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  The Big Deal

BFSI > Banking
Warburg completes exit from Kotak Bank;sells shares worth Rs. 1,406-Cr

Warburg Pincus, through its units Madison Holding Ltd. and Melany Holdings Ltd., has sold 13,267,095 shares each of Mumbai-based listed Kotak Mahindra Bank Ltd. at Rs. 530 per share on the BSE, aggregating to Rs. 1,406.31 crore on Mar 26, 2012. This constitutes 3.59% of total outstanding shares of Kotak Mahindra Bank. 

From the Venture Intelligence PE Deal database: Warburg Pincus invested an aggregate amount of $157-M (Rs. 702 Cr approximately) across several years ranging from Dec-04 to Jan-10. Warburg Pincus has made four part exits prior to the latest complete exit, the latest of which took place on Feb 1, 2012 to the tune of Rs.858 Cr.

For more information: 


L&T Finance acquires Fidelity’s Indian mutual fund biz

Advent invests $110-M in Care Hospitals

CX Partners to acquire 40% of Sutures India for Rs. 200-Cr; Evolvence to exit

Valiant Capital invests Rs. 171-Cr for 22.75% stake in Shriram Housing Finance

Essel Group buys 10.19% in IVRCL for Rs. 164-Cr

April 04, 2012

Published on Wednesday.

Venture Intelligence

Also in this Issue

Done Deals
PE Investments

Liquidity Events


Deals in the Making
PE Investments


Real Estate News

Fund News


Other News

Data Snapshot* – from the Venture Intelligence Deal Databases
Private Equity   No. of Deals Value (US$ Millions) *As of March 31, 2012
Investments (YTD): 90 1887 Click here to access deal by deal PE data
PE-backed IPOs (YTD): 1 133 (Amt Raised via IPOs)
Exits via M&A (YTD): 25 1031(Total Transaction Value)
Venture Capital

No. of Deals

Value (US$ Millions)

Click here to access deal by deal VC data

Investments (YTD): 38 165
VC-backed IPOs (YTD): 0 NA (Amt Raised via IPOs)
Exits via M&A (YTD): 0 NA (Total Transaction Value)

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Done Deals

PE / VC Fund Investments

Healthcare & Life Sciences > Hospitals
Advent invests $110-M in Care Hospitals

Advent International Corp. has invested $110 million in Hyderabad-based Care Hospitals Pvt. Ltd., the country’s third largest hospital chain (after Apollo Hospitals and Fortis Healthcare), reports Mint. Care, with 12 hospitals and a focus on smaller cities, has a presence in Bhubaneswar, Secunderabad, Nagpur, Surat and Visakhapatnam. The chain, founded in 1997, is estimated to have revenues of at least Rs. 500 crore. 

The funds would be used to increase operational facilities and increase the bed capacity to 2,600 from the current 1,600. Care will also be entering into new specialties, including oncology, 

From the Venture Intelligence PE Deal database: In Jan-2008, Care had raised $22 million from Ashmore. India Value Fund, which had originally invested $5 million in Aug-2001, sold part of its stake to Ashmore as part of this transaction. 

For more information:

Healthcare & Life Sciences > Medical Devices (Surgical Products)
CX Partners to acquire 40% of Sutures India for Rs. 200-Cr; Evolvence to exit

CX Partners, a PE firm led by Citigroup veteran Ajay Relan, is to acquire an over 40% stake in Bangalore-based medical textiles and surgical products manufacturer Sutures India for Rs. 200 crore, reports Times of India. Sutures India manufactures medical consumables, including absorbable and non-absorbable sutures, skin staplers and surgical tapes. CX will buy out the existing financial investor, Evolvence Life Sciences, and also buy part of the promoter stake, which is awaiting FIPB approval. 

CX Partners is $515 million India-focused PE firm, which was floated by Relan and team after their exit from CVCI. Its other investments include Monnet Ispat and Thyricare Technologies. 

From the Venture Intelligence PE Deal database: Evolvence India had invested $7-M in Sutures India in Sep-09. 

For more information:

BFSI > NBFC (Housing Finance)
Valiant Capital invests Rs. 171-Cr for 22.75% stake in Shriram Housing Finance

US-based PE firm Valiant Partners is to pick up a 22.75% stake in Chennai-based Shriram Housing Finance Ltd., a subsidiary of the publicly listed Shriram City Union Finance (SCUF). The deal envisages a cumulative investment of Rs. 170.52 crore by Valiant over three tranches across three years and Rs. 165.44 crore by SCUF. The infusion by SCUF will be at Rs. 10 a share and that of Valiant will be at Rs. 35 a share in all tranches. The listing of Shriram Housing will happen by the end of the fifth year. 

Shriram Housing was started with a capital of around Rs. 100 crore from SCUF. The company, which started operations in January, currently has a loan book size of around Rs. 10 crore. 

For more information:

Engg. & Construction > Engineering & Design Services (Railways)
VenturEast, Zephyr to invest Rs. 60-Cr in E to E

Bangalore-based railway infrastructure services firm E to E Transportation Infrastructure Pvt. Ltd. is to raise Rs. 60 crore in two tranches from PE firms VenturEast and Zephyr Peacock, reports PluggdIn. AGacquisitions & Co. advised the company on this transaction. E to E is part of the e2E Group promoted by Ganapa Sreenivasa Rao (GS Rao), a former member of Indian Railway Service of Signal Engineers. 

For more information:

Agri-business > Seeds
Rabo Equity invests Rs. 50-Cr in Super Agri Seeds

Rabo Equity Advisors, via its $120-million India Agri Business Fund, has invested Rs. 50 crore in Hyderabad-based Super Agri Seeds Pvt. Ltd., reports Business Line. The company is expected to report a turnover of Rs. 75 crore this year. It plans to achieve a Rs. 350 crore turnover by 2015 and is targeting to achieve a market share of 3-4% in the nation's Rs. 8,000-crore seed industry. 

Super Agri Seeds will be using the funds for new product development and scaling up its R&D activities. It is in the process of forming joint ventures with agro-based companies in Europe and Asia for R&D in crops like sunflower, corn, jowar and vegetables, besides making an entry in biotechnology. 

For more information:

Healthcare & Life Sciences > Medical Devices
Aarin Capital invests in Insightra

Aarin Capital, the Manipal Group sponsored PE fund led by former Infosys director TV Mohandas Pai and the Manipal Group’s Ranjan Pai, has invested $8 million (Rs. 40 crore) in Irvine, California-based medical technology company Insightra.  

Deepak Natraj, SVP - Strategic Initiatives at The Manipal Group, has joined the company's board. Also on the board is Dr.Jasmin Patel, who was earlier an MD of the Indian PE investment arm of Fidelity and before that COO of Novartis India. 

For more information:

IT & ITES > Online Services (Shopping – Books)
Aarin invests in

Aarin Capital, along with a group of early-stage investors, has invested in New Delhi-based online book retailer, reports Economic Times

The PE fund has also invested in two more undisclosed companies. 

Bookadda had earlier received investments from Tutorvista founder K.Ganesh and his wife Meena Ganesh. 

For more information: 

Manufacturing > Steel (Castings)
IndiaVenture invests Rs. 40-Cr in Tulsi Castings

Piramal Group-promoted PE firm India Venture Advisors has invested Rs. 40 crore in Tulsi Castings and Machining Ltd., a manufacturer of ductile iron castings with facilities at Sangli, Maharashtra, reports Economic Times. SBI Capital Markets was the sole advisor to the company for this transaction.

For more information:

IT & ITES > Online Services (Gaming)
Nirvana Ventures acquires 10% stake in Games2win; Nexus, I-Ven part-exit

Nirvana Venture Advisors has acquired a 10% stake in Mumbai-based online games company Games2win from early investors Nexus India, ICICI Venture and a few senior company employees. Media reports place the deal amount at Rs. 20 crore. 

Nexus and ICICI will continue to hold residual shares in the company. Lead investor Clearstone Venture Partners and SVB Holdings have not divested their shares in this transaction. As part of the transaction, Amit Patni, co-founder of Nirvana Venture, will join the Games2win board. 

For more information:

IT & ITES > IT Services (Business Services – Social Media)
Accel invests Rs. 15-Cr in Enterprise Nube

Accel Partners, via Accel India Fund III, has invested Rs. 15 crore in Enterprise Nube Services Pvt. Ltd., a Bangalore-based startup that helps corporations adapt to the emergence of online social networks. Mahendran Balachandran of Accel Partners has joined the Enterprise Nube board. 

