Four s weekly pe track 2nd april - 8th april 2012


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Four-S Services Private Equity Track.

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Four s weekly pe track 2nd april - 8th april 2012

  1. 1. Four-S Private Equity Track…Issue: 2nd – 8th April, 2012 …… Your Eye to Indian Private Equity PE activity for the week 250.0 16 During the week ended 8th April, 2012, there were 7 PE/VC deals 217.0 14 worth $217mn compared to 12 deals worth $39.7mn in the 200.0 12 previous week. 150.0 10 12 7 8 Out of the total, there were 3 growth stage deals, 2 early stage 100.0 6 39.7 4 deals and 1 deal each at Late and PIPE level. 50.0 2 0.0 0 In the largest deal during the week, Advent International invested 1st April12 8th April12 $105mn in CARE Hospitals. PE Investments No. of Deals Private Equity: Investment Summary during the week Stake Value Investor (s) Target (%) ($mn) Sector Industry Segment Stage Health Advent International CARE Hospitals NA 105.0 Services Hospitals Late Services Personal GIC, Baring PE Marico 4.5 100.0 Manufacturing FMCG PIPE Product India Agri Business Super Agri Seeds Pvt. Food & NA 9.8 Manufacturing Food Products Growth Fund Ltd Beverage Accel Partners, Blume Ventures and HMS Infotech Pvt Ltd NA 1.2 Services IT/ITeS Software Early Mumbai Angels Inventus Capital Savaari Car Rentals Pvt Other Misc. NA 1.0 Services Car rental Early Partners Ltd services ASK Property Godrej Landmark 49 NA Construction Real estate Real Estate Growth Investment Advisors Redevelopers TA Associates BillDesk NA NA Services BFSI Online payment Growth Source: Four-S PE Database Advent International invests $105mn in CARE Healthcare is touted to be one of the most active sectors for Hospitals PE deals this year. The year so far has seen 9 deals worth Advent International Corp. has invested $105mn in the $406mn including 2 $100mn deals – GIC’s $100mn Hyderabad-based hospital chain CARE Hospitals Pvt. Ltd. the investment  in  Vasan Healthcare, which operates eye care company plans to increase the bed capacity to 2,600 from hospitals and Olympus Capital’s $100mn in DM Healthcare the current 1,600 and get into new specialties, including Pvt. Ltd. PE investors feel healthcare is attractive as national oncology. CARE, with 12 hospitals and focus on smaller brands are yet to be created in smaller cities. Further, exits cities, has a presence in Bhubaneswar, Secunderabad, are not expected to be issues for investors as big brands are Nagpur, Surat and Visakhapatnam. The chain, founded in very acquisitive. These companies would like to take over an 1997, is estimated to have a revenue of at least Rs. 5bn. established business than starting all over again in a new segment or geography. Four-S Comment: This deal is one of the largest private equity deals in the healthcare sector in the last five years. GIC, Baring buy Marico’s stake Indian Private Equity Weekly Update 2nd – 8th April, 2012
  2. 2. Singapore’s sovereign wealth fund GIC and Baring Private HMS Infotech Pvt Ltd, a technology startup offering Cloud-Equity Partners India are investing ~$100mn in public listed based SaaS (Software as a Service) solutions for small andconsumer products company Marico Ltd. GIC is investing mid-sized hospitality industry, has raised $1.2mn in a$75mn for 3.4% stake and Baring India PE is putting in funding round led by venture capital firm Accel Partners.another $25mn) for 1.1% in the firm. Blume Ventures and Mumbai Angels also took part in the round. The company will use the funds to gain furtherFour-S Comment: The deal comes two months after the foothold in the global market. It already has customers infirm announced it would buy personal care brands such as 40-plus countries and will now focus on making inroads inSet Wet, Zatak and Livon among others, from Reckitt the North and South American markets.Benckiser. This investment will help Marico fund itsacquisitions. These brands in Reckitt’s personal care Four-S Comment: Accel Partners has been making a lot ofproducts portfolio are among the top three positions in the bets on SaaS and Cloud-related companies in India. Only lasthair gel, male deodorant and leave-on hair serum