Four s weekly pe track 30th april - 6th may 2012


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Four s weekly pe track 30th april - 6th may 2012

  1. 1. Four-S Private Equity Track…Issue: 30th April – 6th May, 2012 …… Your Eye to Indian Private Equity PE activity for the week 250.0 16 During the week ended 6th May, 2012, there were 6 PE/VC deals 14 worth $87.5mn compared to 11 deals worth $154.9mn in the 200.0 154.9 12 previous week. 150.0 10 11 87.5 8 Out of the total, there were 2 early stage deals, 2 late stage deals 100.0 6 and 1 deal each at growth stage and PIPE level. 4 50.0 6 2 In the largest deal during the week, PE firm Jacob Ballas Capital has 0.0 0 invested Rs 2bn (~$39mn) to pick an undisclosed minority stake in 29th April12 6th May12 Marg Karaikal Port Pvt Ltd. PE Investments No. of Deals Private Equity: Investment Summary during the week Stake Value Investor (s) Target (%) ($mn) Sector Industry Segment Stage Construction Jacob Ballas Capital Marg Karaikal Port Pvt NA 39.0 Construction & Allied Port Late Activities BCCL Pantaloon Retail 3.7 37.6 Services Retail Diversified PIPE TVS Capital and Non electrical ReGen Powertech 2.7 9.9 Manufacturing Capital Goods Late MCap machinery Software & India Angel Network OrangeScape NA 1.0 Services IT/ITeS Early services Innoz Technologies Pvt Seedfund NA NA Services IT/ITeS M Vas Early Ltd Rajasthan Venture Health Frontier Lifeline Pvt Ltd 11.0 NA Services Hospitals Growth Capital Fund Services Source: Four-S PE Database Equitys India Infrastructure Fund invested Rs 1.5bn in Jacob Ballas Capital invests in Marg Karaikal Port March 2010. Thus the latest round of funding takes the total Jacob Ballas Capital has invested Rs 2bn (~$39mn) to pick an PE investment in the firm to over Rs 5.5bn of a little over undisclosed minority stake in Marg Karaikal Port Pvt Ltd, $100mn. which is developing a port in Indias south east coast in Puducherry. Marg Karaikal Port will use the funds for BCCL invests in Pantaloon Retail expansion plans to increase port’s capacity from 21 MMTPA Bennett Coleman is investing Rs 2bn for a 3.68% stake in to 28 MMTPA. Marg Karaikal Port will have a total of 9 Pantaloon Retail. After the transaction, Bennetts stake in berths (5 already developed) capable of handling up to 47 the company will go up from 2.12% to 5.8% while MMTPA when fully developed. promoters stake will come down by 1.6% to 43%. Pantaloon will issue 8.16 million shares to Benett Coleman at Rs 245 Four-S Comment: This is Marg Karaikal Port’s third fund on a preferential basis. raising from private equity investors. In 2011, Ascent Capital invested Rs 2bn in the company giving Marg Karaikal a pre- Four-S Comment: The deal comes immediately after Aditya money valuation of Rs 13.3bn. Prior to that IDFC Project Birla Nuvo Ltd (ABNL), a unit of the $28bn Aditya Birla Indian Private Equity Weekly Update 30th April – 6th May, 2012
  2. 2. Group, announced that it will acquire a majority stake in the traffic. Innoz’s mobile query product SMSGyan (nowPantaloons retail chain of debt-laden Pantaloon Retail rebranded) works on a short code ‘55444’, giving instant(India) Ltd. The proposed transaction will help the Future results on queries through an SMS. The company offers thisGroup’s PRIL pare debt, which has been accumulated by service at Re 1 per query and has packages for daily andrapid expansion and is likely to be completed within 8-10 monthly unlimited queries. The company which currentlymonths. The new, separated unit will eventually become a claims to handle 1 million query every day, aims to hit 10subsidiary of ABNL. The separation will help PRIL, which had million query per day by end of 2015. Additionally, it plansdebt of Rs. 58bn as of December 2011, reduce this amount to get 1 million unique users everyday compared to theby Rs. 16bn. current 2.5 lakh.TVS Capital, Summit invest in ReGen Powertech Rajasthan Venture Capital picks 11% in FrontierReGen Powertech, a Chennai-based wind turbine maker, Lifelinehas raised Rs 520mn from TVS Capital and Summit FVCI - a Rajasthan Venture Capital Fund (RVCF) has acquired 11%fund advised and managed by MCap. TVS Capital has equity stake in Chennai-based Frontier Lifeline Pvt Ltd for aninvested Rs 370mn for a 1.95% stake while Summit has undisclosed amount. RVCF has invested in this companyinvested Rs 150mn in the company valuing ReGen at Rs through its Rs 200 crore SME Tech Fund. The funding will18.5bn. M Cap, through Summit, will now hold around 3% in enable Frontier Lifeline to finance its medicity