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September 30, 2012
NMIMS MBA Capital Markets presents
the one Stop magazine for all about
the latest in Indian Capital Markets
News and analysis. For more
information, visit us at:
http://www.investocraft.com/
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 1
MOVEMENTS IN EQUITY MARKETS
Indian Markets:
Indian Equity Indices continued their upward journey belying expectations of some softening on continued inflow of FII money. The Government too, carried forward its reforms agenda by announcing a relief package for the debt-ridden power sector. The rupee rose against the dollar to a 5 month high, while stock indices hit 16 month highs. The broader market too, participated in the rally.
The BSE Sensex was up 0.05% W-o-W to end at 18762.74 points as on Friday, 28th September
2012
The NSE Nifty was up 0.21% W-o-W to end at 5703.30 points as on Friday, 28th September
2012.
All sectoral indices, except IT, Oil & Gas and Metals ended in the green.
Equity Market BSE Sensex NSE Nifty Dow NASDAQ Nikkei Hang Seng
Mon 18,673.34 5,669.60 13,558.92 3,160.78 9,069.29 20,694.70
Tue 18,694.41 5,673.90 13,457.55 3,117.73 9,091.54 20,698.68
Wed 18,632.17 5,652.40 13,413.51 3,093.70 8,906.70 20,527.73
Thur 18,579.50 5,649.50 13,485.97 3,136.60 8,949.87 20,762.29
Fri 18,762.74 5,703.30 13,437.13 3,116.20 8,870.16 20,840.30
Asian Markets:
Asian Markets were relatively flat for the week with a range-bound moving activity. Shanghai however
rose by approximately3% in the week.
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
Mon Tue Wed Thur Fri
Movements in Equity Markets
BSE Sensex
NSE Nifty
Dow
NASDAQ
Nikkei
Hang Seng
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 2
The Hang Seng was up 0.51% W-o-W as on Friday, 28thSeptember 2012
The Nikkei was down 2.63% W-o-W as on Friday, 28th September 2012
US Markets:
The Dow was down 1.05% W-o-W as on Friday, 28th September 2012.
The Nasdaq Composite was up 2.01 W-o-W as on Friday, 28th September 2012.
FII AND DII DATA
FII were Net Buyers of 10116.0 crores in the equity markets
FII were Net Sellers of 287.00 crores in the debt markets
DII were Net Sellers of Rs. 4353.39 crores
COMMODITIES
Mon Tue Wed Thur Fri
DII -1,156.45 -1,374.11 -695.9 -447.87 -679.06
FII (Debt) -692.4 -628.9 440.2 485.1 109
FII (Equity) 2471.9 1652.2 4555.7 805.5 630.9
-3000
-2000
-1000
0
1000
2000
3000
4000
5000
6000
Rs
(Cro
res)
FII & DII Data
DII
FII (Debt)
FII (Equity)
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 3
Brent Crude was up 2.37% and closed at $112.4/barrel
Gold was down 0.75% to close at Rs 31220/10 gms
The Rupee gained 0.59% to the dollar to close at 52.48
Currency Movements
Monday Tuesday Wednesday Thursday Friday
USD/INR 52.79 53.03 53.01 52.92 52.48
EUR/USD 1.30 1.29 1.29 1.29 1.2881618
GBP/USD 1.62 1.62 1.62 1.62 1.6202203
USD/JPY 78.14 78.01 77.81 77.74 77.67
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Mon Tues Wed Thurs Fri
Crude Oil
Gold
USD/INR
-3.50%
-3.00%
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
Monday Tuesday Wednesday Thursday Friday
Currency Movement
USD/INR EUR/USD GBP/USD USD/JPY
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 4
LIBOR Data
LIBOR 19-Sep Month Ago Year Ago
1 Mnth 0.22 0.23 0.24
3 Mnth 0.36 0.42 0.24
6 Mnth 0.65 0.71 0.55
1 year 0.99 1.04 0.85
OTHER IMPORTANT INDICATORS
Week Ended 14th Sep Week Ended 21st Sep
Forex 2,94,476.80 2,93,974.40
CRR 4.50% 4.50%
SLR 0.23 0.23
Bank Rate 9.00% 9.00%
July August
WPI 6.87% 7.55%
Core Inflation 5.58% 6.14%
Food Inflation 10.06% 9.14%
G-SEC DATA AND YIELDS
Gsec 27th Sep 27th Aug
3 Months 8.39 8.42
1 Year 8.34 8.37
5 Years 8.2 8.21
10 Years 8.35 8.36
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 5
MARKET FORECAST
Despite Reforms, the prospects of economic growth remain far from bright as inflation is sticky,
borrowing costs remain high.
