VCs turn cautious in 2013; investment activity down 18% to 206 deals worth $805-M

IT & Healthcare deals dominate while Education, Financial Services and Cleantech cos drop from favor

Venture Capital firms invested about $805 million over 206 deals in India during the twelve months ended December 2013, according to analysis by Venture Intelligence. The VC investment activity was about 18% lower compared to 2012 which had witnessed 252 transactions worth $898 million.

The largest VC investments of 2013 were the $20 million rounds raised by restaurant chain Barbeque Nation (from CX Partners) and online taxi booking service Olacabs (from Matrix Partners India and existing investor Tiger Global).

Investments by Industry

With 130 investments worth about $404 million, the Information Technology and IT-Enabled Services (IT & ITES) industry retained its status as the favorite among VC investors during 2013 accounting for 63% of the investment activity (50% by value). Healthcare & Life Sciences emerged as the second favorite destination attracting 27 investments worth $181 million, the Venture Intelligence research showed. Agri-business and Food & Beverages attracted seven investments (worth $20 million) and six investments ($30 million) respectively.

Within IT, the other larger sized investments apart from Olacabs, included the $15 million investment in online car listing firm Cardekho (by Sequoia Capital); the $14 million received by online health supplies retailer Healthkart (led by Intel Capital with participation from existing investors Omidyar Network and Sequoia Capital) and the $12.3 million investment in database software firm ScaleArc (from Accel India and existing investor Nexus Ventures). Online Services companies, which attracted 68 investments worth $237 million in 2013, continued to account for over 50% of IT & ITES investments. Enterprise Software companies that attracted 29 investments worth $97 million in 2013 (compared to 21 investments worth $78 million in 2012) were the next favorite sector within IT & ITES, followed by Mobile VAS companies at 22 investments worth $46 million (as compared 18 investments worth $41 million in 2012).
 

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Investments by Stage

Early Stage investments accounted for 68% of all VC investment activity (44% in value terms) during 2013. The share of Early Stage investment activity however declined significantly from the 83% during 2012.

Investments by Region

Companies based in South India accounted for 41% of all VC investments (55% by value) during 2013. Their peers in Western India accounted for 29% of the pie in 2013 (27% by value). Companies based in North India accounted for 24% of the investments in 2013 (23% by value). Among cities, companies headquartered in Bangalore and Mumbai were the favorite among VC investors during 2013 attracting 49 investments each, followed by Delhi based companies that accounted for 24 investments and Chennai based companies with 21 investments. Gurgaon and Hyderabad followed with 15 deals and 8 deals respectively.

http://bit.ly/19Mua1F

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Knowledge Partner

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Private Equity Fund Investments

Vertex leads Rs 92-Cr third round for baby products e-tailer FirstCry

Economic Times

Pune-based online baby care portal First-Cry.com has received third round of funding of Rs 92 crore. The equity investment was led by Vertex Venture Management, a subsidiary of Singapore's state-run investment company Temasek Holdings. Existing investors in the company IDG Ventures India and Saif Partners also participated in this round of funding. FirstCry will use the money to double its network of brick-and-mortar stores and hire more people for its online retail and mobile commerce services. Brainbees has raised $33 million (Rs 203 crore) so far.

http://economictimes.indiatimes.com/articleshow/29129236.cms

http://www.firstcry.com

Tiger, Accel invest Rs.64-Cr more in real estate listing firm CommonFloor

Medianama

Bangalore-based real estate and apartment management portal CommonFloor.com has raised Series D funding of Rs 64 crore ($10 million approx.) from existing investors Tiger Global and Accel India. It will use the funds raised for product development, building research expertise in the domain and for marketing. The company now wants to go beyond the property listing market and so become the go-to website for other home needs such a interior design, furnishing, movers and packers among others.

From the Venture Intelligence PE Deal database: Accel India had invested $0.22 million in August 2009 and $0.11 million in June 2011. Accel India along with Tiger Global had invested $3 million in September 2011, $4.50 million in April 2013 and $10 million in August 2013.

http://bit.ly/LsoIpC

http://www.commonfloor.com/

iProf raises Rs 55-Cr Series B funding from DMGI, existing investors

Nextbigwhat.com

E-learning solutions company iProf has raised Rs 55 crore in a Series B round of funding from DMGI, the international investments arm of UK-based, LSE-listed media firm, Daily Mail and General Trust, and existing investors. iProf has deployed tablet based education content in India and to 25,000 students in Mauritius and plans to use the funds to prop its latest product – SchoolEra - across CBSE schools in the country. SchoolEra is a fully automated school management platform that is set to offer personalised learning solutions to these schools. iProf had reached out to more than 3,000 students in 2012 and plans to open new branches in Jaipur, Ahmedabad and Nagpur.

