The Big Deal

BFSI > Insurance
Exide to buy balance 50% stake in ING Vysya Life Insurance for Rs.550-Cr

Kolkata-based listed Exide Industries Ltd. (EIL), which holds 50% of the equity capital of Bangalore-based ING Vysya Life Insurance Company Ltd. (IVL), is to acquire the remaining 50% of the equity capital of IVL for Rs.550 crore. With this deal, the ING Group will exit its insurance business in India as part of its global restructuring strategy. 

Of the proposed acquisition, 26% would be from ING Group, 16.32% from the Hemendra Kothari Group and 7.68% from the Enam Group. Post acquisition EIL would identify a new international player in life insurance to infuse fresh equity into IVL. 

For more information: 

http://bit.ly/10T4hZi

http://bit.ly/UX3WPj

Spotlight

Coromandel Intl to acquire Liberty Phosphate for Rs.375-Cr

Everstone invests Rs.220-Cr in Transpole Logistics; Fidelity part exits

Bharat Light and Power raises Rs.200-Cr

Creador Capital acquires Godrej Consumer’s Indonesian food biz for $35-M

IIFL RE fund invests Rs.75-Cr in Assotech’s Faridabad project
 

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Done Deals

PE / VC Fund Investments.

Shipping & Logistics > Logistics Services
Everstone invests Rs.220-Cr in Transpole Logistics; Fidelity part exits

PE firm Everstone Capital Advisors has acquired a significant minority stake in New Delhi-based Transpole Logistics for around Rs.220 crore. Prateek Dhawan and Venkatesh Srinivasan from Everstone will be joining the Board of Directors of Transpole. Avendus Capital was the financial advisor to this transaction. 

Everstone has made its investment in Transpole through its $580 million second fund., reports Business Standard  adding that existing PE investor Fidelity Growth Partners will make a part exit from Transpole as part of the deal. Fidelity had invested about Rs.60 crore in April 2011. 

The Rs.500 crore Transpole has a presence across India, China, Hong Kong, Korea and Southeast Asia. Founded in 2004 by logistics professionals Anant Kumar Choudhary, Vivek Shukla and Praveen Chand Rai, Transpole provides logistics services in freight forwarding, transportation, customs clearance, project logistics, warehousing and distribution. The company plans to expand network in China, Hong Kong, Malaysia, Singapore and South Korea with the new funding. It is also exploring opportunities in VAS business like and warehousing and distribution. 

For more information: 

http://www.business-standard.com/india/news/everstone-capital-buys-stake-in-transpole-logistics/203472/on 

http://www.transpolegroup.com

Energy > Renewable Power Projects (Multiple Sources)
Bharat Light and Power raises Rs.200-Cr

Bharat Light and Power (BLP), an Aurangabad-based renewable power projects firm founded by former General Electric India boss Tejpreet Singh Chopra, has raised Rs.200 crore from PE and VC funds, reports Economic Times. While new investor UTI Capital has bought a 16.98% stake for Rs.50 crore, existing VC investors VenturEast and DFJ made an additional investment of Rs.50 crore. The company has also raised Rs.100 crore through mezzanine debt. Amarchand Mangaldas is drafting the final legal document and the deal is likely to be announced shortly. The funds will be used to take over DLF's 160 MW assets in Gujarat and Karnataka. 

VenturEast and DFJ had invested Rs.53 crore in 2011 to buy a minority stake in the company. Post-equity dilution, Chopra will hold close to a 50% stake in the company. 

For more information: 

http://economictimes.indiatimes.com/articleshow/18142233.cms 

http://www.bharatlightandpower.com

Food & Beverages > Processed Foods
Creador Capital acquires Godrej Consumer’s Indonesian food biz for $35-M

Mumbai-based listed Godrej Consumer Products Ltd. (GCPL) has sold its Indonesia-based foods business for $35 million to PE firm Creador. The Mauritius-based PE firm’s acquisition of PT Simba Indosnack Makmur is expected to be completed within two months. Simba sells branded cereals, snacks and instant food products. HSBC India advised GCPL on the transaction. In 2012, the business had generated net sales of $22 million. 

The Indonesian unit of GCPL had acquired Simba as part of its purchase of household products manufacturer Megasari Group in 2010. 

For more information: 

http://www.bseindia.com/corporates/AnnPdfOpen.aspx?Pname=\Godrej_Consumer_Products_Ltd_250113.pdf 

http://www.simba.co.id

IT & ITES > Online Services (Education - E-learning)
Kaizen PE, Bertersmann invest Rs.22-Cr in Educomp unit WizIQ

Online education platform WizIQ, operated by Mohali-based AuthorGen Technologies, has raised $4 million in Series B investment from the education focused Kaizen PE and Germany-based media group Bertelsmann. WizIQ offers SaaS based virtual classroom software for teachers, trainers, colleges and universities, high schools, and training and tutoring centers. It has over 200,000 teachers and 2.5 million learners using the platform in more than 100 countries around the world. AuthorGen is a unit of listed education firm Educomp. 