week, it invested $2.8mn in Enterprise Nube Services Pvtcategories. This acquisition gives Marico a strong presence Ltd, which provides Cloud solutions for companies inin the rapidly growing deodorant and male grooming marketing, sales and customer service domains. In anothercategories in India. And it will further reduce Marico’s such deal, the VC firm put in $1mn in SaaS-based socialdependence on edibles oils and hair oils. customer support startup Freshdesk.India Agri Business Fund invests in Super Agri Seeds Savaari Car Rentals raises $1mn from InventusIndia Agri Business Fund has invested Rs 500mn in Capital PartnersHyderabad-based Super Agri Seeds Pvt Ltd. Super Agri Savaari Car Rentals Pvt Ltd, a company offering chauffeur-markets about 140 hybrids and varietal seeds under the driven car rental services online, has raised series A funding‘Super Seeds’ brand, mainly in the Andhra Pradesh and of $1mn from Inventus Capital Partners. Bangalore-Uttar Pradesh markets. The company, with strengths in headquartered Savaari operates across the countrycotton, corn, rice and vegetable, has lined up 60-62 new (excluding the North East region). The capital raised will behybrid products in the next two years. The company will use used to scale up its marketing team and grow its businessthe funds to finance its expansion and set up Research and across cities by establishing a robust sales network.development centres in Hyderabad and in Bangalore. Additionally, Savaari will invest in technology solutions for enhancing customer experience. Savaari has grown to aFour-S Comment: India Agri Business Fund is a $120mn network of over 100 operators across 60 cities in India. Itfund instituted in 2008 for which Rabo Equity Advisors is an targets corporate and retail users, as well as online travelinvestment advisor. About 65% of the fund has already agents whose clients mostly opt for day trips, multi-daybeen invested across 8 agri-business entities wherein this is tours and also multi-city trips.a first investment in a seed company. The fund has investedin Geepee Agri Pvt Ltd, Sri Biotech Laboratories, LT Foods ASK Properties to acquire 49% in Godrej Propertiesand Daawat, among others. Rabo Equity is gearing up to redevelopment projectraise money for its India Agri Business Fund II. The fund is ASK Property Investment Advisors is acquiring a 49% stakeestimated to be of about $250mn. in Godrej Landmark Redevelopers, a subsidiary of Godrej Properties. Godrej Landmark Redevelopers has entered intoHospitality SaaS Solutions Firm gets $1.2mn from a tripartite agreement with Kamla Landmarc PropertyAccel Partners, Others Leasing and Finance Pvt Ltd and 18 societies to undertake a residential redevelopment project in Sahakar Nagar, Indian Private Equity Weekly Update 2nd – 8th April, 2012
  3. 3. Chembur, Mumbai. The project, spread over approximately investment in IT services firm MindTree Ltd for Rs 900mn14,600 mtrs will offer 600,000 sq.ft of saleable area and is ($18mn). The venture capital firm invested Rs 236.8mn inproposed to developed as a modern group housing MindTree at Rs 41 per share when MindTree raised its firstresidential project comprising of 2,2.5 and 3 BHK round of funding in 2000. In the latest round of exit, it soldapartments. the shares at Rs 496.23 a unit, translating into 12x return on its original investment.TA Associates acquires minority stake in BillDeskPE investor TA Associates has acquired a minority stake in e- Pragati India Fund reaches first close at $70mnpayment processing services provider BillDesk (part of Pragati India Fund, a sector-agnostic private equity Ltd) for an undisclosed amount. BillDesk which is targeting to invest in economically underdevelopedoffers online payment services for utility bills, credit card, and low-income states of India, has reached the first closedepository account charges and ISP charges. Financial of $70mn for its maiden fund with a target of $100mn. Theinvestors in BillDesk include Clearstone Venture Partners fund has received commitments of $20mn fromand SBI besides early investors in the company Bank of International Finance Corporation (IFC) and $50mn fromBaroda and National Venture Fund for