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Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
Vccedge deal update august'10
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Vccedge deal update august'10

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Private equity investment in India in August 2010 grew 7.5x as compared to the same period last year. Deal value reached $1,346 million as against $179 million in August 2009. Total deal count also …

Private equity investment in India in August 2010 grew 7.5x as compared to the same period last year. Deal value reached $1,346 million as against $179 million in August 2009. Total deal count also increased by 45% to 35 deals, up from 24 in August 2009.

When compared to July, deal value in August 2010 was up 60% due to some large deals during the month.

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  • 1. A RESEARCH PUBLICATION | September 2010 MONTHLY DEAL UPDATEAug ’10 Statistics and analysis of Private Equity, Venture Capital and Mergers & Acquisitions in India
  • 2. Contents Page Number I. Executive Summary 1 II. Private Equity Deal Flow - Introduction 2 - Deal Breakdown 3 - Sectoral Breakdown 5 - Top 5 Private Equity Deals 6 - Fund Activity 7 III. Private Equity Exits 8 IV. M&A Round UpCorporate Office:Mosaic Media Ventures Pvt. Ltd. - Introduction 9B-128, First Floor, Sector 5, Noida - Deal Breakdown 10Uttar Pradesh, India - 201 301Tel: +91-120-4171111 - Sectoral Breakdown 12Email Id: sales@vccedge.com - Top 5 M&A deals 13 Disclaimer: VCCEdge (the research arm of VCCircle.com) has used due care and caution in preparing this report. Information has been obtained from the VCCEdge platform and sources which it considers reliable. However, VCCEdge does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published/reproduced in any form without VCCEdge’s prior written approval. VCCEdge or its owner Mosaic Media Ventures Pvt. Ltd. is not liable for investment decisions which may be based on the views expressed in this report. COPYRIGHT © 2010 All rights reserved.
  • 3. EXECUTIVE SUMMARY Private Equity  Total private equity investment in India grew 7.5x to $1.3 billion as against $179 million in August 2009.  The first eight months of 2010 have seen private equity deal value at $6.5 billion as compared to $4.4 billion in the whole of 2009. The median deal amount and the average value of private equity deals in August 2010 was $7 million and $45 million respectively. Industrials, Telecom and Financials were the most targeted sectors for investment with deals worth $309 million, $304 million and $298 million respectively. Mergers & Acquisitions M&A value in India in August 2010 grew nearly seven fold to $4.2 billion, up from $629 million in August 2009.  The number of domestic deals increased from 20 in August 2009 to 27 in August 2010. The value of domestic deals decreased from $521 million to $364 million over the same period.  In terms of value, the number of outbound deals jumped from $60 million in August 2009 to $3.35 billion in August 2010.  Inbound deals increased to 10 valued at $442 million in August 2010 up from 8 deals worth $39 million in August 2009.  Energy, Industrials and Consumer Discretionary were the most targeted sectors for M&A’s with deals worth $3.1 billion, $325 million and $310 million respectively. 1Monthly Deal Update - August 2010
  • 4. PRIVATE EQUITY INTRODUCTION Private equity investment in India in August 2010 grew 7.5x August 2009 had seen the lowest monthly deal value since as compared to the same period last year. Deal value the beginning of 2009, with the exception of March ‘09 reached $1,346 million as against $179 million in August which was at $136 million. 2009. Total deal count also increased by 45% to 35 deals, up from 24 in August 2009. Since then an upward trend has been witnessed with deal When compared to July, deal value in August 2010 was up value peaking during August 2010, suggesting a recovery 60% due to some large deals during the month. from last years slowdown. August 2010 has seen the highest monthly private equity deal value over the last thirteen months. August 2009 was the lowest. Exhibit 1: Monthwise Private Equity Trend 1600 39 40 45 38 37 1346 1400 40 33 33 35 35 1200 28 28 29 977 Value ($mn) 26 30 1000 24 24 847 842 Volume 818 25 747 800 654 595 536 20 600 438 442 465 15 400 10 179 200 5 0 0 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Value $mn Volume 2Monthly Deal Update - August 2010