As part of the deal, authorSTREAM, an online platform that PowerPoint users use to share presentation based content, is to merge into online education platform firm WizIQ. (See M&A section for more on this transaction.) 

From the Venture Intelligence PE Deal database: The Indian Angel Network had, in October-2006, invested in AuthorGen Technologies. In August-2007, Educomp had acquired a 51% stake in the company for $8.7 million. In December-2010, authorSTREAM, a spin-off from AuthorGen Technologies, had raised an angel investment round led by Rajan Anandan, currently head of Google India. 

For more information: 

http://www.bseindia.com/xml-data/corpfiling/AttachLive/Educomp_Solutions_Ltd_240113.pdf 

http://www.wiziq.com

IT & ITES > IT Services (Healthcare)
Nirvana joins Bessemer in acquiring HealthSprint

Bessemer Venture Partners has been joined by Nirvana Venture Advisors to acquire Bangalore-based healthcare IT services company HealthSprint, reports Times of India. The investors acquired the founders' stake and inducted a new management team to spearhead the six-year-old company providing healthcare payment network, health insurance applications and transferring patient relevant data for authorization. 

Bessemer and Nirvana, co-founded and sponsored by members of the Patni family, have brought on board former senior Wipro and Schneider Electric executive Anand Iyer as the new HealthSprint CEO. 

From the Deal Digest archive (Dec 30, 2011): Net Logistics acquired a controlling stake in HealthSprint Networks. HealthSprint customers include healthcare providers such as Fortis and Manipal and payers such as TTK, MediAssist and ICICI Lombard. Net Logistics is promoted by Vikramjit Singh Chhatwal and Madhavan Balasubraminian, who are also senior management team members and directors of Bangalore-based third party administrator (TPA) services firm Medi Assist India TPA.In October 2011, Bessemer Venture Partners had invested in Medi Assist India TPA. Vishal Gupta of Bessemer had joined the board of Health Sprint Networks as well. 

For more information: 

http://timesofindia.indiatimes.com/articleshow/18213890.cms 

http://www.healthsprint.com

IT & ITES > BPO (Pensions Outsourcing)
Fulcrum Venture invests Rs.8-Cr in Congruent Solutions

Fulcrum Venture India has invested Rs.8 crore in Congruent Solutions Pvt. Ltd., a Chennai-based specialist service provider in the pension administration industry providing retirement administration and technology development services to various companies in the US, UK and Singapore including Fortune 500 companies. As part of the deal structure Fulcrum Venture India will hold a 20% stake in Congruent. Fulcrum will have board representation and board advisor roles. The company will use the proceeds to expand its services business and commence commercialization of Coredc, its proprietary Record Keeping System.

Congruent Solutions was incorporated in 1986 with offices in the US, UK and Singapore. Fulcrum Venture India is an SME investment fund started in 2000 by Krishna Ramanathan, 

For more information:

http://ventureintelligence.blogspot.in/2013/01/deal-alert-fulcrum-venture-india.html

http://congruentsolutions.com

Healthcare & Life Sciences > Pharmaceuticals
Tata Capital invests in Marck Biosciences

Tata Capital Healthcare Fund I has invested in Ahmedabad-based pharmaceuticals firm Marck Biosciences. Cipher Capital was the advisor to the deal. Sanjay Chaudhary of Tata Capital has joined the Marck board. 

From the Venture Intelligence PE Deal database: Existing investors in Marck include IFCI Ventures, which had invested $2.5 M in Aug-08, $0.5 in Mar-09 and $1-M in Oct-10.

For more information:

http://www.cipher.in/tra_private_equity.php

http://marckindia.com

Manufacturing > Industrial Equipment (Cleanrooms, Cleanroom Accesories)
Global Environment Fund invests in iClean

Global Environment Fund, through South Asia Clean Energy Fund (SACEL Holdings II), has invested in Hyderabad-based Integrated Cleanroom Technologies (iClean). Rajesh Pai and Alipt Sharma of Global Environment Fund have joined the board of the company. 

IClean was started in 2003 and manufactures products and equipment required for the installation of clean room interiors. It has an installed capacity to manufacture 3,00,000 sq meter per annum of prefabricated modular clean rooms conforming to strict global standards.

http://www.icleantech.com

IT & ITES > Enterprise Software (Social Media Marketing)
Srijan Capital invests in Tookitaki

Ravi Trivedi’s Srijan Capital has made an angel investment in Tookitaki. Tookitaki, founded in June 2012 by its CEO Abhishek Chatterjee, is a recommendation engine that helps enterprises reach their target community. It helps companies to identify, rate and connect to people who would be truly interested in its product/service. 

