Four-S Private Equity Track

Transcription

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 $5.3 bn of PE investments across 352 deals compared to $7.1 bn (297 deals) during the same period last year. During the week ended 2 nd August, there were 9 PE/VC deals worth $1.1 bn compared to 11 deals worth $103.0 mn in the previous week. The largest disclosed transactions during the week was Flipkart raising $1.0 bn in a fresh funding round led by two of its existing investors Tiger Global and Naspers ,088 5,624 5, YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) No. of Deals YTD (from 01 st Jan to 2 nd August) Private Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in Type of Deal Sector Industry Segment ($Mn) Tiger Global, Naspers, Singapore GIC, Accel Partners, Flipkart Pvt Ltd NA Growth e-commerce Retail Internet Retail DST Global, Others Cholamandalam Apax Partners Investment & Finance Co Ltd NA 83.3 PIPE BFSI NBFC Diversified Sequoia Capital, Mayfield India Knowlarity Communications Pvt Ltd Growth e-commerce Internet Services Others WestBridge Capital La Opala RG Ltd PIPE Manufacturing Plastics & Polymers IDG India Pvt Ltd, Inventus Capital Peel-Works Pvt Ltd NA 2.0 Early e-commerce Internet Services Others Plastic Products 500 Startups, Other Social Cops NA 0.3 Growth IT/ITeS IT Services Data Analytics GE Energy Financial Services Anand Mahindra Atria's Wind Power Projects Cinestaan Entertainment Pvt Ltd NA NA Project Infrastructure Electricity NA NA Early M&E Qualcomm Life Fund Portea Pvt Ltd NA NA Growth Pharma & healthcare Content Production Healthcare Renewable Energy Films Health Services Source: Four-S PE Database

2 Flipkart raises fresh funding of $1.0 bn Flipkart Online Services Pvt Ltd has raised $1.0 bn in a fresh funding round co-led by two of its existing investors Tiger Global and Naspers. One of the two sovereign wealth funds of Singapore, GIC, along with other existing investors Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina, also participated in this latest financing round. Flipkart said the money will be used for long-term strategic investments in India, especially in mobile technology. Apax Partners invests in Chola Finance Apax Partners has invested $83.3 mn in Cholamandalam Investment and Finance Company Ltd, the financial services arm of Murugappa Group, by way of subscription to 50 mn compulsorily convertible preference shares at a face value of Rs The funds raised will be used towards augmenting its capital base for future growth and tier 1 capital adequacy. Knowlarity raises Series B from Sequoia, Mayfield Knowlarity Communications Pvt Ltd, a cloud telephony firm has raised $16.0 mn in Series B round from Sequoia Capital India and Mayfield India which will be utilized to enhance its technology, fund international expansion plans and consolidate its positions through acquisitions. The latest round values the startup at $50.0 mn taking the total fund raises till date to $25.0 mn across three rounds. WestBridge picks 4.5% in La Opala for $9.0 mn WestBridge Capital is picking 4.5% stake in Kolkata-based manufacturer of semi-vitreous tableware and kitchenware La Opala RG Ltd for Rs $9.0 mn through a preferential allotment. The company s board has approved the issue of 0.5 mn equity shares at a price of Rs. 1,100 each to WestBridge Crossover Fund, LLC. The firm plans to use the money for capital expansion of both its existing manufacturing plants besides other purposes. IDG, Inventus invest in Peel-Works IDG India Pvt Ltd and Inventus Capital have invested $2.0 mn in Mumbai based cloud enabled sales force transformation and BPO firm, Peel-Works Pvt Ltd. The latest infusion will be taken to build its product and analytics platform along with enhancing its management team. SocialCops secures seed funding Delhi based SocialCops, a social analytics & reporting app has raised $ 0.3 mn in seed round from 500 Startups, Rajan Anandan, Manoj Menon and other angels. The funding will be used for further product development and to add more clients in their kitty. GE invests in Atria's Wind Power Projects GE Energy Financial Services has invested an undisclosed amount picking up equity stake in three wind power projects being developed by Atria Power Ltd. The investment in these three projects with a total capacity of MW is part of GE s commitment to invest $1.0 bn in renewable energy projects globally. Anand Mahindra backs Film producer Cinestaan Rohit Khattar, Founder Chairman of Old World Hospitality, has launched a new film production company, Cinestaan Entertainment Pvt Ltd, with a major backing from CMD of Mahindra Group, Anand Mahindra. However, the investment amount was not disclosed. Cinestaan Entertainment aims to produce feature films as well as foray into television soon. To begin with, Cinestaan's first subsidiary, the Cinestaan Film Company, has signed a three film agreement with Rakeysh Omprakash Mehra's ROMP Pictures. Qualcomm Ventures Invests In Portea Medical Qualcomm Ventures, through its $100.0 mn Qualcomm Life Fund has invested an undisclosed amount for a minority stake in serial entrepreneur duo K Ganesh and Meena Ganesh s healthcare venture Portea Pvt Ltd. The infusion will be utilized to increase its presence to 50 cities as well as shore up its in-house healthcare technology solutions as it seeks to leverage technology solutions such as wearable devices that can constantly monitor the health of patients in real time or periodic intervals. Fund Raising & Liquidity Events Matrix Partners sells bulk of holding in Muthoot Matrix Partners has sold over four-fifths of its holding in gold loan company Muthoot Finance, booking modest gain in the process in its four-year-old investment in the company.