  • 5. PRIVATE EQUITY DEAL BREAKDOWN Exhibit 2: Private Equity Type - Volume Exhibit 3: Private Equity Type – Value ($mn) 35 32 1400.0 1298 29 29 1192 1163 30 1200.0 25 22 1000.0 21 20 Angel 800.0 Angel 14 VC VC 15 13 600.0 451 9 PE PE 10 8 400.0 5 230 4 171 5 3 200.0 2 2 64.1 48.0 1 21.9 13.7 8.3 0 0 0 0.2 0.0 0.3 2.0 2.5 0.0 0.0 0 0.0 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 The average deal amount went up five fold from $9 million in Aug ‘09 to $45 million in Aug ‘10. Median deal amount went up 40% from $5 million to $7 million over the same period. Exhibit 4: Average Deal Size ($mn) Exhibit 5: Median Deal Amount ($mn) 60 54 25 22 50 45 20 40 32 15 15 30 11 18 16 8 20 10 7 9 5 10 5 0 0 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 3Monthly Deal Update - August 2010
  • 6. PRIVATE EQUITY DEAL BREAKDOWN Exhibit 6: Number of transactions by deal size Exhibit 7: Total investment by deal size100% 100% 90% 90% 80% 80% 70% $100m+ 70% $100m+ 60% $50m-$100m 60% $50m-$100m 50% $25m-$50m 50% 40% 40% $25m-$50m $5m-$25m 30% 30% $5m-$25m Under $5m 20% 20% Under $5m Undisclosed 10% 10% 0% 0% Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug 05 06 07 08 09 10 05 06 07 08 09 10 In Aug ‘10, private equity deals under $50 million accounted In Aug ‘10, private equity deals under $50 million accounted for 83% of total deal volume. for only 19% of total deal value. Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Undisclosed 2 7 7 7 3 5 Under $5m 9 19 4 18 20 14 Under $5m 5 9 3 10 10 6 $5m - $25m 48 176 133 230 90 175 $5m - $25m 4 14 9 16 9 16 $25m - $50m 115 101 124 176 70 70 $25m - $50m 3 3 4 6 2 2 $50m - $100m 58 177 57 125 0 86 $50m - $100m 1 3 1 2 0 1 $100m+ 0 0 875 681 0 1001 $100m+ 0 0 5 4 0 5 4Monthly Deal Update - August 2010
  • 7. PRIVATE EQUITY SECTORAL BREAKDOWN Exhibit 8 Exhibit 9 Top 5 Sectors By Value ($mn) Top 5 Sectors By Volume Healthcare, $ Information 66 Technology, 4 Industrials, $3 Consumer Utilities, $290 09 Discretionary, Financials, 10 5 Telecom, $304 Financials, $2 Healthcare, 5 98 Industrials, 7 Exhibit 10: Sector Summary – August 2010 Sector Volume Value($Mn) Average Size In Aug ‘10, Industrials, Telecom and Financials were the most Consumer Discretionary 5 34 11 targeted sectors for investment with deals worth $309 Consumer Staples 1 16 16 million, $304 million and $298 million respectively. Together, they Energy 0 0 0 accounted for 68% of total private equity deal value during the Financials 10 298 30 month. Healthcare 5 66 17 Industrials 7 309 52 The most active sector in terms of deal volume was Financials Information Technology 4 22 7 with 10 deals during the month. This was followed by Industrials Materials 1 8 8 with 7 deals. Healthcare and Consumer Discretionary had 5 deals Telecommunication Services 1 304 304 each. Utilities 1 290 290 5Monthly Deal Update - August 2010
  • 8. PRIVATE EQUITY TOP 5 DEALS Exhibit 11: Top private equity investments in Aug ‘10 S.No. Target Buyer Deal Value ($ mn) 1 Viom Networks Ltd. Macquarie-SBI Infrastructure Fund 304 2 Moser Baer Projects Pvt. Ltd. Blackstone Advisors India Pvt. Ltd. 290 3 • GMR Airports Holding Pvt. Ltd. Macquarie-SBI Infrastructure Fund 200 GIC Special Investments Pte Ltd. , Temasek Holdings Pte. Lodha Group, 117 Storey Residential Tower Ltd., HDFC Venture Capital Ltd., Abu Dhabi Investment 4 in Mumbai Council 107 5 Shriram Properties Ltd. TPG Capital Inc. 100 Two of the top three investments in August 2010 were made by Macquarie-SBI Infrastructure Fund. It invested $304 million in Viom Networks and $200 million in GMR Airports Holding. Other large deals in August include the $290 million investment made by Blackstone Advisors in Moser Baer Projects, the $107 million investment by a consortium of investors in Lodha Group’s 117 story residential tower and TPG Capital’s $100 million investment in Shriram Properties. The top 5 PE deals accounted for 74% of the The investments in Viom Networks, Moser Baer Projects and total private equity deal value in August ’10. GMR Airports Holding are also amongst the top ten deals of 2010. 6Monthly Deal Update - August 2010
