Four-S Private Equity Track

Issue: 19th - 25th March, 2012

Your Eye to Indian Private Equity

302.5
16 14 12 10 8 6 4 2 0 18th March'12
PE Investments

PE activity for the week

During the week ended 25th March, 2012, there were 7 PE/VC deals worth $35mn compared to 10 deals worth $302.5mn in the previous week. Out of the total, there were 4 early stage deals and 1 deal each at Growth, PIPE and SPV level. In the largest deal during the week, Parsvnath Developers raised Rs 1.2bn ($23.6mn) from Kotak Realty Fund for a township project in Gurgaon.

350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0

7 10 35.0
25th March'12
No. of Deals

Private Equity: Investment Summary during the week

Investor (s) Kotak Realty Fund Frontline Strategy CLSA Omidyar Network Hyderabad Angels Omidyar Network Angel Investors Consortium
Source: Four-S PE Database

Target Parsvnath Developers' SPV DTL Ancillaries Limited Prajay Engineers Syndicate Akshara Foundation Edutor Technologies EnglishHelper AllSchoolStuff.com

Stake (%) 20.0 NA 7.6 NA NA NA NA

Value ($mn) 23.6 9 1.0 1.0 0.4 NA NA

Sector Construction Manufacturing Construction Services Services Services Services

Industry Real estate Automotive Real estate Education Education Education Retail

Segment Real Estate Railway and auto component Real Estate Pre school and K12 Content Vocational Online retail education products

Stage SPV Growth PIPE Early Early Early Early

Kotak Realty to invest Rs 1.2bn in Parsvnath Developers

Parsvnath Developers is raising Rs 1.2bn (~$23.6mn) from Kotak Realty Fund for a new 100-acre integrated township project on Sohna Road in Gurgaon. Kotak Realty fund will get a 20% stake in the special purpose vehicle. The project will be largely residential in nature with some commercial and retail developments, and will be launched in the next two months. Four-S Comment: Parsvnath Developers, which has a focus on the national capital region, is currently trying to reduce its debt, which stands at around Rs 13bn. It recently put a

1.2-acre plot in the heart of Delhi, on Kasturba Gandhi Marg, on the block and is expecting to raise around 7bn through the sale. Debt servicing continues to remain the bete noire of the real estate sector. The net debt of India's top 11 listed real estate companies at the end of December 2011 rose 14% from a year ago to Rs 417bn. The real estate players have been striving to reduce their debt by monetizing non-core assets. During the last quarter of 2011, DLF raised Rs 12bn during the quarter from the sale of non-core assets like the IT Park in Noida and IT SEZ in Pune. Sobha Developers reduced its debt in the quarter by selling its land parcel in Gurgaon.
Indian Private Equity Weekly Update 19th 25th March, 2012

Railways component maker DTL Ancillaries raises $9mn

India Industrial Growth Fund (IIGF), a private equity fund managed by Frontline Strategy Limited has invested $9mn in DTL Ancillaries, a customized roll forming company. The Company is a leading supplier of roll formed parts and fabrications to the Indian Railways recently, it became a Part-I supplier to the Railways. It is also a leading supplier, in its space, to the Indian automotive sector.

$200mn in five years. It has so far deployed $85mn across a portfolio of 24 companies in India, 70% of which are forprofit investments and the rest grants to non-profit organizations. In its bid to enhance employment opportunities in India through impact investing, Omidyar Network also plans to support rural business process outsourcing, agriculture and vocational training projects.

Hyderabad Angels invests Rs 20mn in Edutor Technologies

Edutor Technologies has raised Rs 20mn from group of angel investors, Hyderabad Angels. The Hyderabad-based start-up develops and markets interactive learning platforms for touch devices like Tablets PCs or iPads. Their solutions, for K12 students, are designed to help improve their learning outcomes while aiding Educational Institutes in improving productivity and efficiency. Four-S Comment: PE investors continue to remain bullish on the Indian education sector. India is the largest education market in the world with approximately 540mn in the 0-24 years age bracket. Education sector is the largest services market in India with a market size of $57bn per annum (as of 2009). The government currently spends about 4% of GDP on education, which is planned to be increased to 6% in the 11th Five Year plan. Factors driving growth of this sector include demand-supply gap, higher spending by consumers, increasing preference for private sector offerings and government reforms. Hence, there is huge potential for private investment in the sector.