The global backdrop also remains fragile despite repeated attempts by policy makers.
One must exercise caution at higher levels, as there is every chance of a correction after the
recent spike.
PE DEALS
RABO PE, ABRAAJ CAPITAL TO INVEST IN
PRABHAT DIARY
Sector: Food & Beverage
Business of Prabhat Diary:
It is one of India's leading milk & milk Product
Company with a motto of health & happiness
for all. It manufacturers dairy whitener, skimmed
milk powder, poly milk pouches, concentrated
milk ,condensed milk, etc.
Business of Rabo PE:
Rabo Private Equity the captive arm of the
Rabobank Group. It serves its customers via two
different specialised labels- Rabo Capital and
Rabo Ventures.
Business of Abraaj Capital:
It is among the world's 50-biggest private equity
groups, and invests in the growing Middle East,
North Africa and South Asia region, a region
also known as MENASA. It manages seven funds;
four buyout funds, one in real estate, one
investing in small and medium enterprises
(SMEs), and an income-generating sale-and-
leaseback fund.
Funding:
Rabo PE and Abraaj Capital are planning to
invest around Rs. 100 Cr for a small stake in
Prabhat Diary. Crawford Bayley is advising
Prabhat Diary while J Sagar Associate and
AmarchandMangaldas are advising Abraaj
Capital and Rabo PE respectively.
Rationale:
The Company plans to use the funds for
expansion and to meet its other corporate
expenses.
HDFC PROPERTY FUND TO RAISE OFFSHORE
REALTY FUND
Sector: Real Estate
Business of HDFC Property Fund:
It is the fund with which HDFC Limited started its
private equity business. HDFC Venture Capital
Limited ('HVCL') is the Fund Manager to HDFC
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 1
Property Fund managing two schemes of the
Fund i.e., HDFC India Real Estate Fund (Corpus-
Rs 1,000 crore) and IT Corridor Fund (Corpus-Rs
464 crore).
Funding:
It is planning to raise $500 Mn real estate
offshore fund by the year end. For this purpose,
it is in talks withinternational investors like the
Singapore’s sovereign fund GIC, Qatar
Investment Authority along with American and
Japanese investors.
Rationale:
It would be investing into redevelopment
projects and commercial development projects
across the metro cities of Mumbai, Chennai,
Pune, Bangalore and Delhi.
-----------------------------------------------------
METROPLOTS PLANS TO RAISE FUNDS
Sector: Real Estate
Business of Metroplots:
It is a Real Estate Services company which helps
to identify and purchase a new Residential
property that suits a person’s requirement. It
also provide with services of property analysis,
site visits, home loans and property booking
among others.
Funding:
The amount of funds planned to be raised has
still not been disclosed.
Rationale:
The Company is planning to expand by
venturing into Tier II cities and to fuel its growth
plans in the next two quarters.
-----------------------------------------------------
GOLDMAN SACH TO SELL BANGALORE’S
FOUR SEASONS HOTEL
Sector: Leisure
Business of Goldman Sach:
It is an American multinational bulge
bracket investment banking firm that engages in
global investment
banking, securities, investment management,
and other financial services primarily with
institutional clients.
About Four Seasons:
It is a Canadian hospitality chain which operates
through management contracts with real estate
developers and land owners and the it’s recent
strategy has been to invest into projects in China
and India.
Information:
Goldman is planning to sell the Four Seasons
project in Bangalore. It holds majority stake of
73% through Whitehall, its real estate unit. It is
in talks with realty firms like Prestige Group, K
Raheja Corp., Nitesh Estates, RMZ and a few
ultra HNIs along with PE groups like Urban
Infrastructure Opportunities Fund, for the same.
