Four-S Private Equity Track Issue:, 2014 Your Eye to Indian Private Equity PE activity for the week The year 2014 has so far aggregated $6.0 bn of PE investments across 447 deals compared to $8.4 bn (346 deals) during the same period last year. During the week ended 4 th Private Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in ($Mn) 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 359 6,970 390 8,399 447 5,988 YTD 2012 YTD 2013 YTD 2014 Type of Deal PE Investments ($mn) No. of Deals Sector Industry Segment Orios Venture Partners Ziffi.com NA 2.4 Growth e-commerce Healthcare Aspada Investment Allfresh Supply Management NA 2.0 Growth Services Logistics Paul Guire Arstaeco NA 1.3 Growth Electricity Renewable Energy Health Services Transport Services Bio Power Sarthi Angels Venture Neo Politan Pizza NA NA Growth Services Retail Restaurant Qualcomm Ventures Birds Eye Systems NA NA Growth Services IT/ITES Mobile Vas Matrix Partners India Alchemy Web Pvt Ltd NA NA Growth Services IT/ITES E-commerce Source: Four-S PE Database October, there were 6 PE/VC deals worth $5.7 mn compared to 5 deals worth $76.0 mn in the previous week. The largest disclosed transaction during the week was $2.4mn invested by Orios Venture Partners in healthcare services portal Ziffi.com YTD (from 01 st Jan to 4 th October) 500 450 400 350 300 250 200 150 100 50 0 IDFC sells stake in 2 IT Parks to Blackstone IDFC has signed a share purchase agreement with real estate funds managed by Blackstone for selling all of its stake in subsidiary companies Galaxy Mercantiles Limited (an IT park in Noida) and Neopro Technologies Private Limited (a SEZ in Pune). The transaction value is $178mn, giving IDFC an IRR of 22% in the exit. IDFC had invested in Galaxy Mercantile in 2011, buying it from DLF and The 3C Company whereas it had invested into NeoPro in 2013. George Soros Aspada invests In Allfresh Supply Aspada Investment, a venture capital firm backed by George Soros Soros Economic Development Fund, has invested over $2 mn in Allfresh Supply Management. Delhi based Allfresh operates across the entire fresh fruit value chain from farm extension services for small-hold farmers to managing the entire post-harvest controlled atmosphere supply chain in apple, citrus crops, and other high value fruits. The funding will be used to scale up significantly in the branded fresh fruit segment, expand geographically, add more fruit crops, increase farm extension activities and augment processing capabilities. Aspada s other investments in Indian agricultural supply chain and logistics include SV Agri, Leaf, Thinklink and Schedulers Logistics. 29 th Sept 4 th Oct 2014
Ziffi.com raises Series A from Orios Wellness booking portal Ziffi.com has raised $2.42mn in Series A from Orios Venture Partners. Founded in 2010, the Mumbai based Ziffi.com, earlier known as docsuggest.com, has booked over 250,000 appointments, covering over 1,000 salons, 15,000 Doctors and 5,000 Diagnostic Centres in Mumbai, Delhi, Bangalore & Hyderabad. With the funding, the company plans to expand its network, strengthen technology interface, enhance design and boost its marketing and brand building campaign. Paul Guire invests into ArstaEco Arstaeco has raised $1.25mn from a German investor Paul Guire. This is Paul's first investment in India. Tumkur based Biofuel manufacturer, ArstaEco converts waste into biocharcoal briquettes and 1 MW of power. The company now plans to build five smaller units in Andhra Pradesh, Maharashtra and Karnataka. NeoPolitan Pizza gets angel investment Gujarat based NeoAkzo Noble Politan Pizza has received an undisclosed amount of funding from Sarthi Angels Venture Foundation. The QSR chain that offers Italian vegetarian meals has 22 stores and plans to have 100 outlets by FY 17 across India. Qualcomm invests in Birds Eye Systems Qualcomm Ventures has invested into BirdsEyeSystems, maker of Traffline app that provides real time traffic information in Mumbai, Delhi and Bangalore. The Series B funding amount was undisclosed. The funding will be used for further product development, branding and marketing and increasing the geographical presence of the app to 10 cities. Birds Eys has another app TaxiGo, that helps commuters book a radio taxi using their phones. Alchemy Web (LimeTray) raises Series A Alchemy Web Pvt Ltd, which operates an online platform for restaurants under the brand LimeTray with over 200 restaurants in its network, has raised an undisclosed amount in its Series A funding from Matrix Partners India alongwith other individual investors. The Delhi-based Alchemy Web provides back-end technology to restaurants to enable them to carry out critical processes like managing their online presence, doing deliveries, and managing their PoS and CRM systems. Fund Raising & Liquidity Events Everstone Capital targets $700mn in new PE fund Private equity firm Everstone Capital is raising a new fund - Everstone Capital Partners III LP (ECP III) with an aim to raise $650 mn with a hard cap of $700 mn. Singaporeregistered limited partnership ECP III will invest in equity and equity-linked instruments of