Software & IT Commonwealth Development Corporation. A sector-Industry. As of August 2011, the company had 45 banks and agnostic fund, Pragati will primarily invest in areas likefinancial institutions as its clients, as well as 250-300 large healthcare, ancillary infrastructure services, ancillary oil andbillers (all major telecom operators), around 20 electricity gas services, manufacturing and education in low-incomecompanies, 30 insurance firms, key travel companies and states such as Bihar, Jharkhand, Uttar Pradesh, Madhyalarge, pure play e-commerce platforms. Pradesh, Chhattisgarh and Orissa. Fund Raising & Liquidity Events IFC may invest in BanyanTree Capital’s second fund IFC, the private sector investment arm of World Bank, may invest up to $25mn in the second fund being raised by BanyanTree Capital Advisors Ltd. BanyanTree Growth Capital II targets $150-175mn to make structured investments in small and medium enterprises (SMEs) in India. BanyanTree’s maiden fund was anchored by FMO andWarburg Pincus sells 3.7% in Max India DEG, the development financial institutions of theWarburg Pincus has part-exited from its eight-year-old Netherlands and Germany, respectively. BanyanTreeinvestment in the diversified company Max India, which focuses on neglected sectors/themes like manufacturinghouses insurance and healthcare businesses of Analjit Singh. and niche industrial segments that get amply reflected in itsThe PE firm sold 3.7% stake for $33.5mn (Rs 1.7bn). portfolio. Its investments are usually hybrid capital orWarburg Pincus held a little less than 6% stake in Max India mezzanine, which typically ensures a 3x return whileas of December 1, 2011, and its remaining stake is valued at offering limited dilution to promoters. This asset class isaround Rs 1bn. The stake was sold by Warburg through its witnessing rising interest from investors.entity Parkville Holdings Ltd, at a price of Rs 180 per share,which gave the PE firm a return of 4.5x. Anish Modi, Sumit Chandwani float $300mn Fund Former ICICI executive director Sumit Chandwani andWalden sells 4.5% in MindTree erstwhile India head of Hong Kongbased sweat fund ADMVenture capital firm Walden International has sold almost Capital Anish Modi will start operations of the $300mn fundhalf of its remaining 9.8% stake in its nearly decade-old called Arth Capital from an office in Nariman Point this Indian Private Equity Weekly Update 2nd – 8th April, 2012
  4. 4. month. The new private equity venture will mainly invest in Financial investors, including Anil Ambanis Reliance Capital,companies belonging to sectors such as manufacturing, are pushing for an exit from homegrown kidswear retailerengineering, life sciences and healthcare and consumer Gini & Jony, possibly leading to a strategic sale of theservices. company which went through a corporate debt restructuring (CDR) last year. Strategic buyers such as Private Equity and M&A News Arvind and Madura Fashion & Lifestyle were approached with a proposal to offload 70% stake for Rs 3.5bn, as perNew Silk Route sets aside $100mn for platform news reports. But these talks fell through due to a valuationdeals in F&B space mismatch, even as PE investors dont seem bullish about theNew Silk Route has set aside $100mn (Rs 5bn) to invest in a sector following the recent collapse of Lilliput Kidswear andportfolio of four food and beverage firms by crafting a Avigo Capital Partnerss troubled buyout of Spykar Jeans.model that has never before been implemented in India.The investments will be channeled through a holding firm IPO, Other Offeringsthat will take a controlling stake of 51% in mid-sizedpromoter-led firms in an initiative that has been informally Ace Tours to raise funds for expansiontermed Project Gastronomy. Promoters will be asked to Surat based Ace Tour Worldwide Limited is planning to raisecede control of accounting, human resource management IPO through issue of 8.1mn shares by diluting 52.88% stakeand project management in return for fresh capital and in the company. The funds raised will be used to set uphandholding to expand their firms both in India and service apartment facility at Surat; to upgrade the hardwareoverseas. and software facilities