For more information: 

http://www.srijancapital.com/companies 

http://www.tookitaki.com/knowmore.html

IT & ITES > Online Services (Comparison Shopping – Mobile Phones)
Pricebaba raises capital

Mobile phones shopping focused price discovery engine Pricebaba has raised angel investment from a group of five entrepreneurs, reports NextBigWhat. The round was led by Karamveer Singh of Aayush Software (who had earlier invested in another e-commerce firm Inkfruit). Other investors in the round include Dinesh Tejwani of Fast Fact Computer Systems (acquired by Thomson Reuters), Aditya Mishra (Founder & CEO, SwitchMe.in), Ashutosh Rathi (Basil Partners) and Ranjeet Walunj of The Service Solutions.

PriceBaba currently offers services in Mumbai, Pune and Delhi NCR with over 350 verified mobile phone retailers live on the platform. The service aims to reach 10 cities in 2013.

For more information:

http://www.nextbigwhat.com/pricebaba-seed-funding-297/

http://www.pricebaba.com

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Liquidity Events

Public Market Sales

BFSI > Microfinance
Unitus trims stake in SKS Microfinance to 1.93%

Mauritius Unitus Corporation has sold 19,498 of its shares in SKS Microfinance Ltd. in open market trade on the NSE, reports Business Line. The sale was done on January 15, 2013, at a value of Rs.34.35 lakh. Post the sale, Mauritius Unitus Corporation now has a 1.93% stake in SKS.

From the Venture Intelligence PE Deal database: Unitus had invested in SKS in Mar-07 and Jan-08.

http://www.thehindubusinessline.com/markets/stock-markets/article4329466.ece

Angel Investments  

IT & ITES > Online Services (Education - School & Tuition Search)
EduRaft raises angel funding

School and after-school search portal EduRaft has received its first round of angel funding of Rs.33 lakh. The portal, launched in June 2012, currently features two kinds of revenue generating product offerings apart from the school search portal.  Assisted School Search Helps parents find the right school for their children short listing based on requirements and tracking admission processes. Partner Listing targets tutorials and classes providing allied school activities.

http://www.eduraft.com 

Other Private Equity/Strategic Investments

Textiles & Garments > Branded Apparel (Fashion Garments)
Four Cross Media invests Rs.40-Cr in American Swan Lifestyle

Fashion apparel firm The American Swan Lifestyle Company (TASLC) has received funding worth Rs.40 crore from Four Cross Media, reports Economic Times. The funds will be used to expand the company's operations, expansion on the digital platform and marketing initiatives.

TASLC offers products across apparel, footwear, accessories, beauty and home products, through both retail and e-commerce.

For more information:

http://economictimes.indiatimes.com/articleshow/18121625.cms

http://www.americanswan.com

Manufacturing > Auto Components
Amtek sells stake in subsidiary for Rs.22.4 Cr

Publicly listed Amtek Auto has sold 7,46,124 equity shares representing 5% of total paid up equity share capital of its subsidiary, Amtek Crankshafts (India) Ltd., to a foreign investor at a price of Rs.300 per share, aggregating to Rs.22.38 crore.

http://www.moneycontrol.com/news/announcements/amtek-auto-reduces-stakesubsidiary-company_811837.html

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M&A

Mergers & Acquisitions (Outbound)

Manufacturing > Industrial Equipment (Welding)
Ador Welding acquires 60% stake in Israeli co Plasma Laser

Publicly listed Ador Welding Ltd. has acquired an around 60% stake in Israel’s Plasma Laser Technologies Ltd. The company’s board had earlier given a nod for spending up to $2 million for acquisition of an overseas firm. 

Founded in 1995 by a core group of scientists and welding engineers, previously of the Paton Welding Institute of Kiev, Ukraine, PLT has developed to-date two main hybrid innovative systems – Super MIG and Weldone - both patented and trade-marked worldwide. 

For more information: 

http://www.bseindia.com/corporates/ann.aspx?curpg=1&annflag=1&dt=&dur=A&dtto=&cat=&scrip=517041&anntype=A 

http://www.plasma-laser.com/new/

Media & Entertainment > TV Equipment & Services (OB Vans, Flight Pack Systems, Studios)
Hindujas to acquire Belgian firm Alfacam

UK-based global conglomerate Hinduja Group is to acquire Belgian media company Alfacam, which provides TV facilities and services to broadcasters and production houses, reports PTI. Alfacam is best known for its broadcasting vehicles for filming and broadcasting of major sports and entertainment events. They were also used in a big way at the Olympic Games in London last year.

After this acquisition, the over $25 billion Hinduja Group would look to expand Alfacam’s services and businesses in different parts of the world, including India.

