Corporate Finance Newsletter
August 2012
ICRA Management Consulting Services Limited
Page 1
Disclaimer
This report and the analysis herein are based on data and information collected by ICRA Management Consulting Services
Limited (IMaCS) from sources believed to be reliable and authentic. While all reasonable care has been taken by IMaCS to ensure
that the information and analysis contained herein is not untrue or misleading, neither IMaCS nor its Directors shall be
responsible for any losses, direct, indirect, incidental or consequential that any user of this report may incur by acting on the basis
of this report or its contents. IMaCS makes no representations or warranties in relation to the accuracy or completeness of the
information contained in the report. IMaCS’ analysis in this report is based on information that is currently available and may be
liable to change. This report and the analysis herein should not be construed to be a credit rating assigned by ICRA Limited for
any securities of any entity. Other than as expressly stated in this report, we express no opinion on any other issue. Our
analysis/advice/recommendations should not be construed as legal advice on any issue.
Page 2
Table of Contents
Transaction activity………………………..…………………………. 4
Domestic M&A transactions………………………..……………... 8
Inbound M&A transactions……………………...……………...... 11
Outbound M&A transactions……………………………………. 14
Private equity transactions ….………………………………….. 17
Venture Capital transactions .……………………………...…… 22
About IMaCS…………………………….……….………..………..…. 25
Page 3
Transaction activity
Page 4
Transaction activity in August 2012… (1/3)

• The number of Private Equity deals
increased from 24 in July to 41 in August
• The number of Domestic M&A deals
decreased from 20 in July to 10 in August

Total value of deals in August was US $ 3.27
billion as compared to US $ 2.23 billion in July
and US $ 1.84 billion in June
• Total value of Inbound deals increased from
US $ 29 million in July to US $ 368 million


July 2012
Total number of deals in the month decreased
to 89 from 100 deals in July
Volume
Value
(US $ mn)
Volume
Value
(US $ mn)
M&A
Domestic
Inbound
Outbound
20
14
15
336.6
29.1
1273.7
10
13
10
72.9
367.9
623.8
Private Equity
24
541.04
41
2187.7
Venture Capital
27
53.31
15
16.2
100
2233.75
89
3268.5
Total
Transaction activity break-up
100%
• Total value of Private Equity deals increased
80%
from US $ 541 million in July to US $ 2.2
billion
60%
Average deal size of M&A deals was US $ 62.6
million for 17 disclosed deals.
Average deal size of Private Equity deals was
US $ 68.4 million for 32 disclosed deals.
August 2012
40%
20%
0%
0.5%
16.9%
66.9%
46.1%
11.2%
19.1%
14.6%
11.2%
11.3%
2.2%
Value wise
Volume wise
M&A Domestic
M&A Inbound
Private Equity
Venture Capital
M&A Outbound
Note: The value given is only for disclosed deals.
Page 5
Transaction activity in August 2012… (2/3)
Sector wise break-up (Volume)
Engineering
10%

Education
9%
Pharma &
Healthcare
11%
The number of deals in IT/ITeS sector were
highest, followed by e-commerce, Pharma &
Healthcare and Engineering sectors
• The number of deals in IT/ITeS sector,
however decreased to 12 from 19 in July
• Eight deals in Education sector, double
Others
45%
e-commerce
11%
compared to July
• The number of deals in Engineering sector
IT/ITeS
14%
increased to 9 from 3 in July
Sector wise break-up (Value)
IT/ITeS
34%
e-commerce
6%
Pharma &
Healthcare
34%
Others
17%

Total value of deals in Pharma & Healthcare
was US $ 1.1 billion, followed by IT/ITeS and
e-commerce sectors
• Total value of deals in IT/ITeS sector
increased to US $ 1.1 billion from US $ 232
million in July
Real Estate
5%
• Total value of deals in e-commerce sector
Engineering
4%
increased to US $ 188 million from US $ 39
million in July
Page 6
Transaction activity in August 2012… (3/3)

“Deals of the month”



