Four-S Private Equity Track

Date: April 11, 2016
Pages: 10
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Publisher: Four-S Services Private Limited
Report type: Brief Review, Periodicals
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Four-S Private Equity Track
PE activity for the week
  • The year 2016 has so far aggregated $3,294.1 mn of PE investments across 302 deals compared to $2,584.7 mn (215 deals) during the same period last year.
  • During the week ended 2nd Apr, there were 16 PE/VC deals worth $227.1 mn compared to 16 deals worth $250.7 mn in the previous week.
  • The largest disclosed transaction during the week was $132 mn investment by APG Asset Management and Piramal Enterprises in solar energy company Essel Green Energy Pvt Ltd.
Piramal Enterprises, APG Asset Management invest $132 mn in Essel solar venture Piramal Enterprises Ltd, and APG Asset Management, the largest pension fund in the Netherlands, has jointly invested $132 mn in Essel Green Energy Pvt Ltd, the solar platform of Subhash Chandra Goel’s Essel Infrastructure Ltd. Essel Green Energy, owns 160 MW of solar energy assets in four Indian states, of which 110 MW are operational.

Blackstone invests $70 mn in Salarpuria’s office park in Hyderabad Blackstone Group has invested $70 mn in an ongoing commercial project of Bangalore-based developer Salarpuria Sattva Group. The global investment firm has put the money in Knowledge City, an office park located in Hyderabad. This marks the firm’s first investment in Hyderabad.

Motilal Oswal PE picks up Jindal Power’s stake in IEX for $14.7 mn Motilal Oswal PE Advisors Pvt Ltd, through two funds, India Business Excellence Fund-II and India Business Excellence Fund-IIA, has acquired 4.1% stake in Indian Energy Exchange from Jindal Power Ltd for about $14.7 mn. The deal values IEX at $361 mn.

Veritas raises $4.5mn Chennai-based Veritas Finance Pvt Ltd, which provides financial services to SMEs, has raised $4.5 mn in a Series A round led by Sarva Capital LLC with participation from Caspian Impact Investment Adviser.

SAIF Partners takes stake in Fiem SAIF Partners has picked up 1.1% stake in publicly-listed automotive lighting & signalling equipment and rear view mirror maker Fiem Industries Ltd through an open market transaction for around $1.7 mn.

Rainbow Hospitals gets follow-on funding from CDC Hyderabad-based Rainbow Children’s Medicare Pvt Ltd, which runs a chain of paediatric and maternal care hospitals under the Rainbow Hospitals brand, has bagged follow-up funding from existing investor CDC Group Plc.

Earlier in 2013, it had received $16.5 mn from Abraaj Group and CDC.

Angel/ Seed Investments of the week

Dil Mil, a matchmaking app for South Asian expatriates, has raised $2.7 mn in pre-Series A funding from Nelstone Ventures, Transmedia Capital, Maiden Lane Ventures, CSC Upshot and angel investors Naval Ravikant, Kunal Shah, Sameer Parwani, and Vijay Ullal. Previously, it had raised $1 mn in seed funding.

Chennai-based FixNix Inc has raised $500,000 in a PreSeries A round of funding headed by Tesla’s Jay Vijayan and others. FixNix is a SaaS-based governance, risk and compliance platform for businesses. Bangalore-based Touchkin eServices that operates predictive healthcare start-up Touchkin has raised $400,000 in seed funding from investors, including Alok Mittal, Amit Gupta, Anuj Srivastava, Himanshu Aggarwal, Raghunandan G, and Puneet Agarwal.

AddoDoc Technologies Pvt Ltd, which runs the Babygogo mobile app that connects parents with child healthcare experts, has raised $300,000 in a seed funding round led by angel investor Rajul Garg. Others who took part in the round include Daljit Singh, Aditya Vij, Kishore Kumar, and Shuchin Bajaj. Other investors include Salil Kapoor, Ashu Agarwal, Ritesh Malik, Ashish Tulsian, and Afsal Salu.

Schoolkart.com, run by Schoolkart Technologies Pvt Ltd, an online marketplace in the school and education products domain, has raised $300,000 in funding from 12 angel investors. Last year, the start-up had raised $200,000 from unspecified investors.

Hyderabad-based stem cell research firm Transcell Biologics Pvt Ltd has raised an undisclosed amount of funding from the Indian Angel Network in a round led by Sanjay Jesrani, who will join Transcell’s board.

Delhi-based Addazz Online Services Pvt Ltd that operates online marketplace for photographs PicsDream, has raised an undisclosed amount in angel funding. The round was led by Raman Roy, besides participation from Ankit Nagori, and Harish Natrajan. Other angel investors include Vipin Chawla, Vikram Sud, and Baskar Subramaniyan and Madhavan Sreenivasan.

SoftBank Ventures Korea, part SoftBank Corp, has made an undisclosed amount of investment in a Series A round of funding in Gurgaon-based start-up True Balance, an app that allows users to check their phone balance.

Online mental health-care start-up HealthEminds Pvt Ltd has raised angel funding from cricketer Robin Uthappa’s Caffeine Ventures. Arjun Goutham, a director at online meal service start-up iTiffin, also participated.

