Unitus Capital, BMR Top Transaction Advisor League Tables for Private Equity, M&A in 2013

Ernst & Young retains Most Active Transaction Advisor status inclusive of due diligence, other services (in both PE and M&A)

Unitus Capital and BMR Advisors made their entry into the top of the Venture Intelligence League Tables for the Most Active Transaction Advisors for Private Equity and Mergers & Acquisitions deals respectively in calendar 2013.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on volume of PE and M&A transactions (combined with credits based on fulfilment of criteria) advised by Transaction and Legal Advisory firms.

Private Equity

Unitus Capital made its entry into the top of the Venture Intelligence League Table for Most Active Transaction Advisor (Private Equity) for calendar 2013 acting as financial advisor to 13 qualifying PE investments during the year (and notching up 50 points). Among the transactions advised by Unitus were the $57 million investment by Citi, Morgan Stanley, Tata Capital and India Financial Inclusion Fund in Janalakshmi Financial Services and Lok Capital�s exit from Satin Creditcare Network.

Intellecap and o3 Capital shared the second spot with 32 point (across eight deals) each. o3 Capital advised deals included Multiples PE�s $43-M investment in Milltec Group and TPG�s investment in Sutures India. Intellecap advised investments included Aavishkaar Goodwell and MSDF investing in Arohan Financial Services and SIDBI VC�s investment in Gramco Infratech.

Inclusive of its roles in due diligence and related advisory activities, Ernst & Young retained its status as overall Most Active Transaction Advisor for Private Equity in 2013. Ernst & Young notched up a total of 75 points across a total of 57 deals (6 of them for pure financial advisory). PE deals advised by Ernst & Young during 2013 included Everstone�s $33-M investment in Hinduja Leyland and Warburg Pincus� investment in Avtec.

M&A

BMR Advisors made its entry into the top of the Venture Intelligence League Table for the Most Active Transaction Advisor for Mergers & Acquisitions deals for calendar 2013 with 30 points (across 10 qualifying deals). Ernst & Young finished second with 28 points (across 7 deals) while Allegro Advisors followed close for the third spot with 26 points (across 7 deals).

BMR ended the year with 30 points having advised 10 qualifying deals including the $194-M acquisition of Claris Lifesciences� Infusions Products Business by Japan�s Otsuka and the $45-M acquisition of Four Soft by Kewill Group.

Inclusive of due diligence and related advisory activities, Ernst & Young retained its status as Overall Most Active Transaction Advisor for M&A in 2013 with 76 points across a total of 52 deals (7 of them in a pure financial advisory capacity). Ernst & Young advised M&A transactions included TRIL Roads� acquisition of IVRCL�s three highway projects and DHFL�s acquisition of DLF�s stake in DLF Pramerica. Allegro Advisors earned 26 points across 7 deals during the same period, while Deloitte earned 29 points across 18 deals.

Other transaction advisors who had advised a significant number of M&A deals during the year include Kotak Investment Banking (5 deals), o3 Capital and Axis Capital (4 deals each).

http://bit.ly/1npa0yC

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Event Promotion

Private Equity Fund Investments

CX Partners, Capital Square buyout Minacs BPO for $260-M from Aditya Birla Group

BSE, Times of India

Private Equity firm CX Partners will team up with Singapore-based tech investor Sanjay Chakrabarty� and Aparup Sengupta-led Capital Square Partners to buy out business process outsourcing (BPO) firm Aditya Birla Minacs Worldwide at an enterprise value of $260 million. Both firms will equally fund the acquisition. Minacs employs 21,000 people across 35 locations across 10 countries. It is the sixth largest BPO in the country. For FY13, Minacs reported revenues of $450 million and net profit of $23 million. The operating profit is placed at $40 million. Macquarie Capital was the financial advisor to the deal, while Sherman & Sterling was the legal advisors to the investors in the transaction.

Bangalore-based Minacs, thus far a subsidiary of publicly listed Aditya Birla Nuvo, was formed when BPO firm TransWorks acquired North American CRM services company Minacs in 2007.

Last year, Sanjay Chakrabarty had co-led the acquisition of Chennai-based IT services company CSS Corp along with European PE firm Partners Group for $270 million.

http://bit.ly/1fguKCB

http://timesofindia.indiatimes.com/articleshow/29633259.cms

Goldman Sachs to pick up 26% in medical devices maker Opto Circuits for Rs.300-Cr: report

Business Line

Global investment banker Goldman Sachs is likely to acquire 26% stake in Bangalore-based medical equipment maker Opto Circuits (India) Ltd for around Rs 300 crore, through a combination of existing and fresh equity. Goldman will pick up this stake at Rs 50-52 per share, valuing Opto Circuits at about Rs 1,300 crore The investment banker will also appoint two members to the firm�s board.

