Four-S Private Equity Track

Issue: 30th April 6th May, 2012

Your Eye to Indian Private Equity

16 14 12 10

PE activity for the week

During the week ended 6th May, 2012, there were 6 PE/VC deals worth $87.5mn compared to 11 deals worth $154.9mn in the previous week. Out of the total, there were 2 early stage deals, 2 late stage deals and 1 deal each at growth stage and PIPE level. In the largest deal during the week, PE firm Jacob Ballas Capital has invested Rs 2bn (~$39mn) to pick an undisclosed minority stake in Marg Karaikal Port Pvt Ltd.

250.0 200.0 150.0 100.0 50.0 0.0

29th April'12
PE Investments

154.9 11 87.5 6

8 6 4 2 0

6th May'12
No. of Deals

Private Equity: Investment Summary during the week

Investor (s) Jacob Ballas Capital BCCL TVS Capital and MCap India Angel Network Seedfund Rajasthan Venture Capital Fund Target Marg Karaikal Port Pvt Pantaloon Retail ReGen Powertech OrangeScape Innoz Technologies Pvt Ltd Frontier Lifeline Pvt Ltd Stake (%) NA 3.7 2.7 NA NA 11.0 Value ($mn) 39.0 37.6 9.9 1.0 NA NA Sector Construction Services Manufacturing Services Services Services Industry Construction & Allied Activities Retail Capital Goods IT/ITeS IT/ITeS Health Services Segment Port Diversified Non electrical machinery Software & services M Vas Hospitals Stage Late PIPE Late Early Early Growth

Source: Four-S PE Database

Jacob Ballas Capital invests in Marg Karaikal Port

Jacob Ballas Capital has invested Rs 2bn (~$39mn) to pick an undisclosed minority stake in Marg Karaikal Port Pvt Ltd, which is developing a port in India's south east coast in Puducherry. Marg Karaikal Port will use the funds for expansion plans to increase ports capacity from 21 MMTPA to 28 MMTPA. Marg Karaikal Port will have a total of 9 berths (5 already developed) capable of handling up to 47 MMTPA when fully developed. Four-S Comment: This is Marg Karaikal Ports third fund raising from private equity investors. In 2011, Ascent Capital invested Rs 2bn in the company giving Marg Karaikal a premoney valuation of Rs 13.3bn. Prior to that IDFC Project

Equity's India Infrastructure Fund invested Rs 1.5bn in March 2010. Thus the latest round of funding takes the total PE investment in the firm to over Rs 5.5bn of a little over $100mn.

BCCL invests in Pantaloon Retail

Bennett Coleman is investing Rs 2bn for a 3.68% stake in Pantaloon Retail. After the transaction, Bennett's stake in the company will go up from 2.12% to 5.8% while promoters stake will come down by 1.6% to 43%. Pantaloon will issue 8.16 million shares to Benett Coleman at Rs 245 on a preferential basis. Four-S Comment: The deal comes immediately after Aditya Birla Nuvo Ltd (ABNL), a unit of the $28bn Aditya Birla
Indian Private Equity Weekly Update 30th April 6th May, 2012

Group, announced that it will acquire a majority stake in the Pantaloons retail chain of debt-laden Pantaloon Retail (India) Ltd. The proposed transaction will help the Future Groups PRIL pare debt, which has been accumulated by rapid expansion and is likely to be completed within 8-10 months. The new, separated unit will eventually become a subsidiary of ABNL. The separation will help PRIL, which had debt of Rs. 58bn as of December 2011, reduce this amount by Rs. 16bn.

traffic. Innozs mobile query product SMSGyan (now rebranded) works on a short code 55444, giving instant results on queries through an SMS. The company offers this service at Re 1 per query and has packages for daily and monthly unlimited queries. The company which currently claims to handle 1 million query every day, aims to hit 10 million query per day by end of 2015. Additionally, it plans to get 1 million unique users everyday compared to the current 2.5 lakh.