companies with significant operations in the Indian sub-continent with presence in domestic consumption and infrastructure development expenditures across various sectors. International Finance Corporation (IFC) plans to infuse $50 mn equity into ECP III fund. Private Equity News GreenDust plans to raise over $100mn Reverse Logistics Company Pvt Ltd that operates under the brand GreenDust is in talks with private equity hedge funds like Falcon Edge Capital LP to raise over $100 mn in its Series B round of funding. The Delhi basesd Greendust is an e-commerce platform for refurbished goods. The company plans to raise money to expand its footprints into overseas markets of Southeast Asia and Africa and to add new categories. Muthoot Fincorp plans PE fundraise Muthoot Fincorp, the flagship Company of the Muthoot Pappachan Group, plans to raise close to $200mn divesting 20% of its stake. ErnstYoung is the advisor for the company. The company plans to increase its AUM to over $3.3 Bn and go public in the coming two years. Muthoot Fincorp provides a mix of retail offerings in the areas of gold loan & other loan products including Auto loans, Home Loans, Micro Finance Loans, Investment products through its 3800 branches. India Equity Partners eyes exit from RG Stone India Equity Partners is eyeing an exit from RG Scientific Enterprise Pvt Ltd that owns and operates specialty urology hospitals and is based in Delhi. IEP had invested
around $4mn in 2011. According to news reports, IEP holds ~40% stake in the company. RG Stone plans to invest $26mn and scale up from 16 to 30 hospitals by 2016. One97 in talks to raise $200M in funding Mobile internet firm One97 Communications Ltd that runs runs Paytm, India s largest digital goods marketplace and other mobile value added services plans to raise $200 mn in fresh funding. The company has appointed Goldman Sachs as its banker. One97 had filed for IPO in 2010 to raise over Rs 2bn but delayed the same. Headquartered in New Delhi, One97 is over 1,200 people strong with offices in Mumbai, Pune, Chennai, Bangalore and Kolkata and global presence in Africa, Europe, Middle East and Southeast Asia. One 97 is backed by SAIF Partners, Intel Capital, SAP Ventures and Silicon Valley Bank. Videocon d2h revives IPO plans, aims Rs 7bn Videocon D2H Ltd, the satellite television arm of Videocon Group, has filed fresh papers with SEBI for raising Rs 7bn through a IPO as its earlier approval had lapsed. The company is considering to raise Rs 500 mn through a pre- IPO placement to institutional investors. As per the DRHP, the company had a negative networth of Rs 13,836mn as on Jun 30,2014 and reported income of Rs 17,608mn and loss of Rs 4,694mn in FY14. The company claims to be the fastest growing DTH service provider in India with 11.21mn gross subscribers amounting to 16.2% market share. Vista Equity Partners buying TIBCO for $4.3bn US-based Private Equity firm Vista Equity Partners has entered into a definite agreement to acquire TIBCO Software Inc. for ~$4.3bn at $24 per share in cash alongwith assumed debt and take it private. The transaction price was at 26.3% premium to the closing price on Sep 23, 2014. The NASDAQ listed TIBCO is an infrastructure and business intelligence software provider. The deal is subject to approval by TIBCO stockholders, regulatory approvals and other customary closing conditions, and is expected to close in December 2014. Merger & Acquisitions During the week ended 4 th October, 2014, there were 6 M&A deals worth $28.3 mn (Value of 2 deals is not disclosed). The largest deal during the week was by acquisition of Bharat Energy Ventures, subsidiary of BPL Ltd., by Electronic Research Private Limited. Acquiror Target Sector Electronic Research Private Limited. Bharat Energy Ventures Renewable Energy 100 18.8 Undisclosed Lyka Lab's formulation manufacturing facilities at MIDC Stake (%) Deal value ($ mn) Pharma 100 6.4 Sudarshan Chemical Industries RIECO Industries Industrial Machinery 100 2.7 Sudarshan Chemical Industries Rathi Vessels & Systems P Industrial Machinery 100 0.4 Suprajit Engineering Pricol's Speedo Business Automotive NA NA Minda Corporation Limited Minda Furukawa Electric Automotive 2 NA
Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 29-Sep-14 01-Oct-14 Change (%) High Low BSE Sensex 26597 26568-0.1% 27355 19584 S&P CNX Nifty 7959 7946-0.2% 8180 5803 CNX Nifty Junior 17002 16930-0.4% 17674 16913 Nifty Mid Cap 50 3135 3128-0.2% 3455 1913 CNX IT 11327 11519 1.7% 11544 8234 Bank Nifty 15474 15316-1.0% 16310 9877 CNX Infrastructure 3042 3004-1.2% 3524 3001 CNX Realty 208 202-3.1% 291 200 Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 29-Sep-14 03-Oct-14 Change (%) High Low NASDAQ 4047 4027-0.5% 4119 3118 DJIA 17071 17010-0.4% 17351 14719 S & P 500 1978 1968-0.5% 2019 1646 NIKKEI 16311 15709-3.7% 16374 13749 Hang Seng 23229 23065-0.7% 25363 21138 Straits Timex Index 3290 3253-1.1% 3388 2953 FTSE 6647 6528-1.8% 6905 6317 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 www.four-s.com 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
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