-----------------------------------------------------
NVP INVESTS IN THYROCARE
Sector: Healthcare
Business of Thyrocare Technologies Limited:
Thyrocare Technologies Limited is the industry
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 2
leader, trend setter and innovators in Indian
Diagnostic industry.Its laboratory is certified ISO
9001-2008, accredited by NABL (National
Accreditation Board for Testing and Calibration
Laboratories) and to keep it ready to take on the
global market, in 2007, it has been accredited by
the College of American Pathologists (CAP), a
global accrediting organisation.
Business of Norwest Venture Partners:
NVP is a global venture and growth equity
investment firm. It makes early to late stage
venture and growth equity investments across a
wide range of sectors including: information
technology, business services, financial services,
infrastructure, technology enabled services and
consumer.
Funding:
NVP has invested Rs. 120 Cr for about 10% stake
in Thyrocare.
Rationale:
The funds will be used for expansion purposes.
And as part of the deal, Sohil Chand, MD of NVP
India will join Thyrocare's board of directors.
-----------------------------------------------------
EXCEDO REALTY FUND PLANS TO RAISE
FUNDS
Sector: Real Estate
Business of Excedo Realty Fund:
Excedo Realty Fund-I, is a trust established
under the provisions of the Indian Trusts Act,
1882 by Athamus Venture as a Settlor. It has
been established to make investments in
Portfolio Companies, land buyouts, invest in
growth cities and niche markets to provide
maximum returns to its investors, by
participation in real estate business in India.
Funding:
According to top executive, Athamus Venture
through its Excedo Realty Trust-I is looking to
raise around Rs 600 Cr from the domestic
market.
-----------------------------------------------------
SEQUOIA CAPITAL EXITS IT’S STAKE IN ESS
DEE ALUMINIUM
Sector: Packaging
Business of Sequoia Capital:
It is a private equity and venture capital firm
specializing in incubation, seed stage, start-up
stage, early stage, and growth stage investments
in private and public companies. Its diverse
portfolio includes companies in
energy, financial, healthcare, internet, mobile an
d technology sectors.
Business of Ess Dee Aluminium:
It is the leading providers of primary packaging
solutions in the Asian Markets.It was the first in
India to manufacture dedicated high-end
pharmaceutical packaging products like Cold
Form Blister and Child-Resistant-Blister
packaging. T
Funding:
Sequoia has sold its 6.67% stake in Ess Dee
Aluminium. According to VCCircle estimates, it
has exited the investment for a loss of atleast
60%.
-----------------------------------------------------
NALANDA CAPITAL TO INCREASE ITS STAKE
IN DB CORP
Sector: Media
Business of Nalanda Capital:
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 3
It is a Singapore based private equity firm and
seeks to apply the private equity model to
investments in small to mid-cap listed Indian
companies. The investment approach of the
Fund is characterized by long term fundamental
investing, proprietary idea generation, etc.
Business of DB Corp:
D B Corp Ltd., informally known as the Bhaskar
Group, is a business conglomerate of India with
presence in newspapers, television,
entertainment, printing, textiles, fast moving
consumer goods, oils, solvents and internet
services.
Funding:
Nalanda Capital has increased its stake to over
5% in DB Corp and holds around 5.05% now.
According to VCCircle, the stake has been
acquired for Rs. 175-200 Cr.
-----------------------------------------------------
OPIC COMMITS TO INVEST IN INDOSPACE
LOGISTICS PARKS AND BANYANTREE
GROWTH CAPITAL
Sector: Leisure
Business of OPIC:
Overseas Private Investment Corporation is
the U.S. government’s development finance
institution which mobilizes private capital to
help solve critical development challenges. It
provides investors with services like financing,
guarantees, political risk insurance, and support
for private equity investment funds.
About Indospace Logistics Parks II:
It is a fund which is a joint venture between
Everstone Capital and Canada-based Realterm
Global. The fund invests in developing modern
industrial real estate and warehousing facilities
across India.
About BanyanTree Growth Capital- II:
BTGC - II is a USD c. 175 million structured
private equity fund that provide capital to
middle-market companies with promising
growth prospects within the rapidly expanding
Indian economy.
Funding:
OPIC has committed to provide $100Mn for
Indospace Logistics Park II and $35 Mn for
BanyanTree Growth II fund.
Rationale:
The amount raised will be used to develop
logistics parks in Bangalore and in outskirts of
Mumbai.