projectReGen Powertech. The funds will be used for expanding its Frontier Mediville in Tamil Nadu. The project is expected tomanufacturing capacity at its Udaipur plant, as well as for be operational within one or two months. Frontier Medivilleproject development. includes a research and training centre and an animalThe latest capital infusion is an extension of the round of laboratory to house clinical research organisation (CRO).funding that the company did in December 2011, and The company had raised Rs 900mn from State Bank of Indiaextending to January 2012. IDFC Private Equity and M Cap and Bank of Baroda for the first phase of the project andAdvisors had invested Rs 1bn in that period, a transaction scooped around Rs 5bn from private equity players in itsthat valued ReGen at Rs 16bn. second phase.OrangeScape raises $1mn angel funding from IAN Fund Raising & Liquidity EventsChennai-headquartered OrangeScape, a cross-Cloud PaaS(Platform-as-a-service) provider, has raised $1mn from theIndian Angel Network. The capital raised will be largely usedfor business and product development. Founded in 2003 bySuresh Sambandam and Mani Doraisamy, OrangeScape hasoperations in India, North America and Western Europe/UK.The company currently employs 55 people across its India IndiaCo hits first & final close for twin fundsand the US offices. By the end of 2012, it intends to scale up Domestic private equity fund house, IndiaCo Ventures Ltd.the team strength to 70-80. has announced first close of its India Growth Opportunities Fund and final close of India Amalgamation Fund. The IndiaInnoz raises Series A funding from Seedfund Amalgamation Fund has been fully capitalised with RsInnoz Technologies Pvt Ltd, a mobile search platform, has 280mn and the India Growth Opportunities Fund which hassecured Series A funding from Seedfund. The funding will be a target size of Rs 400mn has seen its first close at Rsused in marketing, hiring people and strengthening the 150mn. So far, the company has been investing through itstechnology base to support the increase in demand and Indian Private Equity Weekly Update 30th April – 6th May, 2012
  3. 3. balance sheet and has now decided to carve out the Capital) and LGT Venture Philanthropy are expected toinvestments into two separate small funds. participate in this round. The company provides power toAs on date the company has a total investment portfolio of off-grid consumers in rural India, chiefly in the state ofRs 600mn with investments in more than half a dozen Bihar, by setting up 35-100 kilowatt power plants. Thecompanies. India Amalgamation Fund and India Growth plants generate power by burning rice husk, a wasteOpportunities Fund will chase investments in manufacturing product of rice milling. It set up the first plant in Tamkuhaand domestic consumption space in India. village in Bihar’s West Champaran district and has since installed 85 plants. Out of those, 80 are installed within Bihar, two in Nepal and three in Uttar Pradesh. The Private Equity and M&A News company needs additional funds at this stage to get to its stated target of over 2,000 plants by 2014.Speciality retail chain Mom & Me in talks to raisePE funding Navis Capital may invest in Twilight Litaka PharmaMahindra Retail, which houses Mom & Me – the speciality Navis Capital Partnes is planning to invest Rs 1.5bn inretail venture of the diversified Mahindra Group – is in talks Mumbai based Twilight Litaka Pharma Limited. Incorporatedto raise Rs 1bn ($18.8mn) in funding from private equity in 1994 by Rajendra Bora, Twilight Litaka Pharmainvestors. Mom & Me caters to the baby care segment in manufactures and sells drugs and formulations in the formthe organised retail market. It has about 50 stores across of tablets, capsules, ointments, and liquids. It exports itsthe country, offering baby apparel & accessories, travel and products over 40 countries across Africa, South America,safety products, baby furniture, toys, etc. It is now raising South East and Central Asia. It also provides contractmoney to open more stores and expand the product manufacturing services on principal to principal or on loanofferings. The retail chain is also looking to expand to tier II license basis for various companies.and tier III cities via franchise model. IFC may invest in MAS Financial ServicesIFC to invest in Zephyr Peacock-backed Flareum IFC may invest upto $12mn in Ahemadabad based NBFC -International Finance Corporation (IFC) is planning to invest MAS Financial Services Limited. The company may also raise$1mn