During the week of July 30th to August 5th, there were 12 private equity deals worth $1.1 billion compared to 7 deals worth $34.2 million the previous week. The largest deal was Bain Capital Partners agreeing to buy 30% of Genpact for $1 billion. Other deals included L Capital investing $19.6 million in PVR, Oman India Joint Fund investing $13 million in Solar Industries India, and Vistaar Financial Services raising $7.2 million from Lok Capital and others. Private equity activity in India continued with deals across sectors such as IT/ITeS, manufacturing, retail, and financial services.

1. 3 0 J U L Y - 5 A U G ’ 1 2
Private Equity Track
Research4India Weekly update on the Indian PE Sector
1200.0 1100.9 16
PE Activity for the week
14
1000.0
 During the week ended 05th Aug, 2012, there 12
were 12 PE/VC deals worth $1.1bn compared to 800.0
10
7 deals worth $34.2mn in the previous week. 7 12
600.0 8
 Out of the total, 5 were early stage deals, 4
were growth stage deals and 4 were PIPE deals. 6
400.0
4
 In the largest deal during the week, Bain 200.0
Capital Partners has agreed to buy around 30% 34.2 2
stake in the business process management and 0.0 0
technology services company Genpact Ltd for 29th July'12 5th Aug'12
$1bn.
PE Investments No. of Deals
PE Deals During The week
Stake Value
Investor (s) Target (%) ($mn) Stage Sector Industry Segment
Bain Capital Genpact 30 1000.0 PIPE Services IT/ITeS BPO
Brick Eagle Capital Xrbia Developers NA 36.0 Growth Construction Real estate Housing
L Capital PVR, subsidiary NA 19.6 PIPE Services M&E Recreation
Oman India Joint Fund Solar Industries India 4.28 13.0 PIPE Manufacturing Misc Explosives
Saif Partners Ammi's Biryani NA 7.2 Growth Services Retail Restaurant
Lok Capital, Omidyar
Vistaar Financial
Network, Elevar Equity NA 7.2 Growth Services BFSI NBFC
Services Pvt Ltd
Advisors, SVB India
Merchandis
Accel Partners Universal Collectabillia NA 5.0 Early Services Misc. Services
e firm
Sequoia Capital Practo Technologies NA 4.6 Early Services IT/ITeS Software
Foundation Capital, Wealth India Financial Fin services
NA 3.6 Early Services BFSI
Inventus Capital Services portal
SBI Holdings (Japan) Liqvid eLearning NA 3.0 Early Services Education e-learning
Rare Enterprises SpiceJet 0.5 1.4 PIPE Services Travel & Tourism Airlines
Acumen Fund Edubridge Learning NA 0.3 Early Services Education Services
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 /
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2. Private Equity Track
Bain Capital buying 30% stake in Genpact L Capital to invest $19.6mn in PVR,
for $1bn subsidiary
PE firm Bain Capital Partners has agreed to L Capital Asia has picked a 10% stake in Ajay
buy around 30% stake in the business Bijli-promoted PVR Ltd for Rs 577mn through a
process management and technology services preferential issue. The fund will also invest Rs.
company Genpact Ltd for $1bn. The stake 500mn to set up a joint venture with PVR, PVR
held by the existing investors of the company Leisure Ltd, which will focus on in-mall
– General Atlantic and Oak Hill Capital – will entertainment, gaming, food and leisure. L
be bought at $14.76 per share with an Capital’s holding in the venture will be 44%,
additional $2.24 per share of special with PVR taking 51% and the remaining going
dividend. The two investors still hold a 10%, towards management stock options. PVR’s
which will be worth another $382mn. Bain existing investment in the bowling-alley
Capital has agreed not to sell any Genpact business PVR BluO Entertainment Ltd, a joint
share for a period of two-and-a-half years. venture established in 2009 with Thailand-
based Major Cineplex, will now be held through
Four-S Comment: General Atlantic and Oak
this new company.