  • 9. PRIVATE EQUITY FUND ACTIVITY DURING AUGUST 2010 On The Road •Clove Route Fund - Frontline Strategy Target Size - $150 million •I-Farm Venture Advisors Target Size - $100 million •India Buyout Fund II - Sonoma Management Partners Target Size - $100 million •India Realty Fund 1 - Azure Capital Advisors Target Size - $106 million •Stega Capital Fund I Target Size - $50 million •Tata Capital Growth Fund (Tata Capital and Mizuho Securities) Target Size - $1 billion Closed – First / Final •Indivision India Partners II - Everstone Capital Management Target Size - $550 million First Close at $250 million •Faering Capital - Aditya Parekh and Sameer Shroff Final Close - $161 million •SIDBI Venture Capital Fund III - SIDBI Venture Capital Final Close - $214 million 7Monthly Deal Update - August 2010
  • 10. PRIVATE EQUITY PRIVATE EQUITY EXITS Exhibit 12: Top 5 exits in Aug ‘10 Sno. Target Seller Exit Type Deal Value ($ mn) Venture Infotek Global Pvt. Ltd. Kubera Cross Border Fund Ltd., Walden International, 1 Global Internet Ventures LLC M&A 100 2 Emaar MGF Land Ltd. Citi Venture Capital International Buyback 60 3 Dr. Lal Path Labs Pvt. Ltd. Sequoia Capital India Secondary Sale 35 The Infrastructure Fund of India, IDFC India 4 Gujarat Pipavav Port Ltd. Infrastructure Fund IPO 12 Equitas Micro Finance India Pvt. Aavishkaar Goodwell India Microfinance 5 Ltd. Development Co. Ltd. Secondary Sale 9.7 IPO, 2 M&A , 4 Secondary Sale, 4 Buyback, 2 Open Market, 6 The month of August 2010 saw 18 exits worth $249 million. 8Monthly Deal Update - August 2010
  • 11. MERGERS & ACQUISITIONS INTRODUCTION M&A value in India in August 2010 grew nearly seven fold to Deal value in August 2010 was $1.2 billion lower than that in $4.2 billion, up from $620 million in August 2009. Deal July 2010, and also lower than that in March, May and June volume also jumped to 58 deals up from 34 in August last 2010. M&A value in all other months since August 2009 was year. lower than that in August 2010. March and June 2010 had seen some large deals which resulted in deal value greater than $14 billion during these two months. August was much lower in comparison. If Vedantas proposed $9.6 billion deal for Cairn India had gone August 2010 has seen the fourth highest monthly M&A deal through deal value would have been much higher. value over the last twelve months. Exhibit 13: Monthwise M&A Trend 16,000 72 14,347 80 67 14,098 14,000 64 70 59 58 54 55 54 12,000 60 Value ($mn) 10,000 44 41 8,641 42 50 Volume 34 35 8,000 40 5,397 6,000 4,227 30 4,000 2,816 2,817 2,324 20 1,774 2,092 2,000 1,310 10 620 650 0 0 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Value $mn Volume 9Monthly Deal Update - August 2010
  • 12. MERGERS & ACQUISITIONS DEAL BREAKDOWN Exhibit 14: M&A Type - Volume Exhibit 15: M&A Type – Value ($ mn) 10 3500 9 3000 8 2500 7 M&A 6 2000 Domestic IPO 5 Inbound Secondary Sale 1500 4 Outbound Buyback 1000 3 Open Market 2 500 1 0 0 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Oct 05 Oct 06 Oct 07 Oct 08 Oct 09 Oct 10 The average deal amount went up by more than 325% from $31 million in Aug ‘09 to $132 million in Aug ’10. Median deal amount increased by 50% from $10 million to $15 million during the same period. Exhibit 16: Average Deal Size ($ mn) Exhibit 17: Median Deal Amount ($ mn) 140 132 119 16 15 117 120 14 12 100 88 12 76 10 80 10 7 60 8 5 5 40 31 6 4 20 2 0 0 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 10Monthly Deal Update - August 2010