in a Mumbai-based solar energy firm Flareum Solar another Rs 500mn of Tier II capital over the medium term.Technologies Pvt Ltd. The investment is being routed The funds will be used to expand its capital base and itsthrough a special purpose vehicle (SPV) set up by Zephyr operations. MAS Financial (formerly, Marketing & AlliedPeacock India Fund for its existing investment in Flareum. Services) was initially engaged in consumer durablePE firm Zephyr Peacock had invested around Rs 500mn to financing. The company was registered as an NBFC in 1995.pick a significant minority stake in Flareum Technologies The company is currently engaged in retail asset lending(formerly known as Gadhia Solar Energy Systems Pvt. Ltd.) (financing of two-wheelers, three-wheelers, small CVs, andfew months ago. The solar energy company provides energy small-ticket business loans under the individual micro-loanssolutions by using parabolic concentrated technology. The module).company provides products and services in the solarthermal space used in cooking and cooling applications. Trivitron to raise $100mn from PEs Promoters of Indias largest home-bred medical diagnosticHusk Power System to raise Series A funding equipment company, Trivitron Healthcare, will sell moreRenewable Energy firm Husk Power Systems is raising $5- stake in the company to raise $100mn from private equity10mn Series A funding from existing and new investors. funds to purchase cardiology imaging companies andExisting investors Acumen Fund, Bamboo Finance (Oasis expand its manufacturing park in Chennai. It has appointed Indian Private Equity Weekly Update 30th April – 6th May, 2012
  4. 4. investment banker Kotak Mahindra Bank to value the bank raised Rs 7.2bn from India’s largest mortgage lenderChennai-based company. HSBC Private Equity and ePlanet HDFC Ltd and a consortium of private equity investorsCapital, which had purchased 20% stake in Trivitron in 2007 including Norwest Venture Partners, Beacon India Privatefor roughly $11mn, are now looking to exit. Equity Fund and others.Blackstone, KKR may buy Mallyas UB Towers for Rs HDFC Life to go for IPO in FY146.5bn HDFC Life plans to raise funds through an initial publicBeleaguered billionaire Vijay Mallyas UB Holdings Ltd is in offering (IPO) of 10% of the capital base. The private-sectortalks with Blackstone and Kohlberg Kravis Roberts (KKR) to life insurer has already started the process internally, and isunlock the value of its office spaces, including the iconic expected to hit the market in the next financial year. Thehead office, UB Tower. One of these two PE investors may company has posted a net profit of Rs 2.71bn, for the firstacquire Mallyas office real estate, a part of UB City, through time since its inception. HDFC Life is a joint venturea structured equity deal for roughly Rs 6.5bn. UB Holdings is between Housing Development Finance Corporation (HDFC)the parent of the debt-laden Kingfisher Airlines. Ltd and UK-based insurer, Standard Life.Apollo Hospitals to raise $60mn from IFC Plastene India IPO begins on May 9Apollo Hospitals Enterprise Ltd (AHEL) is planning to spend Flexible intermediate bulk container (FIBC) maker Plastene$394mn over four years for adding 2,900 beds to its India Ltd has said it is entering the capital market with ahospitals network and equipment purchases for existing public issue of 92.55 lakh equity shares through a 100%hospitals. It is also planning to establish presence through book building route on May 9. The shares will be of faceclinics, information centres and telemedicine centres in value of Rs 10 each for cash in the price band of Rs 81-Rs 84.Uganda and Tanzania. The hospital network is raising funds The proposed issue will open for subscription on May 9 andof about $60mn from International Finance Corporation close on May 15. The Ahmedabad-based company is(IFC) to support future investments. engaged in the integrated business of manufacturing jumbo bags, flexible packaging, BoPP laminated woven sacks andMachdar Motorsports to raise Rs 2bn PE funding multi-filament yarns.Machdar Motorsports, the promoters of i1Super SeriesChampionship, are understood to be in talks to raise close Executive Trackingto Rs 2bn through the private equity route to kickstart thechampionship by early next year. The i1 Super Series, basedon the popular city-based franchisee format, has nine teams Partners Group hires Cyrus Driver for directrepresenting nine cities in India. investments Partners Group, the Switzerland-based private market IPO, Other Offerings investment