Hill bought 60% in Genpact in 2004 for
$500mn. They subsequently reduced their stake Four-S Comment: PVR, which expanded from
to little over 40% after 2 rounds of sale. In this single screen theatre in New Delhi, has earlier
round of exit, they are estimated to have seen interest from private equity investor. ICICI
pocketed around $1.62bn (Bain deal of $1bn Venture had invested in the company in 2003
and special dividend) for 30% stake sale, and 2005 totalling Rs 470mn. The PE firm made
thereby making around 6.5x return on multiple partial exits from PVR starting with a
investment. BPO and IT Services sector seems pre IPO deal and subsequent open market deals
to be completing its first cycle of exits. Last thereby exiting completely in 2007 for Rs
year also saw some high profile PE exits in the 1.95bn, making nearly 4x its investment. ICICI
sector - Blackstone exiting Intelenet by selling Venture again bought into the company in 2008
its majority stake to UK’s Serco in a $634mn and currently holds a 7.79% stake.
deal and General Atlantic selling Patni
Computers stake for $254mn.
Oman India Joint Investment Fund invests
in Solar Industries
Brick Eagle Capital invests in Xrbia Industrial explosives maker Solar Industries
Developers India has struck a deal to raise Rs 720mn
Brick Eagle Capital Group is investing Rs 2bn in ($13mn) from Oman India Joint Investment
five projects of Xrbia Developers Limited, Fund through a preferential allotment for 4.28%
affordable housing venture promoted by the stake. Founded in 1995, Nagpur-based Solar
Eiffel group. The fund has invested Rs 400mn in Industries (formerly Solar Explosives Ltd) has a
the first development and the rest of the money capacity of over 2.8 lakh MT of explosives (with
will go into the remaining ventures. The five over 2.1 lakh MT of bulk explosives and the rest
projects will come up in the area of Karjat, near being cartridge explosives), 190 million
Mumbai, on 150 acres acquired by Brick Eagle detonators and 75 million metres of detonating
and will be developed in partnership with Xrbia. fuse. It claims to have increased market share
The Group's realty footprints span across Pune, in India from 24% to 27% in FY12.
Mumbai, Nagpur, Delhi & Bangalore, with over Four-S Comment: The annual market of civil
25 mn sft. of existing development and 119 mn explosives in India is approximately Rs 22.50
sft of planned projects. bn which is around 5% of the global civil
Research4India 2

3. Private Equity Track
explosive consumption and is growing at a raised $7.2mn (Rs 400mn) in Series B funding
CAGR of 20%. In India, the mining sector from Lok Capital and Omidyar Network besides
accounts for 80% demand for civil explosive existing investors Elevar Equity Advisors and
which in turn is dominated by coal mining and SVB India Capital Partners. Vistaar caters to the
the balance 20% is for infrastructure projects underserved market of small and micro
like roads, hydro engineering, irrigation etc. enterprises (MSMEs), estimated to comprise
India is the world’s eighth-largest explosive over 26 million companies. The funds raised will
manufacturer. As the industry is tightly be utilised to expand Vistaar’s current network
regulated most of the industry is in the to 180 branches across the country over the
organized sector with ICI India, Gulf Oil, Indian next four years, with a projected portfolio of
Oil Corporation and Solar Industries are the over Rs 16bn.
leading players.
Accel Partners invests in Universal
SAIF Partners investing $7.2mn Ammi's Collectabillia
Biryani
Accel Partners has committed about $5mn in
SAIF Partners is investing Rs 400mn or $7.2mn Universal Collectabillia, a celebrity merchandise
in TMA Hospitality Services Pvt Ltd, which owns and brand extension firm jointly owned by
QSR chain Ammi's Biryani. The investment Anjana Reddy, who is part of the Deccan
comes after SAIF Partners set up a Rs 1bn Chronicle family, and cricket legend Sachin
($18mn) investment vehicle, Zooropa Foods Pvt Tendulkar. Collectabillia's business model now
Ltd, to invest and manage a chain of quick includes helping celebrities extend their brand
service and casual dining restaurants. Ammi's beyond careers and has recently struck a deal
Biryani currently operates in Bangalore and was with southern movie star Rajnikanth. It has
founded in 2008 by Navaj Sharief. It operates similar deals with Sachin Tendulkar and tennis
primarily as a take-away and delivery chain player Sania Mirza, besides owning rights for
with 13 locations in Bangalore. any sporting memorabilia related to Tendulkar.