Enterprise Nube was founded in September 2011 by its CEO Subhash Dhar, who earlier had an over 14 year stint at Infosys. At the time of leaving Infosys, Subhash was Senior Vice President and Worldwide Head of Sales, Marketing & Alliances. He was also a Member of Infosys Executive Council and ran the industry business unit for Communication, Media & Entertainment. 

For more information:

Healthcare & Life Sciences > Pharmaceuticals
Tano re-enters Shilpa Medicare; acquires shares worth Rs. 8-Cr

Tano Capital, through its unit Tano Mauritius India FVCI II, has bought 350,000 shares (1.46%) in Raichur-based listed Shilpa Medicare Ltd. worth Rs.7.88 crore at Rs. 225 per share on March 30, 2012. 

From the Venture Intelligence PE Deal database: In Sep 2005, Tano Capital had invested Rs. 6.25 Cr at Rs. 250 per share and had made a complete exit in Apr 2010 with a 4.82x return multiple. 

For more information:

IT & ITES > Enterprise Software (Video Analytics)
Proof of Performance Data raises funding from YourNest

Noida-based Proof of Performance Data Services Pvt. Ltd. has raised funding from YourNest Angel Fund, an India-based VC fund. The deal amount is placed at Rs. 3-5 crore. The company is a provider of insights to decision makers based on video analytics from the archives of real world videos through its cloud based platform. 

It will use the proceeds for strengthening its technology platform, called Earthive, and building enhanced infrastructure facilities, product extensions and technology adoption. 

Venture Intelligence Research Note: Sunil Goyal of YourNest has joined the company's board as of March 3, 2012. The company was incorporated with Arvinder Mann and Harjaap Singh Mann as its founding directors on December 8, 2010. The company has also received an investment from IIM-A's CIIE incubation program. 

For more information:

IT & ITES > Online Services (Jobs Portal)
iimjobs raises seed funding from India Venture Partners, One 97, others, a job board for mid-senior level positions, has raised seed funding from India Venture Partners, One97 Communications, Pallav Nadhani, Abhishek Rungta, Anand Lunia, Shailesh Vickram Singh (Seedfund), Sachin Garg and others. The funds will be used for developing the platform and building a customer relations team. The company is ramping up the engineering team to build tools to help recruiters and jobseekers find each other. 

iimjobs has built a curated set of seekers and has expanded its reach to 200,000 job seekers. Launched in 2008 as a side project, the company was earlier backed by The Morpheus. 

For more information:

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Liquidity Events

Manufacturing > Auto Components
NYLIM India sells CEBBCO shares worth Rs. 6-Cr

NYLIM India, through its unit New York Life Investment Management India Fund FVCI II, has sold 1,000,000 shares of publicly listed auto components firm Commercial Engineers and Body Builders Co. Ltd. (CEBBCO) worth Rs. 6 crore at Rs. 60 per share on March 27, 2012. This constitutes 1.82% of the total outstanding shares of CEBBCO.

From the Venture Intelligence PE Deal database: In Aug 2007, NYLIM India invested INR 30-Cr for 23.76% stake and made one part exit during IPO in Jul 2010. 

For more information:

Mergers & Acquisitions

DB Zwirn exits from Dhandapani Finance

US-based DB Zwirn has completely exited Chennai-based listed NBFC Dhandapani Finance Ltd. by selling 30,36,703 shares, or a 51% stake, Rs.0.099 per share aggregating Rs. 3 lakh to Chennai-based Auctus Holdings. Auctus, which is promoted by S Balachander, MD of Dhandapani Finance, is also launching a mandatory open offer for 15,48,124 shares, or a 26% stake, at Rs. 2 per share, aggregating to Rs. 31 lakh. SPA Merchant Bankers is the banker to the open offer. 

From the Venture Intelligence PE Deal database: DB Zwirn had acquired a majority stake in Dhandapani Finance in Jun-08.

For more information:

Angel Investments  

IT & ITES > Communication Tech (Cloud Telephony)
Exotel raises Rs. 2.5 Cr for 25% stake

Exotel, a Bangalore-based startup that offers business phone systems on the cloud to SMEs, has raised Rs. 2.5 crore in Series A funding from Mumbai Angels and Blume Ventures – for a 25% stake in the company – on ET Now’s Super Angels show. The funds shall be primarily used for building the company's infrastructure and stabilizing its product.

Founded eight months ago by Shivakumar Ganesan, Ishwar Sridharan, Siddharth Ramesh and Vijay Sharma, Exotel offers a number to a company on which it can receive and make calls and SMS, all at the same time without having to invest in any infrastructure. The product is a dashboard with sales tools, marketing tools, customer support tools, business intelligence, analytics etc. 

From the Venture Intelligence PE Deal database: In January, Sequoia Capital had invested Rs. 35-Cr in another cloud telephony firm, Knowlarity Communications. 

For more information: 

IT & ITES > Mobile VAS (Apps Access)
RainingClouds raises Rs. 50 lakh from One97 founder

Pune-based RainingClouds Technologies has raised Rs. 50 lakh in angel funding from One97 Communications founder Vijay Shekhar Sharma. The company’s first product is Appsurfer (earlier called Droid Cloud) which is a platform through which apps can be accessed from any device. 

For more information: 

IT & ITES > Online Services (Staffing Services Portal) raises Rs. 50 lakh from Indiagames founder

Employment portal, owned by Mumbai-based Joule Consulting, has raised angel funding of Rs. 50 lakh from Indiagames founder Vishal Gondal. StaffOnContract enables the hiring of people across various categories - from CFO and CTO to receptionists and office boys - on a contract basis. 

For more information:

Social Venture Investments  

BFSI > NBFC (Financial Services – Rural)
Lok Capital leads Rs. 26-Cr investment in IFMR Rural Channels

Mumbai-based Lok Capital and one of its limited partners have together invested $5 million ( Rs. 26 crore) in Chennai-based IFMR Rural Channels for an undisclosed stake, reports Economic Times

Lok Capital's series A investment in IFMR Rural Channels, which will be paid out in a single tranche, will be used for building Kshetriya Gramin Financial Services (KGFS), which offers financial services in remote rural locations. The KGFS portfolio includes savings, remittance, insurance, small-ticket loans and investments using a wealth management approach for low-income consumers. At present there are about five KGFS centers serving 10 districts across Tamil Nadu, Orissa and Uttarakhand. 

For more information: 


Engg. & Construction > Construction Services
NBCC raises Rs. 127-Cr via IPO

The IPO of state-owned National Buildings Construction Corporation (NBCC) was subscribed 4.82 times, which translates into a Rs. 127 crore fund raising for the company, reports Business Standard. The government had fixed the price band at Rs. 90-106 per share.  

NBCC, which is under the administrative control of Ministry of Urban Development, provides project management consultancy services for construction projects, civil infrastructure for power sector and real estate development. 

For more information:

Secondary Offerings

Engg. & Construction > Construction Services
Gayatri Projects raises Rs. 144-Cr via rights issue

Infrastructure and construction company Gayatri Projects has raised Rs. 144 crore through a rights issue. The issue, which was open for subscription from March 5 till March 19, has been fully subscribed. The company allotted 11,989,000 equity shares at an issue price of Rs. 120 in the ratio of 1:1.With the rights issue, the promoter's stake in the company has gone up from 55% to 63.47%. 

Edelweiss Capital was the lead manager to the issue.

From the Venture Intelligence PE Deal database: Investors in Gayatri Projects include IIML, Clearwater Capital and 2i Capital 

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Other Private Equity/Strategic Investments

Engg. & Construction > Infrastructure Services
Essel Group buys 10.19% in IVRCL for Rs. 164-Cr

Subhash Chandra-led Essel Group has bought a 10.2% stake in Hyderabad-based listed IVRCL to further its interests in infrastructure. Based on IVRCL’s current market capitalization of Rs. 1,612 crore, the deal works out to be Rs. 164 crore. Essel group company Asian Satellite Broadcast bought 4.73 million shares of IVRCL at Rs. 60.4 apiece, valuing the transaction at Rs. 28.6 crore. The shares represented 2% of the company’s outstanding shares. 

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Media & Entertainment
Media Matrix to raise Rs. 50-Cr from V&A Ventures

Mumbai-based listed media & entertainment firm Media Matrix Worldwide Ltd. is to allot 14.4 crore Optionally Fully Convertible Debentures (OFCDs) of Rs. 3.47 each aggregating to Rs. 50 crore on a private placement basis to V&A Ventures LLP. Each OFCD is convertible into one equity share of Re. 1 each at a premium of Rs. 2.47 per equity share.