for web portal; for brand building exercise and for working capital requirement. Promoted byTata Capital enters fray for Thomas Cook Raju Choksi, Bharat Choksi, Jayesh Choksi and MayankTata Capital, the financial arm of the Tata Group, is the Choksi, Ace Tours provides travel services. The company haslatest contender in the race for a buyout of Thomas Cook branch offices in Mumbai, Ahmedabad and Rajkot.India. Private equity investors Kohlberg Kravis Roberts Executive Tracking(KKR), Carlyle, and Travelex are among the knownbidders.Thomas Cook Group PLC is in the process of sellingits 77.1% shareholding in Thomas Cook (India) Ltd (TCIL). Avigo’s Girija Tripathy quits, to start own fund Barely five months after joining the private equity firmHSBC PE, ePlanet to exit Trivitron Avigo Capital as a Partner, Girija Tripathy has left theHSBC Private Equity and ePlanet Capital are planning to sell company. He is now planning to start a mid-market-focusedtheir stake in Chennai-based medical diagnostics firm buyout fund and looking for investors to partner with.Trivitron Healthcare. Both PE firms had invested close to Tripathy had joined Avigo in October last year from Singhi$11mn in Trivitron Healthcare in 2007, picking up minority Advisors Ltd, a boutique investment bank.stake in the company. Trivitron Healthcare is one of Indiaslargest medical technology company, involved in designing Fullerton Elevates Rajnish Kumar as CEOand manufacturing of medical devices. Equity broking and wealth management company Fullerton Securities & Wealth Advisors has elevated its executive vice-Gini & Jony eyes stake sale as Reliance Capital president Rajnish Kumar as chief executive officer. In hispushes for exit new role, Kumar will be responsible for strengthening the wealth management business and defining its strategy in the Indian market. Indian Private Equity Weekly Update 2nd – 8th April, 2012
  5. 5. M&A Activities During the week ended 8th April, 2012, there were 10 M&A deals worth $57.84mn (size of 6 deals were not known). In the biggest deal during the week, Tirupur-based PGC Textiles Ltd is buying out the 14% stake it does not own in the Swiss apparel firm Switcher for $30mn.M&A Activity: Summary during the week Stake Deal value ($ Acquirer Target Target business (%) mn) PGC Textiles Ltd Switcher Manufacturing-textile 14 30 Absotherm Facility Management OCS Group Facility management 51 24.5 Services Pvt Ltd Kajaria Ceramics Vennar Ceramics Manufacturing-tiles 51 2.68 Tyroo Media DGM India Media & Entertainment 100 0.66 Jasper Infotech Ecommerce NA NA Larsen & Toubro Ltd Thalest Group Engineering NA NA Jagran Prakashan NaiDunia Media Pvt Ltd Media & Entertainment NA NA Bajaj Auto KTM Power Sports Manufacturing-auto 6.3 NA Gerresheimer AG Neutral Glass & Allied Industries Manufacturing NA NA Alchemist Asset Reconstruction DMI Finance BFSI NA NA CompanySource: Four-S Database, Acquisition price is in $mn Indian Private Equity Weekly Update 2nd – 8th April, 2012
  6. 6. Market UpdateKey Domestic Indices Indian Market Movements 52 WeekIndex 30-Mar-12 4-Apr-12 Change (%) High LowBSE Sensex 17,404.20 17,486.02 0.47% 19,811.10 15,135.90S&P CNX Nifty 5,295.55 5,322.90 0.51% 5,944.45 5,187.85CNX Nifty Junior 10,450.20 10,650.65 1.88% 11,758.15 10,176.30Nifty Mid Cap 50 2,301.00 2,346.05 1.92% 2,657.10 2,274.75CNX IT 6,516.00 6,539.90 0.37% 7,344.90 6,426.50Bank Nifty 10,212.75 10,340.10 1.23% 11,978.05 10,038.90CNX Infrastructure 2,509.15 2,561.05 2.03% 3,217.50 2,470.65CNX Realty 239.05 241.55 1.03% 344.05 234.55Source: BSE, NSEKey Global Indices Global Market Movements 52 Week Index 30-Mar-12 5-Apr-12 Change (%) High Low NASDAQ 3,091.57 3,080.50 -0.36% 3,090.08 2,298.89 Dow Jones Industrial Average 13,212.04 13,060.14 -1.16% 13,289.08 10,404.49 S&P 500 1,408.47 1,398.08 -0.74% 1,414.00 1,074.77 NIKKEI 225 10,083.56 9,767.61 -3.23% 10,207.90 8,135.79 Hang Seng 20,555.58 20,593.00 0.18% 24,468.64 16,250.27 Straits Times Index 3,010.46 2,986.20 -0.81% 3,227.28 2,521.95 FTSE 100 5,768.45 5,723.67 -0.78% 6,103.73 4,791.01Source: Yahoo Finance Indian Private Equity Weekly Update 2nd – 8th April, 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 2nd – 8th April, 2012