Bain Capital’s US $ 1 billion investment in Genpact for 30% stake
o
Bain Capital bought stake from General Atlantic LLC and Oak Hill Capital Partners LP for
$14.76 per outstanding share
o
In 2011, Genpact’s total revenue was US $ 1.6 billion, with 13.8% of adjusted net income
margin
Nasper and Tiger Global’s investment in Flipkart
o
Flipkart Online Services raised US $ 150 million from Nasper and Tiger Global in its fifth round
of funding
o
Flipkart raised US $ 150 million from Accel Partners and Tiger Global Management in January
2012
o
The deal will help the company meet its operating losses
FashionAndYou’s acqusition of UrbanTouch for US $ 30 million
o
Urban Touch and FashionAndYou will continue to operate separately but will have cross
linkages
o
The deal will provide exit to existing PE investors of UrbanTouch
o
The deal signifies that consolidation in e-commerce space is gathering speed
Page 7
Domestic M&A transactions
Page 8
Domestic M&A transactions in August 2012 … (1/2)
Deals (Volume)
20
20
Top 5 sectors (Volume)
16
Sector
Volume
Value (US $ mn)
IT/ITeS
3
34
e-commerce
3
30
Mining
1
8
Gems & Jewellery
1
0.9
Education
1
-
15
10
10
5
0
June
July
August
Deals (Value)
337
350
Top 5 sectors (Value)
In US $ Mn
300
250
200
Sector
160
150
73
100
50
Value (US $ mn)
Volume
IT/ITeS
34
3
e-commerce
30
3
Mining
8
1
0.9
1
-
1
Gems & Jewellery
0
June
July
August
Education
Note: The value given is only for disclosed deals.
Page 9
Domestic M&A transactions in August 2012 … (2/2)
Deal Value
(in US $ mn)
% stake
acquired
FashionAndYou
30.0
-
e-commerce
MangoStreet.com
Hushbabies.com
-
-
e-commerce
Connectindia
Spade Financial Services
-
-
e-commerce
Centum Learning
Everonn Education Limited
-
-
Education
Gem Gold Mining
0.9
12%
-
-
Hospitality
Computational Research Laboratories
Goenka Diamonds
Mahindra Holidays & Resorts India
Limited
Tata Consultancy Services
34.0
-
IT/ITeS
SEEinfobiz Private Limited
Aurionpro Solutions Limited
-
-
IT/ITeS
United Villages Network Pvt Ltd
Oxigen Services India Pvt Ltd
-
51%
IT/ITeS
Gujarat NRE Coking Coal (GNCC)
Jindal Steel and Power
8.0
2.67%
Mining
Target
Acquirer
UrbanTouch
Divine Heritage Hotels Private Limited
Sector
Gems & Jewellery
Page 10
Inbound M&A transactions
Page 11
Inbound M&A transactions in August 2012 … (1/2)
Deals (Volume)
14
15
Top 5 sectors (Volume)
13
10
7
5
0
June
July
Sector
Volume
Value (US $ mn)
Media & Entertainment
3
-
Pharma & Healthcare
2
261
Manufacturing
2
10.9
Engineering
2
0.6
Shipping & Ports
1
38
August
Deals (Value)
In US $ mn
400
385
Top 5 sectors (Value)
368
300
Sector
200
100
Value (US $ mn)
Volume
Pharma & Healthcare
261
2
Shipping & Ports
38
1
32.4
1
25
1
10.9
2
Automotives
29
BFSI
0
June
July
August
Manufacturing
Note: The value given is only for disclosed deals.
Page 12
Inbound M&A transactions in August 2012 … (2/2)
Target
Honda Siel Cars India
MF Global Sify Securities India
Acquirer
Deal Value
(in US $ mn)
32.4
25.0
% stake
acquired
3.16%
30%
0.6
4.8%
Engineering
-
-
Engineering
-
100%
IT/ITeS
Manufacturing
Manufacturing
Media & Entertainment
Media & Entertainment
Media & Entertainment
Sector
L&T Plastic Machinery Limited
Honda Motor Corporation
PhillipCapital Group
Nippon Magnetic Dressing
Company Limited
Toshiba Machine
e4e inc (India, UK arm)
Pole to Win
Toto Ltd (India)
BP Ergo
Resultrix
Communicate2
Taproot
API manufacturing and R&D facility,
Orchid Chemicals And
Pharmaceuticals.
Mitsui & Co. Ltd
HNI Corp
Publicis Groupe
Aegis Media
