1. 3 R D - 9 T H S E P T ’ 1 2
Private Equity Track
Research4India Weekly update on the Indian PE Sector
10500 500
PE Activity for the week 8969.3
9000
 The year 2012 has so far aggregated $6.07bn 6066.2 400
7500 298
(317 deals) of PE investments compared to
$8.97bn (298 deals) during the same period 6000 300
last year.
4500 317 200
 During the week ended 9th Sept, 2012, there
3000
were 7 PE/VC deals worth 199.6mn compared
100
to 4 deals worth $21.2mn in the previous week. 1500
 In the largest deal during the week, Jain 0 0
Irrigation Systems Ltd raised $73mn (Rs Till date 2011 Till date 2012
4.05bn) through an issue of equity shares to
PE Investments No. of Deals
Mount Kellett Capital Management and IFC.
PE Deals During The week
Stake Value
Investor (s) Target (%) ($mn) Stage Sector Industry Segment
Mount Kellett
Capital Irrigation
Capital Jain Irrigation 11.4 73.0 PIPE Manufacturing
goods equipment
Management, IFC
Chemical Fragrance and
Blackstone S.H. Kelkar & Co 33 44.0 Growth Manufacturing
& Allied flavour
Carlyle, Multiples South Indian Bank 6.56 41.0 PIPE Services BFSI Banking
Prestige Estates’ Real
Red Fort Capital NA 36.0 Project Construction Real estate
residential project estate
Norwest Venture Primary Healthcare Health
NA 4.5 Early Services Clinics
Partners Services Pvt. Ltd. Services
responsAbility
Ventures, DesiCrew Solution NA 1.1 Early Services IT/ITeS BPO
Ventureast
Indian Angel Online
Aurus Network NA NA Early Services Education
Network education
Source: Four-S PE Database
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2. Private Equity Track
Mount Kellett and IFC invest $73mn in Jain two years ago, will continue to hold a 65%
Irrigation stake while another 2% will be with a few
minority investors.
Jain Irrigation Systems Ltd is raising $73mn (Rs
4.05bn) through an issue of equity shares to Four-S Comment: The company is said to be
Mount Kellett Capital Management and IFC. The the leader in the domestic fragrance market
company is also raising another $130mn (Rs with over 2,000 customers and is the only
7.21bn) through external commercial Indian player of scale. It has unique intellectual
borrowings (ECBs) and foreign currency property and a strong market presence for over
convertible bonds (FCCBs). The funds will be eight decades. The company is professionally
used to cut the high cost short-term loans of managed with CEO B Ramkrishnan at the helm
the company besides long-term loans due this of the affairs. Ramkrishnan is a chemical
fiscal. A part of it will be also invested in one of engineer from IIT Madras and a flavour and
its subsidiaries – a new non-banking financial fragrance industry veteran. The deal values the
company, focused on agriculture and rural company at Rs 7.36bn, nearly 1bn higher than
markets. its annual sales in the past year. In fiscal 2012,
it posted an operating profit of Rs 1.1bn on
Four-S Comment: Jain Irrigation is Asia's
biggest irrigation equipment maker but there sales of Rs 6.4bn.
are concerns about its cash flow situation. It
makes drip and sprinkler irrigation systems,
Multiples, Carlyle invest $41mn in South
which the government subsidises to farmers. Indian Bank QIP
The company collects these subsidies but
payments take longer leading to problems with Multiples Alternate Asset Management has
working capital and rising interest costs. To picked up over 5 per cent stake in the recently
rationalize receivables in the micro irrifation closed qualified institutional placement (QIP) of
service (MIS) business, the company has South Indian Bank, where the old generation
started implementation of a change in its bank has raised Rs 4.43bn. The QIP has also
business model wherein it is asking farmers to seen participation from The Carlyle Group,
pay a higher proportion of the cost upfront which started picking up stake in the Thrissur-
besides seeking them to collect receivables based bank in May this year. South Indian Bank
from the government. The formation of a non- launched its share sale on September 3, and
banking financial company, Sustainable Agro- has sold 200 million shares or nearly 15 per
Commercial Finance, is also a part of this plan. cent stake at Rs 22.13 apiece to investors. The
This will help Jain Irrigation borrow at a lower QIP has been subscribed by eight investors,
cost and get paid up front. which also include IFCI Ltd and SBI Magnum
Sector Fund.
Four-S Comment: PE investors are
Blackstone acquires 33% stake in SH increasingly taking bets on older generation
Kelkar & Co for Rs 2.43bn
private sector banks with strong regional focus.
