Weekly Finance and Economic News

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Top Headlines
 Redington sells remaining 14% stake in NBFC arm
Easyaccess to promoter.
 Mumbai-based NBFC NeoGrowth Credit raises $1.6M from
Aspada.
 David Llyod eyes 20% stake in Talwalkars chain of health
centres.
 ChrysCap leads $53M Series B round in systems integrator
LiquidHub.
 Lightspeed Venture Partners raises $950M global VC fund.
 UPL sells entire stake in Brazilian agrochemical JV for
$59M.
 Everstone Capital invests $16.6M in fashion label Ritu
Kumar.
 GMR Energy looks to raise $242M in IPO; Temasek, IDFC
Alternatives, Ascent to part exit.
 Fresh food vendor Greencart.in raises angel round of
$1.5M.
 Temasek investing $40M in Star Agriwarehousing
Weekly Executive Summary
The Reserve Bank of India (RBI) left its policy interest rate unchanged
on Tuesday, as expected, and said it does not expect further near-term
policy tightening if headline inflation continues to ease towards the

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bank's targeted level.The RBI kept its key repo rate at 8.00 percent, in
line with the forecast of all 53 economists in a Reuters poll last
week.Since taking office in September, RBI Governor Raghuram Rajan
has raised the repo rate three times by a total of 75 basis points.
India's consumer price index inflation eased to 8.10 percent in
February, near the RBI's January 2015 target of 8 percent, while the
wholesale price index slowed to a 9-month low of 4.68 percent.
The RBI wants CPI inflation to ease further to 6 percent by January
2016.
Rajan expressed concern about risks to growth in an economy
expanding at under 5 percent, its slowest in a decade. He said growth in
the fiscal year that began this month is expected in a range of 5 to 6
percent, with downside risks.
"Lead indicators do not point to any sustained revival in industry and
services as yet," Rajan said.
The RBI also reduced the availability of overnight funds from its repo
window for banks and increased the amount that banks may borrow
from its term repo window in a bid to reduce lenders' reliance on short-
term central bank funding.
Indian stocks were little changed, while the local bond and foreign
exchange markets were closed on Tuesday.With India heading for
elections running from April 7 to May 12, Rajan had been expected to
wait for a glimpse of the next government's economic policies as well as
the outlook for monsoon season rains that begin in June before making
a policy move, economists said.

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Inside The Story
Redington sells remaining 14% stake in NBFC arm
Easyaccess to promoter
Chennai-based Redington (India) Ltd has sold its remaining 14 per cent
stake in non-banking finance company (NBFC) subsidiary, Easyaccess
Financial Services Ltd (Easyaccess), to Harrow Investment Holding Ltd,
Mauritius, as per a stock market disclosure. The firm did not disclose
the deal value.Redington’s promoter Harrow Investment Holding
(formerly known as Redington Mauritius Ltd), owns 21.04 per cent
stake in the company and is part of Singapore-based Kewalram Chanrai
Group.In January this year, Redington sold 86 per cent stake in the
NBFC arm to Harrow Investment Holding. It had previously disclosed in
November that it is planning to sell some stake in Easyaccess to its
promoter.
Mumbai-based NBFC NeoGrowth Credit raises $1.6M from
Aspada.
Mumbai-based non-banking financial company (NBFC) NeoGrowth
Credit Pvt Ltd has raised Rs 10 crore ($1.62 million) from Aspada
Investment Company, as per a statement.NeoGrowth Credit is a non-
deposit taking NBFC involved in the merchant cash advance business. It
was founded by serial entrepreneurs Dhruv Khaitan and Piyush Khaitan
after they sold their transaction processing firm, Venture Infotek in mid-
2010.In mid 2013, Omidyar Network India Advisors Pvt Ltd had
invested Rs 17 crore to pick 29 per cent stake in NeoGrowth Credit.

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David Llyod eyes 20% stake in Talwalkars chain of health
centres.
UK's health and fitness group The David Lloyd has begun talks with the
management of Talwalkars Better Value Fitness to acquire around 20
per cent stake in the company, two people with direct knowledge of the
development said. With this equity deal, both companies are looking to
expand their existing partnership of providing consultancy services. In
2012, the company announced its partnership with David Lloyd Leisure
Group to provide consulting for leisure and sports clubs in high end
residential developments, gated community townships and corporate
campuses. The BSE-listed Talwalkars Better Value Fitness is 54.78%
owned by the promoters, Madhukar Talwalkar and family.
ChrysCap leads $53M Series B round in systems integrator
LiquidHub.