CLSA acquires 7.63% stake in Prajay Engineers

CLSA Mauritius Ltd has acquired 7.63% stake in Hyderabad based real estate company Prajay Engineers Syndicate Limited for $1mn through open market transaction. CLSA Mauritius bought 5,336,134 shares at a price of Rs 9.5 per share Legatum Capital. Prajay Engineers Syndicate Limited develops real estate in India through two segmentsConstruction and Development of Property and Hospitality Hotels and Resorts.

Omidyar Network backs two firms - Akshara Foundation and EnglishHelper

Omidyar Network, the philanthropic investment firm controlled by eBay Inc. founder Pierre Omidyar, has invested an undisclosed amount in English language learnings solutions company EnglishHelper Inc. and extended a three-year grant of $950,000 to Bangalorebased public charitable trust Akshara Foundation, which focuses on elementary education. Akshara has developed a technology platform, Karnataka Learning Partnership, as a tool for non-profit bodies, corporations, academic institutions and citizens to get involved in improving government schools in Karnataka. EnglishHelper offers a combination of English language reading and writing technologies and has helped over 10,000 learners across the country. Four-S Comment: Omidyars education portfolio in India has now expanded to five investments the other 3 include Tree House, Anudip Foundation and Aspiring Minds Assessment. Omidyar Network started funding projects in India about two years ago with plans to invest up to

AllSchoolStuff raises funding from Angels Investors Consortium

Gurgaon based AllSchoolStuff.com, online retail store for all school, learning and educational needs has raised angel funding from Angel Investors Consortium. The funds raised will be used for setting up infrastructure, expanding the team, customer acquisition and streamlining the supply chain. AllSchoolStuff provides online stores for students, parents, teachers and schools to choose from a wide variety of branded, high quality products to meet all their educational supplies needs.

Indian Private Equity Weekly Update 19th 25th March, 2012

Fund Raising & Liquidity Events

company has been working on restructuring its businesses, which is close to completion and sources in both firms said they have reopened negotiations for an investment, which could be as high as $100mn. The investment in Gitanjali is expected to help its brands, which have done well in India, to go global and improve their image.

Helion raises $255mn for third India VC fund

Helion Venture Partners, an early-to-mid-stage venture capital firm, has raised over $255mn for its third fund, taking its assets under management to $605mn. The new fund would probably make Helion the largest venture capital firm in India in terms of assets under management. The Bangalore and Delhi-based VC has investments in nearly three dozen startups, which includes NASDAQ-listed MakeMyTrip and legal process outsourcing firm UnitedLex BPO. It had raised $140mn for its first fund in 2006, followed by another $210mn in 2008. The new fund will continue with early-to-mid-stage focus on technology innovation and consumer demand-driven businesses. Helion Venture Partners III will look at deal sizes between $2-10mn and with an investment horizon of 5-7 years.

Blackstone Group, Bain Capital may buy out Euronet's India ATM business
Private equity funds Blackstone and Bain Capital are negotiating to buyout the Automated Teller Machines business of Euronet Worldwide in India to benefit from rising use of electronic transactions. The business, which Euronet classifies under the so-called Electronic Financial Transaction segment, is facing profitability pressures due to steady climb in costs. It is the biggest third-party operator of shares ATMs across the nation. Euronet had in the past sold a similar business in the UK to Bridgepoint Capital for $30mn. The India business, where it operates more than 1,300 ATMs, could be valued as high as $250mn.

Private Equity and M&A News Morgan Stanley Unit may invest $200mn in Continuum Energy
A proprietary investment arm of Morgan Stanley is in advanced talks to invest about $200mn, roughly 10bn, for 51% stake in Continuum Energy Pte Ltd (CEPL), a Singaporebased holding company developing wind power assets in India. Continuum Energy, co-founded by former investment banker Arvind Bansal and others, is a two year-old start-up which is building a portfolio of wind farms through acquisitions and green field development.

