South Korea s CJO Shopping Co Ltd plans to be a $1 bn company by FY18. Kedaara Capital in talks to acquire controlling stake in Mahindra Logistics Private equity firm Kedaara Capital is in talks to acquire majority stake in Mahindra Group s privately held firm Mahindra Logistics Ltd. If it materialises, this would be the debut transaction by Kedaara Capital which successfully raised $540 mn last year. Carlyle in advanced talks to invest in Mufti Private equity firm Carlyle is close to picking a minority stake in Mumbai-based men s apparel firm Credo Brands Marketing Pvt Ltd, which is behind the brand Mufti, through a secondary deal. The deal value is expected to be around $30.0 mn. Recently General Atlantic and Warburg Pincus bought into apparel firms AND Designs and BIBA, respectively. IDFC to launch two realty funds IDFC Alternative, the PE arm of IDFC is seeking to raise two real estate focused funds domestic mezzanine debt fund and a foreign rental yield fund to invest in real estate projects across the seven Indian major cities, including the metros. Targeting family offices and HNI s, the domestic fund would have a corpus of $100 mn and offshore would be a $300 mn fund where both would have exit routes through REIT s or strategic sale of buildings. Former Mumbai Angels president Anil Joshi to launch VC fund Anil Joshi, who stepped down from Mumbai Angels in November is planning to raise $25.0 Mn for his own Dev Venture Fund which will invest in pre-series A stage. The 60% of fund will be raised by domestic investors and balance from overseas investors. The new fund will invest in companies across sectors like IT, telecom and digital businesses with deal ticket size $500k-$2 mn. Kotak PE to buyout IFC, JM financial in Samson Maritime Kotak PE is planning to acquire 19% stake in Samson Maritime for $25.0 mn, buying out existing investors IFC and JM Financial. The deal would involve the exit of IFC which had invested around $11.0 mn to part-finance the debt that Samson took to purchase of a new Anchor Handling Tug Supply Vessel (AHTS) and JM Financial that invested $14.0 mn in Goldman to pick up stake in Opto Circuits Goldman Sachs is planning to invest $50.0 mn in Bangalore based Opto Circuits for a 26% stake valuing the medical equipment maker at $216.7 mn. Infusion of Goldman that might be a combo of existing and fresh equity would be used for expanding the company's medical device business. Established in 1992, the BSE NSE listed Opto Circuits develops, manufactures, markets and distributes a

5 range of medical products with forte in vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies. Wishpicker plans fund raise Noida based Wishpicker owned by Wizmunk Gifting Services Pvt Ltd is in talks with investors to raise funds for improving its technology and marketing skills. Founded in 2013 by Prateek Rathore and Apurv Bansal, Wishpicker is an online portal which helps users to select and decide gifts for different occasions based on age group, personality and other factors. It has tie-ups with 22 ecommerce sites including Flipkart, HappilyUnmarried, and Ferns and Petals. Government floats India Inclusive Innovation Fund India Inclusive Innovation Fund has been launched by The National Innovation Council and the Ministry of MSME with an initial corpus of $83.3 mn to solve the problems of citizens at the base of the economic pyramid in India. The government will be contributing $16.6 mn and the remaining will come from banks, insurance companies and overseas financial & development institutions. Having a life of 9 years the fund aims to increase its corpus upto $833.3 mn over the next two years. Public Equity SBI raises funds through QIP State Bank of India has raised $1.3 bn through a sale of shares to institutional investors to boost its capital requirements. The bank sold 5.13 crore shares at an average price Rs SBI is strengthening its capital adequacy ratio as increasing bad loans erode its profitability. This round of fund-raising will increase the overall capital adequacy ratio of the bank to 12.81% and the tier I capital adequacy ratio at over 9.67% of assets. The bank was looking to raise around $1.6 bn through the QIP, but had to settle for $1.3 bn and that too mainly with support from the LIC and treasuries of other state-owned banks.

6 M&A Activities During the week ended 01 st February, 2014, there were 7 M&A deals worth $237.3 mn. The largest deal during the week was by Diageo Plc acquiring and additional 2.4% stake in United Spirits Ltd for $138.0 mn. Acquiror Target Business Stake (%) Deal Value ($ mn) Diageo Plc United Spirits Ltd Consumer HPCL AWE Ltd (Stake in two Australian Gas Field) Oil & Gas Undisclosed Buyer McNally Bharat Ltd (Hayward Tyler Group) Engineering The Lohia Family Itochu Corp (Stake in Indo Rama Manufacturing- Synthetics Ltd) Plastic GVK Biosciences Ltd Aragen Biosciences Inc Healthcare NA Endurance International Inc Directi Web Services Pvt Ltd IT/ITeS NA NA Voestalpine Bohler Welding Group Maruti Weld Pvt Ltd Manufacturingelectronics NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 27-Jan Feb-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 27-Jan Feb-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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