Four-S Private Equity Track Issue: Your Eye to Indian Private Equity PE activity for the week The year 2013 has so far aggregated $6.98 bn of PE investments across 412 deals compared to $7.49 bn (394 deals) during the same period last year. During the week ended 26 th October, there were 14 PE/VC deals worth $132.4 mn compared to 8 deals worth $102.2 mn in the previous week. The largest disclosed transaction during the week was by Actis PE investing $48 mn in Symbiotec Pharmalab Pvt Ltd. Private Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in ($Mn) Type of Deal 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 9,946 342 394 7,486 412 6,982 YTD 2011 YTD 2012 YTD 2013 PE Investments ($mn) No. of Deals Sector Industry Segment Symbiotec Pharmalab Actis NA 48.0 Growth Manufacturing Healthcare Pharmaceuticals Pvt Ltd Komli Media India Media Peepul Capital NA 30.0 Growth Services M&E Pvt Ltd Consultancy CX Securities Natco Pharma Ltd 7.0 25.5 PIPE Manufacturing Healthcare Pharmaceuticals OCP Asia, Others Homeshop18 Pvt Ltd NA 14.0 Growth Services Retail Internet Retail Tata Capital Mitra Biotech Pvt Ltd NA 6.7 Early Services Healthcare Tata Capital Special Situations Fund Indventure IFMR Rural Channels and Services Pvt Ltd Ticketgoose.com India Pvt Ltd NA 5.2 Growth Services BFSI NA 3.0 Growth Services IT/ITeS Cancer care provider Financial Services Online Bus Ticket Sales Mumbai Angels Skillwiz NA NA Early Services Education Traning Mumbai Angels Mangosense Pvt Ltd NA NA Early Services Education Digital Learning M.A Yusuffali Dhanlaxmi Bank Ltd 5.0 NA PIPE Services BFSI Banking Intel Capital Savaari Car Rentals Pvt Online Car NA NA Early Services IT/ITeS Ltd Rental Intel Capital Perpetuuiti Technosoft Services Pvt Ltd NA NA Early Services IT/ITeS Data Solutions Tata Opportunities DTH Service Tata Sky Ltd NA NA PIPE Services M&E Fund LP Provider Undisclosed Angel Renewable Claro Energy Pvt Ltd NA NA Early Electricity Investors Energy Solar Power Source: Four-S PE Database YTD (from Jan 01 to 26 th October) 440 400 360 320 280 240 200 160 120 80 40 0
Actis invests in Symbiotec Pharmalab PE firm Actis has announced its investment of $48 mn in Symbiotec Pharmalab for a significant stake. The PE firm was planning its investment in the pharma company to provide an exit to existing investor Franklin Templeton and other individual investors in the company. Komli Media gets funding from Peepul Capital, existing Investors Komli Media has raised $30 mn from new investor Peepul Capital along with existing investors Norwest Venture Partners, Nexus Venture Partners, Helion Venture Partners and Draper Fisher Jurvetson, Iamwire states. The company plans to invest the funds in key technology platforms and to strengthen its footprints in the APAC region by offering go to market solution. CX Securities invests in Natco Pharma Hyderabad-based Natco Pharma is planning to raise $25.5 mn from FII CX Securities by issuing 24 lakh equity shares at a share price of Rs 638.4 a piece on preferential basis for an estimated 7.1% stake in the company. The net proceeds of which will be utilized by the company for general corporate purpose. Natco also proposed to increase the limit of shareholding by a NRI or a PIO and registered FIIs upto 49% of the paid up capital. HomeShop18 raises funds from existing investors Network18 owned e-commerce company Homeshop18 has raised $14 mn from GS Home Shopping, OCP Asia and Network18. GS Home will invest $11 mn whereas the remaining amount will be invested by OCP Asia and Network18 which will together value HomeShop18 at $360 mn. Tata Capital invests in Mitra Biotech Tata Capital s Tata Capital Innovations Fund along with existing investors India Innovation Fund and Accel Partners, are investing about $6.67 mn in Mitra Biotech, a Bangalore-based cancer care provider. The funds raised will be used to scale operations, expand globally and strengthen the business development and research teams. IFMR Rural Channels raises $5 mn from Tata Capital IFMR Rural Channels and Services Pvt Ltd (IRCS) has raised equity funding of $5.2 mn from Tata Capital Special Situations Fund (TCSSF). TCSSF, which focuses on investing in turnaround opportunities, is the third external equity investor in IRCS. In March 2012, IRCS raised $5 mn funding from venture