Opto Circuits specialises in vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies. The company was on an acquisition spree in both domestic and overseas markets over the past 7-8 years. It had bought US-based Criticare Systems, Polco Labs, Unetixs Vascular and Cardiac Sciences Corp and also a German company EuroCOR. In India, it took over Kolkata-based NS Remedies.

http://bit.ly/M2vxOV

IVFA backs ex-GCPL MD Mahendran buyout of pest care firm Hi Care for Rs.150-Cr: report

Business Standard

A Mahendran, former managing director of Godrej Consumer Products (GCPL), has bought out Hi Care India, a Mumbai-based pest management firm, from Danish company ISS. The deal, valued at Rs 150 crore, was backed by private equity investor India Value Fund, which will have a 80% stake in Hi Care India, with the balance held by Mahendran. GCPL had sold its stake in Hi Care, first launched in 2004, to ISS in 2009. The turnover of Hi Care is Rs 70 crore.

Hi Care specialises in cockroach and termite management in residential and commercial premises. The brand is present in 30 cities.

From the Venture Intelligence M&A Deal database: In Apr-09, GCPL sold Hi Care to ISS for $35-M.

http://bit.ly/1hL5eax

Kotak PE buys out IFC, JM Financial from offshore logistics firm Samson Maritime for Rs.150-Cr

Economic Times

Kotak Private Equity is buying out IFC and JM Financial's 19% take in Samson Maritime, an offshore logistics support services firm catering to the oil and gas sector, for INR 150 crore. The founders own 81% in the company, while JM Financial and IFC hold 11.7% and 7.3%, respectively. The investment banking arm of Edelweiss was the financial advisor to the deal.

In 2008, the private equity arm of JM Financial invested around $14 million in the company. Subsequently, in 2013, IFC invested around $11 million to part-finance the debt that it took to purchase of a new Anchor Handling Tug Supply Vessel (AHTS).

http://bit.ly/1aWn49i

Tata Opportunities Fund to invest $60-M in Varroc Group: report

Times of India

Tata Opportunities Fund will purchase a significant minority stake in Aurangabad-based auto component maker Varroc group for $60 million, or Rs 272 crore. Promoted by first generation entrepreneur Tarang Jain, the company, with sales of more than Rs 800 crore, will use the money to build new products and to expand its presence in Europe and emerging markets.

Varroc began selling auto components to Bajaj Group in late 90s and later to other vehicle makers. Varroc had grown through acquisitions in the global market. In 2012, it acquired US-based Visteon Lighting for $100 million, helping it to ramp up its presence in Mexico and Chezch Republic.

http://timesofindia.indiatimes.com/articleshow/29593428.cms

Ventureast Tenet, others invest Rs.18-Cr in portable ventilators firm OneBreath

Times of India

Bangalore-based medical device startup One-Breath, which makes low-cost portable, rechargeable ventilators, has raised INR 18 crore, including as equity investment from Ventureast Tenet Fund and grant money. Angel investors like Rajiv Kuchhal and BVR Mohan Reddy have also backed the company founded by a team of physicians and engineers from Stanford University.

OneBreath will use the funds to expand into emerging markets such as India, Africa and Eastern Europe. The firm will also use the funds to gain clearance from regulatory bodies in Europe and the United States for the ventilators,which are designed for use in critical care across the world.

From the Venture Intelligence Social VC Investments Database: Villgro had announced an investment in OneBreath in Dec-13.

http://bit.ly/1f5jA5d

http://www.onebreath.org/

Blume Ventures, angels invest in online video calling firm 1Click.io

Times of India

Bangalore-based Turtle Yogi Technologies, which owns and operates 1Click.io, a cloud-based video infrastructure product, has raised a round of seed-stage funding from a consortium of investors led by early-stage venture capital firm Blume Ventures. US-based micro venture capital firm Shead Holdings and Chennai Angels member R Narayanan, along with Google Singapore executive Rahul Garg also participated in the round, which is estimated to range between $250,000 (Rs 1.6 crore) and $350,000 (Rs 2.2 crore)

Turtle Yogi, which was previously incubated at NS Raghavan Centre for Entrepreneurial Learning the startup incubation hub of IIM Bangalore, plans to use the proceeds to build on its B2B sales and expand its product offering.

http://bit.ly/1cjVrbg

http://1click.io

Liquidity Events (Private Equity)

Innoz founders� buyback Seedfund�s stake; move to US to launch new app firm

Nextbigwhat.com

The founders of Seedfund-backed, SMS-based mobile value added services startup Innoz, Ravindran and Hisham, have moved to the Silicon Valley to build another app called Quest. The founders have bought back the investor�s stake. for $3 million

Quest has raised $500,000 from US-based incubator 500 Startups to develop a location aware app that uses people nearby to get questions answered for the members of its community.

http://www.nextbigwhat.com/innoz-founder-quest-297/
 

March 6 Mumbai Select List of Speakers  Manish Kejriwal   MD   Kedaara Capital  Raj Nair  Chairman  Avalon Consulting  Avnish Bajaj  MD  Matrix Partners India  Sanjeev Aga   Special Guest   Ex-CEO, Idea Cellular  Alok Gupta  Partner  Headland Capital  Ravi Gururaj   Co-Founder Harvard Angels  India Visit the The APEX'14 Page for more detailed Speakers List & Event Agenda. Email [email protected] for Early Bird participation rates. Please contact Arihant at [email protected] / 9176033455 for sponsorship / related opportunities at the event.