TVS Capital, Summit invest in ReGen Powertech

ReGen Powertech, a Chennai-based wind turbine maker, has raised Rs 520mn from TVS Capital and Summit FVCI - a fund advised and managed by MCap. TVS Capital has invested Rs 370mn for a 1.95% stake while Summit has invested Rs 150mn in the company valuing ReGen at Rs 18.5bn. M Cap, through Summit, will now hold around 3% in ReGen Powertech. The funds will be used for expanding its manufacturing capacity at its Udaipur plant, as well as for project development. The latest capital infusion is an extension of the round of funding that the company did in December 2011, and extending to January 2012. IDFC Private Equity and M Cap Advisors had invested Rs 1bn in that period, a transaction that valued ReGen at Rs 16bn.

Rajasthan Venture Capital picks 11% in Frontier Lifeline

Rajasthan Venture Capital Fund (RVCF) has acquired 11% equity stake in Chennai-based Frontier Lifeline Pvt Ltd for an undisclosed amount. RVCF has invested in this company through its Rs 200 crore SME Tech Fund. The funding will enable Frontier Lifeline to finance its medicity project 'Frontier Mediville' in Tamil Nadu. The project is expected to be operational within one or two months. Frontier Mediville includes a research and training centre and an animal laboratory to house clinical research organisation (CRO). The company had raised Rs 900mn from State Bank of India and Bank of Baroda for the first phase of the project and scooped around Rs 5bn from private equity players in its second phase.

OrangeScape raises $1mn angel funding from IAN

Chennai-headquartered OrangeScape, a cross-Cloud PaaS (Platform-as-a-service) provider, has raised $1mn from the Indian Angel Network. The capital raised will be largely used for business and product development. Founded in 2003 by Suresh Sambandam and Mani Doraisamy, OrangeScape has operations in India, North America and Western Europe/UK. The company currently employs 55 people across its India and the US offices. By the end of 2012, it intends to scale up the team strength to 70-80.

Fund Raising & Liquidity Events

IndiaCo hits first & final close for twin funds

Domestic private equity fund house, IndiaCo Ventures Ltd. has announced first close of its India Growth Opportunities Fund and final close of India Amalgamation Fund. The India Amalgamation Fund has been fully capitalised with Rs 280mn and the India Growth Opportunities Fund which has a target size of Rs 400mn has seen its first close at Rs 150mn. So far, the company has been investing through its

Innoz raises Series A funding from Seedfund

Innoz Technologies Pvt Ltd, a mobile search platform, has secured Series A funding from Seedfund. The funding will be used in marketing, hiring people and strengthening the technology base to support the increase in demand and

Indian Private Equity Weekly Update 30th April 6th May, 2012

balance sheet and has now decided to carve out the investments into two separate small funds. As on date the company has a total investment portfolio of Rs 600mn with investments in more than half a dozen companies. India Amalgamation Fund and India Growth Opportunities Fund will chase investments in manufacturing and domestic consumption space in India.

Private Equity and M&A News Speciality retail chain Mom & Me in talks to raise PE funding
Mahindra Retail, which houses Mom & Me the speciality retail venture of the diversified Mahindra Group is in talks to raise Rs 1bn ($18.8mn) in funding from private equity investors. Mom & Me caters to the baby care segment in the organised retail market. It has about 50 stores across the country, offering baby apparel & accessories, travel and safety products, baby furniture, toys, etc. It is now raising money to open more stores and expand the product offerings. The retail chain is also looking to expand to tier II and tier III cities via franchise model.

Capital) and LGT Venture Philanthropy are expected to participate in this round. The company provides power to off-grid consumers in rural India, chiefly in the state of Bihar, by setting up 35-100 kilowatt power plants. The plants generate power by burning rice husk, a waste product of rice milling. It set up the first plant in Tamkuha village in Bihars 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 company needs additional funds at this stage to get to its stated target of over 2,000 plants by 2014.