The company had previously raised Rs 22 crore in a Series A round from existing investors Norwest Venture partners and IDG Ventures India.

http://www.nextbigwhat.com/iprof-series-b-funding-297

Nexus to invest Rs. 30-Cr in digital security firm Uniken

Times of India

Venture Capital firm Nexus Venture Partners will invest INR 30 crore in Pune-based digital security technology provider Uniken, which will use the funds to expand into global markets such as the US and Israel. Uniken was founded by a team of former senior executives of Infosys. Its client list includes Bank of India and Axis Bank. The firm has filed three patents and expects to file 12 patents in next one year. As part of the deal, Sandeep Singhal of Nexus has joined the board of Uniken.

http://bit.ly/19P0CR7

http://www.uniken.com

MySmartPrice raises Rs 6-Cr more from Accel, Helion

Medianama.com

Price comparison service MySmartPrice has raised INR 6 crore in funding from existing investors Accel and Helion in December 2013. MySmartPrice will use the capital to expand its service to list prices of almost all products sold online in India. As of now it aggregates prices of electronics, books and fashion. The app is claimed to have been downloaded more than 3 lakh times on Android devices. The website is claimed to receive 9-10 million visitors a month.

The company had last raised funding in July 2012 from Accel and Helion.

http://bit.ly/1dxavhk

SAIF Partners buys additional Speciality Restaurants shares worth Rs.3.29 Cr

SAIF Partners, via SAIF India IV FII Holdings Limited, has bought 270,000 shares each on NSE of publicly listed Speciality Restaurants worth INR 3.29 crores at INR122 per share on Jan 22, 2014. This constitutes 0.57% of total outstanding shares of Speciality Restaurants Limited. Post-deal the investor would hold 15.49% stake of the company.

From the Venture Intelligence PE Deal database: In Dec 2007, SAIF invested INR 35.60 Cr for 14.19% stake. And the company was listed in May 2012.

http://bit.ly/crbdip

Uniquest Infra completes majority stake buy in Barwani Tollways project

Business Line

Uniquest Infra Ventures has completed the acquisition of majority stake in SEW Navayuga Barwani Tollways Pvt Ltd from SEW Infrastructure Ltd and Navayuga Engineering Company Ltd. The special purpose vehicle is operating the Khalghat-Madhya Pradesh (MP)/Maharashtra border section of National Highway-3 from Km 84.70 to Km 167.50 in MP. The project started commercial operations in April 2011.

Uniquest Infra Ventures is a Indian infrastructure investments joint venture of Malaysia’s UEM Group Berhad (through its subsidiary PLUS Expressways International Berhad) and IDFC Ltd. SEW and Navayuga Infrastructure are both Hyderabad-based infrastructure companies.

http://bit.ly/1l3j2Tg

Blackstone acquires 0.02% in Igarashi Motors via open offer

Blackstone Group, along with Agile Electric Sub Assembly Pvt Ltd and other entities, has completed the open offer for Igarashi Motors India Ltd. The acquirers managed to buy just 0.02% additional stake in the open offer and together now hold 74.64%.

In July 2013, Blackstone Group had acquired controlling stake in privately-held Agile Electric which is the parent company of Igarashi Motors. MAPE Advisory Group managed the open offer.

http://bit.ly/1hEyJez
 

Social VC Investments

Education firm Hippocampus raises $600-K

Nextbigwhat

Bangalore based learning services company Hippocampus has raised $600,000 from Unitus Seed Fund, Acumen Fund and Lok Capital. The money raised in the bridge round will be used to expand its learning centers across the country next year. Currently, Hippocampus operates over 100 learning centers in Karnataka. The company had earlier raised $1.5 million from Unitus Seed Fund.

http://bit.ly/1kVWxzt

Liquidity Events (Private Equity)

ChrysCapital sells HCL Tech shares worth approx Rs.834-Cr; registers 4x return

ChrysCapital through its units, Warhol Ltd and Dali Ltd, sold 7,462,682 shares of publicly listed IT Services firm HCL Technologies Ltd. worth approx. Rs.834.02 Cr (at an average price of Rs. 1,117.59 per share) in the Oct-Dec 2013 quarter. This constitutes 1.07% of total outstanding shares of HCL Technologies Ltd. Post this deal ChrysCapital would hold a 2.51% stake in the company.

From the Venture Intelligence PE Deal database: Between Nov 2007 and Sep 2008, ChrysCapital invested approx. INR 736 Cr through bulk deals and public market purchases.

http://bit.ly/1dEpgF6

Tano Capital sells stake in Italian electric motor firm CEMP to Regal Beloit Corp

NYSE-listed Regal Beloit Corporation has acquired a 100% stake in CEMP s.r.l., an Italy-based maker of flameproof low voltage electric motors used in hazardous areas. With this acquisition, India-based PE firm Tano Capital has exited its investment in CEMP s.r.l. Nishith Desai Associates acted as the legal and tax counsel to the selling shareholders of CEMP s.r.l. on this transaction. The deal was concluded in Nov-13.

From the Venture Intelligence PE Deal database: In Nov-07, Tano invested $15-M to acquire a 40% stake in ABG Motors. The two firms together acquired Cemp for a reported $40-M.

http://bit.ly/1hN4ouy

http://www.cemp-international.it/

Mergers & Acquisitions

Span Diagnostics sells IVD biz to Japan’s firm Arkray for Rs.73.4 Cr

Kyoto, Japan-based diagnostics firm Arkray has acquired the in-vitro diagnostics (IVD) business, on a slump sale basis, from publicly listed, Surat-based Span Diagnostics Ltd. for INR 73.4 crores. Two of the promoters of Span - Dr. Pradip Desai and Sujata Desai - will join Arkray’s Indian unit, Arkray Healthcare, through which the deal has been done.