Manufacturing > Stationery (Pens)
Linc Pen raises Rs. 20-Cr from Mitsubishi Pencil Co

Kolkata-based listed Linc Pen & Plastic will issue 2 million equity shares of the company at Rs. 100 per peice to Japan-based Mitsubishi Pencil Co. Ltd. The deal, which would take the total number of outstanding shares to 14.8 million, will result in Mitsubishi having a 13.5% stake in the company. 

Linc has a distribution arrangement with Mitsubishi for its Uni/Uni-ball brand since 1992. The brand contributes nearly 15% to Linc's domestic turnover. 

For more information:

BFSI > Asset Reconstruction
DMI Finance acquires 16% stake in Alchemist ARC

DMI Finance, an NBFC founded by former Citigroup employees Shivashish Chatterjee and Yuvraj C Singh, has acquired a 16% stake in New Delhi-based Alchemist Asset Reconstruction Company, reports Economic Times. The financial services firm has been valued at Rs. 200 crore. 

Established in 2009, DMI Finance has a corpus of about Rs. 500 crore, of which it has deployed over Rs. 400 crore. Currently it is in talks with both foreign and domestic investors to raise another Rs. 500 crore over the next 12-14 months. 

For more information:

IT & ITES > Online Services (Travel)
Actor Salman Khan picks up stake in

Actor Salman Khan has picked up a minority stake in online travel agent Yatra Online Pvt. Ltd. He will also be the brand ambassador of is backed by investors including Promod Haque’s Silicon Valley-based Norwest Venture Partners, Anil Ambani-controlled Reliance Capital Ltd, Raghav Bahl-promoted Network 18 Media & Investments Ltd, and Intel India Pvt. Ltd, the strategic investment arm of Intel Corp. Last year, it had raised Rs. 200 crore to propel its hotels and holiday booking business.

Energy > Power Projects
German group STEAG picks up 5% in Hinduja National Power

German energy firm STEAG, through its subsidiary STEAG Energy Services, has acquired a 5% stake in Hinduja National Power Corporation Ltd. (HNPCL) and would have the option to invest in future power projects of the group, reports Times of India

Also, the Hinduja group's power sector holding company, Hinduja Energy India Ltd., will set up a JV with STEAG Energy Services to operate and maintain various power projects in India. The JV will also operate the 1,040 MW coal-based Visakhapatnam plant of HNPCL currently in advanced stages of construction for commissioning in 2013.

BFSI > Financial Services
Suchak Trading allots shares worth Rs. 5.5 Cr

Mumbai-based listed Suchak Trading Ltd. has issued 54.75 lakh equity shares worth Rs. 5.47 crore on a preferential basis to non-promoters.

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Mergers & Acquisitions

Mergers & Acquisitions (Domestic)

BFSI > Asset Management (Mutual Fund)
L&T Finance acquires Fidelity’s Indian mutual fund biz

L&T Finance Ltd. (LTF), a subsidiary of Mumbai-based listed L&T Finance Holdings Ltd., has acquired Mumbai-based Fidelity India Fund Management Pvt. Ltd. (Fidelity AMC) & FIL Trustee Company Pvt. Ltd., companies carrying on the mutual fund business of Fidelity in India. Media reports place the deal value at Rs. 550 crore. JP Morgan and Lazard India were the investment bankers to Fidelity and L&T Finance, respectively. Amarchand & Mangaldas and K-Law were the legal advisors, respectively, to the two companies. 

Fidelity AMC, incorporated in 2004, manages the 15th largest mutual fund in India with a market share of 1.3% and an average AUM for the quarter ended December 2011 of Rs. 8,881 crore.  The strong equity-focus of Fidelity’s Indian mutual fund, when combined with L&T Mutual Fund, is expected to result in a balanced asset base. The AUM of the combined entity, at about Rs. 13,497 crore for the quarter ended December 2011, will make it the 13th largest in India with a market share of about 2%.

L&T Financial Services had earlier acquired the mutual fund business of DBS Chola in January 2010.

For more information:

Food & Beverages > Beverages (Bottled Water)
Tata Global to buy 4% more in Mount Everest Water for Rs. 28-Cr

Publicly listed Tata Global Beverages Ltd. is to purchase 14,17,632 equity shares of Sirmour-based listed Mount Everest Mineral Water Ltd. (MEMW), constituting approximately 4.17% of the share capital of MEMW, from Foresight Holdings Pvt. Ltd. and Vinod Sethi, promoters of MEMW, on or before March 31, 2012, at a price of Rs. 198 per share. These shares were subject matter of a put option agreement entered into with the promoters at the time of the acquisition of MEMW. 

From the Venture Intelligence M&A Deal database: In Jan-10, Tata had acquired management control of MEMW with a 50.24% stake. It had acquired a 26% stake in the company in 2007 for Rs. 115 crore and later made an open offer for up to 20%. 

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IT & ITES > Mobile VAS (Marketing)
Mobile marketing JV ad2c acquires Mobimasta

ad2c, a mobile marketing joint venture between mobile messaging and advertising company Affle and Japanese mobile advertising firm D2 Communications, has acquired Gurgaon-based mobile marketing agency Mobimasta, reports Medianama. Founded in November 2009 by Anurag Singh, Viraj Singh and Alok Pabalkar, MobiMasta had clients such as Samsung, Yahoo, Coca Cola, Reebok, Adidas and NDTV. 

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Mining & Minerals > Metals
Pondy Oxides acquires Lohia Metals

The Scheme of Amalgamation of lead refiner Lohia Metals Pvt. Ltd. (LMPL) with publicly listed Pondy Oxides and Chemicals Ltd.  has been approved by the High Court of Judicature at Madras. The Board of Directors allotted 11,02,500 number of equity shares of Rs. 10 each of  Pondy Oxides to the eligible shareholders of the Lohia Metals. The swap ratio was 2.5 shares of the Pondy Oxides. for each share of  Lohia Metals. 

Incorporated in 2004 at Maraimalai Nagar Industrial Estate near Chennai, LMPL is engaged in the process of refining and alloying of lead. Pondy Oxides & Chemicals is a metallic oxides and plastic additives producer incorporated in March 1995. POCL has broad based operations, manufacturing of zinc oxide, lead sub oxide, litharge red lead and solid and liquid stabilizers of PVC. 

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Food & Beverages > Beverages (Wines)
Grover Vineyards merges with Vallee De Vin

Bangalore-based Grover Vineyards has merged with Nashik-based Vallee de Vin to create Grover Zampa Vineyards, the second-largest Indian vintner after Sula with an estimated valuation of around Rs. 100 crore, reports Economic Times.

Vallee de Vin, owned by spirits industry veterans Deepak Roy and Ravi Jain, makes Zampa wine. A consortium of investors led by Singapore-based Ravi Viswanathan will hold 47% in the merged entity. The promoters of the merged entity and a few existing investors in Grover Vineyards hold the remaining share. Low-cost housing entrepreneur Jerry Rao, Louis Vuitton Moet Hennessey-owned champagne brand Veuve Clicquot and spirits distributor Brindco, who together held 30% in Grover Vineyards, have exited.

Neeraj Verma, CEO of Grover Vineyards and a former Hindustan Unilever hand, is in the running to become the CEO of Grover Zampa.

Manufacturing > Paper
Seshasayee Paper to merge Subburaj Papers with itself

Erode-based listed Seshasayee Paper and Boards has cleared in principle the merger of Tirunelveli, Tamil Nadu-based Subburaj Papers with itself. The merger will expand the annual paper production capacity of Seshasayee Paper to about 1.75 lakh tons early next financial year from the present 1.15 lakh tons.

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Hotels & Resorts > Hotels
SEL Manufacturing acquires Omega Hotels

Listed firm SEL Manufacturing Company Ltd. has acquired a 99.88% stake in Omega Hotels Ltd., a company implementing a hotel project at Agra.

Tilaknagar acquires Shivprabha Sugars, PP Caps, Srirampur Grains

Ahmednagar-based listed IMFL manufacturer Tilaknagar Industries has acquired a 90% stake in Sholapur-based Shivprabha Sugars, a company which has obtained the necessary permissions for setting up a 2,500 TCD sugar plant, a 30 KLPD distillery and a 12 MW co-gen power plant. The acquisition will help it become substantially self-reliant in molasses, one of the key inputs for an alcoholic beverage company. 

