2 N D - 8 T H J U L Y 2 0 1 2 Private Equity TrackResearch4India Weekly update on the Indian PE Sector PE Activity for the week 400.0 368.1 16 During the week ended 8th July, 2012, there 350.0 14 were 8 PE/VC deals worth $4.1mn (size of 6 300.0 10 12 deals were not disclosed), compared to 10 250.0 10 PE/VC deals worth $368.1mn in the previous week. 200.0 8 All deals during the week were early stage 150.0 8 6 deals. 100.0 4 In the largest deal during the week, Rajasthan 50.0 2 Venture Capital Fund (RVCF) invested Rs 4.1 0.0 0 200mn ($3.7mn) in Delhi-based International Oncology Services Pvt Ltd (IOSPL), a super 1st July12 8th July12 specialty cancer care and research company PE Investments PE Deals During The week Value Investor (s) Target Stake (%) ($mn) Sector Industry Segment Stage Rajasthan International Cancer Health Venture Capital Oncology NA 3.7 Services research Early Services Fund Services centres Helion Venture Price MySmartPrice Partners, Accel NA 0.4 Services IT/ITeS comparison Early Web Technology Partners site Ncubate Capital Nevis Networks NA NA Services IT/ITeS Software Early Partners Misc. Unilazer Ventures Manufacturin INI Farms NA NA Manufacturin Horticulture Early Limited g g Blume Ventures, Cherishmaternit Internet NA NA Services Retail Early others y Retail Heritage Nirvana Holdings NA NA Services BFSI Microfinance Early Finlease Health Nirvana Holdings Asvas NA NA Services Clinics Early Services Twist Mobile Matrix Partners NA NA Services IT/ITeS Software Early India Source: Four-S PE Database Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. For subscription / custom queries, please contact Seema Shukla at email@example.com.
Private Equity TrackRajasthan VC Fund invests in International Unilazer Ventures invests in INI FarmsOncology Ronnie Screwvala promoted Unilazer VenturesRajasthan Venture Capital Fund (RVCF) has Limited, a private equity firm, has invested aninvested Rs 200mn ($3.7mn) in Delhi-based undisclosed amount in INI Farms PrivateInternational Oncology Services Pvt Ltd Limited, a Mumbai-based horticulture farm and(IOSPL), a super specialty cancer care and exporting company. This is the second round ofresearch company. The company has already institutional funding for INI Farms, which hadset up its flagship centres in Noida and Mumbai previously raised $0.9mn from Aavishkaarand is in the process of launching Venture Management in January 2011. Ashishcomprehensive cancer care centres in other Gupta, MD, Helion Ventures and Pawan Vaish,states like Rajasthan, Punjab and Maharashtra. founder of Daksh BPO are also personalInternational Oncology has entered into investors in the company. INI Farms exportsstrategic collaborations with Fortis Hospital pomegranates to Europe, Middle East and South(Noida) and L H Hiranandani Hospital (Mumbai) east Asia. It currently houses pomegranateto establish more oncology centres. plantations in Maharashtra and Madhya Pradesh. The company plans to use the capital proceeds to increase its productivity levels. ItHelion & Accel invest in Hyderabad-based plans to foray into the cultivation and supply ofMySmartPrice onions, potatoes, bananas and pineapples.MySmartPrice Web Technology Pvt Ltd, aHyderabad-based startup that operates pricecomparison site MySmartprice.com, has Cherishmaternity secures angel fundingreceived close to Rs 20mn in venture capital from Blume, angel investorsfunding from Helion Venture Partners and Accel Cherishmaternity, an e-shop offering maternityPartners. The site basically searches the best wear & infant products and run by Bangalore-price of products from the major online stores based Cherish Life Products Pvt Ltd, has raisedin India. The company claims that the prices on an undisclosed amount in angel funding from athe site are updated every 24 hours. The stores group of investors including Blume Ventures,available as of now include Infibeam, Saholic, Rehan Yar Khan, Rajan Anandan, Sunil Kalra,Yebhi, Indiaplaza and eBay, among others. As Farooq Oomerbhoy and others. The companyof now, the site gets around 60,000 visitors a started its e-commerce operations in 2011day and the company claims that all the traffic while three of its brick-and-mortar stores areis organic, since it has not