capital firm Lok Capital and Proparco, the private sector investment arm of Agence Française de Développement (AFD). The investment will help IFMR Rural scale up its business in its current areas of operation, in addition to expanding its reach to newer geographies. M.A Yusuffali acquires stake in Dhanlaxmi Bank NRI businessman and MD of Abu Dhabi-headquartered EMKE Group, M.A Yusuffali has bought 4.99% stake in another Kerala based bank, Dhanlaxmi Bank. Recently he had bought close to 5% stake in Federal Bank for around R400 Cr from Dubai-based Emirates Financial Services, a subsidiary of Emirates NBD, becoming the largest individual shareholder in the bank. He had also bought similar stake in Catholic Syrian Bank (CSB) from Bangkokbased NRI businessman, Chansiri Chawla. Indventure invests in TicketGoose Chennai based online bus ticketing portal, Ticketgoose has received a funding of $3.0 mn from US based Indventure, which the company plans to invest in scaling up its operations, increasing its workforce and enhancing customer experience. The company was planning a VC fund raise since December by divesting close to 20% stake. However the stake sale in the current deal has not been disclosed. Mumbai Angels invests in edu-startups SkillWiz, MangoSense Mumbai Angels has recently invested in a career analytics company SkillWiz and edu-startup MangoSense. The financial details of both the deals were not disclosed. SkillWiz, a career assessment company has raised funding from Mumbai Angels along with other angel investors from India and Singapore. The company plans to use the funds towards Product Development and Sales and team expansion. Along with SkillWiz Mumbai angels has also made a investment in Pune based MangoSense Private Limited, which through its products helps to create, share and learn from stories using simple tools for mobile and web. Intel Capital invests in two startups - Savaari, Perptuuiti Intel Capital has invested in two Indian start-ups. It has made investments in Bangalore based car rental startup Savaari and Mumbai-based Perpetuuiti Technosoft. Intel Corporation owned VC firm made its first investment in the taxi aggregation space in India through Savaari and
Perpetuuiti would be its second investment in India's data centre ecosystem. Tata Opportunities Fund invests in Tata Sky Tata Opportunities Fund LP, which has a principal mandate to invest in group companies of the $97 billion salt to software conglomerate, has closed its second investment by picking up a stake in direct to home (DTH) television service provider, Tata Sky. Claro Energy raises pre-series A funding from angel investors Solar power solutions startup Claro Energy has raised its first round of funding from a group of angel investors in India, Singapore, the US and Canada. Claro Energy offers solar powered water pumping solutions to meet the irrigation requirements. Investors include Kashyap Deorah who recently sold his mobile payments startup JustChalo to OpenTable. Fund Raising & Liquidity Events CX Partners part exits from Thyrocare CX Partners has made a partial exit from Mumbai-based Thyrocare Technologies Ltd by selling a 5% stake to ICICI bank for $11 mn, valuing the firm at $ 220 mn. CX Partners invested in Throcare in 2010 at the enterprise valution of $108 mn. It is expected to net 3x returns from the deal. IL&FS PE sells stake in Gujarat Pipavav Port IL&FS Investment Managers (IL&FS PE) has sold almost all its stake in Gujarat Pipavav Port Ltd through a string of deals since April this year. Though the exact details are yet to be filed on BSE. Jyothy Labs buying back stake in laundry business from IL&FS PE Fast moving consumer goods (FMCG) firm Jyothy Laboratories Ltd is buying back stake in its laundry business Jyothy Fabricare Services Ltd from IL&FS Private Equity for an undisclosed amount. In 2010, Jyothy Fabricare had raised $16.67 mn in capital through private equity funding from IL&FS PE for a business valuation of Rs $66.7 mn. IvyCap Ventures to close maiden fund at $40 mn Early-to-growth stage venture capital firm IvyCap Ventures has got a commitment for around $40 mn in its debut fund and is looking to invest in around a dozen firms by the end of next year. The fund will be investing in companies in healthcare, cyber security and mobile