DealTracker. Providing M&A and Private Equity Deal Insight. October, 2014 Volume Grant Thornton India LLP. All rights reserved.

Transcription

1 DealTracker Providing M&A and Private Equity Deal Insight Grant Thornton India LLP. All rights reserved. October, 2014 Volume 10.10

2 About Grant Thornton More than 38,500 people Total global revenues $4.5bn (2013) Ranked among top 5 in all major markets including India Member firm within Grant Thornton International 2,000 people based in over 130 countries Grant Thornton India LLP. All rights reserved. and over 700 offices 11 cities one of the largest fully integrated Assurance, Tax & Advisory firms in India Presence in 11 major cities of India Ahmedabad, Delhi, Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune

3 Deal Round Up October 2014 Deal Summary Volume Value (USD mn) Domestic Cross-border ,570 1, Merger & Internal Restructuring Total M&A ,401 1,540 1,000 Private Equity ,753 Grand Total Cross-border includes Inbound Outbound ,059 2,375 2, , The month of October 2014 witnessed 100 deals worth USD 2.7bn, higher in terms of volume and value, as compared to the same period in However, October saw lower deal activity when compared to the previous month, during which 123 deals totalling USD 5.6bn were reported. The month saw decline in M&A deal value as compared to Oct'13 and Oct'12, largely due to a dip in outbound and domestic deal values, despite robust volumes. PE deal values and volumes in Oct'14 clearly surpassed levels seen during the corresponding month in earlier years and was also among the highest in any month in The month also saw 4 QIPs worth USD 255mn Trend spotting Cross-border deal volumes have gone up, however this did not reflect in values as not many big ticket deals happened in October. PE investment has risen significant as 6 deals valued over USD 100mn each were reported. Grant Thornton India LLP. All rights reserved. Total Deal Value Spread (USD mn) October' , , Private Equity Merger & Internal Restructuring Outbound Inbound Domestic Total Deal Volume Spread October '

4 Deal Round Up YTD 2014 Deal Summary Volume Value (USD mn) Domestic ,246 4,625 9,824 Crossborder ,695 14,421 15,177 Merger & Internal Restructuring ,629 4,463 3,817 Total M&A ,569 23,509 28,818 Private Equity ,710 8,641 10,207 Grand Total ,279 32,150 39,025 Cross border includes Aggregating a total deal value of USD 39bn (987 deals) in YTD 14, the overall deal sentiment in India has surpassed the levels seen in the past two years. With 18% increase in value and 16% increase in volume over YTD 2013, there was increased activity in the M&A space at USD 29bn (486 deals), clearly driven by domestic & inbound deal activity. PE volume has shown a significant uptick with 18% higher values and 37% higher volumes over YTD Inbound Outbound ,063 6,148 9, ,632 8,273 5,202 Trend spotting Total Deal Value Spread (USD bn) YTD'14 Total Deal Volume Spread YTD'14 The domestic market has seen an upsurge in deal value with 16 deals of over USD 100mn each so far Private Equity The inbound activity has substantially increased in terms of value by 38% & volume by 19%, against 2013 with 24 deals of over USD 100mn each. In YTD 2014, there have been 21 investments of over USD100mn each Merger & Internal Restructuring Outbound Inbound Domestic Grant Thornton India LLP. All rights reserved

5 M&A Round Up October 2014 Top M&A Deals of the Month Acquirer Target Sector USD Mn Deal Type % Stake Tata Consultancy Services CMC Ltd IT & ITES Merger N.A. New Call Telecom Nimbuzz IT & ITES Majority stake 70% New Generation Holdings Inc Valecha Engineering - Toll projects Infrastructure Management Acquisition 100% IMImobile Ltd TxtLocal Ltd IT & ITES Acquisition 100% Ipca Labs Alpa Laboratories' Oral Pharma, Healthcare & Solid Dosage Manufacturing Biotech Plant Acquisition 100% Sectoral Snapshot Top Sectors based on Deal Value (USD mn) Top Sectors based on Deal Volume Notable Sectors Volume USD Mn IT & ITES Retail & Consumer Pharma, Healthcare & Biotech 6 Banking & Financial Services Energy & Natural resources 3 15 Automotive 2 25 Grant Thornton India LLP. All rights reserved. IT & ITES 78% 5 Infrastructure Management 5% Retail & Consumer 3% Pharma, Transpor Healthcare & t & Biotech Logistics 3% 3% Automotive 3% Others 3% Banking & Financial Services 2% Transport & Logistics 4% Others 11% Automotive 5% Energy & Natural resources 7% Banking & Financial Services 11% Pharma, Healthcare & Biotech 13% IT & ITES 33% Retail & Consumer 16%