Angel Investments

OurHealthMate closes $440-K

YourStory

Singapore-based OurHealthMate, an online platform that allows non-resident Indians to manage and monitor their family�s healthcare in India, has closed a $440K seed funding round led by Bimal Shah, heading an international syndicate of business angels. The round is supported by Singapore-based Benjamin Tsai and a second international angel syndicate led by high frequency trader Ben Ball.

Co-founded by Akash Kumar and Abhinav Krishna, OurHealthMate�s web platform creates a direct link between NRIs and healthcare professionals in clinics and multi-speciality hospitals. The founders developed their business through the JFDI.Asia accelerator program in 2013 and the money raised will be used to expand the team from six to 16 staff across offices in India and Singapore and to introduce the platform to more cities across Asia. By the end December 2013, OurHealthMate was being used by over 2,000 doctors in over 700 medical centres located in 50 cities spread across India. An additional 30 hospitals are joining each week.

http://yourstory.com/2014/01/ourhealthmate-raises-440k/

DSG Consumer Partners invests Rs.10-Cr in Saraf Foods

Business Line

DSG Consumer Partners has picked up 29% stake for Rs.10 crore in Vadodara-based freeze-dried agricultural products maker Saraf Foods Ltd. DSG will make Rs 4.5 crore as primary and Rs 5.50 crore as secondary investment. Saraf Foods, which commenced production as a startup in 1992 with a funding of Rs 1.25 crore from Gujarat Venture Finance Ltd (GVFL), is a B2B company mainly supplying freeze-dried vegetable, fruits and herb products to food majors like Hindustan Unilever and Nestle in India and other global players abroad. It will use the funds to increase its input capacity from 7 tonnes per day to nearly 10 tonnes a day. About 70% of the company�s revenue comes from exports.

http://bit.ly/1jGV9PM

Mobile payments startup iKaaz raises seed round; aims for $5-M Series A

Startupcentral.in

Bangalore-based mobile payments solution provider iKaaz has received seed round of funding from Ananda Kallugadde, managing director of NeoBytes Software and other investors. The company is also in talks with a investment banking firm to raise a $5 million Series A round. The funds raised will be used for the company�s expansion plans in India and Africa.

Sundaram, an BITS Pilani alumnus and earlier with Nokia�s Mobile Money division, founded the company in 2012. Its flagship product is a mobile POS (point-of-sale) payment solution which uses an NFC tag to turn any mobile phone into a wallet capable of making cashless transactions. Customers can connect their iKaaz NFC tag to their bank account, prepaid account, debit card or credit card.

http://bit.ly/1gvRUdv

Incubation / Acceleration

Mobile payments startup Eashmart raises funding from CIIE, angels

Startupcentral.in

Delhi-based Cobboc, developer of a mobile POS (point-of-sale) payment system called Eashmart, has raised funding from CIIE, IIM Ahmedabad�s incubator, and two unnamed angel investors. The company will use the funds raised for further technology development and market education.

Amit Kumar, an alumnus of the Indian Institute of Space Science and Technology and co-founder at Chile-based Targeter App started Cobboc in October 2012. Cobboc has been a CIIE incubatee since September 2013 and has ten customers right now. Eashmart aims to make it possible for consumers to use their credit or debit cards to make payments for anything from home delivery to taxis without actually having to swipe the card in a card-swipe machine, using the Eashmart App.

http://bit.ly/1fC6yuV

Social VC Investments

Aavishkaar invests Rs.31-Cr across 4 cos

Times of India

Aavishkaar Venture Management has invested a total of INR 31 crore Series A investments in four firms that operate in the healthcare, education, apparel and dairy sectors from its $94 million Aavishkaar India II fund. The transactions include a INR 15 crore investment in Ranchi-based dairy services firm HR Foods which will use the proceeds to expand its network across the state of Jharkand and to establish its milk processing plant in Ranchi.

Aavishaar also invested INR 6 crore in Pondicherry-based organic apparel manufacturer CAOS Apparels which will look to increase its manufacturing capacity. Women from fishing and farming communities make up 70% of the workforce of CAOS, which manufactures organic, fairtrade-certified cotton garments.

Additionally, Aavishkaar co-invested, along with global impact investor Accion, INR 6.2 crore in Mumbai-based healthcare services company Mera Doctor. Mera Doctor, which primarily operates in UP, offers a health kit that bundles prepaid telephonic doctor consultations, hospital cash insurance, personal accident insurance and discounts on pharmacies and diagnostic centres, at affordable prices.