For more information:

http://www.thehindubusinessline.com/companies/article4350434.ece

http://www.alfacam.com

Mergers & Acquisitions (Domestic)

Agri-business > Agri Chemicals (Fertilizers)
Coromandel Intl to acquire Liberty Phosphate for Rs.375-Cr

Listed fertilizer maker Coromandel International is to buy a 56% stake in fellow listed, Mumbai-based Liberty Phosphate Ltd. (LPL) at Rs.241 a share from the target's promoters, Raoof Dhanani and his family. Hyderabad-based Coromandel, part of the Murugappa Group, will also make an open offer to acquire a further 26% from public shareholders at the same price. Under a separate agreement, Coromandel will acquire 100% stake in two other Liberty Group companies - Liberty Urvarak Ltd. (LUL) and the business of Tungabhadra Fertilisers - through a slump sale. (LUL also has a holding of 5.01% in LPL.) The total acquisition cost, depending on the subscription of the public offer, will be up to Rs.375 crore. The net profit of the three companies together was Rs.68 crore on a turnover of Rs.645 crore in 2011-12. (LPL alone reported a net profit of Rs.54 crore on turnover of Rs.489 crore in 2011-12). SMC Capitals and Axis Capital were the financial advisors to the deal. Axis Capital is handling the open offer. AZB & Partners was the legal advisor to the acquirer. 

LPL shares had closed the previous trading session on the BSE at Rs.217.55, providing it a market cap of Rs.307 crore. 

The Liberty Group has a market share of 14% in the single super phosphate (SSP) segment with six manufacturing facilities in Rajasthan, MP, Maharashtra and Karnataka. Its combined installed capacity is 9.6 lakh tons and combined licensed capacity of 8.09 lakh tons. Liberty is also setting up a 1.32 lakh ton green field SSP unit at Rae Bareli. Coromandel will fund the entire acquisition through internal accruals. 

For more information: 

http://www.bseindia.com/xml-data/corpfiling/AttachLive/%5CCoromandel_International_Ltd2_240113.pdf 

http://www.libertyphosphate.com 

IT & ITES > Online Services (Travel – Holiday Packages)
Travelmasti acquired by Via

New Delhi-based travel package site TravelMasti has been acquired by Bangalore-based Via, reports NextBigWhat. The target company, which had raised funding from BCCL in 2007, is present (offline) in Dehradun, Rajkot, Jamnagar and Surat cities through its Travelmasti Lounge Network. 

For Via, the TravelMasti acquisition provides depth in the holiday package business. 

From the Venture Intelligence PE Deal database: PE investors in Via include Kalaari Capital and Sequoia Capital. 

For more information: 

http://www.nextbigwhat.com/travelmasti-acquired-by-via-297/ 

http://www.travelmasti.com

IT & ITES > Mobile VAS (Gaming, Social Networking)
Nazara acquires Djuzz & MyGamma from BuzzCity

Djuzz, the BuzzCity-owned mobile games and applications portal, has been acquired by Nazara Technolgoes, reports Medianama. In addition to this, Nazara has acquired BuzzCity’s mobile social networking property, Mygamma, with around 4 million monthly unique users.

BuzzCity, which is backed by Naspers, plans to focus on its mobile advertising service. Nazara is building a “GCity gaming network”, looking to attract consumers with free content. About 60% of MyGamma and Djuzz users are from India.

http://www.medianama.com/2013/01/223-nazara-buzzcity-djuzz-mygamma/

Education > Test Preparation, Vocational (Fire Safety), Pre-School
Falcon Education to merge with Softech Infinium

Chennai-based listed Softech Infinium Solutions Ltd. is to merge Falcon Education Pvt. Ltd., another Chennai-based test preparation firm, with itself. Falcon is engaged in online education along with classroom coaching for UGC, NET GATE and other competitive exams. The company also runs a kindergarten franchisee chain.

For more information:

http://www.bseindia.com/xml-data/corpfiling/AttachLive/%5CSoftech_Infinium_Solutions_Ltd_230113.pdf

http://www.falconeducations.com

IT & ITES > Online Services (Utility - Presentation Software)
authorSTREAM to merge back into WizIQ

authorSTREAM, a Mohali-based online platform that PowerPoint users use to share presentation based content, is to merge into online education platform firm WizIQ, which is operated by authorGen (from which authorSTREAM was originally spun off in 2010). authorSTREAM  has 4 million users, a significant part of them being teachers, trainers and students. authorSTREAM and AuthorGen operate out of the same office space. 

The deal was announced as part of a $4 million funding raised by WizIQ from education focused Kaizen PE and Germany-based media group Bertelsmann. 

For more information: 

http://www.bseindia.com/xml-data/corpfiling/AttachLive/Educomp_Solutions_Ltd_240113.pdf 

http://www.authorstream.com

Other Services > Legal Services
SN Gupta brothers merge into full service SNG firm

SNG & Partners and SN Gupta & Co – two separate partnerships that have respectively focused on transactional work in Mumbai and litigation in Delhi – have merged into one firm of five equity and 17 non-equity partners, reports Legally India. The two have absorbed offices in seven new cities and started a tax practice. 