6 PE Round Up October 2014 Top PE Deals of the Month Acquirer Target Sector % Stake USD Mn Softbank Corp Snapdeal IT & ITES N.A Softbank Corp Olacabs Retail & Consumer N.A Warburg Pincus Kalyan Jewellers India Pvt Ltd Retail & Consumer 24% EIG Global Energy Partners- Greenko Group plc-greenko Mauritius Energy & Natural Resources N.A International Finance Corp Ballarpur Industries Ltd Manufacturing 14% Sectoral Snapshot Top Sectors based on Deal Value (USD mn) Top Sectors based on Deal Volume Notable Sectors Volume USD Mn IT & ITES Retail & Consumer 7 Education 5 Real Estate 4 Hospitality & Leisure 3 Pharma, Healthcare & Biotech Retail & Consumer 21% 11 IT & ITES 53% Real Estate 12% Energy & Natural Resources 6% Manufacturing 5% Transport & Logistics 1% Pharma, Healthcare & Others 1% Biotech 1% Energy & Natural Resources 7% Manufacturing 6% Real Estate 14% Retail & Consumer 25% Others 3% IT & ITES 45% Grant Thornton India LLP. All rights reserved. 6

7 Acquirer Deal of the Month - M&A Investor Comments Investee India's largest software services provider Tata Consultancy Services Ltd has obtained its board's approval to merge its public listed subsidiary CMC Ltd with itself. Tata Consultancy Services Limited (TCS) Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services, consulting and business solutions company. Rationale Target CMC Limited is a leading systems engineering and integration company in India, offering application design, development, testing services and asset-based solutions in niche segments through turnkey projects. The amalgamation will enable TCS to consolidate CMC's operations in a single company with rationalised structure, enhanced reach, greater financial strength and flexibility. SoftBank Internet and Media, Inc. (SIMI) has become the largest investor in Snapdeal, investing $627 mn in the online marketplace. SoftBank Corp. It is a Japanese telecommunications and Internet corporation with investments in e-commerce companies across the world. Deal of the Month - PE Snapdeal Founded in 2010, Snapdeal has become one of the fastest growing and among the top three online marketplaces in India, with more than 25 million registered users and more than 50,000 vendors. This is the third fund raise for Snapdeal this year, which takes the total fund raise to USD 1bn this calendar year, mainly to fuel growth and take on competition in this space. Grant Thornton India LLP. All rights reserved. 7

8 Deal List This document captures the list of deals announced based on information available in the public domain and based on public announcements. Grant Thornton India LLP does not take any responsibility for the information, any errors or any decision by the reader based on this information. This document should not be relied upon as a substitute for detailed advise and hence, we do not accept responsibility for any loss as a result of relying on the material contained herein. Further, our analysis of the deal values are based on publicly available information and based on appropriate assumptions (wherever necessary). Hence, if different assumptions were to be applied, the outcomes and results would be different. Grant Thornton India LLP. All rights reserved.

9 I. M&A Deals Acquirer Target Sector USD mn Deal Type % Stake Domestic/ Crossborder New Call Telecom Nimbuzz IT & ITES Majority stake 70% inbound Future Group- Future Supply Chains Brattle Foods Transport & Logistics N.A. Acquisition N.A. Domestic Mahindra Two Wheelers Ltd (MTWL) PSA Peugeot Citroen Automotive N.A. Majority stake 51% Outbound IMImobile Ltd TxtLocal Ltd IT & ITES Acquisition 100% Outbound Ipca Labs Alpa Laboratories' Oral Solid Dosage Manufacturing Plant Pharma, Healthcare & Biotech Acquisition 100% Domestic Minda Corporation Minda Furukawa Electric Pvt. Ltd. Automotive N.A. Increasing stake to 51% 2% Domestic Sumitomo Group-SMAS Auto Leasing India. Carzonrent- Auto lease business Retail & Consumer N.A. Acquisition 100% inbound MPS Limited Electronic Publishing Services Media & Entertainment N.A. Acquisition 100% Outbound Cognizant Technology Solutions Cadient Group IT & ITES N.A. Acquisition 100% Outbound DaVita HealthCare Partners Inc Express Clinics Pvt Ltd Pharma, Healthcare & Biotech N.A. Strategic Stake N.A. inbound Grant Thornton India LLP. All rights reserved. 9