Super Religare Laboratories in talks with private equity firms for stake sale
Two private equity PE firms, including International Finance Corporation, are close to buying over 15-20% stake in India's largest diagnostic chain Super Religare Laboratories (SRL) ahead of its planned public issue. IFC has a tentative agreement to invest around Rs 1.25bn, while either Jacob Ballas Capital or Qatar-based QInvest will invest Rs 1.5bn. The deal is expected close in the next few weeks. The fund infusion will help the privately-held company reduce its debt of about Rs 3bn that came with the acquisition of Piramal Diagnostics in 2010.

IFC to invest up to $24mn in IDFC PE-backed Doshion

IFC, the private sector investment arm of World Bank, may invest up to $24mn in IDFC Private Equity-backed water management company Doshion Ltd through an equity/quasi-equity investment to finance expansionrelated capital expenditure, long-term working capital and upcoming Build-Own-Operate-Transfer (BOOT)-based water

Gitanjali Gems, L Capital reopen investment talks

Listed jewellery firm Gitanjali Gems has revived talks with L Capital, the private equity arm of the world's largest luxury group LVMH, for a strategic investment. The two were in negotiations a year ago but talks had not progressed over the structure of the business. In the last one year, the

Indian Private Equity Weekly Update 19th 25th March, 2012

projects, cross-country pipelines and other EPC projects. IFCs investment will be at the corporate level and will be used to fund several upcoming projects spread across India.

Executive tracking Accels Prateek Dhawan to join Everstone Capital

Prateek Dhawan, Principal in Accel Partners growth equity team in India, is joining Everstone Capital as a senior member of the investment team. Dhawan will be based in Everstones Mumbai office. Dhawan joined Accels growth investment team from Goldman Sachs Investment Partners, where he was leading the funds private equity investments in India. At Goldman Sachs Investment Partners, Dhawan was responsible for investments in Tikona Digital Networks, Bharti Infratel and Asian Genco. Preceding Goldman, Dhawan worked at Cisco Systems corporate development group.

IFC to invest up to $20mn in Nereus Capitals Cleantech Fund

IFC may invest up to $20mn in Nereus India Alternative Energy Fund LLC, a newly formed fund which will target companies engaged in the development, construction & operation of renewable and clean energy generation assets or those focused on the deployment of clean energy technologies in India. The total target size of this fund is $250 million and it will be domiciled in Mauritius. The anticipated portfolio of Nereus will include 7-10 investments of $15-35mn each, in equity and equity-linked securities of companies primarily focusing on the development, construction and operation of power generation assets in India.

Donald D'Souza to Head HDFC Bank ECM

HDFC Bank has appointed Mr Donald D'Souza as the Head of Equity Capital Markets in the Investment Banking division. Mr D'Souza will be reporting to Mr Rakesh Singh, Head of Investment Banking at HDFC Bank. Mr D'Souza will be responsible for building the equity capital markets business that includes origination and execution of capitalraising mandates, said a release from the company. Mr D'Souza was the President of Investment Banking at IIFL prior to joining HDFC Bank. He has also served in Kotak, CLSA and J M Financial, the release added.

IPO, Other Offerings Harisons Steel files for Rs 600mn IPO

Harisons Steel Limited has filed DRHP with SEBI to raise Rs 600mn through an IPO. The funds raised will be used to set up rolling mill with a proposed capacity of 30,000 Mts p.a. (Rs 415.9mn); to part finance incremental working capital requirement (Rs 80mn) and for other corporate purposes. Incorporated in 1999, Harisons Steel is engaged in the manufacturing of stainless steel ingots and billets of various grades and sizes.

Alok Industries planning to raise $150mn

Alok Industries Limited is planning to raise $150mn through ADR/GDR, QIP etc warrants for expansion. Recently in February, Caledonia Investments Plc, UK-based investment trust company sold 2.08% stake in Alok Industries through open market transactions for Rs 300-350mn. Alok Industries - founded in 1986 - operates in four special business units of international, infrastructure, garment and domestic and retail businesses. It manufactures home textiles, apparel fabrics and polyester yarns.

