3 0 J U L Y - 5 A U G ’ 1 2

Private Equity Track Research4I nd ia Week ly updat e o n t he Ind ian PE Sec tor

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 / custom queries, please contact Seema Shukla at seema@four-s.com.

34.2

1100.9

7 12

0

2

4

6

8

10

12

14

16

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

29th July'12 5th Aug'12

PE Investments No. of Deals

Investor (s) Target

Stake

(%)

Value

($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

Network, Elevar Equity

Advisors, SVB India

Vistaar Financial

Services Pvt Ltd NA 7.2 Growth Services BFSI NBFC

Accel Partners Universal Collectabillia NA 5.0 Early Services Misc. Services Merchandis

e firm

Sequoia Capital Practo Technologies NA 4.6 Early Services IT/ITeS Software

Foundation Capital,

Inventus Capital

Wealth India Financial

Services NA 3.6 Early Services BFSI

Fin 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

PE Activity for the week

During the week ended 05th Aug, 2012, there

were 12 PE/VC deals worth $1.1bn compared to

7 deals worth $34.2mn in the previous week.

Out of the total, 5 were early stage deals, 4

were growth stage deals and 4 were PIPE deals.

In the largest deal during the week, Bain

Capital Partners has agreed to buy around 30%

stake in the business process management and

technology services company Genpact Ltd for $1bn.

PE Deals During The week

Private Equity Track

Research4India 2

Bain Capital buying 30% stake in Genpact

for $1bn

PE firm Bain Capital Partners has agreed to

buy around 30% stake in the business

process management and technology services

company Genpact Ltd for $1bn. The stake

held by the existing investors of the company

– General Atlantic and Oak Hill Capital – will

be bought at $14.76 per share with an

additional $2.24 per share of special

dividend. The two investors still hold a 10%,

which will be worth another $382mn. Bain

Capital has agreed not to sell any Genpact

share for a period of two-and-a-half years.

Four-S Comment: General Atlantic and Oak

Hill bought 60% in Genpact in 2004 for

$500mn. They subsequently reduced their stake

to little over 40% after 2 rounds of sale. In this

round of exit, they are estimated to have

pocketed around $1.62bn (Bain deal of $1bn

and special dividend) for 30% stake sale,

thereby making around 6.5x return on

investment. BPO and IT Services sector seems

to be completing its first cycle of exits. Last

year also saw some high profile PE exits in the

sector - Blackstone exiting Intelenet by selling

its majority stake to UK’s Serco in a $634mn

deal and General Atlantic selling Patni

Computers stake for $254mn.

Brick Eagle Capital invests in Xrbia

Developers

Brick Eagle Capital Group is investing Rs 2bn in

five projects of Xrbia Developers Limited,

affordable housing venture promoted by the

Eiffel group. The fund has invested Rs 400mn in

the first development and the rest of the money

will go into the remaining ventures. The five

projects will come up in the area of Karjat, near

Mumbai, on 150 acres acquired by Brick Eagle

and will be developed in partnership with Xrbia.

The Group's realty footprints span across Pune,

Mumbai, Nagpur, Delhi & Bangalore, with over

25 mn sft. of existing development and 119 mn

sft of planned projects.

L Capital to invest $19.6mn in PVR,

subsidiary

L Capital Asia has picked a 10% stake in Ajay

Bijli-promoted PVR Ltd for Rs 577mn through a

preferential issue. The fund will also invest Rs.

500mn to set up a joint venture with PVR, PVR

Leisure Ltd, which will focus on in-mall

entertainment, gaming, food and leisure. L

Capital’s holding in the venture will be 44%,

with PVR taking 51% and the remaining going

towards management stock options. PVR’s

existing investment in the bowling-alley

business PVR BluO Entertainment Ltd, a joint

venture established in 2009 with Thailand-

based Major Cineplex, will now be held through

this new company.

Four-S Comment: PVR, which expanded from

single screen theatre in New Delhi, has earlier

seen interest from private equity investor. ICICI

Venture had invested in the company in 2003

and 2005 totalling Rs 470mn. The PE firm made

multiple partial exits from PVR starting with a

pre IPO deal and subsequent open market deals

thereby exiting completely in 2007 for Rs

1.95bn, making nearly 4x its investment. ICICI

Venture again bought into the company in 2008

and currently holds a 7.79% stake.