A fourth investment of INR 4 crore has been made in Kolkata-based Nalanda Learning Systems which runs a chain of preschools under the name of Little Laureates. It currently has 11 operational schools and will use the funding to set up more than 300 schools across Eastern India.

http://bit.ly/1kaiN4O
 

Other Private Equity/Strategic Investments

GIDC to partner Adani in Mundra Plastic Park venture

Times of India

Gujarat Industrial Development Corporation (GIDC) has decided to invest 15% in setting up of a Special Purpose Vehicle (SPV) for the development of a plastic park in Mundra. The Adani Group proposes to invest around Rs 196 crore for developing the park on 118 acres of Mundra Port SEZ, managed by The Adani Port and Special Economic Zone Ltd (APSEZL).

APSEZL has tied up with 47 plastic producers to establish their exports units in the park. The Union Government has cleared the APSEZL's proposal after rejecting it in 2011-12.

http://timesofindia.indiatimes.com/articleshow/29379994.cms

HPCL unit buys stake in Australian fields

Business Line

Prize Petroleum, a wholly-owned subsidiary of Hindustan Petroleum Corporation Ltd (HPCL), has entered into an agreement with Sydney-based AWE Ltd to acquire stakes in two oil fields - 11.25 % in T/L1 area and 9.75 % interest in T/18P area - for 85 million Australian dollars. The T/L1 field includes Yolla producing field and BassGas infrastructure and T/18P has Trefoil development field. Both the fields are located in shallow water in Bass basin between mainland Australia and Tasmanian offshore area. In addition to the field, the acquisition will also entail a stake in offshore platform, gas processing plant and a 147-km sub-sea pipeline. The fields are operated by Origin Energy and held by a consortium in which Origin, AWE and Toyota Tsusho are the major partners.

http://bit.ly/Lmdq6y

Mergers & Acquisitions

McNally sells stake in UK industrial pumps maker Hayward Tyler for GBP 12.3-M

Publicly listed McNally Bharat Engineering Company has sold its entire shareholding of 41.66% in Hayward Tyler Group Plc UK, in a bidding process at AIM counter of London Stock Exchange at a total value of GBP 12.3 million. The stake was held through McNally�s 100% subsidiary in Singapore.

From the Venture Intelligence M&A Deal database: In Aug-12, McNally had acquired Hayward Tyler, a GBP 32 M industrial pumps and motors maker. The Deepak Khaitan-promoted acquirer co had picked up a 25.27% stake in the London AIM-listed Specialist Energy Group (SEG) - the holding company of target - over two years for INR 46.06 Cr. In Jul-12, acquirer purchased another 16.42% through placement of fresh shares worth GBP 5 million (INR 44 Cr) in SEG. As a result, the acquirer got control of 41.69% stake in SEG. The final deal also saw acquirer providing GBP 4 million INR 35.2 Cr loan to SEG. McNally was planning to introduce the target�s line of pumps in India.

http://bit.ly/LqD3mL

Pricol to acquire Xenos Automotive

Coimbatore-based listed auto component manufacturer Pricol Ltd has decided to merge the business of Xenos Automotive Ltd (Xenos) with itself. Shareholders of Xenos would be issued Pricol shares in the ratio of 1:122 (one equity share of Re 1 each of Pricol for every 122 shares of Rs 10 each of Xenos). The valuation report was issued by Haribhakti & Co and fairness opinion issued by Centrum Capital.

While Pricol is an auto component manufacturer, Xenos is into the production of a range of automotive accessories like vehicle security systems, entertainment products like head units, amplifiers, sub woofers, convenience products such as car mobile and laptop chargers and car care products.

http://bit.ly/1d4iD93

GVK Bio acquires US-based CRO Aragen

Hyderabad-based GVK Bio has acquired US-based Aragen Bioscience, Inc., a pre-clinical CRO specialising in high-value biologics services. This acquisition provides GVK with expertise in large molecule research and development services and high-content biological services.

From the Venture Intelligence PE Deal database: In Nov-07, GVK Bio had raised $24-M from Sequoia Capital India. (Subscribers to the database can login to view valuation, deal structuring and other transaction details.)

http://bit.ly/1jLFAWY

http://www.aragenbio.com/

Publicis acquires Law & Kenneth, to merge it with Saatchi & Saatchi

Paris-headquartered Publicis Groupe, has acquired 51% in Law & Kenneth, the New Delhi-based independent agency led by adman Praveen Kenneth. The acquired entity will merge with the Indian unit of Saatchi & Saatchi, a Publicis Groupe agency, to form L&K Saatchi & Saatchi. Kenneth will take over as the chairman and managing director of the combined unit. He will also have a stake in the combined entity.

http://bit.ly/1bcun9M

Other Deals

Blank cheque firm Millennium India Acquisition to drop India focus; sells part stake in SMC

US-listed "blank check" acquisition firm, Millennium India Acquisition Company, Inc. (MIAC) is "eliminating its policy of investing more than 80% of its assets in Indian companies" and plans to change its name to remove reference to India. In Oct 2013, Hudson Bay Partners, a shareholder in MIAC, reconfigured the board and announced that Jacob Cherian (former Chairman and CEO) and Suhel Kanuga (former President and CFO) will no longer have executive roles. MIAC's current principal asset is its ownership of a 14.03% equity interest in Delhi-based brokerage firm SMC Global (that it had acquired in May 2007 for a reported $40-M).