manager, has roped in Cyrus Driver to strengthen direct investment activities in India. Driver, whoRatnakar Bank IPO in 2 years will join as a managing director based out of Singapore,Kolhapur-based Ratnakar Bank is looking at an initial public earlier headed Helix Investments after which he joined Arkaoffering (IPO) in two years. The bank expects to double its Capital. Driver has over a decade of experience in the Indianloan book by then. The loan book of the bank had grown private equity market. He lead India investments for PE firmfrom around Rs 10bn at the time of the launch of Vision Helix before which he was with J.P. Morgan Partners2015 about 18 months ago, to around Rs 25bn. Last year the Advisors in Singapore and Mumbai. Indian Private Equity Weekly Update 30th April – 6th May, 2012
  5. 5. M&A Activities During the week ended 6th May, 2012, there were 5 M&A deals worth $401.5mn (size of 1 deal was not known). In the largest deal during the week, France based Roquette Freres has acquired Starch business of Riddhi Siddhi Gluco Biols Limited for $181mn.M&A Activity: Summary during the week Stake Deal value ($ Acquirer Target Target business (%) mn) Riddhi Siddhi Gluco Biols - starch Roquette Freres Manufacturing - starch NA 180.9 biz Aditya Birla Nuvo Pantaloon Retail Retail NA 152.0 Wipro Limited Promax Applications Group IT/ITeS NA 36.4 Life Insurance Corporation Pipavav Defence and Offshore Defence 0.6 32.2 EFS Facilities Services Dalkia India Facility management NA NASource: Four-S Database, Acquisition price is in $mn Indian Private Equity Weekly Update 30th April – 6th May, 2012
  6. 6. Market UpdateKey Domestic Indices Indian Market Movements 52 WeekIndex 27-Apr-12 4-May-12 Change (%) High LowBSE Sensex 17,134.25 16,831.08 -1.80% 19,619.65 15,135.86S&P CNX Nifty 5,190.60 5,086.85 -2.04% 5,740.40 4,990.30CNX Nifty Junior 10,103.30 9,948.00 -1.56% 11,550.00 9,749.30Nifty Mid Cap 50 2,168.45 2,123.65 -2.11% 2,525.75 2,067.55CNX IT 5,940.35 6,100.35 2.62% 6,835.25 5,957.30Bank Nifty 10,148.70 9,802.35 -3.53% 11,451.25 9,480.50CNX Infrastructure 2,341.45 2,260.70 -3.57% 3,191.60 2,213.65CNX Realty 221.80 216.80 -2.31% 302.20 208.50Source: BSE, NSEKey Global Indices Global Market Movements 52 Week Index 27-Apr-12 4-May-12 Change (%) High Low NASDAQ 3,050.61 2,956.34 -3.19% 3,134.17 2,298.89 Dow Jones Industrial Average 13,204.62 13,038.27 -1.28% 13,338.66 10,404.49 S&P 500 1,399.98 1,369.10 -2.26% 1,422.38 1,074.77 NIKKEI 225 9,520.89 9,380.25 -1.50% 10,255.20 8,135.79 Hang Seng 20,741.45 21,086.00 1.63% 23,707.95 16,250.27 Straits Times Index 2,981.58 2,990.59 0.30% 3,227.28 2,521.95 FTSE 100 5,777.11 5,655.06 -2.16% 6,084.08 4,791.01Source: Yahoo Finance Indian Private Equity Weekly Update 30th April – 6th May, 2012
  7. 7. About Four-S ServicesFour-s is a boutique firm focusing on cutting-edge Financial Research, Business Advisory and Investment Banking services forclients. Through our deep research into Indias high growth industries and accurate and objective advice we have helped manymarquee institutional investors take informed investment decisions in private equity and public markets. Four-S has provensuccess in business advisory, investment banking and investor relations mandates with 100+ corporate clients and large PEfunds. For further information on the company please visit www.four-s.comDisclaimerThe information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and itsaccuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to thefairness, accuracy or completeness of any information, projections or opinion contained in this document or upon which anysuch projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability, whatsoever with respect tothe use of this document or its content. This document has been distributed for information purposes only and does notconstitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basisof and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to bereported or copied or made available to others. The Company may from time to time solicit from, or perform consulting, or otherservices for, any company mentioned in this document.For Further details/clarifications please contact:SeemaShuklaEmail- seema@four-s.comAddress:Gurgaon MumbaiFour-S Services Pvt. Ltd. Four-S Services Pvt. Ltd.214, UdyogVihar 101,Nirman Kendra,Phase-I, Gurgaon -122016 Near Famous Studios, Off Dr. EHaryana, INDIA Moses Road,Tel: +91 124 4251443 Mahalaxmi, Mumbai+91 9810408474 Tel: 022 - 42153659 Indian Private Equity Weekly Update 30th April – 6th May, 2012