Span has a nationwide sales and distribution network and also exports its products to more than 60 countries. It has been supplying HIV test kits for National AIDS Control Programme and Malaria test kits for Malaria Control programme. Singhi Advisors was the financial advisor to Span Diagnostics, while Mizuho Securities worked for the buyer. Wadia Ghandy was the legal advisor to the seller, while Vaish Associates advised the buyer.

http://bit.ly/1fgyTa1

http://www.span.co.in/

Aurobindo to buy Actavis’ ops in 7 Western European nations for Euro 30-M

Publicly listed, Hyderabad-based Aurobindo Pharma is to acquire the commercial operations of NYSE-listed, Dublin (Ireland)-headquartered Actavis in seven Western European countries for Euro 30 million (about INR 250 Cr). Aurobindo expects to acquire personnel, commercial infrastructure, products, marketing authorisations and dossier licence rights of Actavis. The net sales for the acquired businesses are pegged at around Euro 320 million in 2013, with a growth rate of over 10% year-on-year. The acquired businesses are currently loss-making.

The acquisition is expected to complement Aurobindo’s European operations, adding capabilities in France, Italy, Spain, Portugal, Germany, the Netherlands and Belgium, and brands such as "Arrow Generiques". The buy will also provide readymade hospital sales infrastructure to launch its own injectable and speciality portfolio. It will expand Aurobindo’s operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1,200 products and an additional pipeline of over 200 items.

http://bit.ly/1h73cBh

Engg. Services firm Samtel Engg. acquired by Global Economic Advantage

Global Economic Advantage (GEA), along with Laans Portfolios, has acquired an 100% equity stake in Samtel Engineering & Sourcing Solutions Pvt Ltd, an engineering and outsourcing solutions provider to several global companies and multinationals, for Industrial Equipment and Machinery, Automotive, Aerospace and Consumer Products. The acquiring GEA Group is an IT Services provider and Engineering space in North America, Middle East and India. The transaction also involved sale of 100% stake the German unit of Samtel. HSA Advocates was the legal advisor to Samtel and its promoter group.

http://www.samtelengineering.com
 

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Other Deals - Listed Firms

Lulu Group promoter Yusuffali buys 2% in South Indian Bank for Rs. 63-Cr

Business Standard

Dubai-based businessman Yusuffali M A, promoter of the Lulu Group, has picked up a 2% stake in South Indian Bank (SIB). He has bought 30 million shares of the Kerala-based private bank at Rs 21 a piece aggregating Rs 63 crore. Meanwhile, FID Funds (Mauritius) Ltd, a foreign institutional investor, sold 27.6 million shares of SIB at Rs 21 apiece for an estimated value of Rs 58.09 crore. Yusuffali also holds stake in three other private banks based in Kerala: Dhanlaxmi Bank, Federal Bank and Catholic Syrian Bank.

From the Venture Intelligence PE Deal database: South Indian Bank has attracted over $150-M in PE investments starting in Aug-07 from investors including IFC, UTI Ventures, CX Partners, Carlyle and Multiples PE.

http://bit.ly/1bHSy3E

Debt Financing

Capri Global is to invest Rs 45-Cr in Monarch Universal Group projects

Times of India

Mumbai-headquartered Capri Global Capital Ltd (CGCL), a non-deposits accepting, non-banking finance company, is to finance for two projects being developed by Monarch Universal Group in Kalamboli, Navi Mumbai.

http://timesofindia.indiatimes.com/articleshow/29161308.cms

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Inventus Capital closes second fund at $106-M

Businesswire.com

Early stage VC firm Inventus Capital Partners has announced the close of its oversubscribed second fund at $106 million. The firm’s new fund expects to support digital services entrepreneurs, particularly consumer & business software and technology-enabled services.

Inventus has already begun investing Fund II in highly disruptive service focused companies including Unbxd, Espresso Logic, PolicyBazaar and eDreams. The firm expects to back a total of 20 to 25 companies in Fund II. Inventus prefers to lead a company’s first institutional round and can invest up to $10 million as a company grows.

http://bit.ly/1jrtwHK

http://www.inventuscap.com

IndoSpace closes second industrial real estate fund at $330 million

Times of India

IndoSpace, a JV between the Everstone Group and Realterm Global, has closed its second fund, IndoSpace Logistics Parks II (ILP II) at $330 million exceeding its target size at $300 million. The majority of the capital was raised from IndoSpace's existing investors from Fund I. The fund's investor base consists of leading endowments, foundations, sovereign and pension funds. IndoSpace is developing about 32 million sq ft of large-scale modern industrial and warehousing facilities across Mumbai, Pune, Bangalore, Chennai, NCR, Ahmedabad and Kolkata.

http://timesofindia.indiatimes.com/articleshow/29160905.cms

IDG Ventures India to raise Rs.1,000-Cr domestic fund

Economic Times

Bangalore-based IDG Ventures India is raising rupee capital from wealthy Indians for its second fund. IDG expects to raise over Rs 1,000 crore from high net worth individuals and family offices. The fund will invest in technology and technology-enabled businesses.

http://bit.ly/LR8hnt
 

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Sequoia to raise $500-600 M new India fund

CNN Money

Sequoia Capital is raising a new India fund whose corpus is expected to between $500 million and $600 million.

http://bit.ly/1f5wq46

Jyothy Labs' Jt MD Ullas Kamath plans VC investments

Business Standard

Ullas Kamath, the joint MD of publicly-held Jyothy Laboratories Ltd (JLL), is in talks with a branded food processing company for making an investment. He is also in discussions with a few others.