On December 12, 2013, MIAC announced that it had received $1,376,890.46 ($0.1675 per MIAC share) via sale of 1,131,345 shares of its investment in SMC Global Securities LTD (�SMC�) at $1.22 per SMC share. After completion of the sale, MIAC still holds 14,736,035 shares of SMC. Based on the selling price in this transaction ($1.22 per SMC share), the imputed value to MIAC�s remaining position in SMC is $17,934,331, which translates into $2.18 per MIAC share (not including the $0.1675 of cash per MIAC share received from the sale). On November 8, 2013, MIAC received a dividend of $60,903.74 from SMC Global. SMC had earlier dropped its IPO plans and withdrawn its draft red herring prospectus (�DRHP�) filed with SEBI.

http://1.usa.gov/Miz6R2

http://1.usa.gov/1eyuKwg

http://1.usa.gov/Mxp8Mx

http://bit.ly/Lc0PCe

Secondary Issues

SBI raises Rs.8,000-Cr through QIP

Business Standard

State Bank of India had raised Rs.8,032 crore via a qualified institutional placement (QIP) which would boost its capital adequacy ratio to 12.81% as compared to 12.09% recorded as on September 30, 2013. With the QIP proceeds, the bank will not require any equity infusion for the next two years.

Earlier this year, the government had infused Rs 2,000 crore in the bank through preferential allotment. Following the QIP, the government stake in the bank will come down to 58.6%, as compared to 62.9% earlier.

http://bit.ly/1ifw5w7

Other Deals - Listed Firms

WestBridge invests Rs 64.5 Cr in snacks maker DFM Foods

The public market focused WestBridge Capital Partners, via Jwalamukhi Investment Holding and WestBridge Crossover Fund, has picked up a 24.9% stake (2,490,417 shares) for INR 64.53 Cr in publicly-listed DFM Foods, the makers of �Crax� branded snacks. While Jwalamukhi has acquired 9,95,166 equity shares at INR 259.10 per share while Crossover Fund has acquired 14,95,251 equity shares at INR 259.15 per share. As part of the deal, WestBridge Capital co-founder Sandeep Singhal has joined the DFM board as an additional director.

DFM Foods Ltd. is in the business of manufacturing, selling and marketing of packaged snack foods - including Corn Rings, Namkeen and Natkhat - under the Crax brand.

http://bit.ly/1eBDD8m

http://bit.ly/1dcdiwy

http://bit.ly/1loTrnI

http://www.dfmfoods.com

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Knowledge Partner

Trilegal is one of India's leading law firms with offices in four of India�s major cities - Mumbai, New Delhi, Bangalore and Hyderabad.  The firm has the experience and expertise in acting on complex, high-value, cross-border as well as domestic transactions, leading to its key practices winning top industry awards and accolades. The firm�s key practice areas include private equity and venture capital; corporate - mergers and acquisitions, strategic alliances and joint ventures, projects, energy and infrastructure, banking and finance, restructuring, capital markets, telecoms, media and technology, dispute resolution, competition law, labour and employment, real estate and taxation. Trilegal is recognised as having a market leading practice with a client base that includes leading international and Indian companies as well as smaller growing businesses. The firm�s client roster comprises many of the world's leading funds, corporations, banks and financial institutions.

http://www.trilegal.com/

India Infoline�s wealth management arm raises Rs.735-Cr realty fund

Mint

IIFL Wealth Management, a unit of financial services firm India Infoline Ltd, has raised Rs 735 crore with an option to co-invest another Rs 500 crore. The fund will target income-generating opportunities in the residential sector with development partners. IIFL has also mandated Indiareit Fund Advisors Pvt Ltd as the investment advisor to the fund. The fund, under the IIFL Income Opportunities Fund - Series Special Situations, is an alternative investment fund (AIF). It has an 18-month deployment period, targeting gross returns between 22-24% and an equity commitment of Rs 50-75crore in each transaction.

http://bit.ly/1nnm3MK

IDFC Alternatives unveils two real estate funds

Business Line

IDFC Alternatives, the private equity arm of infrastructure finance company IDFC Ltd, is raising two funds for the real estate industry. The firm is raising a domestic mezzanine debt fund of about $100 million (Rs 620 crore) and a foreign rental yield fund of $300 million (Rs 1,860 crore). It intends to invest the domestic fund in real estate projects across the seven Indian major cities, including the metros.