-----------------------------------------------------
EVERSTONE CAPITAL TO INVEST IN S.CHAND
PUBLISHERS
Sector: Media
Business of Everstone Capital:
Everstone Capital is an India focused investor
with dedicated private equity and real estate
funds. It invests through two funds – Indivision
India Partners ($425 Mn) and Everstone Capital
Partners II ($580 Mn).
Business of S.Chand Publishers:
It is primarily engaged in publishing of academic
books and educational software and publishes
over 12 Mn books - from primary school to
higher education books like engineering,
commerce, etc. It sells KG to 12th Standard
school books, higher academic books,
competition books, technical books, educational
CDs etc. It also has a presence in the Hospitality
sector.
Funding:
Everstone is planning to acquire around 35%
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 4
stake in S.Chand and Company Limited by
investing around $30 Mn.
Rationale:
This fund will help S.Chand to grow their content
through acquisitions and more aggressive bet
on digitization.
-----------------------------------------------------
IFC TO INVEST IN RELIGARE ENTERPRISES
Sector: Banking/Financial Services
Business of IFC:
It is an international financial institution which
offers investment, advisory, and asset
management services to encourage private
sector development in developing countries. It is
a member of the World Bank Group.
Business of Religare Enterprise:
Itis a diversified financial services group and
offers broking, insurance, asset management,
SME lending, wealth management, institutional
equities and investment banking services to its
clients.
Funding:
According to a company statement, Religare is
raising Rs 400 Cr from IFC.
-----------------------------------------------------
SPICEJET PROMOTER K MARAN MAY RAISE
FUNDS
Sector: Airlines
Business of SpiceJet:
Itis a low-cost airline and is currently owned by
Billionaire KalanithiMaran. It began service in
May 2005 and by 2012, it is India's third largest
airline in terms of market share ahead of Air
India, Kingfisher Airlines and GoAir.
Funding:
KalanathiMaran may raise Rs. 400-500 Cr from
the market. According to ET, he hinted at a few
MNC banks including a European one to find
investors. The promoter is even willing to
collateralise Sun TV shares along with real estate
assets of the group.
Rationale:
The funds are planned to be raised to pay off
the debts raised from banks for operational
needs.
-----------------------------------------------------
KALARI CAPITAL CLOSES ITS $150 Mn FUND
Sector: Banking/Financial Services
About Kalari Capital Partners II:
It is a venture capital fund with its advisory team
based in Bangalore investing in early-stage,
companies across sectors such as Software
Products & Services, E-Commerce, Mobile &
Telecom Services, Education, Healthcare, Media,
Cleantech etc.
Information:
Kalari Capital has closed its $150 Mn fund- Kalari
Capital Partners II.
-----------------------------------------------------
APAX PARTNERS TO EXIT APOLLO
HOSPITALS
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 5
Sector: Healthcare
Business of Apollo Hospital:
It is a private healthcare provider in Asia with
hospitals in India, Sri
Lanka, Bangladesh, Ghana, Nigeria, Republic of
Mauritius, Qatar, Oman and Kuwait.
Business of Apax Partners:
It is one of the oldest and largest private equity
firms operating on an international basis and
invests exclusively in certain business sectors
including: telecommunications, information
technology, retail and consumer
products, media, healthcare and financial and
business services.
Funding:
Apax is planning to sell its 10% stake in Apollo
Hospitals. According to sources, the value of the
deal is estimated around $250 Mn or higher.
-----------------------------------------------------
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 6
DEBT DEALS
INDOSTAR CAPITAL TO INVEST IN PRIZM
PAYMENT
Sector: Technology
About Indostar Capital:IndoStar Capital
Finance Private Limited is an NBFC is registered
with the Reserve Bank of India (RBI) as a
Systemically Important Non Deposit Accepting
Non-Banking Financial Company. IndoStar is a
wholesale credit institution that offers a wide
bouquet of debt products. IndoStar has been
established as a premier independent wholesale
credit institution leveraging the experience of
global best practices and local economic
development to meet the growing credit
requirements of Indian corporates.
About Prizm Payment: Prizm Payments is a
leading financial services provider in enabling
Secure‚ Innovative Payment services across
Electronic Channels. It has over 10,000 ATMs
deployed and under management and
maintenance,25,000+ POS devices under
management. The network is managed by
750+employees in 8 offices and 105 service
locations covering 600 points of presence across
the country. The company is backed by Sequoia
Capital and Axis Bank PE along with Silicon
Valley bank.