spent a single rupee located in Bangalore under the brand nameon advertising. Cherish. The money raised will be utilised to expand its offerings and further develop its online presence.Ncubate Capital invests in Nevis NetworksNcubate Capital Partners has invested in NevisNetworks by picking minority stake in the Nirvana Holdings Invests In Heritagecompany. The funds will be used for product Finlease And Asvasdevelopment and expansion of global Nirvana Holdings has committed Rs 100mnoperations. Nevis Networks provides identity- investment to Heritage Finlease Limited, anbased policy enforcement in the network fabric, innovative micro-credit company, serving thecontrolling who can access a companys needs of rural dairy farmers and Asvas, a chainnetwork and what resources they are permitted of rural healthcare clinics.to use, as well as containing the spread of the Heritage Finlease provides access to costmost sophisticated malware. effective capital for the farming community. Research4India 2
Private Equity TrackHFL provides the loan for the requirements of AIG is planning to exit its investment indairy farmers to own animals and supply milk Bangalore based Maini Precision Productsto the dairy industry. It supports the back end Private Limited. Reliance PE may acquire AIGsneeds of the farmers like breed selection, stake in the auto component maker. It mayveterinary care, feed and fodder selection, etc. also infuse fresh equity in the company. AIG invested around $6mn in the company in 2005-Hyderabad based Asvas operates chain of ruralhealthcare clinics. Asvas rural healthcare clinics 06 through Ambadevi Mauritius Holding Limited, a SEBI registered Foreign Venture Capitalwill be single doctor clinics at the Mandalheadquarters with professional clinical practices Investor and a 100% subsidiary of the American International Assurance Company.at affordable fee. AIA is a wholly-owned subsidiary of the American International Group, Inc. MainiMatrix Partners invests in Twist Mobile Precision manufactures a range of over 1,500 types of components for the automotive,Mobile application developer - Twist Mobile material handling, engineering and aerospaceIndia Private Limited has raised series A industries.investment from Matrix Partners. Twist Mobileis planning to set up office in Vietnam withabout 30 employees. The company plans to IvyCap Ventures’ debut fund makes firstdevelop apps and content delivery for low end close at $19mndevices like Symbian series 40 and developing IvyCap Ventures Advisors, started by formercity based applications with Local Content for Ajay Piramal Group executive Vikram Gupta,rural India. It primarily focuses on applicationsfor Nokia devices. The company has reached 73 has made a first close for its debut fund IvyCap Ventures Trust Fund - I, at Rs 1.05bn ($19mn).Mn downloads, out of which about 50 Mndownloads have been from Nokia devices alone. IvyCap raised Rs 650mn from five financial institutions including three large PSU banks, another large FI and a government department. The balance Rs 400mn has come from IIT Fund Raising & Liquidity Events Alumni Trust, the anchor investor in IvyCap. IvyCap is now looking at raising the balanceReliance Capital exits Gujarat Ambuja amount of Rs 950mn for the fund and expectsExports to close in another three months. The fund isReliance Capital has part exited Gujarat Ambuja chasing investments across healthcare, energy,Exports by selling around 4.64% stake in the food/agriculture based businesses, andcompany. The fund sold 6,411,397 shares for technology, with special emphasis on the micro,Rs 19.05 per share, aggregating to Rs 122.1mn medium and small enterprises, with broad dealthrough bulk deal on BSE. Post deal Reliance size between Rs 20-400mnCapital will hold around 0.05% stake in thecompany. Gujarat Ambuja is in the business of Godrej Properties launches a real estatemanufacturing and selling refined oil (mainly fundsoya) and de-oiled cakes, cotton yarn, andmaize products, such as starch, glucose, Godrej Properties has created a residentialsorbitol, dextrose monohydrate powder, and development fund worth Rs 7.7bn along with amaltose dextrine powder. consortium of global investors led by APG. The fund is targeted at developing mid-level residential projects in Mumbai, NCR andAIG may exit Maini Precision Bangalore with future potentials being Chennai and Pune. The initial commitment will be in the ratio of 29:71 by Godrej and the investor groupResearch4India 3