Dentsu Inc
10.9
-
30%
95%
51%
Hospira Inc.
200.0
-
Pharma & Healthcare
Bilcare Limited (US, UK operations)
United Drug Plc.
61.0
-
Pharma & Healthcare
Pipavav Defence and Offshore
Engineering
SAAB
38.0
-
Shipping & Ports
Eco Recycling Limited
Auto
BFSI
Page 13
Outbound M&A transactions
Page 14
Outbound M&A transactions in August 2012 … (1/2)
Deals (Volume)
15
15
10
Top 5 sectors (Volume)
10
9
5
0
June
July
Sector
Volume
Value (US $ mn)
Engineering
2
7
Pharma & Healthcare
1
571
Automotives
1
20
Telecom
1
17
Gems & Jewellery
1
4.5
August
Deals (Value)
1400
Top 5 sectors (Value)
1,274
In US $ mn
1200
1000
800
624
600
400
200
141
0
June
July
August
Sector
Value (US $ mn)
Volume
Pharma & Healthcare
571
1
Automotives
20
1
Telecom
17
1
Engineering
7
2
4.5
1
Gems & Jewellery
Note: The value given is only for disclosed deals.
Page 15
Outbound M&A transactions in August 2012 … (2/2)
Target
Acquirer
Deal Value
(in US $ mn)
% stake
acquired
Sector
Erik Buell Racing
Hero MotoCorp Limited
20.0
-
Bluebird Aero Systems
Piramal Enterprises Ltd
7.0
27.83%
Engineering
Rotair S.p.a.
Elgi Equipments Limited
-
100%
Engineering
SuntyCo Holding
Tata Global Beverages Limited
-
49%
FMCG, Food, Beverage
Verite Co. Ltd
Gitanjali Gems Limited
4.5
15.3%
HCL Infosystems MEA FZCo.
HCL Infosystems Limited
-
40%
IT/ITeS
Queensland Coal Tenements
Petroleum Oil and Gas Corporation of
South Africa Ltd (Gas Block 1, Orange
Basin)
Legacy Iron (NMDC)
4.3
-
Mining
Cairn India Limited
-
60%
Oil & Gas
571.0
34%
Pharma & Healthcare
17.0
-
Taro Pharma
Teligent Telecom
Sun Pharmaceutical Industries
Limited
Altruist Technologies
Auto
Gems & Jewellery
Telecom
Page 16
Private Equity transactions
Page 17
Private equity transactions in August 2012 … (1/4)
Deals (Volume)
Top 5 sectors (Volume)
50
40
41
40
30
Sector
24
20
10
0
June
July
Volume
Value (US $ mn)
Pharma & Healthcare
6
278.5
IT/ITeS
5
1064
Engineering
5
131.1
e-commerce
4
157.5
Real Estate
3
181.3
August
Deals (Value)
2500
Top 5 sectors (Value)
2,188
In US $ mn
2000
Sector
1500
1,150
1000
541
500
0
June
July
August
Value (US $ mn)
Volume
IT/ITeS
1064
5
Pharma & Healthcare
278.5
6
Real Estate
181.3
3
e-commerce
157.5
4
Travel & Travel Services
137.75
1
Note: The value given is only for disclosed deals.
Page 18
Private equity transactions in August 2012 … (2/4)
Target
Acquirer
Deal Value
(in US $ mn)
% stake
acquired
-
4.98%
Sector
Agriculture & Agro
Products
BFSI
Brattle Foods Private Limited
GTI Capital
Federal Bank
ChrysCapital
61.5
MAS Financial Services Limited
DEG
12.3
SKS Microfinance Limited
Kumaon Investment Holdings
6.0
4.11%
Flipkart Online Services
Naspers, Tiger Global
150.0
-
e-commerce
canvera.com
Info Edge India Limited
6.5
-
e-commerce
UrbanLadder.com
IndoUS Venture Partners
1.0
-
e-commerce
Play Games24x7 Pvt Ltd
Tiger Global Management
-
-
e-commerce
Kids Out Of Home
TCS, HDFC
-
30%
Education
Simplilearn Solutions Pvt Ltd.
Amber Enterprises (India) Private
Limited
INOXCVA
IndoUS Venture Partners (IUVP)
-
-
Education
Reliance Equity Advisors Ltd
12.6
-
Electrical & Electronics
Standard Chartered PE
45.0
-
Engineering
Infotech Enterprises Limited
Gagil FDI
36.1
10.5%
Engineering
Consul Consolidated Private Limited
Peepul Capital LLC
20.0
-
Engineering
Cura Healthcare Private Limited
Peepul Capital LLC
20.0
-
Engineering
10.0
-
Engineering
18.0
-
FMCG, Food, Beverage
Vortex Engineering
Unibic Biscuits India Pvt Ltd
Peepul Capital
BFSI
BFSI
Page 19
Private equity transactions in August 2012 … (3/4)