The foreign fund would be a joint venture club-structure rental yield fund, for which the PE firm is in talks with strategic players. The exit modes would be through Real Estate Investment Trusts or strategic sale of buildings.

http://bit.ly/1i5EOkB
 

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Fmr Mumbai Angels exec Anil Joshi to raise $25-M tech fund

Mint

Former President of the Mumbai Angels Network, Anil Joshi, plans to launch a new $25 million technology fund to be tentatively called Dev (development) Venture Fund. The fund will focus on early-stage investments in the mobile, telecom and information technology (IT) sectors. The investment size would vary from $300,000 to $2 million. The fund will invest in 15 to 20 companies.

http://bit.ly/1i1JkAw

http://www.linkedin.com/in/aniljoshi74

Pramod Bhasin to head DLF's REIT business

Economic Times

Pramod Bhasin is being appointed as the chairman of the rental business of DLF, the country's biggest builder, as the latter plans to consolidate its rental assets into Rentco and list it as a REIT or real estate investment trust in the future. Bhasin's entry is being seen as part of the process of making the rental business an independent vertical within DLF. Over the course of the next two years, all rental assets will be merged into one entity that will be spun off as a listed company or as a REIT as and when the government puts in place a tax code for the new instrument.

http://bit.ly/1b6jPsF

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Private Equity/Strategic Investments

Realty firm Supertech to raise Rs 1,000-Cr

Economic Times

Noida-based realty firm Supertech is in talks with a few private equity firms, including existing investor Xander, to raise Rs 1,000 crore this year to fund ongoing projects. The firm is developing projects spread over 90 million sq ft and are worth Rs 18,000 crore. The company has presence in Noida, Greater Noida, Gurgaon, Ghaziabad, Meerut, Moradabad, Haridwar, Rudrapur and Bengaluru.

In 2013, Supertech had raised Rs 280 crore from PE firm Xander for its upcoming township project in Gurgaon. Before that, it had raised Rs 100 crore from Walton Street Capital for mixed-use project 'Supernova' at Noida.

http://economictimes.indiatimes.com/articleshow/29391566.cms

Piramal weighs options on 5% stake buy in Axis Bank

Business Standard

The Ajay Piramal-promoted Piramal Enterprises is evaluating a proposal from merchant bankers to acquire a 5% stake in Axis Bank through block deals. Bankers appointed by the Specified Undertaking of Unit Trust of India (Suuti) are preparing to offload the government's 20.7% stake. Last week, Suuti had appointed JPMorgan, Citigroup Global Markets and JM Financial as merchant bankers. Going by Axis' market capitalisation of Rs 56,640 crore on Friday, the value of a 5% stake comes to Rs 2,800 crore.

http://bit.ly/1i280sD

HDFC, Urban Infra to sell stake in Chennai�s Metrozone project

Times of India

Anand Jain-led Urban Infrastructure Opportunities Fund (UIOF) and HDFC Property Fund are putting a mega township project in Chennai on the block, with an asking price of Rs 800 crore for their 55% stake. UIOF, backed by Mukesh Ambani�s close associate Anand Jain, and HDFC currently have a 30% and 25% stake respectively in the 5-million sqft mixed-use project Metrozone, being built on a 42-acre land parcel,in Chennais suburb of Annanagar. Bangalore based Ozone Group, which is the developer, holds the remaining shares. The investors and developer Ozone have approached global private equity investors and sovereign wealth funds with a proposed transaction,which is still in early stages.

The new investors would hold a 65% stake, picking up a further 10% once Metrozone completes an additional 33 acre juxtaposed land parcel in the coming weeks. With this,the project development would scale up to around 10 million sft.

http://bit.ly/1b3c1ba

NTT DoCoMo to invest in teleshopping firm TVC Skyshop

Business Line

Oak Lawn Marketing, a subsidiary of Japanese telecom company NTT DoCoMo, is set to enter India�s burgeoning virtual retailing space through a tie-up with TVC Skyshop, which operates in the same segment. OLM, a $300-million media and branding company in which NTT DoCoMo has a 51% stake, is close to inking the deal with TVC Skyshop. The company primarily focuses on home convenience, health and beauty consumable, fitness and wellness products.

TVC Skyshop, which has investments from private equity players such as Samara Capital and Morpheus, currently sells apparels, electronic items and other consumer durables under its own label. After the tie-up, it will sell OLM�s two flagship products � Magic Mattress and Leg Magic.

http://bit.ly/Mdc9yC

Everstone puts 15% stake in VLCC on the block

Mint

PE firm Everstone Capital wants has mandated investment bank Equirus Capital to find buyers for its 15% stake in New Delhi-based VLCC Healthcare Ltd . The transaction could be worth Rs.350 crore.

Founded in 1989 by beautician Vandana Luthra, VLCC has since expanded to over 300 locations in 121 cities and 16 countries with operations in India, Sri Lanka, Bangladesh, Nepal, Malaysia, Singapore, the United Arab Emirates, Oman, Bahrain, Qatar and Kuwait.

http://bit.ly/1d94GXs

Fmr Jabong MD in talks to raise funds for new wearable devices co Gynjer

Business Line

Manu Jain, co-founder and former Managing Director of fashion portal Jabong.com, has launched a new company, Gynjer, which will design, develop and sell wearable smart devices such as smart watches and smart glasses. The company will also develop smartphones and phablets. The devices will be made by third-party manufacturers in China and Taiwan.