technology. Private Equity News Idea Cellular to raise funds through QIP Idea cellular, wireless service provider is planning to raise $625 mn through QIP route. Standard Chartered, Bank of America-Merrill Lynch, Morgan Stanley and Citibank are the arrangers for the proposed QIP. The raised funds will be used to purchase spectrum and fund acquisition after the government announces guidelines for M&A in telecom sector. Zomato in talks for fresh funding from Info Edge, others Gurgaon-based Zomato Media Pvt Ltd (formerly DC Foodiebay Online Services Pvt Ltd), which owns the popular restaurant and event-listing site Zomato, is in talks to raise fresh funding from Info Edge (India) Ltd. In February this year, Info Edge, which runs the recruitment site Naukri.com and other internet properties, invested Rs $9.2 mn more in Zomato Spear Logistics in talks to raise over $10 mn by next year Pune-based contract logistics company Spear Logistics Pvt Ltd is in talks to raise up to $10 mn by next year. The company aims to utilize funds towards expanding its dealing centers and to under technological upgradations. The firm posted revenues of $13.67 mn in FY13 and expects to clock the revenue of $16.67 mn in the next financial year. Xander in talks to acquire Shriram's Gateway SEZ Foreign investor Xander is in talks to acquire an IT SEZ in Chennai from Shriram Group for $115 mn. Located near Tambaram, Shriram The Gateway SEZ is designed as an integrated development project comprising 6 mn sqft of IT/ITES SEZ offices and about 2.5 mn sqft of residential development.the entire campus measures about 58 acres,
of which 40 acres is designated for IT offices. The residential enclave is designed adjacent to the SEZ and measures about 18 acres. Parinee Realty in negotiations to raise $40 mn from Clearwater Capital Mumbai-based property developer Parinee Realty is in negotiations to raise close to $40 mn from Asia-focused private equity firm Clearwater Capital. This would be the first private equity funding for the Mumbai-based developer. IPO & Other offerings Captain Polyplast files for IPO Captain Polyplast Limited has filed a DRHP on BSE SME platform to raise around $1 mn by issuing 1.98 mn equity shares of Rs 30 each. The net proceeds of the issue will be utilized to fund the company s expansion plans. Captain Polyplast was founded by Ramesh Khichadia and is engaged into the business of manufacturing and sale of quality micro irrigation systems and allied products. The company also undertakes supply and installation of micro irrigation systems and provision of agronomical services to farmers.
M&A Activities Acquiror Target Business Stake (%) Deal value ($ mn) Mylan Laboratories Ltd Unichem Laboratories Ltd (Indore-based Chemicals SEZ plant) 100 26.3 Undisclosed Buyer PVR Ltd (Anupam Cine Complex) Media 100 8.7 Publicis Groupe Beehive Communications Pvt Ltd Media 100 NA Kellton Tech Solutions Ltd Supremesoft Global Inc ITeS NA NA Banswara Syntex Ltd Carreman Fabrics India Ltd Textile 80 NA General Carbon Advisors Services Pvt RSM Astute Consulting Pvt Ltd Ltd Consulting NA NA Stock Market Updates Key Domestic Indices During the week ended 26 th October, 2013, there were 6 M&A deals worth $35.0 mn (Size of 4 deals was not known). In the largest transaction during the week, Mylan Laboratories Ltd acquired Indore based SEZ plant of Unichem Laboratories for $26.3 mn. Index Indian Market Movements 52 Week 07-Oct-13 12-Oct-13 Change (%) High Low BSE Sensex 20882.9 20683.5-1.0% 20882.9 15749.0 S&P CNX Nifty 6189.4 6144.9-0.7% 6229.5 5975.6 CNX Nifty Junior 11866.6 11956.5 0.8% 12798.1 12322.6 Nifty Mid Cap 50 2022.3 2027.4 0.3% 2486.5 2060.3 CNX IT 8893.9 8812.6-0.9% 8870.2 6298.7 Bank Nifty 10744.9 10896.5 1.4% 13414.3 12735.1 CNX Infrastructure 2300.7 2317.1 0.7% 2684.7 2363.0 CNX Realty 174.3 170.0-2.5% 312.3 154.8 Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 07-Oct-13 12-Oct-13 Change (%) High Low NASDAQ 3914.3 3943.4 0.7% 3943.4 2726.7 DJIA 15399.7 15570.3 1.1% 15570.3 12035.1 S & P 500 1744.5 1759.8 0.9% 1759.8 1266.7 NIKKEI 14561.5 14088.2-3.3% 14381.3 8239.0 Hang Seng 23340.1 22698.3-2.7% 23944.0 19426.0 Straits Timex Index 3192.9 3205.2 0.4% 3464.8 3160.8 FTSE 6622.6 6721.3 1.5% 6720.1 5229.8 Source: Yahoo Finance
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