Kamath, during January of last year, was appointed Jt MD of Jyothy Laboratories from his earlier position of Deputy MD. Kamath, joined JLL 22 years ago, and has been a key force in transforming the company from a proprietary concern to a multi-brand FMCG corporate with key brands like Ujala, Henko, Pril, Fa, Margo, White, Chek, Neem, Exo and Maxo.

http://bit.ly/1ioXHBD

3i appoints Arun Nanda as head of advisory board

Times of India

UK-headquartered Private Equity fund 3i has appointed Arun Nanda, Mahindra & Mahindra’s executive director and chairman of several group companies, as the chairman of the advisory board of 3i India. 3i’s investments, especially in infrastructure sectors, have eroded in value during the past few years and the firm has stopped new investments in the country. Nanada’s primary role will be to fix the current portfolio and to make it profitable.

http://bit.ly/1joXm2a

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Private Equity/Strategic Investments

Temasek in talks to invest $180-M in Intas Pharma; Chrys to part exit: report

Business Standard

Temasek Holdings is in discussion with Ahmedabad-based pharma company Intas Pharmaceuticals to invest $150-180 million (Rs 920-1,100 crore) for acquiring a significant minority stake. The deal will provide a partial exit for the existing PE investor, ChrysCapital, which has about 16%. ChrysCapital's Fund-III had in 2006 acquired about 10% in Intas for Rs 53 crore. Its Fund-V had then invested Rs 300 crore for another 6% stake in 2012. ChrysCapital is expected to retain a 6% stake.

Intas had filed a draft red herring prospectus, for the second time, for an IPO in June 2013.

http://bit.ly/1aivdqD

Kwality eyes stake sale to raise Rs 500-Cr

New Delhi-based dairy foods company Kwality Dairy India Ltd (KDIL) plans to sell stake to raise around Rs 500 crore to expand its footprint globally and across the country. The company, with portfolio comprising dairy products sold under the Dairy Best brand, is in talks with Rabo Equity Advisors to offload 14-15% of its stake.

KDIL, which processes 1.2 million litres of milk per day at its plant in Faridabad, Haryana, will launch a range of new dairy products and revamp its existing line-up.

http://bit.ly/1f7vE4H

Liqvid eLearning in talks to raise $10-M

Economic Times

Noida-based educational software maker Liqvid e-Learning Services is seeking a second round of equity funding and has begun talks with a number of venture capital funds. Liqvid, whose flagship product is the customised English language learning software EnglishEdge, is looking to raise up to $10 million and has held early stage discussions with Matrix Partners India and Nexus Venture Partners, among others. A successful deal could value the company at about $50 million. The company expects to use the funding to expand into international markets, including South-East Asia, Eastern Europe and Latin America as well as build its mobile business.

In August 2012, the company had raised $3 million from a unit of one of Japan's largest investor firms, SBI Holdings.

http://bit.ly/1jrlmiE

http://www.liqvid.com/

Allied Blenders in talks to raise PE funding, acquire Tilaknagar

Business Standard

The Kishore Chhabria-led Allied Blenders and Distillers (ABD) is looking to acquire majority stake in Tilaknagar Industries. To fund the acquisition, ABD is in talks with private equity majors Carlyle and TPG to raise about $200 million. Recently, ABD had acquired 100% stake in Wales Distilleries in West Bengal.

Tilaknagar manufactures, markets and sells about 40 brands across price ranges. In 2012-13, it had recorded sales of 13.8 million cases. Promoters, including Chairman & Managing Director Amit Dahanukar and his family, hold 56% stake in the company. The Mansion House brand from the Tilaknagar stable is the world’s second-best-selling brandy label.

http://bit.ly/1bgZuAJ

Japanese e-commerce firm Netprice’s arm Beenos in talks with 2-3 cos

Business Standard

Beenos, the global incubation and investment wing of Japan’s largest e-commerce conglomerate Netprice.com, is eyeing investments in the Indian e-commerce space. For 2014, the company is already evaluating two to three firms in the e-commerce segment. Beenos invests through the corporate balance sheet into start-ups and the strategy will be same for India too. As its investment strategy it prefers to take a significant minority stake in start-ups with a board position.

Last year it invested in Gurgaon-based ShopClues.com and Mumbai based payment solutions firm Citrus Pay.

http://bit.ly/1aI1FQW

L&T Infotech mulling acquiring 10% in NCDEX: report

Economic Times

L&T Infotech, the IT services arm of engineering conglomerate Larsen and Toubro, is evaluating options for a possible stake buy in multi-commodity exchange NCDEX. The exchange is valued at around Rs 1,000 crore based on recent exits and under the current norms, L&T Infotech can pick up a maximum of 10% stake.