Jain has been talking to four venture capital funds, including one based in Singapore, over the last week to close a funding deal for Gynjer.

http://bit.ly/1fyk0Qz

American Express eyes stake in near field communication tech startup Yeldi

Economic Times

Transnational financial services giant American Express is looking to pick up a stake in a Chennai-based technology startup Yeldi Softcom, which deals with products in the near-field communications (NFC) space. American Express eyes to acquire a minority stake to lock Yeldi's products for its portfolio to offer next-generation financial technology solutions to its customers, both in India and abroad. Investment banker Mape is advising Yeldi on the transaction. The company is now fully owned by Ra Arjunamurthy, his daughter and CEO Lakshmi Deepa, and family members.

http://bit.ly/1hUP1Qe

http://araetap.com
 

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M&A

Shasun Pharma to buy out partner�s stake in oncology JV

Business Line

Chennai-based Shasun Pharmaceuticals is set to acquire the remaining 50% stake, in the joint venture it had formed with US-based Nanoparticle Biochem Inc (NBI), which is developing methods to apply nanotechnology in cancer treatment. The joint venture was set up in partnership with the founders of NBI, Raghuraman Kannan and Kattesh Katti, who are researchers at the University of Missouri, which has a stake in NBI. Shasun�s earlier investment in the company had gone towards conducting human trails for NBI-29, the lead molecule taking on cancerous growth.

http://bit.ly/1fgPAE6

Tatas to completely exit telecom services: report

Economic Times

Tata Group has decided to exit the telecom business completely and has initiated talks with Vodafone to sell both Tata Communications and Tata Tele. It will be a deal in various stages as both Tata Tele and Tata Comm have other large shareholders with dominance on board decisions. Japanese firm NTT Docomo holds 26% in Tata Tele and has a put option which expires on March 31, 2014. Docomo may give a one year extension to their put option to pave the way for a deal with Vodafone.

Government of India holds 26% in Tata Communications and as part of the deal negotiations with Vodafone, Tata Group will first buy out government's stake in the company and then sell to the UK based telecom giant. In the interim, Tata Comm is selling its stake in African arm Neotel to Vodafone's Vodacom.

http://bit.ly/1ehLfjJ

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India Ahoy!

Czech co Gearspect sets up unit in Pune

Business Standard

Gearspect India, wholly owned subsidiary of Gearspect Group a 90 million euro Czech group has set up an unit in Pune to will manufacture gear measuring equipments and gear cutting machines required for automobiles, aeronautics, heavy engineering, construction equipment and defense sectors. The company has invested Rs 6.5 crore in the unit. The company is also looking to set up an assembly unit for gear cutting machines in next two years and would start manufacturing gear cutting machines in next five years.

http://bit.ly/1jGPs4n

New Ventures

Fmr Olympus Cap exec Devendra Agarwal launches boutique IB firm

Yourstory

Foremr Olympus Capital executive Devendra Agrawal has started a boutique investment bank Dexter Capital to offers services to growth stage and early stage companies looking to raise rounds of more than INR 5 crores.

http://yourstory.com/2014/01/dexter-capital/

http://dextercapital.in/

Expansion/Diversification

Gaursons to invest Rs 5,000 crore on township on Yamuna Expressway

Economic Times

Ghaziabad-based realty firm Gaursons will invest Rs 5,000 crore over the next four years to develop a township on the 300-acres land that it bought from Jaypee Group on the Yamuna Expressway in Greater Noida. Gaursons had bought this land from Jaypee Group for about Rs 1,700 crore in May, 2013. The land parcel is situated close to Jaypee Group's F1 track.

The company will be constructing 20,000 housing units in the first phase which is spread over 250 acres. Basic selling price (BSP) has been fixed at Rs 2,095 per sq ft.

http://bit.ly/1e1iVnj

Mint producer KV Group enters realty business

Economic Times

KV Group, a leading producer of mint, has forayed into the real estate sector with its first housing project in Greater Noida. The company will be developing 950 flats in this project and is expecting a sales realisation of Rs 300 crore over the next three years.The basic selling price has been fixed at Rs 3,295 per sq ft.

http://bit.ly/1bzMZ3l

People

Info Edge CFO Ambarish Raghuvanshi Steps Down

Ambarish Raghuvanshi, Chief Financial Officer & Whole-time Director of Info Edge (the publicly listed owner of Naukri.com and other online services), is stepping down from his position at the company effective May 2014 to look for new career opportunities. Raghuvanshi will continue to work in an advisory role.