Private Equity Trackrespectively. SparInvest Property Fund II, a investment of Rs 3bn. The company hadglobal real estate fund-of-funds managed by entered into a 50:50 JV last year in Oct. withSparInvest Property Investors is also a part of Fire Capital to develop residential projects andthe investor consortium. APG is Dutch pension townships in and around Chennai namedservice provider and provides pension fund Omshakthy FIRE Realty Pvt. Ltd. The companyadministration, asset management, has acquired more than 4,000 acres of landmanagement support and communication since its inception in 1991, and currently has aservices to pension funds. land bank of around 250 acre distributed across various locations. Private Equity News Petronet LNG to raise funds for expansion Petronet LNG Limited is planning to raiseSIS India to raise funds from CX PartnersPrivate security firm Security and Intelligence $367mn to expand the capacity of its Dahej LNG import terminal in Gujarat. The companyServices (India) Ltd. is set to receive Rs 5bnfrom PE investor CX Partners. The investment is plans to raise capacity at Dahej terminal to 15 Mn tons from 10 Mn tons by end of 2015. Theexpected to be made in two equal tranches of overall expansion cost of Rs 30bn would beRs 2.5bn each and would include the PE firm covered by the fund raise and internal accruals.buying out DE Shaws minority stake in the Petronet signed an agreement to build a 5 Mncompany. DE Shaw had invested close to Rs tons a year import facility at Gangavaram port3bn in 2008 for a 14% stake in SIS, which the on the Andhra coast in May12. The Rs 45bncompany used to acquire the Australian arm ofthe guarding and mobile patrol business unit of plant will be Petronets third LNG import terminal in the country.United Technologies.Shriram Properties to raise funds for IPO, Other OfferingsexpansionShriram Properties is planning to raise Rs 7-8bn Prime Focus to raise funds via sale of ADRsthrough PE route for expanding its land bank in Prime Focus Limited is planning to riaseSouth India to develop residential projects. The $150mn in a U.S. share sale to fund itscompany is in talk with few PE Funds including operations in US. Prime Focus is end-to-endJP Morgan, Morgan Stanley as well as two mid- solution provider from pre-production to finalsized PE firms among others. Shriram currently delivery including visual effects, creative 3Dhas around 3.5 Mn sq ft space under conversion, video and audio post-development and is looking to launch new production,digital content management andprojects of over 11 Mn sq ft in FY13. It is also in distribution, digital intermediate, versioning anddiscussions with Marg Ltd to acquire the Marg adaption and equipment rental. The companyJunction, a mall under construction on the OMR. has 16 facilities across three continents, employing 4000 professionals worldwide.Omshakthy planning to raise PE funds fornew projectsOmshakthy Agencies (Madras) Pvt Ltd. is State Bank of India eyes $500m bondplanning to raise Rs 1.5bn through PE State Bank of India aims to raise at leastinvestments for its proposed project at $500mn through a five-year overseas bond saleTirumudivakkam near Chennai. The fund raised as soon as this month, potentially reopening thewould comprise half the amount of initial dollar bond market for Indian issuers after aResearch4India 4
Private Equity Trackfour-month lull. In the past few months, Indian IFFCO postpones Rs 6bn IPO ofcompanies have refrained from issuing dollar Chhattisgarh power unitbonds as a surge in risk aversion has made itmore expensive for them to come to market. Indian Farmers Fertiliser Cooperative LtdSBI, which last sold overseas bonds in early (IFFCO) has postponed the launch of Rs 600-2011, will launch the issue depending on crore initial public offering of its Chhattisgarhmarket conditions, and is working out a power project. The proposed IPO was to beschedule for investor meetings. launched in 2011-12 fiscal. It has, however, been delayed as