  • 13. MERGERS & ACQUISITIONS DEAL BREAKDOWN Exhibit 18: Number of transactions by deal size Exhibit 19: Total investment by deal size 100% 100% 90% 90% 80% 80% $100m+ 70% 70% $100m+ 60% $50m-$100m 60% $50m-$100m 50% $25m-$50m 50% 40% 40% $25m-$50m 30% $5m-$25m 30% $5m-$25m 20% Under $5m 20% 10% 10% Under $5m Undisclosed 0% 0% Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug 05 06 07 08 09 10 05 06 07 08 09 10 In Aug ‘10, M&A’s under $50 million accounted for 84% of total In Aug ‘10, M&A’s under $50 million accounted for only 7% of deal volume. total deal value. Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Undisclosed 14 15 19 17 14 26 Under $5m 10 13 20 22 17 7 Under $5m 5 7 9 10 6 7 $5m - $25m 32 64 71 39 94 154 $5m - $25m 2 5 7 4 8 12 $25m - $50m 29 81 0 62 110 142 $25m - $50m 1 2 0 2 3 4 $50m - $100m 95 56 215 215 74 213 $50m - $100m 1 1 3 3 1 3 $100m+ 593 1450 2546 2114 324 3711 $100m+ 1 4 5 2 2 6 11Monthly Deal Update - August 2010
  • 14. MERGERS & ACQUISITIONS SECTORAL BREAKDOWN Exhibit 20 Exhibit 21 Top 5 Sectors By Value ($mn) Top 5 Sectors By Volume Consumer Materials, $ Information Discretionar 159 Technology, Financials, 4 Consumer y, $310 $151 Discretionar Industrials, $ y, 13 325 Industrials, 7 Energy, $3,1 Materials, 9 Information 05 Technology, 13 Exhibit 22: Sector Summary Sector Volume Value($Mn) Average Size In Aug ‘10, Energy, Industrials and Consumer Discretionary were Consumer Discretionary 13 310 52 the most targeted sectors for M&A’s with deals worth $3,105 Consumer Staples 3 18 6 million, $325 million and $310 million respectively. Together, they Energy 3 3105 1035 accounted for 88% of M&A deal value during the month. Financials 4 68 23 Healthcare 4 28 28 The most active sectors in terms of deal volume were Consumer Industrials 7 325 54 Discretionary and Information Technology with 13 deals each Information Technology 13 151 30 during the month. This was followed by Materials with 9 deals. Materials 9 159 40 Telecommunication Services 2 62 62 Utilities 0 0 0 12Monthly Deal Update - August 2010
  • 15. MERGERS & ACQUISITIONS TOP 5 DEALS Exhibit 23: Top M&A deals in Aug ’10 S.No. Target Buyer M&A Type Deal Value ($ mn) Linc Energy, Coal Assets 1 (Galilee Coal Tenement) Adani Enterprises Ltd. Outbound 2,700 Marcellus Shale Acreage in Central and 2 Northeast Pennsylvania Reliance Industries Ltd. Outbound 392 3 EIH Ltd. Reliance Industries Ltd. Domestic 220 4 BGR Turbines Company Pvt. Ltd. Hitachi Ltd. Inbound 169 5 INEOS Films GmbH Bilcare Ltd. Outbound 130 The largest deal in August 2010 was Adani Enterprise’s acquisition of the coal assets of Linc Energy for $2.7 billion in a cash and royalty deal. This was followed by two acquisitions made by Reliance Industries Ltd. The $392 million purchase of shale acreage in Central and Northeast Pennsylvania and the 14.12% stake purchase in East India Hotels for $220 million. Other large deals include Hitachi’s investment in BGR Turbines and Bilcare’s acquisition of INEOS Films. Adani’s acquisition of coal assets in the galilee tenement is The top 5 M&A deals accounted for 85% of total amongst the top ten deals of 2010. M&A deal value in August ’10. 13Monthly Deal Update - August 2010
  • 16. VCCEdge Coverage6,000 DealsVenture Capital, Private Equity, M&A and Exits3,500 Private Company FinancialsPrivate equity funded, M&A targets and many more10,000 CompaniesProfile, Transactions, Financials, RelationshipsPublic Company ComparablesEV/EBITDA, EV/EBIT, EV/PAT, EV/RevenuePublic Company FinancialsKey financial highlights of all Indian listed companies.Enhanced Industry Classification10 Sectors, 24 Industry Groups, 68 Industries and 154Sub-Industries.Powerful ScreenerScreen deals or companies on any data point includingfinancials.IntelligenceKeep a close tab on deals in the market.Proprietary Data For a free demo, contact:See deals and data not available anywhere else. Shashank Randev I BDM I VCCEdge +91-120-4171111 I sales@vccedge.com

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