Oman India Joint Investment Fund invests

in Solar Industries

Industrial explosives maker Solar Industries

India has struck a deal to raise Rs 720mn

($13mn) from Oman India Joint Investment

Fund through a preferential allotment for 4.28%

stake. Founded in 1995, Nagpur-based Solar

Industries (formerly Solar Explosives Ltd) has a

capacity of over 2.8 lakh MT of explosives (with

over 2.1 lakh MT of bulk explosives and the rest

being cartridge explosives), 190 million

detonators and 75 million metres of detonating

fuse. It claims to have increased market share

in India from 24% to 27% in FY12.

Four-S Comment: The annual market of civil

explosives in India is approximately Rs 22.50

bn which is around 5% of the global civil

Private Equity Track

Research4India 3

explosive consumption and is growing at a

CAGR of 20%. In India, the mining sector

accounts for 80% demand for civil explosive

which in turn is dominated by coal mining and

the balance 20% is for infrastructure projects

like roads, hydro engineering, irrigation etc.

India is the world’s eighth-largest explosive

manufacturer. As the industry is tightly

regulated most of the industry is in the

organized sector with ICI India, Gulf Oil, Indian

Oil Corporation and Solar Industries are the

leading players.

SAIF Partners investing $7.2mn Ammi's

Biryani

SAIF Partners is investing Rs 400mn or $7.2mn

in TMA Hospitality Services Pvt Ltd, which owns

QSR chain Ammi's Biryani. The investment

comes after SAIF Partners set up a Rs 1bn

($18mn) investment vehicle, Zooropa Foods Pvt

Ltd, to invest and manage a chain of quick

service and casual dining restaurants. Ammi's

Biryani currently operates in Bangalore and was

founded in 2008 by Navaj Sharief. It operates

primarily as a take-away and delivery chain

with 13 locations in Bangalore.

Four-S Comment: Quick-service restaurants

(QSRs) that operate in the value-for-money

segment, are catching the fancy of PE/VC

players. QSRs continue to report annualized

growth figures of 25% to 30% and operate on

minimum gross margins of 20%, despite the

sullen economic mood. The sector is being

driven by the younger generation, who continue

to spend. Recent investments include Pune-

based QSR chain focused on selling seafood and

fish products, Fishtro, raising $5mn from Correa

Hospitality. Steammo also raised seed funding

from IncuCapital earlier this year. Last year saw

firms like Faaso's (Sequoia Capital) and Goli

Vada Pav (Ventureast) raising money.

Vistaar raises $7.2mn from Lok Capital,

Omidyar, Elevar & SVB

Bangalore-based Vistaar Financial Services Pvt

Ltd, a small enterprise financing firm, has

raised $7.2mn (Rs 400mn) in Series B funding

from Lok Capital and Omidyar Network besides

existing investors Elevar Equity Advisors and

SVB India Capital Partners. Vistaar caters to the

underserved market of small and micro

enterprises (MSMEs), estimated to comprise

over 26 million companies. The funds raised will

be utilised to expand Vistaar’s current network

to 180 branches across the country over the

next four years, with a projected portfolio of

over Rs 16bn.

Accel Partners invests in Universal

Collectabillia

Accel Partners has committed about $5mn in

Universal Collectabillia, a celebrity merchandise

and brand extension firm jointly owned by

Anjana Reddy, who is part of the Deccan

Chronicle family, and cricket legend Sachin

Tendulkar. Collectabillia's business model now

includes helping celebrities extend their brand

beyond careers and has recently struck a deal

with southern movie star Rajnikanth. It has

similar deals with Sachin Tendulkar and tennis

player Sania Mirza, besides owning rights for

any sporting memorabilia related to Tendulkar.

Sequoia Capital invests in online clinic

management platform Practo

Bangalore-based Practo Technologies Pvt Ltd, a

web-based clinic management software

developer, has raised Rs 250mn (around

$4.6mn) from Sequoia Capital in a Series A

round of funding. Practo’s flagship product is

Practo Ray, a web-based software tool which

provides automated appointment scheduling

and storage of healthcare records including X-

rays, files, prescriptions and billing. The money

raised will be used to launch its various

products globally and expand Practo’s 80-

member team to around 350 over the next two

years.

Private Equity Track

Research4India 4

Wealth India Financial raises Rs 200mn for

expansion plans

Wealth India Financial Services, promoters of

online investment services platform

FundsIndia.com, has raised Rs 200mn from

existing as well as new investors. The fund

raising was led by venture capital firm

Foundation Capital with follow on investments

from current investors Inventus Capital. The

investment will be used by FundsIndia to

expand customer base and enhance the

company’s online platform with new products

and services. FundsIndia.com is a transactional

platform that allows users to link their bank

accounts with investment options like mutual

funds, equities, and fixed deposits, with options

for managing multiple accounts, and

automatically triggering investment related

activities.