Funding:Rs 100 crore as a 10 year loan
Rationale:Prizm Payment has recently got a
contract to deploy around 14,000 ATMs for PSU
banks across Tamil Nadu, Andaman and
Nicobar, West Bengal and Andhra Pradesh.
-----------------------------------------------------
TORRENT POWER RAISES FUND THROUGH
NCDS
Sector: Energy/Utilities
About Torrent Power:Torrent Power is one of
the leading brands in the Indian power sector,
promoted by the Rs. 9592 crore Torrent Group.
Torrent Power is the most experienced private
sector player in Gujarat. The high points of
Torrent’s foray into power however were the
acquisitions of two of the India’s oldest utilities –
The Surat Electricity Company Ltd and The
Ahmedabad Electricity Company Ltd. Torrent has
a generation capacity of 1647.5 MW and
distributes power to more than 3 million
customers annually in Ahmedabad,
Gandhinagar, Surat, Bhiwandi and Agra.
Funding: Secured Redeemable Non-Convertible
Debentures of Rs. 550 Crores on a private
placement basis. The tenure of the NCD is 10
years.
Rationale: Torrent Energy – subsidiary of
Torrent Power, is implementing a 1196.85-MW
gas-based plant and associated distribution
infrastructure at the Dahej SEZ in Bharuch,
Gujarat.
-----------------------------------------------------
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 7
VENTURE CAPITAL DEALS
IAN Invests in Unbxd
Sector: Technology
About Unbxd: Unbxd is a young technology
startup which helps online visitors on an E-
Commerce website find the right product
through a powerful yet humane search and
retailers to convert these visitors into customers.
Business of IAN: The Indian Angel Network is a
unique concept which brings together highly
successful entrepreneurs and CEOs from India
and around the world who are interested in
investing in start-up / early stage ventures which
have the potential of creating disproportionate
value.
Funding: IAN invested an undisclosed amount
Unbxd.
Rationale: The funds are to be utilized for
development of Unbxd’s team and the product.
-----------------------------------------------------
Travelyaari Plans to raise Funds
Sector: Transports/Logistics
About Travelyaari: Travelyaari is the flagship
company of Mantis Technologies Pvt. Ltd. setup
by IIM-A pass-outs. Travelyaari.com was started
with the objective of making bus tickets booking
accessible to individuals at transparent prices
backed by best seat guarantee and excellent
customer service.
Funding: Travelyaari is planning to raise $10Mn
through VC.
Rationale: The fund will be targeted to expand
its presence in the eastern region after having
significant presence in the northern and western
markets.
-----------------------------------------------------
Avani Bio Energy gains funds from Acumen
Sector: Cleantech
About Avani Bio Energy Private Ltd.: Avani Bio
Energy is a part of the non-profit organization
AVANI, and creates conservation-based
livelihood opportunities by using renewable
energy and other technologies to enhance the
lives of low-income households in the Kumaon
regions.
About Acumen: Acumen Fund was
incorporated in April 1, 2001. Since then their
network of investors and advisors has grown to
include a wide range of individuals and
organizations who share the belief in using
entrepreneurial approaches to solve the
problem of global poverty.
Funding: Acumen Fund has invested $250,000
in Avani Bio Energy Private Ltd.
Rationale: The investment will be utilized to
create 20 operational plants within five years,
providing reliable electricity for more than
58,000 people, which will enable hundreds of
households to move from kerosene to pine
charcoal.
-----------------------------------------------------
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
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MERGERS AND ACQUISITIONS DEALS
ICAP Shipping acquires CTI Shipbrokers
Sector: Engineering
Business of ICAP Shipping:
ICAP Shippin is headquartered in London with
over 195 staff worldwide in Hamburg, Gibraltar,
Singapore, Beijing, Shanghai and Stamford. It
provides shipbroking solutions covering wet and
dry cargo chartering, sale and purchase, forward
freight agreements and research and operations.
Business of CTI Shipbrokers:
CTI Shipbrokers was established in 2004 as a
coming together of 3 big broking houses –
Capital Shipbroker (now ICAP Shipping) of
London, Tradex of Mumbai and Island
Shipbroker of Singapore. The company offers
services like tanker chartering, dry/bulk
chartering, container chartering, offshore
chartering along with sale and purchase of
vessels with addition of a value-added service of
research and analysis.