3 Private Equity News Snapdeal looking to raise $300.0 mn PE funding After Flipkart announced its $1.0 bn fundraising and Amazon went one up by committing $2.0 bn investment in India, Delhi-based Jasper Infotech Pvt Ltd, which runs the online marketplace Snapdeal.com, has asked its financial advisor Credit Suisse to scout for $300.0 mn from private equity investors. So far, Snapdeal has raised $320.0 mn, including $233.0 mn this year. Anil Ambani Led Reliance Plans PE Fund Raise Reliance Power Ltd is in talks with Temasek Holdings and other marquee global pension and infrastructure focused funds to finance the largest acquisition deal in the hydro power sector of buying Jaypee s entire hydro power portfolio. Reliance is seeking to raise $500.0 mn from Singapore government s investment arm. Other fund that ave sought to fund the deal include Canadian pension fund giant PSP Investments and homegrown PE firm IDFC Alternatives, part of infrastructure finance company IDFC, which was also part of the Taqa led consortium. Temasek plans more investment in India Temasek Holdings, one of the two sovereign wealth funds of Singapore, which went slow in fresh deal-making in India last year but has already sewn two new transactions in the first quarter of this year, is now looking to ramp up its activity in the country, top executives of the firm said in a media briefing. It is planning to invest a lot more money in the current financial year with focus on areas like financial services (including banking), consumer, healthcare (including pharma) and e-commerce. Morgan Stanley PE reviving India investments Morgan Stanley Private Equity Asia (MSPEA) has brought India back on its radar as part of its investment mandate for its latest fund. The PE firm is eyeing opportunities in consumer, healthcare and financial services space in India. Piramal in $1.0 bn alliance with APG pension fund Diversified cash rich firm Piramal Enterprises Ltd (PEL) has formed an alliance with Dutch pension fund asset manager APG Asset Management for investing in rupee denominated mezzanine instruments issued by Indian infrastructure companies with a target investment of $1.0 bn over the next three years. PEL and APG have each initially committed $375.0 mn for investments under this strategic alliance. Raymond may Divest Stake to PE Funds Gautam Singhania s Flagship firm Raymond Ltd is planning to sell 15-20% stake to PE funds and is in talks with marquee Players including KKR, General Atlantic, Temasek. Apart from these other players who have shown interest in the 89 year old company are Europe's Capital International and Partners Group and Barings PE. WL Ross eyes more investment in Indian textile US-based distressed assets-focused private investment firm WL Ross & Co, which owns 94% equity holding in Delhi-based fabric manufacturer OCM India Ltd, is exploring further investment opportunities in Indian textile companies. Sri Kavery Medical to raise capital; IVA to Exit Sri Kavery Medical Pvt Ltd is planning to raise $ mn in growth capital to provide existing investor India Venture Advisors Pvt. Ltd (IVA) an exit from its five year old investment and fund its growth plans. Kavery currently has a total capacity of 750 beds and has a presence in various Tier II cities of Tamil Nadu with two tertiary care multi-speciality hospitals and an exclusive cardiac care facility in Tiruchirappalli. It aims to set up 1,000 beds in next three years with an investment of $166.7 mn. Exhilway to invest in Chennai-based Jain Granites Exhilway Global, a US-based investment group that is raising a string of private equity funds, is close to investing in Chennai-based Jain Granites & Projects India Ltd, as said by Rahul Kumar, India head for Exhilway Global. Early this month, Exhilway invested in Livewell Healthcare. Incofin floats Fund to back microfinance cos Impact investor Incofin Investment Management (IM) has launched a new global fund dedicated to invest in microfinance firms in developing and emerging countries. Although the firm has not stated a target corpus for the fund, it said this is being specifically targeted at institutional investors as against high net-worth individuals and families. Incofin has backed microfinance firms such as Annapurna, Fusion and Grameen Koota in India. Music streaming site Saavn plans fund raise Tiger Global backed music streaming site Saavn is planning to raise close to $ mn in a round likely to be led by Hong Kong based India focused hedge fund Steadview Capital.

4 Merger & Acquisitions Acquiror Target Business Stake (%) Deal Value ($ mn) Reliance Power Ltd Jaiprakash Power Ltd (Hydro Power Electricity portfolio) Generation Inox Leisure Ltd Satyam Cineplexes Ltd Media and Entertainment Songwon Industrial Group SeQuent Scientific Ltd (Speciality chemicals division) Chemicals Dentsu Aegis Network Limited Milestone Brandcom Pvt Ltd Advertising 51.0 NA Cliantha Research Ltd During the week ended 2 nd August, 2014, there were 8 M&A deals worth $ mn (value of 5 deals was not disclosed). The largest deal during the week was by Reliance Power Ltd acquiring Jaiprakash Powers' Hydro Power Portfolio for $2.5 bn. Karmic Lifesciences Pvt Ltd Pharmaceutical research Intuit Inc KDK Software Pvt Ltd Taxation solutions NA NA S Chand Group S Chand Harcourt Pvt Ltd Publishing 50.0 NA Cura Healthcare Pvt Ltd DE Healthcare Pvt Ltd Health Equipments NA NA NA NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 28-Jul-14 2-Aug-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 28-Jul-14 2-Aug-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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