E-learning firm Liqvid raises $3mn from

Japan's SBI Holdings

Liqvid eLearning Services Pvt Ltd, an integrated

e-learning content solutions company, has

raised $3mn in funding from a subsidiary of SBI

Holdings, Japan. Headquartered in Noida, with

offices in Bangalore, Singapore and the US,

Liqvid provides technology-aided English

Learning and Training (ELT) solutions to

individuals and organisations under the brand

EnglishEdge. The content can be accessed via

PC, tablet and mobile, and the company claims

that EnglishEdge has more than 2,50,000

learners across schools, colleges, vocational

institutes and more. Its key institutional

customers include IIT Delhi, Jamia Millia,

Pinegrove School, Kimberley International

School, Shemford Schools, British Council and

Educomp, among others.

Rakesh Jhunjhunwala invests in SpiceJet

Rakesh Jhunjhunwala has invested around

R76.9mn in SpiceJet through its arm Rare

Enterprises. The company acquired around

0.52% stake in the company. The investment

came after SpiceJet posted a net profit of Rs

560mn for the recent quarter after five

consecutive quarterly losses. SpiceJet, part of

the Sun Group is a low-cost airline

headquartered in Chennai. It began service in

May 2005 and by 2008, it was India's second-

largest low-cost airline in terms of market

share. Last year, Kalanithi Maran invested Rs

1bn into SpiceJet Ltd and increased his stake in

the budget carrier to 48.6%.

Edubridge Learning secures Rs 15mn from

Acumen Fund

Acumen Fund, a non-profit global venture fund

which focuses on poverty alleviation across

Africa and South Asia, has put in Rs 15mn

($300,000) in Mumbai-based education services

provider Edubridge Learning Pvt Ltd. Edubridge

provides vocational training for low-income

youth across Maharashtra, Tamil Nadu,

Karnataka and Chhattisgarh. Edubridge targets

the youth aged between 18 and 25, who are

typically the first formally employed members

of their respective families. Till date, the

company has trained over 1,500 students and

with this investment, Edubridge plans to scale

its services from 12 to 30 centres over the next

two years.

Morpheus Capital to close debut fund

Morpheus Capital Advisors is raising Rs 4.75bn

for its final closure of its consumer goods

focused fund. The fund is targeting affluent

investors, non-banking finance companies,

banks and foreign investors for its fund. Last

year, the fund made its first closure by raising

Rs 4.25bn, which aimed to invest in the

development of consumer brands. Headed by

former IMG India Chief - Babul Nayar,

Morpheus will invest in companies operating in

food and beverages, apparel & retail, beauty &

wellness, travel & tourism and education

sectors. It plans to invest in consumer-related

companies that have put in place innovative

business strategies and technology.

Fund Raising & Liquidity Events

Private Equity Track

Research4India 5

BanyanTree’s second fund hits first close,

reaches close to $100mn

Banyan Tree Finance Pvt Ltd, advisors to

BanyanTree Growth Capital, a structured

private equity fund that provides capital to

middle market companies, has raised close to

$100mn at first close for its second fund –

BanyanTree Growth Capital II LLC. The fund is

targeting a corpus of $175mn to be raised by

the end of this year. The capital has been raised

from global institutional investors across Asia,

the US and Europe. The fund will stick to its

earlier investment philosophy and focus on

growth capital in the manufacturing and SME

space for investments.

IndoUS Venture Partners raises $149mn

for new fund

IndoUS Venture Partners, a venture capital firm

based in Bangalore, has raised $149mn for

IndoUS Venture Partners II, LLC. While the

venture capital firm has put $150mn as the

total offering amount, this may not be the final

close and the fund could be looking to raise up

to $175mn. The fund made its first sale in

October 2011, raising $97.5mn, and reached

$132.5mn in April this year. Some of the recent

investments made by the VC firm include baby

products e-commerce venture Hushbabies.com

and digital magazine store Magzter Inc. In

2011, IndoUS Venture also exited pharma retail

chain MedPlus Health Services in a secondary

deal in which it reportedly made 4x return.

Kotak Realty Exits Lalith Gangadhar

Kotak Realty Fund is exiting its investment in

Lalith Gangadhar Constructions Private Limited,

with around 10 times return on its investment

in 2007. Kotak is selling its 49% stake for Rs

530mn to the promoters. The fund invested

invested Rs 50mn for 49% stake in the real

estate firm in 2007. Later in 2008, it invested rs

450mn in Lalith Gangadhar’s high-end villa

project in Bangalore called LGCL Ashler.