Target
Acquirer
Deal Value
(in US $ mn)
% stake
acquired
Sector
Café Coffee Day
TMA Hospitality Services Private
Limited
Genpact
<Buyback, Sequoia>
40.0
-
Hospitality
SAIF Partners.
7.2
-
Hospitality
1000.0
30%
IT/ITeS
AGS Transact Technologies Limited
Actis PE
40.0
-
IT/ITeS
AbsolutData
Fidelity Growth Partners India
20.0
-
IT/ITeS
4.0
-
IT/ITeS
Bain Capital
Mettl
IndoUS Ventures
Webklipper Technologies Private
GTI Capital
Limited.
Craftsman Automation Private Limited Standard Chartered PE
-
-
IT/ITeS
15.5
-
Manufacturing
BigTree Entertainment Private Limited
Accel Partners
18.0
-
Media & Entertainment
PVR Ltd
L Capital Asia
10.4
10%
Media & Entertainment
SideFX Entertainment
Das Star Ventures
1.0
-
Media & Entertainment
S H Kelkar & Company Pvt Ltd
Blackstone Group
35.0
-
Others
Manipal Hospitals
180.0
-
Pharma & Healthcare
54.0
-
Pharma & Healthcare
Vikram Hospitals Private Limited
India Value Fund Advisors (IVFA)
Goldman Sachs, New Enterprise
Associates
Multiples Private Equity
39.5
-
Pharma & Healthcare
Advinus Therapeutics
Takeda
5.0
-
Pharma & Healthcare
Axiss Dental Pvt Ltd
India Equity Partners
-
-
Pharma & Healthcare
Nova Medical Centres Private Limited
Page 20
Private equity transactions in August 2012 … (4/4)
Target
Acquirer
Deal Value
(in US $ mn)
% stake
acquired
Sector
Pharma & Healthcare
Express Clinics
Somerset Indus Capital
-
-
Green Infra Limited
Standard Chartered Bank
-
26%
Power & Energy
Hydro Power projects, Dans Group
Equis Funds Group
Macquarie SBI Infrastructure Fund,
SBI Macquarie Infrastructure Trust
IL&FS Investment Managers
-
-
Power & Energy
150.0
-
Real Estate
21.8
-
Real Estate
9.5
49%
Real Estate
137.75
-
Ashoka Concessions Limited.
City Corporation Ltd
Lalith Gangadhar Constructions Private
<Buy Back>
Limited
Citigroup Venture Capital
Cox & Kings Ltd (UK Arm)
International (CVCI)
Travel & Travel Services
Page 21
Venture Capital transactions
Page 22
Venture Capital transactions in August 2012 … (1/2)
Deals (Volume)
30
Top 5 sectors (Volume)
27
25
Sector
Volume
Value (US $ mn)
Education
5
4
e-commerce
3
-
IT/ITeS
2
-
5
Others
2
-
0
BFSI
1
7.2
20
15
10
15
10
June
July
August
Deals (Value)
60
Top 5 sectors (Value)
53
In US $ mn
50
Sector
Value (US $ mn)
Volume
7.2
1
Telecom
5
1
Education
4
5
e-commerce
-
3
IT/ITeS
-
2
40
30
BFSI
16
20
10
6
0
June
July
August
Note: The value given is only for disclosed deals.
Page 23
Venture capital transactions in August 2012 … (2/2)
Acquirer
Deal Value
(in US $ mn)
% stake
acquired
Vistaar Financial Services Pvt Ltd
Lok Capital, Omidyar, Elevar & SVB
7.2
-
BFSI
Natural Mantra
Freemont Partners
-
-
e-commerce
Rock In Fashions Pvt Ltd
Partech International
-
-
e-commerce
Printbindaas
<Angel Investment>
-
-
e-commerce
LIQVID
SBI Ven Capital
3.0
-
Education
Mind Edutainment Private Limited
Accel Partners
0.5
-
Education
Classle Knowledge Private Limited
Chennai Angels
0.5
-
Education
BrainNook
Imagine K12
-
-
Education
Technium Labs Pvt Ltd
Seedfund
Mercatus Capital, Hub Media
Group
India Innovation Fund
-
-
Education
-
-
IT/ITeS
-
-
IT/ITeS
<Angel Investment>
India Quotient, Blume Ventures,
India Venture Partners
India Innovation Fund, India
Venture Partners
JAFCO Asia
-
-
Others
-
-
Others
-
-
Pharma & Healthcare
5.0
-
Telecom
Target
PurpleStream
iKen Solutions Pvt Ltd
Volano Entertainment Pvt Ltd
RedQuanta
Consure Medical
Bubble Motion Pte Ltd
Sector
Page 24
About IMaCS
Page 25
About IMaCS
40 countries | 600+ clients | 1300+ assignments