Tilaknagar Industries has also acquired PP Caps Pvt. Ltd., which is engaged in the manufacture of caps and containers. It is in the process of setting up a plant at Shrirampur, Maharashtra to manufacture 25 mm and 29/35 mm caps having a capacity of 600,000 and 50,000 caps respectively per day. The acquisition will offer cost and quality advantages to Tilaknagar, besides making the company self-reliant in respect to our bottle cap requirements 

In a separate transaction, the company has acquired another company, Srirampur Grains Pvt. Ltd. The target, which deals with agricultural products, is projected to help Tilaknagar source grains directly from farmers. 

For more information:

Energy > Power Transmission
REC to sell Andhra transmission SPV to Power Grid

New Delhi-based listed Rural Electrification Corporation Ltd. (REC) is to sell Vemagiri Transmission System Ltd. (VTSL), an SPV, to Power Grid Corporation of India Ltd. following a competitive bidding process. Power Grid will acquire all the 50,000 shares of the SPV, which is handling the establishment of a transmission system for independent power producers in the Vemagiri-Khammam-Hyderabad area.

IT & ITES > IT Services
Sungold to merge Magic Touch Infotech with itself

Ahmedabad-based listed NBFC Sungold Capital Ltd. will merge Magic Touch Infotech Ltd. with itself. It will issue 69.9 lakh equity shares of the company in the ratio of 1:10.

Legal Era







Mergers & Acquisitions (Inbound)

BFSI > Broking (Equity & Derivatives)
PhillipCapital to acquire majority stake in MF Global Sify Securities

Singapore-based financial services firm PhillipCapital Group is to acquire a majority stake in Mumbai-based MF Global Sify Securities India Pvt. Ltd. MF Global Sify Securities India was a 70:30 joint venture between US-headquartered MF Global Holdings Overseas Ltd. and Sify Technologies. It offers equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions. The company will be renamed as Phillip Securities India Private Limited. Majmudar & Co. advised MF Global while DSK Legal advised PhillipCapital.  

In addition to MF Global Sify Securities, PhillipCapital had also entered into a separate agreement for the acquisitions on all the other MF Global India operations. 

For more information: 

Manufacturing > Auto Components
Pricol sells 50% stake in subsidiary to UK co Johnson

Pricol Pune Ltd., a wholly-owned subsidiary of Coimbatore-based listed auto components firm Pricol Ltd., has issued an equal number of equity shares as held by its holding company to UK-based Johnson Controls Enterprise Ltd., making it a 50:50 JV of the two companies. 

For more information: 

Mergers & Acquisitions (Outbound) 

Manufacturing > Auto Components
TVS buys UK co. Universal Components for Rs. 100-Cr

The TVS Group has acquired 90% stake in Universal Components UK Ltd., a wholesale distributor of commercial vehicles parts and accessories, for Rs. 100 crore, reports Business Line. Two TVS group companies, Sri Chakra Tyres and Associated Autoparts, have formed an SPV called TVS Europe Distribution Ltd. in the UK to carry out the acquisition.

Universal, headquartered in Sheffield, has 420 customers in the UK who are serviced through 650 distribution outlets. It sells parts worth around Rs. 200 crore and employs around 100 people selling both manufacturer-branded parts and its own range of branded parts. The deal will help TVS develop its presence in commercial and light commercial vehicles spare parts in Asian markets outside India.  

For more information: 

Manufacturing > Auto Components
TRF acquires balance 49% stake in Singapore’s York Transport for $18-M

Jamshedpur-based listed TRF Ltd., part of the Tata Group, has acquired the balance 49% stake in Singapore-based axle manufacturing company York Transport Equipment (Asia) Pte. Ltd. It exercised the call option to acquire 12.36 million ordinary shares of the company for S$22.17 million ($17.6 million). The options agreement was signed on October 7, 2007 after the company had picked up a 51% stake in York from Baker Technology Ltd. though its wholly-owned subsidiary, TRF Singapore Pte. Ltd.  

York Singapore and its subsidiaries, a $70 million conglomerate, manufacture trailer axles, assemble trailer suspension kits and distribute a full range of truck / trailer components. It currently has manufacturing facilities in Singapore, India and China.

For more information:

Manufacturing > Forging
Readymade Steel to acquire Singapore firm KH Foges

Mumbai-based listed Readymade Steel India Ltd., a company offering product and service solutions for the building and construction industry in the infrastructure space, through its wholly-owned subsidiary in Singapore, will acquire a substantial majority stake in KH Foges Pte Ltd., a Singapore company focused on foundation engineering. The target company specializes in bored cast in-place concrete piling and driven (precast RC pile, spun pile, H-Steel pile) piling foundation work, providing complete services including design, supply, construct and project management. 

KH Foges has an annual turnover of about Rs. 300 crore and an outstanding order book of an equivalent amount. 

For more information: 


Other Deals

BFSI > Banking
Govt. to infuse Rs. 810-Cr capital in IDBI Bank

The government has decided to infuse Rs. 810 crore in IDBI Bank by way of preferential allotment of equity.

Debt Financing

Engg. & Construction > Infrastructure (Rail)
Bangalore Metro Rail gets $250-M ADB loan

Bangalore Metro Rail Corporation Ltd. is to raise a $250 million loan from the Asian Development Bank (ADB) through its non-sovereign lending window, reports Business Standard. The loan will part-finance the Bangalore metro project that aims to ease traffic congestion in the city and help move 40,000 passengers a day. The metro project comprises of two corridors with a track length of 42.3 km. Part of the east-west corridor of 18.1 km between Baiyappanahalli and MG Road became operational during October last year.

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Deals in the Making

Private Equity / Strategic Investments

Healthcare & Life Sciences > Hospitals
Fortis Healthcare in talks with Carlyle, TPG for stake sale

As part of raising around $250 million (around Rs. 1,272.50 crore) through a combination of equity and convertible debt instruments from PE firms, publicly listed Fortis Healthcare India Ltd. is in talks with the Carlyle Group and TPG Capital India to sell 15-20% stake in the company at a price range of Rs. 110-120 a share, reports Mint. This will be preceded by divestment of 6.5% stake in the company through the stock auction route. After the two transactions, the promoters’ holding in the company will come down to below 60% from the current 81.48%. The sale of 6.5% stake by promoters will increase the public shareholding to 25%, the minimum threshold listed firms need to achieve by June 2013. The deal is being handled by the investment banking arm of Religare Enterprise. 

Funds mobilized from that sale and the issue of fresh equity to PE firms will be used to bring down the company’s debt of about Rs. 1,750 crore debt as on December 31. 

Fortis Healthcare has also initiated the process of hiving off its non-core businesses and related assets into a separate company, which will be listed as a business trust on the Singapore Exchange. The company plans to raise around $300 million through the Singapore listing by June.

Travel & Transport > Airport
GVK in talks with PE firms for airport biz as deal with Changi falls through

Talks between GVK Infrastructure & Power Ltd. and Singapore-based Changi Airport for a stake sale in the former's airport business have reportedly broken down, reports Economic Times. GVK had been in exclusive talks with Changi Airport to sell a 26% stake in its airport business. 

GVK has now initiated talks with financial investors to dilute a stake in the airport business to raise Rs. 2,200-2,500 crore. Actis, 3i and Blackstone have shown interest.

Food & Beverages > Liquor
Heineken may acquire 12-13% stake in UBL from Mallya

Liquor baron and chairman of UB Group Vijay Mallya could be looking to offload 12-13% of his stake in United Breweries Ltd. (UBL) to Heineken, reports Moneycontrol. The deal could be valued around Rs. 2,500 crore including a control premium of Rs. 800 crore. The stake sale will allow Heineken stake to go beyond 50%. The negotiations are said to be in the final stages.

Currently, Heineken holds a 37.5% stake in UBL and Mallya holds 23% stake in his personal capacity. United Spirits Ltd. (USL) and UB Holdings together own 14.71% stake in UBL. The balance is with the public.

Sakthi Finance looking to raise Rs. 20-Cr in PE funding

Coimbatore-based listed NBFC Sakthi Finance is looking to raise Rs. 20 crore in PE funding, reports Financial Chronicle. It has appointed advisors to look for investors. 

IT & ITES > IT Services (Data Center)
Tata Communications to hive off, raise capital for data center biz

Tata Communications has proposed to hive off its data center business into a new entity in a bid to get a larger market share in this segment, reports Business Line. The book value of the data center business is about Rs. 500 crore as of September 2011. 