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Private equity firm ChrysCapital has struck another cross-border deal,
leading a series B funding round worth $53 million in Pennsylvania-
headquartered LiquidHub. This is largely a secondary round where
NewSpring Capital has exited its seven-year-old investment.It has
operations in North America, Europe and Asia, including India. In India
it has presence through centres in Hyderabad and Mumbai.Although
primarily focused on India with its sector-agnostic private equity funds,
ChrysCap has earlier made a few cross-border investments but none
this large and this is one of the only such deals in the recent past.
Lightspeed Venture Partners raises $950M global VC fund
Global venture capital firm Lightspeed Venture Partners has closed its
new fund at $950 million, according to a disclosure filed with the
Securities and Exchange Commission.The fund called ‘Lightspeed
Venture Partners X, LP’ pooled in money from as many as 81 investors,
as per the disclosure.Recently, it exited its investment in Nest Labs, the
maker of high-tech thermostats and smoke detectors, which was

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snapped by Google for $3.2 billion in cash. Its current portfolio
companies include Snapchat, GrubHub, Mulesoft and TaskRabbit.
UPL sells entire stake in Brazilian agrochemical JV for
$59M.
Agro-chemicals major UPL Ltd has entered into an agreement with an
Italian firm Sipcam SPA (Sipcam) to sell its entire 50 per cent stake in
the Brazilian agrochemical company Sipcam UPL Brasil SA for $58.80
million (Rs 351 crore), as per a stock market disclosure.Sipcam Isagro
Brasil has products like insecticides, fungicides, acaricides, pesticides,
nitrogenous and phosphatic fertilisers.Sipcam held the remaining 50
per cent in the JV and post the latest deal, it will own 100 per cent of
Sipcam UPL Brasil SA.
Everstone Capital invests $16.6M in fashion label Ritu
Kumar.
Private equity firm Everstone Capital has picked a minority stake by
investing Rs 100 crore ($16.6 million) in fashion label Ritu Kumar.It has
three distinct brand offerings: Ri, a premium bridal and formal wear
line, Ritu Kumar, a traditional pret brand offering ethnic every day and
semiformal wear besides Label, a fashion pret line.Sameer Sain, co-
founder and managing partner, Everstone Group, said, “We are
delighted to partner with Ritu Kumar, whose brand has put India’s rich
craftsmanship and heritage on the global map.”
GMR Energy looks to raise $242M in IPO; Temasek, IDFC
Alternatives, Ascent to part exit.
Singapore’s sovereign wealth fund Temasek, IDFC Alternatives and
Ascent Capital are looking to part exit in the initial public offer of GMR
Energy, the power business arm of GMR Infrastructure. GMR Energy has

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filed its documents for the public float in which it seeks to raise Rs 1,450
crore ($242 million), through a fresh issue of shares besides an offer for
sale by the private equity investors.Half of the money raised through
fresh issue will be used for funding equity contribution in two power
projects, including 1,050 MW (Phase I) Kamalanga Power Plant in
Orissa and 1,370 MW Chhattisgarh Power Project. It would use another
Rs 450 crore for debt repayment the rest for other corporate purposes.
Fresh food vendor Greencart.in raises angel round of
$1.5M.
Mumbai-based Greencart Ventures Pvt Ltd, which runs an e-com
venture for fresh produce and gourmet food under Greencart.in, has
secured $1.5 million (Rs 9 crore) in what us being an angel round of
funding from Techno Group. Techno Group has interests in engineering,
hospitality, construction, real estate development, financial services and
agribusiness.Greencart will use the money to expand its operations and
strengthen its distribution channels. It will also use these funds to
augment its sourcing network besides enhancing end user experiences,
it said on Monday.
Temasek investing $40M in Star Agriwarehousing
Singapore state-owned investment company Temasek Holdings is
investing Rs 240 crore ($40 million) for a significant minority stake in
Star Agriwarehousing and Collateral Management Limited, one of the
country's fastest growing agri-solutions companies. The investment
reflects Temasek's growing interests in agri-solutions businesses and
assets as rising populations and emerging middle class boost food

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demand worldwide. Last year, Temasek made its boldest bet in the
space in India when it pumped in Rs 572 crore for a 19.9% stake in
Godrej Agrovet, a diversified agri-business company of the eponymous
group, furthering its partnership with the conglomerate.

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