Star Health looking for PE funding

Star Health and Allied Insurance Company is

planning to raise Rs 1.5bn PE funds for a 6-8%

stake in the company. Its holding company Star

Health Investments Pvt. Ltd (a SPV for

promoting the insurance company) had

received a similar funding from Sequoia Capital

(to bypass the 26% FDI rule) earlier in

November 2010 and ICICI Venture (Rs 1.2bn)

in the same year. The company was trying to

tap the retail insurance segment as announced

in 2009 during when it had 80% of premium

income from the Government Health schemes

and rest from the retail segment.

India Value Fund to invest up to $180mn

in Manipal Hospitals

In what will be the largest private equity

investment in an Indian healthcare firm, India

Value Fund Advisors (IVFA) is committing up to

Rs 10bn ($180mn) to Manipal Hospitals to roll-

out an aggressive inorganic expansion strategy

over the next 4-5 years. In the first leg of the

transaction, Manipal Hospitals is set to get Rs

3bn over the coming weeks from IVFA and

investment will increase as we start acquiring

assets in secondary & tertiary healthcare

service providers besides day care surgery

centres.

Cox & Kings’ UK arm to raise $100mn from

CVCI

Mumbai-based travel services provider Cox &

Kings Ltd is close to signing a deal to raise

$100mn from Citigroup’s private equity arm

Citigroup Venture Capital International (CVCI)

for its UK-based arm. The company, which

acquired UK-based Holidaybreak Plc last year,

will use the money to part-retire its debt of Rs

12.5bn. In May this year, the company said

that its board had approved investment of up to

$140mn in Prometheon Holdings (UK) Ltd (a

Private Equity News

Private Equity Track

Research4India 6

wholly owned subsidiary of the company) from

an institutional investor.

Muthoot Capital Services shares sale offer

oversubscribed

The offer to sell shares of Muthoot Capital

Services by six of its promoters was

oversubscribed. The offer for sales of 3,09,165

shares, received bids for 3,09,187 shares, the

data showed. The floor price for the sale is Rs

90 apiece. Based on the minimum bidding

price, sale of 3,09,187 lakh shares would fetch

over Rs 27.8mn to the company.

Jupiter Infomedia IPO opens for

subscription

The Rs 40.8mn IPO of Jupiter Infomedia , a web

infomedia company with online publications on

business, encyclopedia and yellowpages,

opened for subscription on July 31. It has fixed

the issue price at Rs 20 a share and planned to

offer 20.4 lakh equity shares through the issue,

which closed on August 1. Jupiter Infomedia

intends to use issue proceeds for purchasing

and setting up of offices in Mumbai and

Kolkata; renting offices in Ahmedabad, Chennai

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.

Source: Four-S PE Database

Acquiror Target Sector

Stake

(%)

Deal value

($ mn)

Sahara Group Plaza Hotel Hotel NA 570.0

PhillipCapital Group MF Global Sify Securities India Pvt

Ltd - Sify's stakeBFSI 29.85 25.0

Dhunseri Petrochem & TeaGlobal Tea & Commodities - 2 tea

estatesF&B NA 22.0

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

IPO, Other Offerings

Private Equity Track

Research4India 7

Market Update

Key Domestic Indices

Key Global Indices

Source: Google Finance, Yahoo finance

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

Indian 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

Global Market Movements 52 Week

Private Equity Track

Research4India 8

Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and

objective advice to top Indian & global companies & PE Firms. Four-S has already proven

success in corporate finance, strategy consulting, fund-raising, investment banking and

investor relations mandates with 100+ corporates and large PE funds.

Four-S, trusted advisor to top Indian & Global Cos

Offering comprehensive bouquet of services to SMEs, Corporates and PE Funds

Four-S Services Pvt Ltd

Private Equity Track

Research4India 9

About Research4India

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. These reports will be available on our upcoming

site www.research4india.com, as well as from leading international research sellers like

Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc.

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 opinions 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 contents. 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:

Seema Shukla Ajay Jindal

Seema@four-s.com Ajay.jindal@four-s.com

Gurgaon Office:

214, Udyog Vihar, Phase I,

Gurgaon – 122016

Tel: +91-124-4251442

Mumbai Office:

101,Nirman Kendra, Opposite Star TV,

Off Dr E Moses Road, Mahalaxmi,

Mumbai – 400001

Tel: +91-22-42153659