According to the proposal, the data center business will be transferred to S&A Internet Services Pvt. Ltd., which is a 100% subsidiary of Tata Communications. The business includes 3,50,000 sq ft of data center space spread over seven cities, including Chennai, Delhi, Hyderabad, Kolkata and Pune. To tap into future growth potential, the company wants to invest Rs. 1,200 crore in this business over the next five years and hopes to raise capital by spinning it off into a new subsidiary. 

Energy > Oil & Gas (Distribution – Pipelines)
RIL looking to sell stake in natgas pipeline arm

Reliance Industries Ltd. (RIL) has appointed bankers JP Morgan, Citigroup and SBI Caps to sell a stake in Reliance Gas Transportation Infrastructure Ltd., a closely-held company that builds pipelines to carry natural gas, reports Telegraph India. Last year, bankers were indicating a valuation of roughly $1 billion for the pipeline company in which RIL holds 100%. Current estimates place the valuation at $2 billion. 

BFSI > Exchange (Commodities)
SC tells NMCE promoter to cut down stake to 2%

The Supreme Court has stayed the Gujarat high court order granting partial relief from the order on Kailash Gupta, promoter of Ahmedabad–based National Multi Commodity Exchange (NMCE), reports Business Standard. This is a setback for Gupta, who owns a 30.18% stake in NMCE through a wholly owned company, Neptune Overseas Ltd (NOL). He would now have to reduce his stake to 2% within three months, in line with the original Forward Markets Commission (FMC) order of July 2011. 

IT & ITES > Enterprise Software (Education)
Elucido looking to raise second round

Bangalore-based education software startup Elucido Media Networks is looking to raise a Series B round of venture capital, reports Startup Central. The funds will be used to expand sales and marketing operations in Southeast Asia (it already has an office in Singapore) and the US. 

From the Venture Intelligence PE Deal database: Elucido had raised $3-M from Trident Capital in Sep-08. 

For more information: 

Mining & Minerals > Aluminum
Govt. considering 10% stake sale in Nalco

The government is actively considering a 10% stake sale in state-run National Aluminium Co. Ltd. (NALCO) as part of its asset sale program, reports Financial Chronicle.

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Mergers & Acquisitions

BFSI > Microfinance
Dell Foundation, Bellwether in talks to exit MFI Ujjivan

The Michael & Susan Dell Foundation and Bellwether Microfinance Fund, early investors in Ujjivan, are in negotiations to sell their stakes in the urban microfinance company, reports Economic Times. The two investors together own a 12% stake in Ujjivan, are looking to sell their shares at Rs. 57 apiece. At this price, they will be earning a six-fold return on an investment made when the company was founded in 2005. 

In contention to buy the stakes are existing investor Lok Capital and an unnamed VC firm.

Media & Entertainment > Publishing (Newspaper)
Jagran Group close to acquiring Hindi daily Nai Dunia

The Jagran Group that publishes Hindi newspaper Dainik Jagran, is close to buying out Nai Dunia, the Indore-based Hindi daily promoted by Vinay Chhajlani, reports Business Standard. The deal size is expected to be around Rs. 300 crore. Nai Dunia was started in 1947 and is published from Indore, Gwalior and Jabalpur in Madhya Pradesh and from Bilaspur and Raipur in Chhattisgarh. 

Currently, Dainik Jagran is published from Uttar Pradesh, Uttarakhand, Punjab, Bihar, Delhi, Haryana, Jharkhand, Madhya Pradesh and parts of Rajasthan. It has 37 editions. 

PE firm Blackstone Group holds an estimated 12% of Jagran Media Network Investment, the holding company of Jagran Prakashan. It had invested Rs 225 crore in the company, which was used for expansion and acquisitions in print.

Media & Entertainment > Publication (Newspaper)
Zee close to buying out Dainik Bhaskar from Diligent Media: report

Seven years after entering into a 50:50 partnership, the Zee Group is close to buying out Dainik Bhaskar (DB) Corp from Diligent Media Corporation, which publishes DNA, the daily English language newspaper, reports Business Standard. Zee Group is already the majority owner in Diligent Media. 

Zee Group is also in talks to buy 51% stake in English news channel NewsX, jointly promoted by Nai Dunia owner Vinay Chhajlani and former BusinessWorld editor Jehangir Pocha.

Media & Entertainment >
ABP to buy out STAR from TV news venture: report

The Ananda Bazaar Patrika (ABP) group is set to buy out STAR TV’s 26% shareholding in the television venture Media Content & Communications Services India Pvt. Ltd. (MCCS), reports Business Standard.  MCCS, formed in March 2003, is a 74:26 joint venture between ABP TV and STAR News Broadcasting. It broadcasts three 24-hour news channels, STAR News in Hindi, STAR Ananda in Bengali and STAR Majha in Marathi.  

ABP may rope in a new partner later. FDI rules will force STAR to also seek an Indian partner.

Manufacturing > Paper
International Paper in talks to buy Century Textiles’ paper business

US-based International Paper is in talks to buy Century Textiles' paper business in India, reports Economic Times. The deal could value the paper business of BK Birla's pulp & paper business at over Rs. 2,000 crore. 

International Paper had acquired controlling stake of 53.5% in Andhra Pradesh Paper Mills at Rs. 1,400 crore in 2011, at a huge premium to the then CMP of the company.

Hotels & Resorts > Hotels
Blue Mountain is preferred bidder for 42 Marriott hotels in UK

Mumbai-based property investor Blue Mountain Real Estate Advisors has been selected as the preferred bidder for 42 Marriott hotels throughout the UK after it offered almost 750 million pounds, reports PTI. The holding company for the portfolio of hotels collapsed under the weight of about 900 million pounds of debt, most of it held by Royal Bank of Scotland (RBS). 

Blue Mountain is understood to have been granted a period of exclusivity by RBS to put together funding for a deal. The front-runners in the later stages of the auction had been RB Capital and Sahara Group.

IT & ITES > IT Services
Satyam in talks for EU, Australia acquisitions

Satyam Computer Services, which is set to merge with Tech Mahindra, is looking to acquire a European company in the aerospace vertical, reports DNA India. Aerospace and defense (A&D) is relatively a stronger vertical in Satyam where it has over 1,000 dedicated employees.

According to a Deccan Herald report, Satyam’s Australia unit plans to make acquisitions worth $50-100 million in banking and financial services, healthcare, mining verticals and become a $750 million company by 2015. 

For more information:

Manufacturing > Automobiles
SIEL looks to exit Honda JV

Shriram Industrial Enterprises Ltd. (Siel), promoted by Siddharth Shriram, is looking to sell its 5% stake in its 17-year-old JV with Japanese automobile firm Honda Motor Company, reports Business Standard. Though negotiations are on, there are clear differences between the sides on the valuation at which Shriram expects to sell the shares. A solution is expected in the next few weeks. 

While Honda wants to raise over Rs. 3,000 crore (till date it has invested Rs. 1,620 crore in its Greater Noida plant) through an additional infusion of equity capital, to finance plans of launching new small cars and diesel variants in the Indian market, Shriram was unwilling to participate in this capital infusion. In 1995, the partners had set up their JV, Honda-Siel Cars India (HSCI), to manufacture passenger cars in the country.

Energy > Renewable Power Projects (Wind)
Green Infra, Bharat Light bid for Lanco's wind power assets

IDFC Private Equity-promoted Green Infra and Bharat Light and Power, founded by former GE chief executive TS Chopra, are among four bidders interested in Lanco Infratech's wind power assets, reports Economic Times. Lanco Infratech has licenses to generate 5,000 MW using wind turbines and has acquired land spread between Karnataka, Andhra Pradesh and Maharashtra. It intends to raise close to Rs. 300 crore from sale of these licenses and has appointed Ernst & Young to find a suitable buyer. The funds would be redeployed into the firm's other power businesses. 

Lanco Infratech has also set up a 10 MW wind power generation unit at Tirunelveli in Tamil Nadu and a 3 MW wind power generation unit at Chitradurga in Karnataka. These projects have long-term power purchase agreements with the respective states and supply power to the state grids.

Retail > Grocery Chain
Future Group in talks to acquire Big Apple

The Future Group is in the final leg of negotiations to buy out the Big Apple chain of food and grocery stores, reports Business Standard. Express Retail Services, the JV of Lalwani Holdings and the Chaurasia Group that is the promoter of Big Apple, had put the company on the block for a while before entering into bilateral discussions with Future Group. The deal size is estimated at Rs. 250 crore. 