10 I. M&A Deals Acquirer Target Sector USD mn Deal Type % Stake Domestic/ Crossborder Nihilent Technologies GNet Group IT & ITES N.A. Acquisition 100% Outbound Amulya Leasing & Finance Ltd Apollo Pipes Ltd Manufacturing N.A. Increasing stake to 30.9% 14% Domestic PayUmoney Cobboc Private Limited- Eashmart IT & ITES N.A. Acquisition 100% Domestic Binatone Communications Group - Hubble Connovate Private Limited Retail & Consumer N.A. Majority stake N.A. inbound Trivitron Healthcare Kiran Medical Limited and Imaging Products India Pvt Ltd Pharma, Healthcare & Biotech N.A. Acquisition 100% Domestic Godrej Consumer Products Ltd (GCPL) Darling Group Holdings - Ghana business Retail & Consumer N.A. Acquisition 100% Outbound dmacq Software Pvt Ltd Aspire IT Services IT & ITES N.A. Strategic Stake 40% Domestic Celio International SA Retail & Consumer N.A. Stategic Stake 32% inbound Celio Future Fashion Limited (CFFL) FutureLifestyleFashions Elisir Lifestyle Pvt Ltd Retail & Consumer N.A. Majority stake 60% Domestic BIBA Apparels Anjuman Brand Designs Pvt Ltd Retail & Consumer N.A. Strategic Stake 27% Domestic Grant Thornton India LLP. All rights reserved. 10

11 I. M&A Deals Acquirer Target Sector USD mn Deal Type % Stake Domestic/ Crossborder Dachser GmbH & Co. KG Dachser India Pvt Ltd Transport & Logistics N.A. Increasing stake to 100% 50% inbound B2X Care Solutions GmbH The Service Solutions Pvt Ltd (TSS) IT & ITES N.A. Acquisition N.A. inbound Kellton Tech Solutions Ltd Vivos Professional Services IT & ITES N.A. Acquisition N.A. Outbound Dr. Amin Controllers Pvt. Ltd Intertek India - Mineral business Professional / Business Services N.A. Acquisition N.A. Domestic Times Internet Moneysights-RupeeStreet Financial Services Pvt Ltd IT & ITES N.A. Acquisition N.A. Domestic Alembic Limited Adwiya Mami SARL Pharma, Healthcare & Biotech N.A. Stategic Stake 49% Outbound Brillio Marketelligent IT & ITES N.A. Acquisition N.A. inbound Cigital Inc iviz Techno Solutions Pvt Ltd IT & ITES N.A. Acquisition N.A. inbound Larsen and Toubro- L&T Infotech Information Systems Resource Centre Pvt. Ltd. (ISRC), subsidiary of Otis elevator Co IT & ITES N.A. Acquisition N.A. Domestic Superior Energy Services Inc Yennai Hydrocarbon Services Pvt Ltd Energy & Natural resources N.A. Acquisition N.A. inbound Grant Thornton India LLP. All rights reserved. 11

12 I. M&A Deals Acquirer Target Sector USD mn Deal Type % Stake Domestic/ Crossborder ONGC -Videsh PetroVietnam Exploration Production Corporation-Block 102/10 Energy & Natural resources N.A. Acquisition 40% Outbound ONGC -Videsh PetroVietnam Exploration Production Corporation-106/10 block Energy & Natural resources N.A. Acquisition 50% Outbound Deepak Fertilisers Mangalore Chemicals and Fertilizers Ltd (MCFL) Agriculture & Forestry N.A. Increasing stake to 32% 6% Domestic Panasonic Corporation Panasonic Appliances India Ltd Retail & Consumer 4.20 Increasing stake to 74.22% 17% Merger & Internal Restructuring Dewan Housing Finance Pramerica Asset Management Banking & Financial Services 4.08 Stategic Stake 50% Domestic Muthoot Finance Ltd Asia Asset Finance PLC Banking & Financial Services 2.90 Increasing stake to 44.32% 14% Outbound Centrum Capital's private arm Centrum Direct Ltd BCB Finance Ltd Banking & Financial Services 2.45 Majority stake 52% Domestic Indovation Technologies Limited Symetric Life Sciences Pvt Ltd Pharma, Healthcare & Biotech 2.50 Acquisition 100% Domestic Indovation Technologies Limited Sristek Clinical Research Solutions Ltd Pharma, Healthcare & Biotech 0.17 Acquisition 100% Domestic Amazon QwikCilver Solutions IT & ITES N.A. minority stake 20% inbound Grant Thornton India LLP. All rights reserved. 12