The SNG & Partners legacy firm specialized in work for banks and financial institutions as well as other corporate work. It rebranded nearly two years ago from the SN Gupta & Co name under its managing partner Rajesh Narain Gupta. His brother Sanjay Gupta was the managing partner of Delhi-based SN Gupta & Co, which primarily handled litigation matters. The new merged partnership, which was created last weekend in an all-partners’ meeting, will also be called SNG & Partners with Rajesh Gupta acting as managing partner and Sanjay Gupta as senior partner.

http://www.legallyindia.com/201301253389/Law-firms/sn-gupta-brothers-merge-into-full-service-sng-firm-of-130-target-11-offices-this-year

Debt Financing

IFC to lend Rs.41-Cr to Bhilwara Energy for Rajasthan project

IFC is considering providing a loan of about Rs.41 crore ($7.5 million) to Bhilwara Energy Ltd. to finance a part of a project. An SPV, LNJ Power Ventures Ltd., will develop and own the 20MW wind power project at Jaisalmer, Rajasthan. It is expected to be commissioned by March 31, 2013.

http://www.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/26aff23f50ea48c485257afe006bba4c?opendocument

Deals in the Making

Private Equity / Strategic Investments 

L Capital, KKR, ChrysCap vie for Rs.400-Cr VLCC stake

L Capital is vying with Kohlberg Kravis Roberts & Co (KKR) to buy up to a Rs.400 crore stake in homegrown slimming and beauty services chain VLCC, reports Times of India. The company is reportedly worth more than $300 million. India-focused investment house ChrysCapital is another contender with the promoter, the Luthras, and existing investor Evertsone Capital short-listing three suitors, as they head for a final call in the next 2-3 weeks. VLCC is projected to end the current fiscal with revenues close to Rs.700 crore and an operating profit of around Rs.100 crore. 

Everstone has a 16% interest in the company and plans to offload shares depending on the valuation. The promoter too could offer some shares to the new investors, who will come in with a significant minority ownership.

http://timesofindia.indiatimes.com/articleshow/18213672.cms

RIL arm may buy stake in RCOM tower subsidiary Infratel & lease 50k towers

The telecom arm of Reliance Industries, Infotel Broadband, may buy a stake in telecom tower firm Reliance Infratel, a subsidiary of ADAG company Reliance Communications, in a deal that also includes leasing 50,000 towers, reports Economic Times.

The leasing arrangement is valued at Rs.8,500-10,000 crore over a 10-year period and will be paid up front. The second component consists of Infotel Broadband buying 15-25% in Reliance Infratel. The stake sale is being negotiated at an enterprise value of $3.5-4 billion (Rs.18,789-21,471 crore) for the company.

http://economictimes.indiatimes.com/articleshow/18173928.cms

Xander, Nitish Estates offer Rs.350-Cr for Goldman’s 73% stake in Four Seasons

Global investment house Xander Group and listed southern developer Nitesh Estates have offered Rs.350 crore to acquire 73% stake of Goldman Sachs in the upcoming Four Seasons Hotel in Bangalore, reports Times of India. Goldman has held select talks with potential suitors, including the Xander and Nitesh combine, and a few ultra HNIs until now. Goldman has valued the nearly 1 million-sqft mixed-use project at Rs.611 crore. Land owner Century Real Estate and developer Westcourt own the remaining shares.

Located near the developing high-end suburb of Hebbal, the project comprises of a 230-key hotel to be operated by Four Seasons, 110 luxury residences that will also be managed by the Canadian hospitality chain, 60,000 sqft of luxury retail space, and 1,50,000 sq ft of office space.

http://timesofindia.indiatimes.com/articleshow/18213858.cms

Daiwik Hotels in talks to raise funding for Rs.180-Cr expansion plans

Kolkata-based Daiwik Hotels is in talks with VC and PE Funds to mobilize the Rs.180 crore required for its expansion program. The company plans to have 15-17 hotels (greenfield and brownfield) across the country by 2015 with the investment. Eventually, the company plans to put up 20 greenfield properties over the next five years, which would entail an investment of Rs.600 crore.

At present, the company’s first property at Rameswaram is operational. The next project at Tirupati is underway. For its Dwarka project, it has entered into a joint venture with the Pabubha Manek family, which will provide a land bank of approximately 1.20 acres and the necessary infrastructure.

For more information:

http://www.mydigitalfc.com/news/daiwik-hotels-open-17-properties-2015-820

http://economictimes.indiatimes.com/articleshow/18118339.cms

Sequoia eyeing stake in Medimix maker, Cholayil

Sequoia India is looking to invest about $25 million (Rs.135 crore) in Cholayil, the Chennai-based company best known for its ayurvedic soaps Medimix, reports Business Standard. The four-decade-old company, which is understood to have yearly revenue of close to Rs.150 crore, is looking for investors as it wishes to take the brand to the rest of India. 