Chintan Thakkar will be taking over as CFO and will join the company as CFO-Designate immediately. Thakkar, was CFO-India at Computer Associates Inc. in the past and is currently an independent management consultant at New Enterprise Associates, Mumbai.

http://bit.ly/1glzWdu

Harish Bhat added to Tata Sons Council

Business Line

Harish Bhat, Managing Director of Tata Global Beverages and the Chairman of Tata Coffee, has been elevated at Tata Sons as Member � Group Executive Council (GEC), reporting to the Chairman, Cyrus P. Mistry, from April 1. Ajoy Misra, Executive Director, Tata Global Beverages will succeed Harish Bhat as Managing Director of Tata Global Beverages from April 1.

http://bit.ly/1gspTDH

Regulatory News

Govt to look at FDI in construction, railways

Deccan Herald

The government is planning to further liberalise Foreign Direct Investment (FDI) in the construction sector and open up FDI in the Railways.

http://bit.ly/1etShyj

Investment limit for foreign investors in govt bonds raised to $10-B

Financial Express

In a move to attract more long-term dollars into government bonds, the Reserve Bank of India (RBI) has hiked the investment limit for foreign investors, such as sovereign wealth funds, pension funds and foreign central banks, to $10 billion from $5 billion. However, the overall investment limit in government bonds for foreign institutional investors (FII) has been kept at $30 billion. The hike in the long-term investment limit will reduce the debt available for short-term investments to $20 billion from $25 billion earlier.

http://bit.ly/1bbLWKq

Others

Indian tax authorities ask UK�s Cairn Energy to hold on its stake

Telegraph India

The income tax department, probing Cairn Energy�s transfer of Indian assets, has asked the British company not to take any steps to sell a part of its 10.3% stake in Cairn India. The department feels it can gouge out capital gains tax from a deal struck in 2006 when Cairn Energy transferred the shares of its Indian arm to Cairn India, a company registered in the tax haven of Jersey, for about $5.7 billion. I-T officials are examining the deal from the perspective of Section 9 of the income tax act, which says any income, earned directly or indirectly from any business in India, or sale or transfer of capital assets in India, will attract capital gains tax.

In December 2011, Cairn India sold a 58.5% stake to Vedanta Group for $8.67 billion.

http://bit.ly/1er0HGE

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The Deal: SourceEdge raised debt capital from SIDBI

Advisor: Springforth Capital Advisors Pvt Ltd

Client: SourceEdge Software Technologies Private Limited

Deal Date: 23-Jan-2014

Deal Description: SourceEdge Software Technologies Private Limited, a Bangalore based software development company which serves - ERP Development, Custom Software Development has successfully raised an undisclosed amount of debt capital from SIDBI through Springforth Capital Advisors. The funds will be used mainly for business development & Overseas network expansion activities.

Springforth Capital is an Investment Banking and Capital Advisory Services firm pioneered by an eminent group of professionals and industry experts. Springforth provide Strategic Consulting, Investment Banking and Project Management services to Small and Medium Enterprises [SMEs], Mid-Sized Enterprises,Fund Managers and Overseas Investors. [NRIs and FIIs]

Advisory Role: Fund Raising Advisory

Advisory Team: Kalyan Sivalenka, Vikash Kumar,M.Maheen Kannu

More Info: www.springforthcap.com

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The Deal: Welspun exits Leighton Welspun Contractors JV

Advisor: AZB & Partners

Client: Welspun Infra Projects Private Limited and Welspun Projects Limited

Deal Date: December 2013

Deal Value: USD 99 million (approximately INR 6.10 billion).

Deal Description: Welspun signed a share sale agreement with Australian Leighton Group to sell off its entire 39.88 per cent stake in Leighton Welspun Contractors India Pvt Ltd for a net cash consideration of approximately USD 99 million (approximately INR 6.10 billion).

Advisory Role: AZB co-advised Welspun on all aspects of the transaction including legal and regulatory advice, pre-agreement strategy, reviewing the definitive agreements and advising the client on transaction structuring.

Advisory Team: Zia Mody, Rajendra Barot, Nilang Desai

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The Deal: Indiaproperty.com�s Series B funding

Advisor: Veda Corporate Advisors

Client: India Property Online Private Ltd

Deal Value: USD 12 Million

Deal Description: India Property Online Private Ltd ("Indiaproperty.com") has raised Series B funding of USD 12 Million led by Bertelsmann India Investments ("Bertelsmann") with participation from existing investors Canaan Partners and Mayfield Fund. The company, founded by Murugavel Janakiraman who also founded Matrimony.com, is one of India�s leading online real estate classified portals. Indiaproperty.com has emerged as the fastest growing player in the industry and this round of funding is expected to further consolidate the company�s position in the market.

Advisory Role: Veda Corporate Advisors was the exclusive advisor to Indiaproperty.com in the transaction.

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The Deal: Merger of Sabero Organics with Coromandel International

Advisor: Axis Capital

Client: Coromandel International

Deal Description: The Board of Directors of Coromandel International Limited, at their meeting held on January 24, 2014, have approved the merger of Sabero Organics Gujarat Limited with itself.

Advisory Role: Axis Capital advised Coromandel International on the transaction and provided a Fairness opinion to the Board

More Info: http://bit.ly/1n27HOU

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