Funding:
ICAP Plc's shipping unit ICAP Shipping has
bought CTI Shipbrokers (India) Limited by
buying its shares for $2.5 Million.
Rationale:
The current acquisition is aimed at extending the
core functions of the firm along with having an
Indian subsidiary with offices in New Delhi and
Mumbai employing 28 people.
Dalmia Cement acquires Adhunik Cement
Sector: Basic Industries
Business of Dalmia Cement:
Founded in 1939, Dalmia Bharat Cement Limited
is head quartered in New Delhi. With a capacity
of 9 million tonnes per annum, DCBL is a multi
spectrum Cement player with double digit
market share and a pioneer in super specialty
cements used for Oil wells, Railway sleepers and
Air strips.
Business of Adhunik Cement:
Adhunik Cement is a JV between Adhunik Group
and MSP Group, both based out of Kolkata. The
company had invested R700Cr for setting up a
cement plant in limestone-rich Jaintia Hills of
Meghalaya. The plant has a capacity of
producing 1.5 Mn tonne cement annually. It has
also set up a 25MW coal-based captive power
plant for uninterrupted power supply to its plant.
Funding:
Dalmia Bharat Enterprises Limited has acquired
Adhunik Cement Limited for R560 Cr through its
subsidiary - Dalmia Cement Bharat Limited.
Rationale:
The current acquisition is aimed at extending the
company’s presence in eastern India.
-----------------------------------------------------
EdServ acquires Alta Vista’s Business
Sector: Education
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 9
Business of EdServ:
EdServSoftsystems Limited is incepted in Mar
2001 as Lambent Softsystems P Ltd., with an
objective of providing niche training solutions,
customised software solutions, and placement
consulting on contract as well as permanent
basis to both Corporate and Institutional clients.
EdServ provides job linked next generation
education through Integrated Learning Model
(ILM). EdServ'sEdCenters, EdCampuses, and
EdCademys are partner-led and in-campus
online contact centers which are spread across
India and South Asia providing education &
placement through ILM.
Business of Alta Vista:
Alta Vista is a UAE based education solution
provider. It develops internet based education
applications for K-12 and Undergraduate level
studies. It has an extensive presence throughout
the Middle East.
Funding:
The financial details of the acquisition remain
undisclosed.
Rationale:
The acquisition is a part of EdServ's strategy to
expand its overseas business providing online
learning and career solutions through mobile
and tablet platform. Post this acquisition, the
various content for K-12 and UG/skill
development in Arabian Middle east friendly
languages will be sold and serviced in the
Middle East through mobile platforms as part of
its overseas strategy.
-----------------------------------------------------
Solaris Camtech sells bromine business to
Chemtura Corp.
Sector: Basic Industries
Business of Solaris Camtech:
Solaris Chemtech develops, produces, and sells
bromine and bromine chemicals in India. Its
products include chlor-alkali, ortho-phosphoric
acid, brominated flame retardants, specialty
chemicals, and active pharmaceutical ingredients
(API) intermediates.
Business of Chemtura Corporation:
Chemtura Corporation is a manufacturer and
marketer of specialty chemicals, agrochemicals
and pool, spa and home care products. Great
Lakes Solutions, a Chemtura business, is in
business of safe and cost-efficient flame
retardant products and solutions and
brominated performance products.
Funding:
Solaris Chemtech Industries Limited, Avantha
Group company has sold its Bromine
manufacturing and distribution business to
Chemtura Corporation for $142 Mn (about R800
Cr) in cash, besides other liabilities.
Rationale:
The acquisition would strengthen Chemtura’s
position in bromine, provide customers with
increased security of supply through further
diversification of its bromine supply and would
also give access to substantial bromine reserves
to fuel Chemtura’s future global growth through
increased access to a scarce natural resource.
-----------------------------------------------------
Woolsworth sells its wholesale business to
Infiniti Retail
Sector: Retail
Business of Woolsworth:
Woolworths Wholesale (India) Private Limited. a
subsidiary of Woolworths (International) Pty
Limited was incorporated in India in 2006, as a
cash and carry wholesaler - supplying
merchandise to Infiniti Retail - which operates
Electronic Mega Stores under the 'Croma' Brand.