The fresh funding will be in an arm of Cholayil which has marketing rights for the Medimix range and for Cuticura talcum powder outside South Indian markets. The Cholayil Group formed two separate companies in 2006, one which has marketing rights for South India and the other for the rest.

http://www.business-standard.com/499798/ 

Helion in talks to invest Rs.19-Cr in security tech firm Seclore

VC firm Helion Venture Partners is in talks to invest in security software company Seclore Technology, which was incubated at IIT-Bombay, reports Economic Times. Helion will invest Rs.19 crore ($3.5 million) in the Mumbai-based company. Existing investor Ventureast Tenet Fund is expected to put in an additional Rs.13.6 crore. At the end of this round of funding, the two institutional investors could own 35% of the company. 

Founded by IIT graduates Vishal Gupta and Abhijit Tannu, Seclore offers technology that can reduce the risk arising out of information breaches and regulatory non-compliance. Some of its customers include IT services major Capgemini, the Adecco Group and Essar Group.

http://goo.gl/PNSMO 

Ashok Leyland to sell stake in IndusInd Bank

Commercial vehicle major Ashok Leyland is planning to offload stakes in a few of its subsidiaries and also in IndusInd Bank Ltd., reports Business Standard. The proposed disinvestments of non-crore assets will help the company to reduce its debt, which currently stands at around Rs.3,500 crore. The proposed offloading of stakes would bring around Rs.500 crore over the next 12 months. 

The company will partially exit or totally divest its stakes from the companies. It has hired investment bankers and consultants to find a strategic customers and buyers. Some of the company in which Ashok Leyland is planning to dilute its stake includes IndusInd Bank (in which the company holds shares worth around Rs.700 crore), Hinduja Leyland Finance (HFL), Albonair GmbH, Defiance Technologies and Defiance Testing.

http://www.business-standard.com/india/news/ashok-leyland-to-dilute-stake-in-subsidiaries/204106/on

Simba Toys to pick up stakes in Indian manufacturers

Germany-based Simba Dickie Group, through its subsidiary Simba Toys, plans to forge joint ventures with Indian manufacturers for making board games and plush toys, reports Business Line. Instead of setting up a green field manufacturing facility as proposed earlier, the toymaker has decided to pick up stakes in local companies.

http://www.thehindubusinessline.com/industry-and-economy/marketing/article4336614.ece

IPOs 

BharatMatrimony plans $125-M IPO

Consim Info Pvt. Ltd., owner of match-making portal BharatMatrimony.com, is planning an IPO to raise $100-125 million later this year, reports Reuters. The company is backed by Bessemer Venture Partners. It plans to use some of the proceeds to expand its overseas operations. Other investors in Consim are Silicon Valley-based venture funds Mayfield and Canaan Partners.

The company has picked Deutsche Bank, Citigroup and Kotak Mahindra Capital for the IPO.

Consim raised $8.7 million in 2006 from Yahoo Inc and Canaan Partners. This followed an investment worth $11.75 million in 2008 by Mayfield and the other existing investors. Yahoo exited Consim in 2011, selling its stake to Bessemer Venture Partners and the two other funds.

http://in.reuters.com/article/2013/01/23/consim-india-ipo-bharatmatrimonycom-idINDEE90M07G20130123

HPC Biosciences files for IPO

New Delhi-based HPC Biosciences has filed the DRHP to issue 45,00,000 equity shares at Rs.35 per share aggregating to Rs. 15.75 crore, forming 28.30% of the post issue paid up equity share capital of the company. Guiness Corporate Advisors is the lead manager to the issue. 

The company is engaged in cultivation, processing and distribution of agricultural commodities like wheat, paddy, sugar cane, fruits, vegetables and flowers.

http://bit.ly/VaRcCJ 

Secondary Offerings 

IDBI Bank plans QIP issue

IDBI Bank plans to raise equity capital by issuing shares to institutional investors, including Life Insurance Corporation of India (LIC), through a QIP in the fourth quarter, reports Business Standard. The government, which holds a 70.52% in IDBI Bank, has already announced plans to infuse equity capital of Rs.555 crore in the lender through a preferential placement of shares. The bank’s board last week cleared a proposal to raise equity capital from institutional investors up to Rs.2,500 crore, including the premium amount.

http://www.business-standard.com/499569/ 

Divestment in 6 PSUs by March-end

The Central Department of Disinvestment (DoD) is trying to push stake sales in six companies before the end of this financial year, reports Business Standard. The next round of divestment would begin with the offer for sale (OFS) of Oil India Ltd (OIL) next week. The department has also lined up the Nalco (National Aluminium) and Steel Authority of India (SAIL) disinvestment in the current financial year itself. After OIL, the stake sale in NTPC is slated, for the last week of February. 