Four-S Comment: Quick-service restaurants
(QSRs) that operate in the value-for-money
Sequoia Capital invests in online clinic
segment, are catching the fancy of PE/VC management platform Practo
players. QSRs continue to report annualized
growth figures of 25% to 30% and operate on Bangalore-based Practo Technologies Pvt Ltd, a
minimum gross margins of 20%, despite the web-based clinic management software
sullen economic mood. The sector is being developer, has raised Rs 250mn (around
driven by the younger generation, who continue $4.6mn) from Sequoia Capital in a Series A
to spend. Recent investments include Pune- round of funding. Practo’s flagship product is
based QSR chain focused on selling seafood and Practo Ray, a web-based software tool which
fish products, Fishtro, raising $5mn from Correa provides automated appointment scheduling
Hospitality. Steammo also raised seed funding and storage of healthcare records including X-
from IncuCapital earlier this year. Last year saw rays, files, prescriptions and billing. The money
firms like Faaso's (Sequoia Capital) and Goli raised will be used to launch its various
Vada Pav (Ventureast) raising money. products globally and expand Practo’s 80-
member team to around 350 over the next two
years.
Vistaar raises $7.2mn from Lok Capital,
Omidyar, Elevar & SVB
Bangalore-based Vistaar Financial Services Pvt
Ltd, a small enterprise financing firm, has
Research4India 3

4. Private Equity Track
Wealth India Financial raises Rs 200mn for 560mn for the recent quarter after five
expansion plans consecutive quarterly losses. SpiceJet, part of
the Sun Group is a low-cost airline
Wealth India Financial Services, promoters of
headquartered in Chennai. It began service in
online investment services platform
FundsIndia.com, has raised Rs 200mn from May 2005 and by 2008, it was India's second-
largest low-cost airline in terms of market
existing as well as new investors. The fund
raising was led by venture capital firm share. Last year, Kalanithi Maran invested Rs
1bn into SpiceJet Ltd and increased his stake in
Foundation Capital with follow on investments
from current investors Inventus Capital. The the budget carrier to 48.6%.
investment will be used by FundsIndia to
expand customer base and enhance the
Edubridge Learning secures Rs 15mn from
company’s online platform with new products Acumen Fund
and services. FundsIndia.com is a transactional
platform that allows users to link their bank Acumen Fund, a non-profit global venture fund
accounts with investment options like mutual which focuses on poverty alleviation across
funds, equities, and fixed deposits, with options Africa and South Asia, has put in Rs 15mn
for managing multiple accounts, and ($300,000) in Mumbai-based education services
automatically triggering investment related provider Edubridge Learning Pvt Ltd. Edubridge
activities. provides vocational training for low-income
youth across Maharashtra, Tamil Nadu,
Karnataka and Chhattisgarh. Edubridge targets
E-learning firm Liqvid raises $3mn from the youth aged between 18 and 25, who are
Japan's SBI Holdings typically the first formally employed members
of their respective families. Till date, the
Liqvid eLearning Services Pvt Ltd, an integrated
e-learning content solutions company, has company has trained over 1,500 students and
with this investment, Edubridge plans to scale
raised $3mn in funding from a subsidiary of SBI
Holdings, Japan. Headquartered in Noida, with its services from 12 to 30 centres over the next
two years.
offices in Bangalore, Singapore and the US,
Liqvid provides technology-aided English
Learning and Training (ELT) solutions to
individuals and organisations under the brand Fund Raising & Liquidity Events
EnglishEdge. The content can be accessed via
PC, tablet and mobile, and the company claims Morpheus Capital to close debut fund
that EnglishEdge has more than 2,50,000
Morpheus Capital Advisors is raising Rs 4.75bn
learners across schools, colleges, vocational
for its final closure of its consumer goods
institutes and more. Its key institutional
focused fund. The fund is targeting affluent
customers include IIT Delhi, Jamia Millia,
investors, non-banking finance companies,
Pinegrove School, Kimberley International
banks and foreign investors for its fund. Last
School, Shemford Schools, British Council and
year, the fund made its first closure by raising
Educomp, among others.