In NCDEX, the maximum investor stake of 12.5% is held by Shree Renuka Sugars. Other shareholders include LIC, NSE, Nabard, Iffco, Punjab National Bank, Crisil, Intercontinental Exchange of the US , Canara Bank and Goldman Sachs investments.

http://bit.ly/1dST7Id

MRO Air Works in talks to raise new round; existing investors to part exit

Mint

Mumbai-based Air Works India (Engineering) Pvt. Ltd, which provides aircraft maintenance services, is looking at raising another round of funding of about Rs.150 crore via part primary (direct stake sale by the company) and part secondary (stake offloading by existing investors) stake sale. The firm has appointed i-banking firm JM Financial to advise it.

Private Equity firms New Enterprise Associates and GTI Capital Group own around 51.51% stake in Air Works; engineering firm Punj Lloyd Ltd holds 19.58%. The Menon family, Vivek Gour and employee stock options together own 28.91% of the equity.

http://bit.ly/1bKsZPz

Mobile maker Wham Infocom plans to raise Rs. 100-Cr

Business Standard Print Edition

Bangalore-based Wham Infocom Pvt Ltd, a player in the mobile handset space, plans to raise around Rs. 100 crore from venture capital and private equity investors for brand promotion and market expansion for its mobile phone brand, Wham! The company is in talks with investment banks.

Wham Infocom, launched in 2013, sells 24 models in seven states. Its product portfolio comprises 12 feature phones, 10 smart phones and 2 tablets. The firm expects to clock a turnover of Rs. 70 crore in 2013-14.

IPOs

Oceanaa Biotek files SME IPO

Chennai-based specialized food testing laboratory Ocenaa Biotek Industries is planning for an IPO by issuing 21 lakh shares of Rs 10 each, totaling Rs 21 crore on the BSE SME platform. OBIL is an independent entity of the Oceanaa group of companies with interests in processing of marine products, vegetables and fruits.

http://bit.ly/K0u1vT

http://oceanaabiotek.com

Ekdant India files for SME IPO

New Delhi-based Ekdant India has filed a draft red herring prospectus for an initial public offering on the BSE-SME platform of 40,30,000 equity shares of Rs 10 each at par aggregating Rs 4.03 crores. The net issue will constitute 26.37% of the post issue paid up equity share capital of the company. Sobhagya Capital Options is the lead manager to the issue.

http://bit.ly/19tg0Cv

http://www.ekdantindia.com/

Si.Vi. Shipping Corporation files for SME IPO

Surat-based i. Vi. Shipping Corporation Private Limited has filed a draft red herring prospectus for an initial public offering on the BSE-SME platform of 27,42,000 equity shares at Rs 15 each aggregating Rs 6.85 crores. The net issue will constitute 47.67% of the post issue paid up equity share capital of the company. Pantomath Capital Advisors is the lead manager to the issue.

http://bit.ly/1jmmjIM

http://sivishipping.com/

Karnimata Cold Storage files for SME IPO

Paschim Medinipur-based Karnimata Cold Storage Private Limited has filed a draft red herring prospectus for an initial public offering on the BSE-SME platform of 15,18,000 equity shares at Rs 20 each aggregating Rs 3.03 crores. The net issue will constitute 29.85% of the post issue paid up equity share capital of the company. Aryaman Financial Services is the lead manager to the issue. The company is engaged in the business of providing cold storage services for the storage of potatoes.

http://bit.ly/1dzMLJv

http://karnimatacoldstorage.com/

Secondary Issues

GMR Infra looks to raise funds through FCCB

Equitybulls.com

A meeting of the Board of Directors of GMR Infrastructure Ltd will be held on January 24, 2014, to consider raising of funds through Foreign Currency Convertible Bonds (FCCBs) or any other securities.

http://www.equitybulls.com/admin/news2006/news_det.asp?id=132975

M&A

Hedge funds put auto comp firm Comstar on block for Rs.450-Cr

Times of India

Two Hong Kong-based hedge funds, Comcraft group and Argyle Street Management, are in advance talks with Japanese giant Mitsubishi Group to sell their stakes in Chennai-based auto component maker Comstar Automotive Technologies. The funds have mandated Kotak Mahindra Capital Company to scout for buyers. Comstar, which makes starter motors and alternators for cars, was owned by Ford Motors under Visteon Powertrain until 2007 when it sold its global auto component business Visteon to these funds.

The company,which clocked revenues of around Rs 350 crore in fiscal year ended March 2013, is being valued at between Rs 400 crore and Rs 450 crore.

http://bit.ly/1aCA68s

Aditya Birla Group to sell BPO arm Minacs for Rs 1,600-Cr in PE buyout: report

Times of India

The $40-billion Aditya Birla Group is close to selling its Bangalore-based business process outsourcing (BPO) firm Minacs to a private equity consortium structured by tech entrepreneur-turned-investor Sanjay Chakrabarty for about $270 million, or around Rs 1,600 crore.