Blackstone has bought a 33% stake for 243 Some of the banks, which have seen
crore in SH Kelkar & Company (SHK), a Mumbai investments in CY12, include Karur Vysya Bank
based maker of specialty fragrance and flavour (Chrys Cap - $31.3mn, Olympus - $38.3mn),
ingredients that are used by leading consumer Development Credit Bank (Tano Capital, TVS
goods companies like ITC, Emami and Marico. Capital, Wolfensohn Capital Partners - $20mn),
The company aims to consolidate its position in South Indian Bank and Federal Bank (Chrys
India besides expanding its presence in the Cap - $8.7mn). Given their low asset base and
global markets. The Vaze family, which bought low market share, some of these banks are best
co-founder Kelkar family's stake in the company placed to deliver high growth. Their core
Research4India 2

3. Private Equity Track
strengths in terms of geographic focus or than 130 people across five centres in Tamil
products are expected to drive their growth. Nadu and expects to expand its workforce to
1,000 employees in the coming years.
Red Fort Capital invests in Prestige
Estates’ residential project Red Fort Capital invests in Prestige
Red Fort Capital has invested Rs 2bn (~$36mn) Estates’ residential project
in a residential project of Bangalore-based India’s largest angel investors group, Indian
public listed real estate player. In January this Angel Network, has invested an undisclosed
year, Red Fort Capital had raised a fresh $500 amount in Delhi-based virtual classroom
million fund from international investors to solution provider Aurus Network Infotech Pvt.
invest in residential and commercial real estate Ltd. The start-up has a cloud based virtual
in India. The transaction with Prestige Estates classroom solution which connects teachers
has been done at the land acquisition stage for with students across the country, eliminating
a greenfield development. As per news reports the need for hardware based video conferencing
the fund has exhausted nearly half of the new or satellite based equipment and networks and
fund and is back on the road to raise another works at Internet speeds as low as 75kbps. It
real estate fund of the same size. currently has tie-ups with more than 20 test
prep and training centres.
Norwest Venture invests in NationWide
Fund Raising & Liquidity Events
Primary Healthcare Services
Norwest Venture Partners has invested Rs Nexus Venture Partners raises $270mn for
250mn ($4.5mn) for a minority stake in India's third fund
NationWide Primary Healthcare Services Pvt
Nexus Ventures Partners has announced the
Ltd. NationWide plans to use the funds to close of its third fund with commitments of
increase the number of its primary healthcare
$270mn, taking the assets under management
centres to 120 from present 15 over the next of the early-stage venture capital firm to nearly
18 months. NationWide also offers corporate
$600mn. Investors in the fund include
services, including on-site consultations and endowments, foundations, and financial
health education initiatives that are currently in
institutions across North America, Europe and
use by companies, including Capgemini, Idea Asia. Nexus Venture Partners will continue its
Cellular, Madura Coats and others.
focus on early-stage investments across
technology, Internet, media, consumer and
Rural BPO DesiCrew raises $1.2mn from business services sectors. Besides investing in
Indian firms, Nexus has also followed a strategy
responsAbility Ventures, Ventureast
of investing in US-based companies leveraging
IIT Chennai-incubated rural BPO service the India-US corridor.
provider DesiCrew Solution Pvt Ltd has raised
Rs 70mn ($1.12mn) in Series B round of
funding from responsAbility Ventures I, and Blume Ventures looking to up fund size by
Ventureast Fund Advisors India Ltd. DesiCrew as much as 25%
offers services including generating, populating
Early-stage venture fund Blume Ventures is
and moderating content, digitisation, live chat looking to increase the size of its maiden
responses, mail room activities, project
investment fund after it has witnessed
management, secondary research, oversubscription as part of the final close of
transcription, translation, beta testing of web
Blume Ventures Fund I. Blume Ventures’ first
products, localisation of web products and fund had a target size of Rs 1bn and it hit the
website monitoring. Currently, it employs more
Research4India 3

4. Private Equity Track
first close for the fund in May 2012, raising Rs
820mn in the process. The firm also disclosed Private Equity News
that it originally had 20-plus investors (LPs) and
attracted interest from more than 30 new Baring, Aditya Birla PE may buy stake in
investors. Its investors include angel investors, Anu Solar Power
entrepreneurs, executives and senior Baring PE Partners and Aditya Birla PE are two
professionals. Its standard investment ranges contenders looking to buy 20% stake in Anu
from Rs 50 lakh-Rs 15mn in each company and Solar Power. The deal could value the company
the investment comes in tranches. at Rs 5bn and Rs 1bn is expected to be invested
by the PE players by the end of this month. Anu
Solar Power is a concern dedicated to the
Helion Ventures to exit Amba Research
promotion of renewable energy propagation and
Helion Venture Partner is planning to exit its 5 implementation in India. It is an Anu Group
year old investment in Amba Research India Enterprise which is engaged in diverse
Private Limited and is in talks with multiple commercial activities as exports-imports of
buyers. Helion Ventures invested $7mn in the solar energy products, energy efficient solutions
company in 2007 from its first fund, the and solar based telecom products and services
$140mn Helion- I. Founded in 2003, Amba among others.