Rs 4.25bn, which aimed to invest in the
development of consumer brands. Headed by
Rakesh Jhunjhunwala invests in SpiceJet former IMG India Chief - Babul Nayar,
Morpheus will invest in companies operating in
Rakesh Jhunjhunwala has invested around
food and beverages, apparel & retail, beauty &
R76.9mn in SpiceJet through its arm Rare
wellness, travel & tourism and education
Enterprises. The company acquired around sectors. It plans to invest in consumer-related
0.52% stake in the company. The investment
companies that have put in place innovative
came after SpiceJet posted a net profit of Rs business strategies and technology.
Research4India 4

5. Private Equity Track
BanyanTree’s second fund hits first close,
Private Equity News
reaches close to $100mn
Banyan Tree Finance Pvt Ltd, advisors to Star Health looking for PE funding
BanyanTree Growth Capital, a structured
private equity fund that provides capital to Star Health and Allied Insurance Company is
middle market companies, has raised close to planning to raise Rs 1.5bn PE funds for a 6-8%
$100mn at first close for its second fund – stake in the company. Its holding company Star
BanyanTree Growth Capital II LLC. The fund is Health Investments Pvt. Ltd (a SPV for
targeting a corpus of $175mn to be raised by promoting the insurance company) had
the end of this year. The capital has been raised received a similar funding from Sequoia Capital
from global institutional investors across Asia, (to bypass the 26% FDI rule) earlier in
the US and Europe. The fund will stick to its November 2010 and ICICI Venture (Rs 1.2bn)
earlier investment philosophy and focus on in the same year. The company was trying to
growth capital in the manufacturing and SME tap the retail insurance segment as announced
space for investments. in 2009 during when it had 80% of premium
income from the Government Health schemes
and rest from the retail segment.
IndoUS Venture Partners raises $149mn
for new fund
India Value Fund to invest up to $180mn
IndoUS Venture Partners, a venture capital firm
in Manipal Hospitals
based in Bangalore, has raised $149mn for
IndoUS Venture Partners II, LLC. While the In what will be the largest private equity
venture capital firm has put $150mn as the investment in an Indian healthcare firm, India
total offering amount, this may not be the final Value Fund Advisors (IVFA) is committing up to
close and the fund could be looking to raise up Rs 10bn ($180mn) to Manipal Hospitals to roll-
to $175mn. The fund made its first sale in out an aggressive inorganic expansion strategy
October 2011, raising $97.5mn, and reached over the next 4-5 years. In the first leg of the
$132.5mn in April this year. Some of the recent transaction, Manipal Hospitals is set to get Rs
investments made by the VC firm include baby 3bn over the coming weeks from IVFA and
products e-commerce venture Hushbabies.com investment will increase as we start acquiring
and digital magazine store Magzter Inc. In assets in secondary & tertiary healthcare
2011, IndoUS Venture also exited pharma retail service providers besides day care surgery
chain MedPlus Health Services in a secondary centres.
deal in which it reportedly made 4x return.
Cox & Kings’ UK arm to raise $100mn from
Kotak Realty Exits Lalith Gangadhar CVCI
Kotak Realty Fund is exiting its investment in Mumbai-based travel services provider Cox &
Lalith Gangadhar Constructions Private Limited, Kings Ltd is close to signing a deal to raise
with around 10 times return on its investment $100mn from Citigroup’s private equity arm
in 2007. Kotak is selling its 49% stake for Rs Citigroup Venture Capital International (CVCI)
530mn to the promoters. The fund invested for its UK-based arm. The company, which
invested Rs 50mn for 49% stake in the real acquired UK-based Holidaybreak Plc last year,
estate firm in 2007. Later in 2008, it invested rs will use the money to part-retire its debt of Rs
450mn in Lalith Gangadhar’s high-end villa 12.5bn. In May this year, the company said
project in Bangalore called LGCL Ashler. that its board had approved investment of up to
$140mn in Prometheon Holdings (UK) Ltd (a
Research4India 5

6. Private Equity Track
wholly owned subsidiary of the company) from
an institutional investor.