Minacs, which employs 21,000 people across 35 locations in the world, has a revenue of $450 million and an operating profit of $40 million. The bid values the company at six to seven times its operating profit. Minacs provides back office work on marketing, finance and accounting, procurement and IT solutions for clients.

http://bit.ly/1dqmJrQ

http://minacs.adityabirla.com/

Bharti puts Bangladesh towers up for sale

Economic Times

Bharti Airtel has put the company's 4,000-towers strong network in Bangladesh on its divestiture list. It seeks to raise about $200 billion from selling its network in Bangladesh. Bharti has received offers from potential acquirers - US and Middle Eastern tower management companies, in some cases backed by financial investors - to sell its tower networks in Africa and Bangladesh in separate deals.

Bharti Airtel took full control of its mobile service operations in Bangladesh last year, buying out a 30% stake held by Warid Telecom, a wholly-owned subsidiary of the Abu Dhabi Group. Bharti has about 6.7 million subscribers in the South Asian country.

http://economictimes.indiatimes.com/articleshow/29181410.cms

Essar Group looks to buy back US Co Trinity Coal

Economic Times

The diversified steel-to-shipping Essar Group is in advance negotiations with a consortium of banks to buy back Trinity Coal Corporation, a large US mining company. This unique reacquisition, once completed, will help Essar win back a strategic asset without large liabilities and at a much-reduced cost. In February last year, Trinity's lenders led by Credit Agricole, ING Capital and Natixis, had filed for a Chapter 11 bankruptcy petition in Lexington, Kentuky against Trinity and its affiliate Frasure Creek Mining after the company stopped paying back around $120 million to its lenders. But as part of a restructuring package Essar has proposed to buyback the company from the bankruptcy proceedings. It has also sought the assistance of SBI Caps to raise $200 million for the reacquisition. The lenders have also agreed to take a substantial write-off of around 50% on the principle amount and settle for a payment of $56 million.

In March 2010, Essar Minerals had agreed to buy Trinity Coal from Denham Capital — an energy and commodities focussed PE firm — for $600 million enterprise value. The total cash consideration of the deal was $228 million out of which Essar has paid $25 million.

http://bit.ly/1hN3oqh

IndiGo promoters are top bidders for GMR’s H’bad hotel

Times of India

The Bhatias of IndiGo Airline have emerged as top bidders for Novotel Hyderabad Airport, a GMR group hotel, in a deal worth Rs 300 crore. The sale process, managed by hospitality consultancy HVS, has now entered the final stages. Bhatias’ InterGlobe Hotels, a JV with French hospitality chain Accor, runs the Ibis budget hotels. Currently, there are seven Ibis properties and 12 are under various stages of development.

Initially, over a dozen parties, including PE firms, had shown interest in the 305-room property located at the Rajiv Gandhi International Airport. The list has now been cropped to two. A Delhi-based chewing tobacco maker, which owns a few properties in the country, too has been shortlisted.

Novotel Hyderabad, managed by Europe's largest hotel operator Accor, opened its doors to guests in 2009. Valuation being fair, GMR is expected to go with InterGlobe as it has an existing relationship with Accor.

http://bit.ly/KRj54n

Future Lifestyle set to lap up three fashion brands

Financial Express

Future Lifestyle Fashions (FLF) is eying at least three acquisitions in the fashion retail space. The company is reported to have finalised acquisition of Spykar Lifestyles, Delhi-based premium apparel brand Giovani and women's fashion clothing line Desi Belle for possible buys.

http://bit.ly/1fgz98W

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India Ahoy!

Search firm MRINetwork sets up India operations

Economic Times

MRINetwork, one of the largest search and recruitment organizations in the world, has entered the Indian market with an affiliate office in New Delhi. MRINetwork Insource Solutions will specialise in search and recruitment for the information technology, healthcare, FMCG, retail, banking and manufacturing.

http://bit.ly/1faCnfT

New Ventures

3F in JV with Japan’s Fuji Oil to make food ingredients

Business Standard

Hyderabad-based 3F Industries has tied up with Japan's Fuji Oils to set up a 45:55 joint venture firm to produce non-dairy cream and other food ingredients. The initial investment in the plant, machinery and land is expected to be around Rs 100 crore and it is expected to commence production by March 2015. Fuji Oil would bring in technology and 3F Industries would be involved in the setting up of the project, distribution and marketing of the products.

The plant will be developed at Burgul near Hyderabad. The plant will have initial capacity of 500 tonnes per month and the production is expected to be doubled after two years. Twelve more related products such as softy ice cream, cooking cream are in the pipeline to be launched after non-dairy cream.

http://bit.ly/KpBUdO

Jabong co-founder Manu Jain quits to launch own venture

Financial Express

Manu Jain, MD and co-founder of e-commerce firm Jabong, has quit to start his own online venture. Jain has already met with venture capitalists for funding the new venture.

http://bit.ly/1faCDLV

Expansion/Diversification

Tata Housing plans super luxury villa project in Delhi

Economic Times

Tata Housing plans to develop a super luxury residential project in the heart of national capital comprising 4-5 expensive villas in a price range of Rs 130-170 crore each. Tata Housing, the real estate arm of the Tata Group, has decided to develop 4-5 signature villas on the 1-acre bungalow that the company had bought in 2012 on Hailey Road near Connaught Place for about Rs 250 crore.