13 I. M&A Deals Acquirer Target Sector USD mn Deal Type % Stake Domestic/ Crossborder Manappuram Finance Asirvad Microfinance Banking & Financial Services N.A. Majority stake N.A. Domestic Manappuram Finance Asirvad Microfinance Banking & Financial Services N.A. Majority stake N.A. Domestic Tata Consultancy Services CMC Ltd IT & ITES Merger N.A. Merger & Internal Restructuring Wipro Ltd Opera Solutions LLC IT & ITES 8.2 Increasing stake N.A. Outbound New Generation Holdings Inc Valecha Engineering - Toll projects Infrastructure Management Acquisition 100% inbound Grant Thornton India LLP. All rights reserved. 13

14 II. Private Equity Investor Investee Sector % Stake Value USD mn Blackstone Group and Embassy Property Developments Pvt Ltd Goldman Sachs-Century Real Estate owned Bangalore project Real Estate N.A. N.A. Qualcomm Ventures BirdsEyeSystems-Traffline IT & ITES N.A. N.A. MatrixPartners & Angel investors Alchemy Web IT & ITES N.A. N.A. MatrixPartners GrownOut Solutions IT & ITES N.A. N.A. Indian Angel Elementia Wellness Pvt Ltd - Tattva Retail & Consumer N.A. N.A. Helion Private Limited TalentPad IT & ITES N.A. N.A. Angel investor Fortuna Retail Pvt Ltd -GemPundit Retail & Consumer N.A. N.A. Hyderabad Angels1, Chennai Angels and other investors. Sumiran Spiritual Services Pvt Ltd-OnlinePrasad IT & ITES N.A. N.A. Individual investors Right Angle Web India Pvt Ltd-TimeSaverz IT & ITES N.A. N.A. Bedrock Venture Management Private Ltd MyRefers.com IT & ITES N.A. N.A. Grant Thornton India LLP. All rights reserved. 14

15 II. Private Equity Investor Investee Sector % Stake Value USD mn Healthstart Manna Healthcare Pvt Ltd-ObiNo IT & ITES N.A. N.A. Angel Investors People10 Technosoft Pvt Ltd IT & ITES N.A. N.A. Vivekanand Education Society s Institute of Technology (VESIT) NoteMyBook Pvt Ltd IT & ITES N.A. N.A. VentureNursery & Angel investors Instant Hotels Around You Pvt Ltd IT & ITES N.A. N.A. Michael & Susan Dell Foundation Kinara Capital Banking & Financial Services N.A. N.A. Angel investor Zuci Energy Pvt Ltd Infrastructure Management N.A. N.A. Indian Angel InThree Professional / Business Services N.A. N.A. Softbank Corp Snapdeal IT & ITES N.A Softbank Corp Olacabs Retail & Consumer N.A Grant Thornton India LLP. All rights reserved. 15

16 II. Private Equity Investor Investee Sector % Stake Value USD mn Warburg Pincus Kalyan Jewellers India Pvt Ltd Retail & Consumer 24% EIG Global Energy Partners- Greenko Group plc-greenko Mauritius Energy & Natural Resources N.A KKR Bhartiya Group's integrated township project Real Estate N.A KKR Wadhwa Group's luxury home project Real Estate N.A Premji Invest Financial Software & Systems IT & ITES N.A WarburgPincus, Canaan Partners and Tiger Global CarTrade IT & ITES N.A LetsVenture Posist IT & ITES N.A Mandala Capital Gati Limited - Gati Kausar India Transport & Logistics 30% Telstra Ventures and Global Brain AdNear Pte Ltd IT & ITES N.A LetsVenture & angel investors TestBook Education N.A Grant Thornton India LLP. All rights reserved. 16