Divestment in Minerals and Metals Trading Corporation (MMTC) and in Rashtriya Chemicals and Fertilizers (RCF) would be done in March.

http://www.business-standard.com/499590/

NBFC Cholamandalam Fin to raise $56-M

Cholamandalam Investment and Finance Co. Ltd. has picked four banks including Citigroup for a share sale to institutional investors to raise up to $56 million, reports Deccan Herald. JM Financial Services, Kotak Mahindra Capital and Axis Capital are the brokers handling the transaction. 

In December, the firm’s board had approved raising up to Rs.300 crore through private placements.

http://www.deccanherald.com/content/307689/chola-fin-aims-sell-stake.html 

Mahindra Holidays plans institutional placement to raise public shareholding

Publicly listed Mahindra Holidays & Resorts India Ltd. is planning an institutional placement program to bring public shareholding to a minimum of 25% (which was at 17.31% as of end September 2012). 

From the Venture Intelligence PE Deal database: In Jan-08, NYLIM India had invested $10-M via a Pre-IPO placement. (The firm held a 1.39% stake as of end Sep-12).   

For more information:

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=389d9b47-9547-4566-aebc-61debc4ff5f4

http://www.bseindia.com/corporates/ShareholdingPattern.aspx?scripcd=533088&flag_qtr=1&qtrid=75.00&Flag=New

Mergers & Acquisitions

Avendus in talks to acquire NBFC

Financial services firm Avendus Capital Pvt. Ltd. is in talks to acquire an NBFC that can help it offer debt to mid-cap firms, reports Mint. It plans to build a loan book of $100 million (around Rs.550 crore) in three years with this NBFC. The acquisition will be funded through internal accruals and take about two months to close.

http://www.livemint.com/Companies/1vFp7qfLjZpAexizDTklAP/Avendus-Capital-in-talks-to-acquire-an-NBFC.html

Wipro Consumer Care eyes acquisitions in Philippines, furniture biz

Wipro Consumer Care and Lighting (WCCLG) plans to enter the Philippine market through acquisitions, reports Business Standard. WCCLG, which also has a furniture business focused on the institutional segment, is looking for acquisitions in the furniture business. 

WCCLG, which over the past few years has spread its wings across the international consumer market through 10-12 acquisitions, currently gets 42% of its revenue from the international business.

http://www.business-standard.com/499599/

SBI Mutual Fund nearing a deal to buy Daiwa MF: report

SBI Mutual Fund is in the final stage of negotiations to purchase Japanese asset management firm Daiwa Mutual Fund, which manages assets worth around Rs.500 crore, reports Economic Times. SBI is likely to pay around 1.5% of the assets Daiwa manages as the seller has less attractive equity schemes and more debt schemes.

Daiwa, which purchased Shinsei Asset Management in March 2010, manages Rs.537.22 crore as at the end of the December quarter with a very small equity portfolio of Rs.29 crore in two schemes. It manages 12 debt schemes.

http://economictimes.indiatimes.com/articleshow/18215025.cms

IVRCL to sell MENA gasfield holdings to fund road projects

Hyderabad-based, publicly listed infrastructure services firm IVRCL Ltd. plans to sell its stake in five gas exploration blocks in the Middle East and North Africa (MENA) region in “a few weeks” and use the proceeds to fund its road-building projects, reports Bloomberg. IVRCL holds 25% each in three areas in Yemen and 20% each in two blocks in Egypt, through a subsidiary. The balance is held by Gujarat State Petroleum Corp. (GSPC), and two other partners. The company has invested Rs.200 crore in the gas projects.

IVRCL had said in September that it plans to invest Rs.1,100 crore over three years in four highway projects.

http://www.bloomberg.com/news/2013-01-22/ivrcl-to-sell-gasfield-holdings-to-fund-road-projects.html

Micro Labs plans overseas acquisitions

Bangalore-based drug maker Micro Labs is close to buying a dermatology formulation manufacturing facility in Egypt, reports Business Standard. The company is also eyeing a facility in Indonesia and is in the final stage of discussions. The acquisitions in Indonesia and Egypt will be internally funded. The company is also planning to do a mid-size acquisition in the US.