http://bit.ly/1cIk5xK

Supertech to invest Rs.1,350-Cr on new housing project in Noida

Economic Times

Noida-based realty firm Supertech will invest Rs 1,350 crore over the next three years to develop a new housing project in Noida. The company would construct 1,800 flats in the project, which is spread over 17.5 acres. The company has fixed the basic selling price at Rs 4,350 per sq ft.

http://bit.ly/1eOCLhU

SMILE Microfin promoters feud with investor DWM

Business Standard

The founder-promoter of SMILE Microfinance, N Sethuraman, and DWM Investments (Cyprus) Ltd are in a legal tussle for the control of the Chennai-based non-banking financial company (NBFC). A judge of the Madras High Court recently dismissed a petition by Sethuraman, who sought an order of injunction restraining DWM Investments from taking any major management decisions in the NBFC, pending arbitration proceedings.

SMILE Microfinance and DWM Investments had entered into an agreement in December 2009, through which the latter infused around Rs 50 crore in three tranches into the NBFC, following which DWM Investments' stake in SMILE rose to 66.64%.

http://bit.ly/1dqrkKG

DQ Entertainment restructures French arm

Business Standard

DQ Entertainment (International) Limited, a Hyderabad-based animation, game art and entertainment company, has reorganised its French sister company Method Animation, in which it holds a 20% equity stake. Method Animation has joined with France’s Onyx Films and Chapter 2 to create ‘On Entertainment Group’, which will be the holding company for the three French subsidiary companies.

The new On Entertainment Group has revenues of euro 34 million (approximately Rs 283.22 crore) and an operating profit of euro 5.2 million.

http://bit.ly/LyE3EY

Supertech to open multi-disciplinary university

Business Line

Realty company Supertech Ltd has announced its higher education venture, Supertech University. An initiative of the Supertech Foundation, the multi-disciplinary university will come up in Uttarakhand's Udham Singh Nagar district across 47 acres. It will offer courses in engineering, architecture, fashion and design, communication, medicine, public policy, hospitality and liberal arts.

http://bit.ly/1au534m

Prakash Steelage to set up industrial park in Gujarat

Business Standard

BSE-listed Prakash Steelage will invest Rs 70 crore to set up Krishna Industrial Park (KIP) in Umbergaon in Gujarat to meet the growing demands of upcoming SMEs in the state. To be set up in association with Kargwal Group, KIP will provide infrastructure ready industrial plots for factories, warehouses, workshops and service stations.

The park is targeted at small and medium enterprises such as textile industries, stainless steel, metal, packaging, plastic manufacturing, automobiles, food and agriculture, minerals and cold storages. The KIP will offer connectivity to ports and highways and has an exclusive loading and unloading area. The plots are offered in the range of 427 sq mts to 3,325 sq mts and the project will be ready in the next two years.

http://bit.ly/LOdYln

People

Head of M&A at Deutsche Bank Sughosh Moharikar quits

Times of India

Sughosh Moharikar, head of M&A at Deutsche Bank in India has put in his papers after a two-year stint with the European bank. Moharikar, who had stints at Credit Suisse and Kotak Mahindra before moving to Deutsche Bank, is reported to be joining a US-based middle-market merger advisory firm. Amit Bordia, who heads Deutsche Bank's corporate finance, may be given the responsibility for M&A.

http://timesofindia.indiatimes.com/articleshow/29176752.cms

Rajeev Vasudeva appointed CEO of Egon Zehnder

Economic Times

Rajeev Vasudeva, currently the managing partner of Zurich-based executive search firm Egon Zehnder's global family business advisory unit, has been appointed the company's CEO. He will be based in Zurich and will assume the firm's CEO position from Damien O'Brien who remains as global chairman.

http://bit.ly/1hKvu5p

Inkfruit founder Kashyap Dalal joins Simplilearn

Times of India

Kashyap Dalal,who sold his online retail venture Inkfruit to bigger rival Zovi.com in February last year,has joined online training company Simplilearn as chief product officer.

From the Venture Intelligence PE Deal database: VC investors in Simplilearn include Helion Ventures, Kalaari Capital and India Venture Partners.

http://bit.ly/1cTejtg

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

Universal Legal promotes 3 to partners in Bangalore, Chennai

Legally India

Universal Legal has promoted Senior associates Akash Mukherjee and Savitha BR as corporate partners in Bangalore and Sameena Chatpathy will be a partner in the firm’s corporate practice at Chennai.

http://bit.ly/1fYgoM4

Dilip Dusija joins BDO India as Partner - Corporate Finance

Dilip Dusija has been appointed as Partner Corporate Finance and Leader for Private Equity Services at BDO India. Until recently, Dilip was head of Private Equity Advisory at Axis Capital/Axis Bank. Prior to this, he has held senior positions at KPMG, Ernst & Young and RSM & Co.