India based management consulting firm with over 18 years of experience in policy advisory,
strategy, operations and transaction advisory

A wholly-owned subsidiary of ICRA Limited, one of India’s leading credit rating agencies

Offices across India at New Delhi, Noida, Gurgaon, Mumbai, Chennai, Bangalore, Kolkata,
Hyderabad, Pune and Ahmedabad and International office in USA

Clients include governments, bilateral/multilaterals, industry associations, financial investors
and corporates

Significant experience across the consulting continuum with assignments spanning; policy
advisory, business strategy, operations improvement and transaction advisory services

Knowledge repository with continuous tracking of over 100 industries and sector
Policy Advisory | Strategy & Operations | Capacity Building | Transaction Advisory
Page 26
Contact us
IMaCS offices
Shaleen Agarwal
Principal - Corporate Advisory,
IMaCS
Noida, India
Phone: +91-99581-11350
Email: shaleen.agarwal@imacs.in
Rajesh B V
DGM and Head – Corporate
Advisory,
IMaCS
Bengaluru, India
Phone: +91-98860-21200
Email: rajesh.bv@imacs.in
Corporate Office:
Noida
Logix Park, First Floor,
Tower A4 & A5,
Sector - 16,Noida - 201 301
Tel: +91-120-4515 800
Fax: +91-120-4515 850
Mumbai
4th Floor, Electric Mansion
Appasaheb Marathe Marg,
Prabhadevi
Mumbai – 400 025
Tel: +91-22-3047 0047
Fax: +91-22-3047 0081
Chennai
5th Floor, Karumuttu Centre,
634, Anna Salai,
Nandanam,
Chennai - 600035
Tel: +91-44-4596 4300
Fax: +91-11-2434 3663
Bengaluru
M-01, Prestige Infantry Court,
130,Infantry Road,
Bengaluru – 560 001
Tel: +91 80 4093 4100/ 4123
Fax: +91 80 4093 4111
Kolkata
FMC Fortuna, A-10 & 11, 3rd
Floor, 243/3A,
AJC Bose Road,
Kolkata – 700 020
Tel: +91-33-2283 1412
Fax: +91-33-2287 0728
Ahmedabad:
907&908 Sakar II
Ellisbridge
(Opp. Town Hall)
Ahmedabad-380006
Tel: +91 80 4093
4100/2008/4924/5494
Fax:+91 79 26584924
Hyderabad
116, First Floor, Block-III,
White House,
Kundan Bagh, Begumpet,
Hyderabad- 500 016
Pune:
5A, 5th Floor, Symphony
S.N. 210, CTS3202, Ranga
Hills Road, Shivaji Nagar
Pune:411020
Tel:+91 20
25561194/25560195/ 0196
Fax: +91 2025561231
Gurgaon
Building No.8
Cybercity Phase II
Gurgaon-122002
Tel: +91 124 4545800
Fax:+91 124 4545850
Page 27