The company clocked a top line of Rs. 150 crore in 2011-12 from its existing network of 65 stores. It recently forayed into the home delivery format under the Day2Day brand. With the new format, the company has been eyeing a customer base of around 200,000 families in Delhi and NCR in the next 30 months, targeting revenues of Rs. 400 crore over the next few years.

Shipping & Logistics > Courier
DTDC close to Middle East acquisition

Courier company DTDC is in the final stages of making an acquisition in West Asia, reports Business Line. Recently, DTDC also set up joint ventures in Canada and China.

Gems & Jewelry
Promoters make open offer for shares of Vaibhav Gems

Deepti Agrawal, Rahimullah, Nirmal Kumar Bardiya and Shivram Properties Pvt. Ltd. have made an open offer for acquisition of 90 lakh equity shares of publicly listed Vaibhav Gems Ltd. at Rs. 41.75 per piece, aggregating to Rs. 37.57 crore. Fedex Securities is the manager of the issue.

BFSI > Banking
HSBC mulls sale of certain assets in Mauritius

HSBC Holdings Plc is in discussions concerning a possible sale of its retail banking and wealth management business in Mauritius, reports RTTNews. Earlier this year, it had been reported that HSBC is considering selling its retail banking business in Mauritius and has lured three bids from banks including Mumbai-based State Bank of India and Port Louis, Mauritius-based AfrAsia Bank and Bramer Banking Corp.

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Fund News

IIML to sell stake in Milestone JVs

PE fund IL&FS Investment Managers (IIML), which manages $3.2 billion, will join its partner Milestone Private Equity Advisory to sell its stake in their two JV funds, which invest in commercial properties that give rental income, reports Financial Express. IIML and the late Ved Prakash Arya promoted Milestone, own and manage $229 million two rental income-based real estate funds — IL&FS Milestone Fund I and IL&FS Fund II. The Arya family has decided to sell the company after the sudden demise of its main promoter in an accident last year and had appointed Standard Chartered Bank as advisor to the sale.  

Dewan Housing-promoted PE fund Arth Veda Star Fund is in the lead to purchase Milestone. Milestone PE, which manages roughly Rs. 3,200 crore, will fetch Rs. 180-200 crore.  Milestone has a slew of funds managed independently and two joint ventures — one with ILML and other with Religare Financial Services Group.  Its first fund, with a corpus of $117 million, started in 2008 has invested $90 million in 6 companies and has given a 29.6% return. The fund, which is said to be in the exit mode, has made one disinvestment at 1.5 x, pointing to a one half a times return on its investment. The second fund of $112 million has invested $69 million in four companies and is in investment mode. 

Gujarat govt. launches seed fund for entrepreneurs

The Gujarat government’s International Centre for Entrepreneurship and Technology (iCreate) is set to launch a seed fund for entrepreneurial ideas, reports Business Standard. Called Spark-Up Idea Fund Participation, the fund will carry an initial corpus of Rs. 25 lakh. Floated by Gujarat Foundation for Entrepreneurship Excellence, a joint venture between state PSU GMDC and Gujarat Entrepreneurship and Venture Promotion Foundation, the incubation and innovation center will promote innovative ideas among entrepreneurs, students and micro, small and medium enterprises (MSMEs). Infosys Chairman Emeritus NR Narayana Murthy will be associated with the fund. 

New Funds (Closed) 

YourNest Angel Fund announces first close of Rs. 100-Cr fund

YourNest Angel Fund, an early stage domestic VC fund, which seeks to raise Rs. 100 crore from Indian investors for India-focused first generation entrepreneurs, has announced the first close of its fund. To be managed by Sunil K Goyal, CEO & Fund Manager, who was a former Director (New Projects) at Airtel Africa, the fund has built its initial corpus from nearly 40 angel investors, mentors some of whom are first generation entrepreneurs, as well as from professionals. The mandate of the fund is to invest at the post incubation stage of a venture. It has plans to build a portfolio of 15-18 Indian companies by investing up to Rs. 5 crore each in the initial round of funding.

YourNest has put together a distinguished advisory board to guide and mentor the investment management team. It comprises Badri Agarwal, philanthropist and a senior board level corporate and management resource, Prof MM Pant, former Pro-Vice-Chancellor, Indira Gandhi National Open University, Alok Mittal, MD, Canaan Partners, and entrepreneur turned early-stage VentureCapitalist, and R Satya Narayanan, an entrepreneur who founded Career Launcher. 

New Funds (Being Raised) 

Sumit Chandwani, Anish Modi launch buyout fund Arth Capital; target $300-M

Former ICICI executive director Sumit Chandwani and erstwhile India head of Hong Kong-based sweat fund ADM Capital Anish Modi have launched a $300 million buyout fund called Arth Capital, reports Economic Times. The firm has opened an office in Nariman Point, Mumbai. 

The fund will mainly invest in companies belonging to sectors such as manufacturing, engineering, life sciences and healthcare and consumer services. Modi and Chandwani executed many transactions during their stints at ADM and ICICI, respectively, culminating in a cumulative realization of close to $700 million at the time of exits. 


Tashwinder Singh joins KKR India as Director

Kohlberg Kravis Roberts & Co. (KKR) has appointed Tashwinder Singh as Director of KKR India based in Mumbai. He joins KKR after serving over 18 years at Citigroup India where he was last leading Citi Private Bank.


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Real Estate News

VC/PE Fund Investments 

Real Estate > Residential (Re-development)
ASK Property acquires 49% stake in Godrej unit

ASK Property Investment Advisors has acquired a 49% stake in Mumbai-based listed Godrej Properties Ltd.'s  subsidiary, Godrej Landmark Redevelopers Pvt. Ltd. (GLRPL). GLRPL is working on a residential re-development project in Mumbai's Chembur area. ASK will pay a Rs.20 crore premium to GLRPL for its stake in the project.

GLRPL has recently signed a tripartite pact with Kamla Landmarc Property Leasing and Finance Pvt. Ltd. and 18 societies to undertake a residential redevelopment project in Sahakar Nagar (Chembur). The project, spread over approximately 14,600 sq m, will offer approximately 600,000 sq ft of saleable area. It is proposed to be developed as a modern group housing residential development, comprising two, 2.5, and 3 BHK apartments. 

For more information: 

Other RE News 

Raheja plans Rs. 1,300-Cr projects in NCR, Haryana

Raheja Developers is planning to build an integrated township at Sohna near Gurgaon that could entail an investment of about Rs. 1,000 crore over the next three years. The project, which is yet to get the final regulatory approval, is planned over an area of 108 acres that will be expandable up to 250 acres. 

Raheja will also invest about Rs. 300 crore in a group housing project at Dharuhera in Haryana over the next 4-5 years. The project, Oma, will house 640 apartments with 40 stories each. 

Sahara, ICICI Bank eye Parsvnath's prime land in Delhi

The Sahara Group is engaged in discussions with Parsvnath Developers to buy the latter’s commercial land near Connaught Place in New Delhi, reports Business Standard. ICICI Bank is also among the contenders for the piece of land. The 1.18 acre plot at Kasturba Gandhi Marg was bought by Parsvnath in 2008 for about Rs. 200 crore, with the aim of constructing a retail-cum-office complex. But the realtor is now looking to sell it to cut mounting debt, currently at Rs. 1,300 crore.

Although the Parsvnath management is looking for a price of Rs. 700 crore, the interested parties are ready to sign a deal at Rs. 600 crore. Property consultant Jones Lang LaSalle is advising Parsvnath on the deal. 

Mahindra Ugine to sell Pune land parcel for Rs. 89-Cr

Publicly listed Mahindra Ugine Steel is to sell 65 acres of land at its stampings unit at Kanhe, Pune, reports Business Line. The current valuation indicates a value of around Rs. 89 crore for the land parcel. 

Future Market Networks in JV with IL&FS for logistics parks

Future Market Networks, the listed real estate arm of the Future Group carved out of Pantaloon Retail India in which the promoter Kishore Biyani holds 68% stake, has formed an equal JV with IL&FS to set up 8 infra-logistics parks across the country, reports Economic Times. The JV will develop up to 2 million sq ft of space at an investment of over Rs. 1,200 crore in Mumbai, Pune, the NCR, Chennai, Bangalore, Kolkata, Vapi and Baddi over the next three years. The investment will be funded through a mix of equity and mezzanine finance. 