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 10
Business of Infiniti Retail:
Infiniti Retail is the wholly owned subsidiary of
Tata Sons Limited. It operates national chain of
multi-brand electronics stores under the brand
name Croma. The company runs 75 durables
and electronics stores across the country.
Funding:
Woolworths Limited has signed an agreement to
sell its Indian wholesale business to Tata Sons
promoted - Infiniti Retail for A$35 Mn.
Rationale:
The acquisition is in line with Infinity Retail’s
strategy of backward integration through
organic and inorganic means.
-----------------------------------------------------
Invesco invests in Religare AMC
Sector: Financial Services
Business of Religare AMC:
Religare AMC is the domestic asset
management arm of Religare. It has an AUM of
over Rs. 14000 Crore.
Business of Invesco:
Invesco is independent investment management
company headquartered in US with AUM of
$669 Bn as on August 2012. Invesco with
operation in 20 countries provide range of
investment strategies and vehicles to our retail,
institutional and high net worth clients around
the world.
Funding:
Invesco Limited has invested around R450 Cr for
49% stake in Religare AMC. The deal is valued at
about 6.4% of the AUM of R14000 Cr.
Rationale:
With this deal, Religare will be able access
Invesco's global distribution network.
Galloping Horse, Reliance Media Works
together buy Digital Domain Media
Sector: Media
Business of Reliance Media Works:
Reliance MediaWorks (formerly Adlabs Films) is
a film and entertainment services company
based in Mumbai and is part of Reliance ADA
group. It has a comprehensive presence in film
services, motion picture processing and DI, film
restoration and image enhancement, 3D, digital
mastering, studios and equipment rentals, visual
effects, Animation, TVC post production with
presence across India, USA, UK and Japan.
Business of Galloping Horse:
Galloping Horse is engaged in film and
television financing, production, distribution as
well as advertising and magazine publishing,
having 20 year of experience. Recently, the
company has added cinema construction, new
media and animated content production as well
as talent management into its portfolio.
Business of Digital Domain Media:
The business of Digital Domain Media
encompasses feature film and advertising visual
effects, commercial production and virtual
humans, studios in California and Vancouver and
co-production stake in the feature film Ender’s
Game.
Funding:
The financial details of the acquisition remain
undisclosed.
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
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Rationale:
The acquisition will help both Reliance Media
Works and Galloping Horse to establish
presence in North America.
-----------------------------------------------------
Nova Speciality Surgery acquires Excel
Hospital
Sector: Healthcare
Business of Nova Speciality Surgery:
Established in 2009, Nova develops, acquires,
owns and operates day/short-stay surgical
centres in partnership with surgeons across India
and the Middle East.
Business of Excel Hospital:
Promoted by Jamaluddin Ahmad and based in
Kanpur, Excel Hospital offers services in 25
super-specialities.
Funding:
The financial details of the acquisition remain
undisclosed.
Rationale:
Nova has aggressive expansion plan both
nationally and globally and with this acquisition
it has marked its entry in Kanpur. As part of the
first phase of its expansion plans, Nova will
begin the renovation of the hospital and in the
interim will run operations in the hospital.
-----------------------------------------------------
Arvind acquires Debenhams, Next and
Nautica’s India licenses
Sector: Retail
Business of Arvind:
Arvind Mills, the flagship company of the Lalbhai
Group, is one of India's leading composite
manufacturer of textiles. Its headquarters is in
Ahmedabad, Gujarat, India. It manufactures a
range of cotton shirting, denim, knits and
bottomweights (Khakis) fabrics. It is India's
largest denim manufacturer apart from being
world’s fourth-largest producer and exporter of
denim.
Funding:
Arvind Lifestyle Brands, a subsidiary of public
listed textile and apparel retail firm Arvind Ltd,
has acquired the business operations of British
fashion retailers Debenhams and Next and
American lifestyle brand Nautica in India from
Planet Retail for Rs 55 crore ($10.3 million).
Rationale:
While Debenhams and Next will boost the
company’s womenswear and kidswear portfolio,
Nautica will strengthen its menswear segment.
With these three acquisitions, Arvind’slist of
international brands have increased to 13.