Jupiter Infomedia IPO opens for
IPO, Other Offerings subscription
The Rs 40.8mn IPO of Jupiter Infomedia , a web
Muthoot Capital Services shares sale offer
infomedia company with online publications on
oversubscribed
business, encyclopedia and yellowpages,
The offer to sell shares of Muthoot Capital opened for subscription on July 31. It has fixed
Services by six of its promoters was the issue price at Rs 20 a share and planned to
oversubscribed. The offer for sales of 3,09,165 offer 20.4 lakh equity shares through the issue,
shares, received bids for 3,09,187 shares, the which closed on August 1. Jupiter Infomedia
data showed. The floor price for the sale is Rs intends to use issue proceeds for purchasing
90 apiece. Based on the minimum bidding and setting up of offices in Mumbai and
price, sale of 3,09,187 lakh shares would fetch Kolkata; renting offices in Ahmedabad, Chennai
over Rs 27.8mn to the company. and Delhi; and initial operating expenses for the
marketing/branch office (first three months).
M&A Activity for the Week
During the week ended 5th August, 2012, there were 6 M&A deals worth $637mn
(size of 2 deals were not known). In the largest deal during the week, Sahara
Group bought New York’s Plaza Hotel for $570mn.
Stake Deal value
Acquiror Target Sector (%) ($ mn)
Sahara Group Plaza Hotel Hotel NA 570.0
PhillipCapital Group MF Global Sify Securities India Pvt BFSI 29.85 25.0
Ltd - Sify's stake
Global Tea & Commodities - 2 tea
Dhunseri Petrochem & Tea F&B NA 22.0
estates
Hero MotoCorp Erik Buell Racing Racing company NA 20.0
Birla Shloka Edutech Ltd Ojus Healthcare Pvt Ltd IT/ITeS 51.1 NA
InMobi Metaflow Solutions M-Vas NA NA
Source: Four-S PE Database
Research4India 6

7. Private Equity Track
Market Update
Key Domestic Indices
Indian Market Movements 52 Week
Index 27-Jul-12 3-Aug-12 Change (%) High Low
BSE Sensex 16,839.19 17,197.93 2.09% 18,944.60 15,135.86
S&P CNX Nifty 5,099.85 5,215.70 2.22% 5,629.95 5,129.35
CNX Nifty Junior 9,783.80 10,093.90 3.07% 11,145.70 9,988.80
Nifty Mid Cap 50 2,002.20 2,085.50 3.99% 2,481.60 2,088.35
CNX IT 5,562.00 5,697.15 2.37% 6,811.30 5,602.70
Bank Nifty 10,140.55 10,315.60 1.70% 11,226.75 10,295.10
CNX Infrastructure 2,289.00 2,366.50 3.27% 3,077.10 2,348.00
CNX Realty 208.25 217.95 4.45% 299.65 219.15
Key Global Indices
Global Market Movements 52 Week
Index 27-Jul-12 3-Aug-12 Change (%) High Low
NASDAQ 2,958.09 2,967.90 0.33% 3,134.17 2,298.89
Dow Jones Industrial Average 13,075.66 13,096.17 0.16% 13,338.66 10,404.49
S&P 500 1,385.97 1,390.99 0.36% 1,422.38 1,074.77
NIKKEI 225 8,566.64 8,555.11 -0.13% 10,255.20 8,135.79
Hang Seng 19,274.96 19,666.18 1.99% 22,808.33 16,250.27
Straits Times Index 2,998.49 3,051.33 1.73% 3,227.28 2,521.95
FTSE 100 5,627.21 5,787.28 2.77% 5,989.07 4,791.01
Source: Google Finance, Yahoo finance
Research4India 7

8. Private Equity Track
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9. Private Equity Track
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