Future Group's logistics company Future Supply Chain will be the anchor tenant at all of these parks, while the rest of the space will be targeted at third-party companies involved in FMCG and logistics businesses. Each of the infra-logistic parks will be spread over 50-100 acres within a 20-30-km radius of these cities. Agreements have already been reached for some land parcels, while others are on the verge of being acquired.

Gulf Oil Corp to develop IT SEZ in Bangalore

Publicly listed Gulf Oil Corporation is to develop its 39.37 acres property at Yelahanka in Bangalore into an IT/ITES SEZ of 30 acres, reports Myiris. The balance 9.37 acres will be developed for hospitality, retail malls and hotels/service apartments. 

Sobha Developers launches smart homes project in Bangalore

Listed real estate firm Sobha Developers has launched a smart home project - Sobha Habitech - in Bangalore. All apartments in the gated residential community at Whitefield will be equipped with a patented smart home automation technology.

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India, Ahoy! 

South Africa's SRS Aviation eyes operations in India

South Africa-based chartered flight operator and aircraft spare parts supplier SRS Aviation is looking at launching operations in India, reports Financial Chronicle. Initially, it is looking at opportunities in aviation training. It is in exploratory talks with potential partners in Mumbai and Chennai.

Italian fashion brand Roberto Cavalli to enter India

Italian fashion house Roberto Cavalli will enter the Indian market this year by opening two stores, one in Delhi and the other in Mumbai, reports Business Standard. 

France's Groupe Cahors invests Rs. 35-Cr in Ranjangaon plant

France-based Groupe Cahors has set up a manufacturing facility for its Indian group companies – Transfix India and Tek Components - in Ranjangaon MIDC, Pune, reports Business Standard. It will manufacture connectors and associated equipment for telecom networks. The company has invested Rs. 35 crore to construct the factory in Ranjangaon, which brings the total investment by the group in India to Rs. 60 crore.

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New Ventures

ONGC in JV with ConocoPhillips for shale gas exploration

State-run ONGC has joined hands with ConocoPhillips for exploration and development of 19 deepwater oil and gas blocks, reports Business Standard. The two companies would also be collaborating in shale-gas exploration. The partnership could result in ONGC offering equity stakes in some of its blocks in India to ConocoPhillips. ONGC officials have, however, denied the stake sale.

Titan Energy, Spain’s Ortiz partner for solar PV projects

Solar photovoltaic module manufacturer Titan Energy Systems Ltd. has entered into a partnership with Ortiz Energia, a subsidiary of Spanish entity Groupo Ortiz, for offering EPC services and solar power project development solutions to companies setting up projects in the country, reports Business Line. While Titan Energy will provide modules and EPC services, Ortiz will provide consultancy and funding support. Ortiz is finalizing plans for a solar power park in Gujarat, where it plans to install a capacity of 100 MW.

From the Venture Intelligence PE Deal database: Titan Energy Systems raised $7 million from IFCI Ventures in October 2010. 

Mahindra forms defense JVs with Israeli, US firms

Mahindra & Mahindra has formed two separate joint ventures in the defense sector targeting a minimum turnover of $1 billion in the next 10 years, reports Business Standard. The JV partners will invest Rs. 200 crore in the two new entities. The first JV is between Mahindra and government of Israel-owned Rafael Advanced Defense Systems and another one is with US-based Telephonics Corporation. The Indian partner will own a 74% stake in each, and the remaining 26% will be with be the respective international entities.

The JV with Rafael will focus on development and manufacturing of products such as Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armour Solutions and Remotely Operated Weapon Stations for Futuristic Infantry Combat Vehicles (FICV). The JV with Telephonics has been set up primarily for Surveillance Radar Systems, Identification Friend or Foe (IFF) and Communication Systems. 

Ashok Leyland to form new company for aerospace venture

Ashok Leyland is to form a separate subsidiary as it explores expansion into the aerospace business with global partners, reports Business Line. Options include technical collaborations and acquisitions. The company is looking at products for both defense and civilian aerospace sectors. 

Karuturi to enter into JV with sugar firm for Ethiopian factory

Karuturi Global, the Bangalore-based publicly-held agri-commodities and flower exporter, is in talks with  four sugar companies in India to seal a JV to set up a 5,000 TCD (tons crushed per day) sugar plant in Ethiopia at an investment of around Rs. 400 crore, reports Business Standard. The plant will process cane from around 15,000 hectares of sugar plantations. 

DS Group set to enter confectionery market

The Dharampal Satyapal (DS) Group, the maker of Catch pepper and table salt, Baba tobacco, Rajnigandha pan masala and Pass Pass mouth freshener brands, is set to enter the confectionary space, reports Mint. The group plans to start selling its first chewing gum brand Chingles in saunf (fennel seeds) and nimbu (lime) flavors and hopes to sell hard-boiled candies subsequently. 

Tata Capital to set up pvt investment banking biz in Singapore

Tata Capital will set up a private investment banking business in Singapore in two years, reports Business Standard. It will initiate the licensing process to start the business soon. 

Manipal University to establish five universities

Manipal University is planning to establish five large universities in India in the next five years, reports Business Standard. While the ones in Jaipur and Bangalore will take shape soon, the group is looking at setting up two more in the eastern and western regions of the country. It currently has two universities in India. 

Manipal is also looking at increasing its global footprint. In addition to the existing three universities and two medical colleges abroad, it is planning to set up two more universities — one each in Sri Lanka and Africa.

Education Deals Valuation Report 

The Education Industry focused edition of the Venture Intelligence Valuation Insight - India's First & Only Sector Focused Valuation Report & Company Financial Performance Scorecard
- captures:

  • Valuation Multiples of Education companies - grouped by sector - based on latest transactions (both PE/VC and M&A)

  • Valuation trends in sectors and sub-sectors

  • Financial performance of individual companies

Education valuation

Sample Highlight

 P&L FY07 FY08 FY09 FY10 FY11
Company1 - - 1.90 3.09 4.30
Company2 91 94 82 66 72.45

OPEX Breakup (Sample)

Faculty Charges FY07 FY08 FY09 FY10 FY11
Company1 - - 1.12 1.42 -
Company2 3.83 4.01 4.95 3.54 5.32
Advt & Promotion FY07 FY08 FY09 FY10 FY11
Company 1 - - 0.14 0.23 0.43
Company 2 5.24 6.47 11.43 6.37 7.24
Company 3 2.65 3.92 4.90 9.05 9.14

Sectorwise Reports are also available.

The sectors covered are :

- Test Preparation
- Vocational Education
- Training & Tutoring
- E-Learning
- Content Services
- K-12 Education
- Higher Education
- Pre-School & Daycare

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BPO firm Brickwork elevates Sangeeta Kulkarni as CEO

Knowledge processing firm Brickwork India has appointed Sangeeta Kulkarni as CEO of the company with immediate effect. She was one of the founding members of Brickwork Group and was earlier the COO of the company. 

From the Venture Intelligence PE Deal database: Brickworks India has raised $1 million from KITVEN in August 2006.

Sameer Kaul named Head of Citi Private Bank

Sameer Kaul has been appointed Head of Citi Private Bank (CPB), reports Myiris. Launched in 2005 in India, CPB has grown to be one of the leading wealth managers in India. Globally, it has $217 billion of assets under management, serving more than 26,000 clients. 

Most recently, Kaul was the Head of the Retail Branch Banking business in India where he ran Citi`s network of 42 branches spanning across 30 cities.

Devas Multimedia appoints Lawrence Babbio as chairman

Dr. MG Chandrasekhar has resigned as the Chairman of Devas Multimedia, reports Business Line. He is being replaced by Lawrence T Babbio, a senior adviser to PE major Warburg Pincus. Babbio is the former Vice-Chairman and President of US telecommunications operator Verizon. He is also on the board of Hewlett Packard and Aramark. 

From the Venture Intelligence PE Deal Database: Devas Multimedia had raised funding from Columbia Capital in 2006. 

MD, COO of Adidas India quit

Subhinder Singh Prem, MD of Adidas Group India, has quit the firm after spending 17 years with the company, reports Business Standard. Also quitting is the Group's COO, Vishnu Bhagat. 

Kirti Vagadia replaces Robin Banerjee as Suzlon CFO

Pune-based listed wind energy firm Suzlon has reorganized its finance functions. Kirti Vagadia has been appointed the company’s CFO, replacing Robin Banerjee, who has quit the company. Vagadia is a certified chartered accountant. 