17 II. Private Equity Investor Investee Sector % Stake Value USD mn Saif Partners Senco Retail & Consumer N.A Fidelity Growth Partners India and Somerset Indus Capital Superior Investments Pte. Ltd and HDFC Investment Trust II Cygnus Medicare Pharma, Healthcare & Biotech 30% Sterling Urban Developers- Bangalore project Real Estate N.A Angel investor Adlabs Entertainment Ltd Hospitality & Leisure N.A SequoiaCapIndia & Angel investor ZoomCar Private Limited Retail & Consumer N.A Orios Venture Sapience Analytics IT & ITES N.A Helion Venture Partners id Fresh Food (India) Pvt Ltd Retail & Consumer N.A Bertelsmann India Investments (BII), inurture Education Solutions Pvt Ltd Education N.A Angel investor ShieldSquare IT & ITES N.A Michael & Susan Dell Foundation Edutel Technologies Education N.A Grant Thornton India LLP. All rights reserved. 17

18 II. Private Equity Investor Investee Sector % Stake Value USD mn SeedFund. V Resorts Hospitality & Leisure N.A Nirvana Ventures and Beenos BigFoot Retail Solutions - KartRocket IT & ITES N.A Aspada Investment Company PI Policy Innovations Pvt Ltd-Xamcheck Education N.A Ideaworks Partners People10 Technosoft. IT & ITES N.A Info Edge (India) Ltd Canvera Digital Technologies Pvt Ltd. IT & ITES 4% 1.64 Indian Angel & Other investors Zippr IT & ITES N.A Ventureast Tenet Fund & Government of India s Technology Development Board Angels Health Private Limited-MediAngels Pharma, Healthcare & Biotech N.A India Quotient & Angel investors Gadget research site-91mobiles IT & ITES N.A Kickstarter- crowd funding MindHelix Inc-Rico IT & ITES N.A Info Edge Happily Unmarried Marketing Pvt Ltd IT & ITES 9% 0.65 Grant Thornton India LLP. All rights reserved. 18

19 II. Private Equity Investor Investee Sector % Stake Value USD mn GSF, Globevestor, Asian Ecommerce Alliance GmBH and People Group Flinto Education N.A LetsVenture Adpushup IT & ITES N.A Angel Investor GourmetItUp Hospitality & Leisure N.A Angel investor-v Balakrishnan Avekshaa Technologies IT & ITES N.A Bright Ventures PriceBurp IT & ITES N.A International Finance Corp Ballarpur Industries Ltd (Bilt) - Bilt paperbv Manufacturing 14% Grant Thornton India LLP. All rights reserved. 19

20 III. IPO Company Name Sector Issue Price Equity Offered Capital Raised INR mn Capital Raised USD mn Raghuvansh Limited Agriculture & Forestry , IV. QIP Investee Sector % Stake Value USD mn DCB BANK LIMITED Banking & Financial Services N.A Dynamatic Technologies Limited Manufacturing N.A Sadbhav Engeneering Limited Infrastructure Management N.A CESC Limited Energy & Natural Resources N.A Grant Thornton India LLP. All rights reserved. 20

21 Grant Thornton India LLP. All rights reserved. 21

22 About Grant Thornton Grant Thornton India LLP is a member firm within Grant Thornton International Ltd. The firm is one of the oldest and most prestigious accountancy firms in the country. Today, it has grown to be one of the largest accountancy and advisory firms in India with nearly 1,200 professional staff in New Delhi, Bangalore, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai and Pune, and affiliate arrangements in most of the major towns and cities across the country. Service Areas The firm s core service areas are as follows Assurance - Audit - FRAS Taxation - Compliance & Outsourcing - Direct tax - Indirect tax - Transfer Pricing - US Tax Our Corporate Finance Services (CFS) practice leverages on our understanding of corporate strategy, capital markets, and international jurisdictions and regulatory requirements, to help unlock the potential for growth in dynamic businesses. Advisory Business Risk Corporate Social Responsibility Corporate finance Forensic & Investigations Government & Infrastructure Healthcare &Life Sciences Leadership Consulting We operate in a matrix structure with a sector focus and service focus to increase our ability to service clients. Our pool of highly experienced and qualified personnel possesses the requisite expertise to assist businesses in their varied transactions requirements pertaining to acquiring, divesting, listing, or raising capital. Our CFS practice offers the following services: Lead advisory Transaction advisory Valuation To know more visit us on corporate-finance-services/ We would be delighted to receive your feedback! contact@in.gt.com Dealtracker Editorial team: Sowmya Ravikumar & Monica Kothari Grant Thornton India LLP. All rights reserved. 22