Indian Private Equity Weekly Update 19th 25th March, 2012

M&A Activities
During the week ended 26th March, 2012, there were 9 M&A deals worth $40.4mn (size of 6 deals were not known). In the biggest deal during the week, Australia-based PET packaging supplier Amcor Ltd. has acquired Uniglobe Packaging Private Ltd. for $20.7mn. Uniglobe produces flexible packaging for the food, personal care, and health sectors. M&A Activity: Summary during the week
Acquirer Amcor B Braun Thermax Ltd KEPCO Oscar Investments Ltd Gruner + Jahr Naturex General Electric Nitco Limited Target Uniglobe Packaging Private Limited Ahlcon Parenterals (India) Ltd Virgo Valves and Controls Ltd steam division and Rifox Hans Richter GmbH Pioneer Gas Power Voyages Ltd Networkplay Valentine Agro Advanced Systek Private Limited New Vardhman Vitrified Target business Packaging Pharmaceutical Manufacturing Power Aviation Media & Entertainment Agro Engineering services Manufacturing-tiles Stake (%) NA 26 NA 22.7 48.8 50+ NA NA 51 Deal value ($ mn) 20.7 17 2.5 NA NA NA NA NA NA

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

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 16-Mar-12 23-Mar-12 Change (%) High Low 17,466.20 17,361.74 -0.60% 19,811.10 15,135.90 5,317.90 5,278.20 -0.75% 5,944.45 5,187.85 10,324.50 10,297.85 -0.26% 11,758.15 10,176.30 2,300.60 2,309.90 0.40% 2,657.10 2,274.75 6,501.25 6,532.15 0.47% 7,344.90 6,426.50 10,391.35 10,294.55 -0.94% 11,978.05 10,038.90 2,556.25 2,520.80 -1.41% 3,217.50 2,470.65 242.00 240.75 -0.52% 344.05 234.55

Key Global Indices

Global Market Movements 52 Week Index 16-Mar-12 23-Mar-12 Change (%) High Low NASDAQ 3,055.26 3,067.92 0.41% 3,090.08 2,298.89 Dow Jones Industrial Average 13,232.62 13,080.73 -1.16% 13,289.08 10,404.49 S&P 500 1,404.17 1,397.11 -0.51% 1,414.00 1,074.77 NIKKEI 225 10,129.83 10,011.47 -1.18% 10,207.90 8,135.79 Hang Seng 21,317.85 20,668.80 -3.14% 24,468.64 16,250.27 Straits Times Index 3,010.68 2,990.08 -0.69% 3,227.28 2,521.95 FTSE 100 5,965.58 5,854.89 -1.89% 6,103.73 4,791.01
Source: Yahoo Finance

Indian Private Equity Weekly Update 19th 25th March, 2012

About Four-S Services

Four-s is a boutique firm focusing on cutting-edge Financial Research, Business Advisory and Investment Banking services for clients. Through our deep research into India's high growth industries and accurate and objective advice we have helped many marquee institutional investors take informed investment decisions in private equity and public markets. Four-S has proven success in business advisory, investment banking and investor relations mandates with 100+ corporate clients and large PE funds. For further information on the company please visit www.four-s.com

Disclaimer
The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information, projections or opinion contained in this document or upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability, whatsoever with respect to the use of this document or its content. This document has been distributed for information purposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be reported or copied or made available to others. The Company may from time to time solicit from, or perform consulting, or other services for, any company mentioned in this document.

For Further details/clarifications please contact: SeemaShukla Email- seema@four-s.com Address:

Gurgaon Four-S Services Pvt. Ltd. 214, UdyogVihar Phase-I, Gurgaon -122016 Haryana, INDIA Tel: +91 124 4251443 +91 9810408474 Mumbai Four-S Services Pvt. Ltd. 101,Nirman Kendra, Near Famous Studios, Off Dr. E Moses Road, Mahalaxmi, Mumbai Tel: 022 - 42153659

Indian Private Equity Weekly Update 19th 25th March, 2012