Firstsource CEO Matthew Vallance steps down: report

Matthew Vallance has resigned as CEO of Mumbai-based listed BPO Firstsource Solutions, reports Economic Times. Deputy MD Rajesh Subramaniam is expected to take over as new CEO.

DB Realty appoints NM Gattu as CFO

DB Realty Ltd. has appointed NM Gattu as the CFO of the company with immediate effect. 

Asian Paints appoints KBS Anand as MD, CEO

Asian Paints has appointed KBS Anand as MD & CEO for three years with effect from April 1, reports Business Standard. He is currently President, Decorative Business Unit of the company.

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Regulatory News

PE funding for single brand retail blocked

A new norm stipulating that only the 'owner of the brand' can invest in Indian retailers selling goods under a single brand threatens to derail their overseas fund-raising plans, reports Economic Times. The FIPB is considering the proposal of an Indian retail company to induct a foreign PE fund as an investor. The proposal is being closely watched as its fate will determine the ability of Indian single-brand retailers to access foreign capital. 

The new norm, restricting foreign investment to the owner of the brand, was notified in January 2012, when 100% FDI was allowed in single-brand retail. Ambiguity is noticed at two levels. The 'owner of the brand' criterion appears to disqualify financial investors and PE players from investing in single-brand retail companies. But there is also confusion on whether an Indian shoe retailer can induct a foreign brand such as Nike as an investor since Nike will not own the Indian brand. 

RBI relaxes norms for Indians to invest abroad

The RBI has announced a slew of revisions aimed at liberalizing the norms for direct investment abroad by Indian residents, reports Business Standard. These include liberalization in regulations on qualification shares, professional services rendered and ESOP (employee stock option plan) schemes. The central bank has removed the cap of 1% on resident individuals acquiring qualification shares for holding the post of a director in a foreign company. It has also decided to grant general permission to resident individuals to acquire shares of a foreign entity in part or full consideration for professional services rendered to the foreign company or in lieu of a director’s remuneration. Also, Indian resident employees or directors have been permitted to accept shares offered under an ESOP scheme globally, on a uniform basis, in a foreign company irrespective of the percentage of the direct or indirect equity stake. Earlier, the facility was subject to equity holding of not less than 51%. 

RBI also announced several modifications to ease the process of direct investments abroad. It has been decided that issuance of personal guarantee by the promoters of the Indian party as presently allowed under the general permission shall also be extended to the indirect resident individual promoters of the Indian party, with the same stipulations as in the case of personal guarantee by the direct promoters.

SEBI set to allow listing of exchanges

Market watchdog SEBI is set to allow the listing of stock exchanges, setting aside concerns expressed by an expert committee headed by former RBI governor Bimal Jalan, reports Financial Chronicle. The Jalan Committee report on Market Infrastructure Institutions (MII) submitted about one-and-half years ago drew sharp reactions for having opposed the move to allow listing of stock exchanges citing conflict of interest issues. 

India will evolve its own ‘hybrid model’ to resolve ‘conflict of interest’ issues after studying the various global practices. The SEBI board will also take a call on whether to raise the limit or continue with shareholding restrictions imposed on investors in stock exchanges i.e. 5% for individuals and 15% for financial institutions (stock exchanges, banks and insurance companies). Liberalizing the holding structure will allow promoters to own more equity in stock exchanges.

India to propose draft microfinance institutions bill

India will propose a Microfinance Institutions (Development and Regulation) Bill in the current parliamentary session. The bill would make the RBI the only regulator of the microfinance sector and allow it to specify a maximum annual percentage rate that MFIs can charge. It also facilitates the creation of microfinance development councils at the federal and state levels to advise governments on the sector. Lastly, it will allow RBI to create a microfinance development fund to provide loans, refinancing or other financial assistance to MFIs. 

MFIs would be required to obtain a certificate of registration from RBI prior to offering services, and RBI would be able to cancel the registration of MFIs that fail to comply with regulations or levy a fine against such organizations of up to Rs. 5 lakh. The bill would also tighten regulations on the auditing of MFIs, and allow RBI to inspect MFI accounts at any time and require all MFIs to create reserve funds of unspecified size.

Govt. likely to appoint regulator for natural gas pricing

The government may appoint a regulator to help it determine the price of natural gas that is supplied by oil and gas explorers, such as Reliance Industries Ltd. (RIL), to power and fertilizer firms, reports Mint. An empowered group of ministers (eGoM) looking into the issue of allocating gas to fertilizer, power and some other companies has directed the oil ministry to “suggest an appropriate regulatory authority to aid and advise eGoM on the issue”.

The suggestion follows a plea by RIL in 2010 to increase the price of gas midway through its five-year supply contracts with consumers on the grounds that the price it is charging is at a discount to global prices.

Service tax norm could make M&A deals costly

Acquisitions made in India could become more expensive if service tax is levied on key elements of a transaction such as non-compete fees that have been excluded from the government’s “negative” list of service tax exemptions, reports Mint. Almost all buyout and M&A deals have non-compete agreements and the fee, at times, could account for almost a fifth of the deal value. With a possibility of a 12% service tax on such services, sellers could begin seeking an extra premium to offset the extra tax payout.

Govt. set to allow automatic FDI in G-Secs trade

The government is set to make it easier for foreign investors to set up businesses that deal in government securities, easing the entry for big-pocket dealers into the near- Rs. 1 lakh crore G-Sec market, reports Economic Times. The move will broaden the market, add to liquidity and help government manage its rising borrowings better. 

The proposal is a part of a new set of rules being considered by the Department of Industrial Policy and Promotion, or DIPP, to open more financial services to FDI. There is a proposal to include primary dealership in G-Sec market in the list of permissible activities that can be undertaken by non-banking finance companies and permit 100% FDI under the automatic route. It is likely to be included in the revised FDI policy that will be put out at the end of the month.

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Other News

Everonn founder P Kishore declared non-promoter

Publicly listed Everonn Education Ltd. has declared company co-founder P Kishore as a non-promoter of the company as he is no longer in control of the management and affairs of the company.  As on December 2011, Kishore held a 7.5% stake in the company.

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Govt. clears winding up of SUUTI

The Cabinet has cleared the winding up of Specified Undertaking of Unit Trust of India (SUUTI) and the transfer of all its assets to a new asset management company (AMC) to carry out a part of the government’s sell-off program, reports Business Standard. SUUTI holds 11.5% in ITC, 23.6% in Axis Bank and 8.3% in L&T. Besides, it holds more than 1% stake in 16 companies. 

The AMC will take a clean loan from banks to buy government stakes in some public sector units as part of the proposed Rs. 30,000 crore disinvestment plan for the next financial year.

Fashion brands Versace, Corneliani, Guess to split from Indian partners

International fashion brands Versace and Corneliani are expected to part ways with New Delhi-based firm Blues Clothing Company, reports Economic Times. Versace could scout for new partners. 

Meanwhile, American clothing maker Guess is changing hands after its long-time partner Planet Retail decided to restructure its business. It will now tie up with Major Brands, the marketer of Mango and Aldo in India.

Muthoot arm banned from accepting deposits

The RBI has barred Muthoot Estate Investments, a partnership firm of Thrissur-based Muthoot Fincorp, from collecting deposits from the public, reports Business Standard. The RBI also directed Muthoot Fincorp to stop allowing the use of its branches and officials by Muthoot Estate Investments for collecting deposits from the public.

Azure Power gets $476-K grant from USTDA

Independent solar power producer Azure Power has been awarded a $476,670 grant from the United States Trade and Development Agency (USTDA), reports Business Line. The grant will fund a feasibility study on two 500 KW micro-grid solar photo-voltaic power generation pilot projects in Gujarat and Chhattisgarh. 

From the Venture Intelligence PE Deal database: Starting in September 2008, PE investors in Azure Power including Helion Ventures, Foundation Capital, IFC and DEG, have invested $36-M in the company.

SEBI lifts ban on 100 Tayal Group entities

The SEBI has withdrawn a ban against 100 Tayal Group entities, which had been restricted from accessing or dealing in the securities market for over two years now, reports DNA India. The revocation comes despite an investigation finding violations by 92 out of the 100 entities. But SEBI has recommended adjudication proceedings against them. Even as the proceedings would continue, the regulator said all the 100 entities are free to participate in the market.

IRDA allows LIC to buy over 10% in listed firms

India’s insurance regulator IRDA has allowed the country’s biggest insurer, Life Insurance Corporation of India (LIC), to exceed the cap of 10% that insurance firms can own in listed companies, reports Mint.

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