its power subsidiary IFFCO Chhattisgarh Power Ltd (ICPL) has got the environment clearance only in May.M&A Activity for the Week During the week ended 8th July, 2012, there were 6 M&A deals worth $350mn (size of 3 deals were not known). In the largest deal during the week, Grasim Industries has acquired Canada’s Terrace Bay Pulp for around $300mnAcquiror Target Target Business Stake (%) Value ($mn)Grasim Industries Terrace Bay Pulp Manufacturing NA 300The Serum Institute of Netherlands Vaccine Institute - Pharmaceutical NA 40India Limited production bizThe Indian Public School South Hills Academy Education 100 10 Essar Energy - Vietnam gasENI International Oil & gas 50 NA blockDisney Interactive Media Gameshastra - studio Media & Entertainment NA NAGroupLloyds Register Reltech Consulting IT/ITeS 100 NASource: Google Finance, Yahoo financeMarket UpdateKey Domestic Indices Indian Market Movements 52 WeekIndex 29-Jun-12 6-Jul-12 Change (%) High LowBSE Sensex 17,429.98 17,521.12 0.52% 19,619.65 15,135.86S&P CNX Nifty 5,278.90 5,316.95 0.72% 5,740.40 5,263.35CNX Nifty Junior 10,099.55 10,334.65 2.27% 11,526.10 10,102.75Nifty Mid Cap 50 2,137.00 2,190.35 2.44% 2,515.70 2,137.95CNX IT 6,144.60 6,027.25 -1.95% 6,835.25 6,114.75Bank Nifty 10,340.65 10,655.35 2.95% 11,451.25 10,303.65CNX Infrastructure 2,415.90 2,471.05 2.23% 3,191.60 2,415.10CNX Realty 222.95 233.05 4.33% 302.20 222.75Research4India 5
Private Equity TrackKey Global Indices Global Market Movements 52 WeekIndex 29-Jun-12 6-Jul-12 Change (%) High LowNASDAQ 2,935.05 2,937.33 0.08% 3,134.17 2,298.89Dow Jones Industrial Average 12,880.09 12,772.47 -0.84% 13,338.66 10,404.49S&P 500 1,362.16 1,354.68 -0.55% 1,422.38 1,074.77NIKKEI 225 9,006.78 8,896.88 -1.24% 10,255.20 8,135.79Hang Seng 19,441.46 19,800.64 1.81% 22,835.03 16,250.27Straits Times Index 2,878.45 2,937.56 2.01% 3,227.28 2,521.95FTSE 100 5,571.15 5,662.63 1.62% 6,084.08 4,791.01Research4India 6
Private Equity TrackFour-S Services Pvt LtdFounded in 2002, Four-S has a strong & successful track record of genuine, accurate andobjective advice to top Indian & global companies & PE Firms. Four-S has already provensuccess in corporate finance, strategy consulting, fund-raising, investment banking andinvestor relations mandates with 100+ corporates and large PE funds.Four-S, trusted advisor to top Indian & Global CosOffering comprehensive bouquet of services to SMEs, Corporates and PE FundsResearch4India 7
Private Equity TrackAbout Research4IndiaResearch4India is the research services arm of Four-S Services Pvt Ltd. Here weprovide regular research reports on key sectors of the Indian economy, and largeunlisted companies in these sectors. These reports will be available on our upcomingsite www.research4india.com, as well as from leading international research sellers likeThomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc.DisclaimerThe information contained herein has been obtained from sources believed to be reliable but isnot necessarily complete and its accuracy cannot be guaranteed. No representation, warranty,guarantee or undertaking, express or implied, is made as to the fairness, accuracy orcompleteness of any information, projections or opinions contained in this document or uponwhich any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not acceptany liability whatsoever, with respect to the use of this document or its contents. This documenthas been distributed for information purposes only and does not constitute or form part of anyoffer or solicitation of any offer to buy or sell any securities. This document shall not form thebasis of and should not be relied upon in connection with any contract or commitmentwhatsoever. This document is not to be reported or copied or made available to others.The company may from time to time solicit from, or perform consulting or other services for, anycompany mentioned in this document.For further details/clarifications please contact:Seema Shukla Ajay JindalSeema@four-s.com Ajay.firstname.lastname@example.orgGurgaon Office: Mumbai Office:214, Udyog Vihar, Phase I, 101,Nirman Kendra, Opposite Star TV,Gurgaon – 122016 Off Dr E Moses Road, Mahalaxmi,Tel: +91-124-4251442 Mumbai – 400001 Tel: +91-22-42153659Research4India 8