-----------------------------------------------------
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SNAPSHOT OF THE WEEK
Sector
Company
Name Investor
Amount
Invested /
Raised
Nature of
Investme
nt Rationale
Food &
Beverage Prabhat Diary
Rabo PE, Abraaj
Capital
Around Rs.
100 Cr PE
Expansion
purposes and to
meet its
corporate
expenses.
Real Estate
HDFC Property
Fund
$500 Mn PE
For investing in
redevelopment
project and
commercial
development
project.
Real Estate Metroplots
Undisclosed PE
For expansion
purpose by
venturing into
Tier II cities.
Leisure Four Seasons Goldman Sach
Around 73%
stake PE Not known.
Healthcare Thyrocare
Norwest Venture
Partners Rs. 120 Cr PE
For Expansion
purposes.
Real Estate
Excedo Realty
Fund
Rs 600 Cr PE
Packaging
Ess Dee
Aluminium Sequoia Capital
Around
6.67% PE
Media DB Corp Nalanda Capital
Around 5%
stake PE
Leisure
IndospaceLogiti
cs Parks II,
BanyanTree
Growth Capital-
II OPIC
$100 Mn in
Indospace
and $35 Mn
in
BanyanTree PE
The funds will be
used to develop
logistics parks in
Bangalore and in
outskirts of
Mumbai.
Media
S.Chand
Publishers Everstone Capital
Around $30
Mn PE
To enable them
to grow their
content through
acquisitions and
more aggressive
bet on
digitization.
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NMIMS, Mumbai | MBA Capital Markets 1
Banking/Fin
ancial
Services
Religare
Enterprise IFC Rs. 400 Cr PE
Airlines SpiceJet
Rs.400-500
Cr PE
The funds are
planned to be
raised to pay off
the debts raised
from banks for
operational
needs.
Healthcare Apollo Hospitals Apax Partners
Around 10%
stake PE
Technology Prizm Payment Indostar Capital
Rs. 100
Crore Debt
New contract to
deploy 14000
ATMs
Energy Torrent Power
Rs. 550 Cr
NCDs for 10
years Debt
1196.85 MW
plant
implementation
at Dahej SEZ in
Bharuch, Gujarat
Technology Unbxd IAN Undisclosed VC
The funds are to
be utilized for
development of
its team and the
product
Tranportati
on/Logistics Travelyaari - $10 Mn VC
The fund will be
targeted to
expand its
presence in the
eastern region
after having
significant
presence in the
northern and
western markets
Cleantech Avani Bio Acumen 250000 VC
The investment
will be utilized to
create 20
operational
plants within five
years, providing
reliable electricity
for more than
58,000 people
Engineering CTI Shipbrokers ICAP Shipping $2.5 million M&A
extending
operations to
India
Basic
Industries Adhunik cement Dalmia Cement Rs. 560 Cr. M&A
extending
presence in
eastern India
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Education Alta Vista, UAE Edserv Undisclosed M&A
Strategy to
expand in middle
east
Basic
Industries
Solaris
Chemtech Chemtura Rs. 800 Cr. M&A
consoliating
position in the
bromine business
Retail
Woolsworth,
India Infiniti Retail A$35 million M&A
Backward
integration by
buying out the
backend ops
manager
Financial
Services Religare AMC Invesco Rs. 450 Cr. M&A
Religare will be
able to leverage
on Invesco's
global resources
Media
Digital Domain
Media
Reliance Media
Works, Galloping
Horse, China undisclosed M&A
expansion in
North America
Healthcare
Excel Hospital,
Kanpur
Nova Speciality
Surgery undisclosed M&A
Part of Nova's
expansion plans
in India
Retail
India Licenses of
Nautica,
Debenhems,
Next Arvind Rs. 55 Cr. M&A
Will strengthen
portfolio of
brands
DISCLAIMER
Circuit Breaker is an activity of Investocraft, by students of MBA Capital Markets,
NMIMS, Mumbai.
The data sources are approved Govt sites, as well as other sites respected by the
investor community like MoneyControl, VCCircle, etc
For more information, please contact:
DeeptiBawiskar: [email protected], 9158892161
MadusudananRamani: [email protected], 992015949
September 30, 2012 INVESTOCRAFT CIRCUIT BREAKER
NMIMS, Mumbai | MBA Capital Markets 3
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