SwitchMe, which helps customers switch home loans to those with lower rates of interest from the comfort of their homes, has secured an undisclosed amount of funding from Mohandas Pai, Hiro Mashita, Singapore Angels and others. Earlier, it had received investment from 500 Startups, Rajan Anandan and Ajay Sarupria.

Fund Raising & Liquidity Events

GVK Power sells stake in Bangalore Airport to Fairfax for $321 mn GVK Power and Infrastructure Ltd is to sell 33% stake in Bangalore International Airport Ltd to Fairfax India Holdings Corp and Fairfax Financial Holdings Ltd of Canadian investor Prem Watsa. The deal was settled for nearly $321 mn.

IDBI Bank sells 2% stake in NSE for $52.9 mn IDBI Bank has sold 2% stake or 900,000 equity shares in National Stock Exchange to Life Insurance Corp of India for $52.9 mn. Other shareholders in NSE include SBI (10.2%), Stock Holding Corp of India (5%), and IDFC (3.9%).

Sabre Partners raises bulk of new healthcare-focused fund India-centric mid-market private equity firm Sabre Partners that has lately been focusing on the healthcare sector, has raised the bulk of its targeted corpus for its fourth fund. It had made the first close last September.

MCap part-exits City Union Bank MCap Fund Advisors Pvt Ltd has sold bulk of its stake in private sector lender City Union Bank. According to stock exchange filings, the value of the sale is worth about $2.4 mn. MCap has invested $4.5 mn for a 1% stake in the bank in August 2011.

The year 2013 saw 535 PE/VC deals worth $10.98 bn, an increase of 35% compared to investments worth $8.13 bn across 475 deals in 2012. The year was largely marked by big ticket deals with increase in average deal size to $20 mn from $17 mn a year ago. Deals above $100 mn aggregated to worth $6.22 bn in 2013 compared to $3.68 bn in 2011. Manufacturing sector garnered the major share (16.7%), followed by real estate (16%) and IT/ITeS (14.5%). In 2013, exits went down compared with the previous years with secondary and M&A transactions gaining pace as major sources of exits.

The year 2013 saw 535 PE/VC deals worth $10.98 bn, an increase of 35% compared to investments worth $8.13 bn across 475 deals in 2012.

Private Equity Activity in 2013 vs 2012
Private Equity Activity in 2013 vs 2012 

May aggregated over $1.9 bn in investments largely on account of mega Airtel deal.

Private Equity Activity – Month-Wise
Private Equity Activity – Month-Wise 

Manufacturing sector topped the investment chart accounting for 16.7% of investments with a deal value of $1.83 bn. The real estate sector occupied the second slot in terms of PE investments and totaled $1.76 bn across 36 deals; this translates into 16% share. This includes three $300 mn plus deals. The IT/ITeS came in next with $1.59 bn worth of deals (14.5% share). This includes Baring PE’s $443.2 mn investment in Hexaware Technologies Ltd, in the single largest alternative investment deal in the Indian IT/ITeS industry.

 Private Equity –Sector Wise Allocation in 2013
 Private Equity –Sector Wise Allocation in 2013 

The year 2013 saw 535 PE/VC deals worth $10.98 bn, an increase of 35% compared to investments worth $8.13 bn across 475 deals in 2012. Fund managers remained choosy and invested larger sums of money in lesser number of companies, an indication of winning companies attracting larger capital.

The year was largely marked by higher value deals leading to an increase in average deal size to $20 mn from $17 mn a year ago.

There were 22 deals above $100 mn in value (worth $6.22 bn) compared to 22 deals (worth $3.68 bn) in 2012. This was due to increase in high value deals in the real-estate and infrastructure sector - seven $100 plus deals in 2013 compared to two such deals in 2012.

The largest PE investment during the year was 5% stake bought by Qatar Foundation in India’s largest telecom company Bharti Airtel Ltd for $1.26bn. This was followed by $469.8 mn investment by KKR India to buy majority stake in Alliance Tire Group. In another mega deal, Baring PE acquired 71% stake in Hexaware Technologies Ltd for $443.2 mn.

The Manufacturing sector topped the investment chart accounting for 16.7% of investments with a deal value of $1.83 bn. This was largely on account of mega Alliance Tire – KKR deal. In another major deal in the same space this year, Baring PE invested $259.5 mn for a 14% stake in Lafarge India. The real estate sector occupied the second slot in terms of PE investments and totaled $1.76 bn across 36 deals; this translates into 16% share. This includes three $300 mn plus deals.

The IT/ITeS came in next with $1.59 bn worth of deals (14.5% share). This includes Baring PE’s $443.2 mn investment in Hexaware Technologies Ltd, the single largest alternative investment deal in the Indian IT/ITeS industry. The year saw many mega deals happening in the hot e-commerce space. Flipkart in its final round of private funding received $360 mn from Naspers and Tiger Global.

However, 2013 remained slow in terms of exits with transactions worth $3.59 bn across 174 deals as compared to $5.21 bn (80 deals) in 2012. Secondary and M&A transactions gained pace as major sources of exits in 2013. In the largest exit, Warburg Pincus sold its stake in Alliance Tire Group to KKR for $469.8 mn. 

The material was prepared in January, 2014.

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