Navis Capital may invest in Twilight Litaka Pharma

Navis Capital Partnes is planning to invest Rs 1.5bn in Mumbai based Twilight Litaka Pharma Limited. Incorporated in 1994 by Rajendra Bora, Twilight Litaka Pharma manufactures and sells drugs and formulations in the form of tablets, capsules, ointments, and liquids. It exports its products over 40 countries across Africa, South America, South East and Central Asia. It also provides contract manufacturing services on principal to principal or on loan license basis for various companies.

IFC may invest in MAS Financial Services IFC to invest in Zephyr Peacock-backed Flareum
International Finance Corporation (IFC) is planning to invest $1mn in a Mumbai-based solar energy firm Flareum Solar Technologies Pvt Ltd. The investment is being routed through a special purpose vehicle (SPV) set up by Zephyr Peacock India Fund for its existing investment in Flareum. PE firm Zephyr Peacock had invested around Rs 500mn to pick a significant minority stake in Flareum Technologies (formerly known as Gadhia Solar Energy Systems Pvt. Ltd.) few months ago. The solar energy company provides energy solutions by using parabolic concentrated technology. The company provides products and services in the solar thermal space used in cooking and cooling applications. IFC may invest upto $12mn in Ahemadabad based NBFC MAS Financial Services Limited. The company may also raise another Rs 500mn of Tier II capital over the medium term. The funds will be used to expand it's capital base and it's operations. MAS Financial (formerly, Marketing & Allied Services) was initially engaged in consumer durable financing. The company was registered as an NBFC in 1995. The company is currently engaged in retail asset lending (financing of two-wheelers, three-wheelers, small CVs, and small-ticket business loans under the individual micro-loans module).

Trivitron to raise $100mn from PEs

Promoters of India's largest home-bred medical diagnostic equipment company, Trivitron Healthcare, will sell more stake in the company to raise $100mn from private equity funds to purchase cardiology imaging companies and expand its manufacturing park in Chennai. It has appointed

Husk Power System to raise Series A funding

Renewable Energy firm Husk Power Systems is raising $510mn Series A funding from existing and new investors. Existing investors Acumen Fund, Bamboo Finance (Oasis

Indian Private Equity Weekly Update 30th April 6th May, 2012

investment banker Kotak Mahindra Bank to value the Chennai-based company. HSBC Private Equity and ePlanet Capital, which had purchased 20% stake in Trivitron in 2007 for roughly $11mn, are now looking to exit.

bank raised Rs 7.2bn from Indias largest mortgage lender HDFC Ltd and a consortium of private equity investors including Norwest Venture Partners, Beacon India Private Equity Fund and others.

Blackstone, KKR may buy Mallya's UB Towers for Rs 6.5bn

Beleaguered billionaire Vijay Mallya's UB Holdings Ltd is in talks with Blackstone and Kohlberg Kravis Roberts (KKR) to unlock the value of its office spaces, including the iconic head office, UB Tower. One of these two PE investors may acquire Mallya's office real estate, a part of UB City, through a structured equity deal for roughly Rs 6.5bn. UB Holdings is the parent of the debt-laden Kingfisher Airlines.

HDFC Life to go for IPO in FY14

HDFC Life plans to raise funds through an initial public offering (IPO) of 10% of the capital base. The private-sector life insurer has already started the process internally, and is expected to hit the market in the next financial year. The company has posted a net profit of Rs 2.71bn, for the first time since its inception. HDFC Life is a joint venture between Housing Development Finance Corporation (HDFC) Ltd and UK-based insurer, Standard Life.

Apollo Hospitals to raise $60mn from IFC

Apollo Hospitals Enterprise Ltd (AHEL) is planning to spend $394mn over four years for adding 2,900 beds to its hospitals network and equipment purchases for existing hospitals. It is also planning to establish presence through clinics, information centres and telemedicine centres in Uganda and Tanzania. The hospital network is raising funds of about $60mn from International Finance Corporation (IFC) to support future investments.