Dilip is a member of the Institute of Chartered Accountants of India

http://in.linkedin.com/pub/dilip-dusija/4/74/998

Bharti Infratel names DS Rawat as MD; Akhil Gupta becomes chairman

Bharti Infratel the telecom tower arm of Bharti Airtel has appointed D.S. Rawat as an Additional Director and Managing Director & CEO of the Company w.e.f. April 01, 2014. The firm has also redesignation of Akhil Gupta as Executive Chairman of the Company w.e.f. April 01, 2014.

http://bit.ly/1hQj2RJ

Regulatory News

Mayaram Panel for easing foreign investment rules

Mint

A government-mandated panel, headed by economic affairs secretary Arvind Mayaram, has proposed easing foreign investment rules and has suggested doing away with separate caps on foreign portfolio investment (FPI) and foreign direct investment (FDI), instead moving to a composite foreign investment cap that combines the two. The committee has recommended 49% foreign investment through the automatic route in all sectors except in defence, insurance and media.

It has suggested composite sectoral caps for foreign investors with a default FPI limit of 24%, including investments by both foreign institutional investors (FIIs) and qualified foreign investors (QFIs), thus doing away with separate caps for such portfolio investments. The committee has also recommended that any investment in an unlisted company will be treated as FDI even if it is below the 10% limit.

http://bit.ly/1bWrE8e

Others

Banks to recast Rs 5,000-Cr debt of Era Infra

Business Standard

A consortium of 20 lenders has decided to restructure the Rs.5,000-crore debt of Era Infrastructure, a Delhi-based infrastructure developer, in the quarter ending March. The case has been admitted to the corporate debt restructuring (CDR) cell and the contours of the recast have already been finalised. About Rs 4,000 crore of the exposure is fund-based; the rest is in the form of bank guarantees and letter of credits.

Era Infrastructure was unable to execute projects, as the National Highways Authority of India wasn’t releasing funds for the work completed. Besides, there were cost overruns. The company is developing about nine projects, including some in the roads sector.

http://bit.ly/Kvt8v0

SEC bans Shopclues Sandeep Aggarwal from US Exchanges

NextBigWhat

Shopclues founder Sandeep Aggarwal, who pleaded guilty on charges of insider trading levelled by the US Securities & Exchanges Commission, has been barred from the US securities market. Aggarwal was arrested by the FBI in July 2013 for allegedly tipping off a hedge fund manager who pleaded guilty of insider trading earlier. He was subsequently released on a $500,000 bond until trial.

http://bit.ly/1dSX1Rt

IVRCL seeks Rs 2,750-Cr debt rejig

Business Line

Infrastructure player IVRCL Ltd has initiated the process to rejig its debt of Rs 2,750 crore at the holding company level under the corporate debt restructuring (CDR) mechanism. Together with various special purpose vehicles, IVRCL has a debt burden of about Rs 5,000 crore. The company’s lead banker is State Bank of India, and lenders’ consortium includes 21 banks.

http://bit.ly/1fYhKql

CLB okays PE investors’ plea for independent audit of Fourcee

Economic Times

The Company Law Board has granted private equity investors General Atlantic and India Equity Partners' plea to conduct an independent audit of Fourcee Infrastructure Equipments to check alleged financial irregularities. The Mumbai bench of the CLB last week directed Deloitte Touche Tohmantsu India to conduct an independent forensic audit of Fourcee, a logistics firm specialising in tank trailers and equipment, and submit its report by January 31.

General Atlantic Singapore Fund PTE and India Equity Partners (IEP), which have invested $107 million and $24 million, respectively, into Fourcee, had approached the CLB in October last year, saying they suspected financial misappropriation by promoters Rajesh Lihala, who is the executive chairman, and Vinay Singh, the managing director. The allegations surfaced after an audit of the books of accounts for year ended March 2013 by BSR & Company, an affiliate of KPMG. After this the PE funds, along with the board of directors of the company, appointed Ernst & Young LLP for forensic audit. However, after the auditor submitted its initial report, Fourcee filed a suit against Ernst & Young before the Bombay High Court, alleging force auditing and defamation.

http://bit.ly/1bjvZyo

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The Deal: Groupe Lactalis SA acquires Tirumala Milk Products

Advisor: J. Sagar Associates

Client: Carlyle Group & the Individual promoters of TMP (Tirumala Milk Products Private Limited)

Deal Value: US$ 275 million or INR 1,750 crores.

Deal Description: J. Sagar Associates advised Carlyle Group & the Individual promoters of TMP (Tirumala Milk Products Private Limited), for sale of their 100% shareholding of TMP to Groupe Lactalis SA. TMP is one of the largest dairy companies in South India and the Lactalis Group is one of the largest dairy companies internationally.

Advisory Role: J. Sagar Associates (JSA) advised Carlyle Group & the Individual promoters of TMP (Tirumala Milk Products Private Limited)

Advisory Team: Partner – Kaushik Mukherjee and Associate – Gagan Sharma

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

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The Deal: Nexus Ventures invests in SSN Logistics

Advisor: J. Sagar Associates

Client: Nexus Ventures

Deal Description: Nexus Ventures via Nexus Ventures III, Ltd. has acquired 28.35% in SSN Logistics Private Limited, a company engaged in warehousing and last mile logistics services.

This was the second round of investment into this start-up company which had generated the first round of funding from Times Internet Limited, an Indiatimes group entity (“Times”).

Advisory Role: J. Sagar Associates (JSA) advised Nexus Ventures

Advisory Team: Partner – Sidharrth Shankar

More Info: http://bit.ly/169eDoS

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