Research is a knowledge process outsourcing
firm. The firm is primarily engaged in providing
equity research, fixed income research and Med firm Prime India to raise funds
quantitative research for the global capital Prime India Healthcare Services Private Limited
markets. It has delivery centres in Bangalore, is planning to raise PE funds through stake
Colombo and Costa Rica and sales offices in dilution. The plan was divulged along with the
New York, London and Singapore. company's plans to launch electronic health
cards to store patient record. It is aiming to
raise around Rs 20mn for capex and opex by
Actis may sell stake in Nilgiri to Temasek
giving out a stake of 15-20%. Prime India is a
Singapore's Sovereign fund Temasek is looking medical tourism and healthcare recruitment
to buy out Actis' stake in The Nilgiri Dairy Farm company. It has an office in Chennai and has a
Private Limited. Actis had bought 51% stake in team of over 50 employees. The company has
the company for Rs 3bn ($65mn) in a tie-ups with around 24 healthcare service
management buyout in 2006 and later hiked providers including MedPlus pharmacy chain, Dr
the stake to 67%. The promoters are not keen Agarwal’s Eye Hospital and beauty and wellness
on selling the stake. The Nilgiri Dairy Farm Pvt. service provider VLCC.
Ltd. operates a chain of retail stores in South
India. It offers dairy products, such as fresh
wholesome and skimmed milk, cheese, curd, Future Venture backed Mother Earth to
etc. and bakery products, including plum cakes, raise funds
chocolate coated biscuits, truffles, puff roles Store operator Mother Earth is planning to rope
among others. It has stores spread out across in private investors for growth purposes and
South India. has outlined Rs 400mn investment for the
same. It is targeting 'social' PE investors to
back its expansion plans. Future Ventures had
invested Rs 140mn in 2009 for 40% stake
which was followed by a second round taking its
stake to 60%. Grassroots Business Fund also
holds 25% in the company and the rest lying
with the promoters.
Research4India 4

5. Private Equity Track
M&A Activity for the Week
During the week ended 9th Sept, 2012, there were 5 M&A deals worth $202.1
(size of 1 deal was not known). In the largest deal during the week, Tech
Mahindra Ltd has acquired 100% stake in Hutchison's BPO biz, Hutchison Global
Services Pvt Ltd (HGS), for $87.1mn.
Stake Deal value
Acquiror Target Sector (%) ($ mn)
Tech Mahindra Ltd Hutchison Global Services Pvt IT/ITeS 100 87.1
United Drug Bilcare Ltd - US, UK biz Pharmaceutical NA 61.0
Mitsui & Co. Ltd and Sanyo Special
Mahindra Ugine - steel biz Manufacturing-steel 49 39
Steel Co. Ltd
Pitti Casting Vaksh Steel - Foundry division Manufacturing-steel NA 15.0
Godrej Hershey Limited - Goderj
The Hershey Company FMCG 43 NA
Industries' stake
Source: Four-S PE Database
Market Update
Key Domestic Indices
Indian Market Movements 52 Week
Index 31-Aug-12 7-Sep-12 Change (%) High Low
BSE Sensex 17,541.64 17,683.73 0.80% 18,523.78 15,135.86
S&P CNX Nifty 5,258.50 5,342.10 1.56% 5,629.95 5,269.40
CNX Nifty Junior 9,892.15 10,057.90 1.65% 10,961.35 9,891.95
Nifty Mid Cap 50 1,994.30 2,033.70 1.94% 2,481.60 1,995.15
CNX IT 6,072.35 6,342.70 4.26% 6,811.30 6,083.35
Bank Nifty 9,990.50 10,122.00 1.30% 11,226.75 10,020.70
CNX Infrastructure 2,233.85 2,268.30 1.52% 2,868.70 2,237.40
CNX Realty 199.00 204.30 2.59% 299.65 199.35
Key Global Indices
Global Market Movements 52 Week
Index 31-Aug-12 7-Sep-12 Change (%) High Low
NASDAQ 3,066.96 3,136.42 2.21% 3,134.17 2,298.89
Dow Jones Industrial Average 13,090.84 13,306.64 1.62% 13,338.66 10,404.49
S&P 500 1,406.58 1,437.92 2.18% 1,426.68 1,074.77
NIKKEI 225 8,839.91 8,871.65 0.36% 10,255.20 8,135.79
Hang Seng 19,482.57 19,802.16 1.61% 21,760.34 16,250.27
Straits Times Index 3,025.46 3,011.70 -0.46% 3,088.45 2,521.95
FTSE 100 5,711.48 5,794.80 1.44% 5,989.07 4,868.60
Source: Google Finance, Yahoo finance
Research4India 5

6. Private Equity Track
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7. Private Equity Track
About Research4India
Research4India is the research services arm of Four-S Services Pvt Ltd. Here we
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unlisted companies in these sectors. These reports will be available on our upcoming
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