Plastene India IPO begins on May 9

Flexible intermediate bulk container (FIBC) maker Plastene India Ltd has said it is entering the capital market with a public issue of 92.55 lakh equity shares through a 100% book building route on May 9. The shares will be of face value of Rs 10 each for cash in the price band of Rs 81-Rs 84. The proposed issue will open for subscription on May 9 and close on May 15. The Ahmedabad-based company is engaged in the integrated business of manufacturing jumbo bags, flexible packaging, BoPP laminated woven sacks and multi-filament yarns.

Machdar Motorsports to raise Rs 2bn PE funding

Machdar Motorsports, the promoters of i1Super Series Championship, are understood to be in talks to raise close to Rs 2bn through the private equity route to kickstart the championship by early next year. The i1 Super Series, based on the popular city-based franchisee format, has nine teams representing nine cities in India.

Executive Tracking

Partners Group hires Cyrus Driver for direct investments

Partners Group, the Switzerland-based private market investment manager, has roped in Cyrus Driver to strengthen direct investment activities in India. Driver, who will join as a managing director based out of Singapore, earlier headed Helix Investments after which he joined Arka Capital. Driver has over a decade of experience in the Indian private equity market. He lead India investments for PE firm Helix before which he was with J.P. Morgan Partners Advisors in Singapore and Mumbai.

IPO, Other Offerings Ratnakar Bank IPO in 2 years

Kolhapur-based Ratnakar Bank is looking at an initial public offering (IPO) in two years. The bank expects to double its loan book by then. The loan book of the bank had grown from around Rs 10bn at the time of the launch of Vision 2015 about 18 months ago, to around Rs 25bn. Last year the

Indian Private Equity Weekly Update 30th April 6th May, 2012

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

Acquirer Roquette Freres Aditya Birla Nuvo Wipro Limited Life Insurance Corporation EFS Facilities Services Target Riddhi Siddhi Gluco Biols - starch biz Pantaloon Retail Promax Applications Group Pipavav Defence and Offshore Dalkia India Target business Manufacturing - starch Retail IT/ITeS Defence Facility management Stake (%) NA NA NA 0.6 NA Deal value ($ mn) 180.9 152.0 36.4 32.2 NA

Source: Four-S Database, Acquisition price is in $mn

Indian Private Equity Weekly Update 30th April 6th May, 2012

Market Update

Key Domestic Indices

Index BSE Sensex S&P CNX Nifty CNX Nifty Junior Nifty Mid Cap 50 CNX IT Bank Nifty CNX Infrastructure CNX Realty
Source: BSE, NSE

Indian Market Movements 52 Week 27-Apr-12 4-May-12 Change (%) High Low 17,134.25 16,831.08 -1.80% 19,619.65 15,135.86 5,190.60 5,086.85 -2.04% 5,740.40 4,990.30 10,103.30 9,948.00 -1.56% 11,550.00 9,749.30 2,168.45 2,123.65 -2.11% 2,525.75 2,067.55 5,940.35 6,100.35 2.62% 6,835.25 5,957.30 10,148.70 9,802.35 -3.53% 11,451.25 9,480.50 2,341.45 2,260.70 -3.57% 3,191.60 2,213.65 221.80 216.80 -2.31% 302.20 208.50

Key Global Indices

Global Market Movements Index 27-Apr-12 4-May-12 Change (%) NASDAQ 3,050.61 2,956.34 -3.19% Dow Jones Industrial Average 13,204.62 13,038.27 -1.28% S&P 500 1,399.98 1,369.10 -2.26% NIKKEI 225 9,520.89 9,380.25 -1.50% Hang Seng 20,741.45 21,086.00 1.63% Straits Times Index 2,981.58 2,990.59 0.30% FTSE 100 5,777.11 5,655.06 -2.16%
Source: Yahoo Finance

52 Week High Low 3,134.17 2,298.89 13,338.66 10,404.49 1,422.38 1,074.77 10,255.20 8,135.79 23,707.95 16,250.27 3,227.28 2,521.95 6,084.08 4,791.01

Indian Private Equity Weekly Update 30th April 6th May, 2012

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Indian Private Equity Weekly Update 30th April 6th May, 2012