With an annual turnover of around Rs.1,800 crore, Micro Labs has earmarked a capital expenditure of Rs.600 crore for the next two years. Its product portfolio includes various specialties such as cardiology, diabetes, anti-infectives, ophthalmology and pain.

http://www.business-standard.com/49992/

Fund News

GTI lines up Vikram Pandit, Mitsui as co-investors

GTI Capital, founded by Indian industrialist Gaurav Dalmia along with American venture capital investor Jonathan Schulhof and Madhav Dhar, former head of global emerging markets at Morgan Stanley, has attracted former Citi CEO Vikram Pandit and Mitsui Corporation of Japan as co-investment partners, reports Economic Times. GTI, which started with $75 million capital in 2011, now will have $375 million committed from 15 overseas investors who will put in money when GTL identifies target.

http://articles.economictimes.indiatimes.com/2013-01-26/news/36564087

Strides Arcolab founder setting up family office fund 

Arun Kumar, the first-generation promoter of Bangalore-based pharma company Strides Arcolab Ltd., is creating a family office fund to channel his personal wealth into fast-emerging companies, reports Business Standard. Kumar, who is believed to be finalizing a $1-billion deal with global pharma majors to exit the specialties injectable business in Strides Arcolab, is scanning the landscape for a clutch of investments.

http://www.business-standard.com/499708/ 

New Funds (Being Raised) 

Tholons Capital raising $50-M luxury realty fund

Tholons Capital is raising a $50 million fund to finance luxury and boutique home and commercial realty projects, reports Times of India. It has already deployed about $10 million in realty ventures in Bangalore.

http://timesofindia.indiatimes.com/articleshow/18142965.cms 

TCG veteran Bani Banerjee to launch RE, media funds

Bani Banerjee, who quit as executive director and chief investment officer of The Chatterjee Group Real Estate in mid-2012 after a 17-year stint with the company, is set to launch two PE funds, reports Business Standard. One is a Rs. 1,060 crore special situations fund to invest in the hotels and real estate sectors. The other is a Rs.200 crore film and entertainment fund. 

The real estate and hotel fund would have deal sizes ranging from Rs.53.5 crore to Rs.107 crore. The entertainment fund would carry out deals between Rs.5 crore and Rs.30 crore and fund film and entertainment projects.

http://www.business-standard.com/499800/

People

TA Associates promotes Dhiraj Poddar

Global PE firm TA Associates has promoted Dhiraj Poddar as the Principal and Director in the Mumbai office of TA Associates Advisory Pvt. Ltd. Poddar was involved in TA’s investments in Tega Industries and IndiaIdeas.com (BillDesk) and is a member of the Board of Directors of both companies. He is a Chartered Accountant and also holds an MBA from IIM-Ahmedabad.

http://www.ta.com/news/news_detail.asp?id=250 

Srikrishna Ramamoorthy joins Unitus Seed Fund as partner

US-based impact investment firm Unitus Seed Fund has hired former Michael & Susan Dell Foundation executive Srikrishna Ramamoorthy as Partner of its investment team. Ramamoorthy also co-founded Kinara Capital and is part of the founding team of microfinance firm Ujjivan.

http://usf.vc/team/

Real Estate News 

VC/PE Fund Investments 

Real Estate > Residential
IIFL RE fund invests Rs.75-Cr in Assotech’s Faridabad project

IIFL Domestic Series 1 fund, a PE fund of the India Infoline Group, has invested Rs.75 crore in a plotted development project in Faridabad, reports Mint. The project, spread across 100 acres, is being developed by Noida-based real estate firm Assotech Ltd. IIFL is also in the process of investing a similar sum in two affordable housing projects in Bangalore which are being developed by a Hyderabad-based real estate firm. 

IIFL is also scouting for small deals of Rs.30-50 crore each with small developers who don’t have much project inventory. By April, the fund will invest the remaining of the Rs.700 crore it raised early last year for its first real estate fund.

http://www.livemint.com/Companies/ZfkRHAavYWLetxNNjVA7ZJ/IIFL-fund-invests-in-Faridabad-project.html 

RE Mergers & Acquisitions  

Real Estate > Property
GOL Offshore sells property to fund FCCB redemption

Listed offshore oilfield services provider GOL Offshore is selling real estate property to fund the redemption of its Rs.200 crore FCCBs that are due in April, reports Economic Times. Over the past month, it has raised Rs.30 crore through the sale of two high-end residential apartments in the Malabar Hill area of south Mumbai. It is looking to sell three more such properties in the same part of the city and expects to raise over Rs.60 crore.

http://economictimes.indiatimes.com/articleshow/18158266.cms 

Other RE News 

Embassy in talks with JP Morgan to raise Rs.500-Cr

Bangalore-based Embassy Property Developments is in talks with global financial services group JP Morgan to raise Rs.500 crore for two projects in the city, reports Economic Times. The ongoing talks pertain to a premium villa project and an IT-cum-residential development on Bellary Road. Embassy is willing to divest up to a 20% stake at the project level.

http://goo.gl/okckL 

Prestige Estates institutional placement issue oversubscribed

Bangalore-based listed real estate firm Prestige Estates Projects’ Rs.350 crore institutional placement issue has been subscribed 2.75 times, reports Economic Times. The issue was open for a day on Wednesday in a price band of Rs.161-170. The company, which had offered 19.9 million shares, received subscription for 54.8 million shares. 

Post the share sale, promoter holding in the firm will come down to 75% as per SEBI guidelines. This institutional placement is only the second in the country in the real estate sector. The company intends to use the proceeds towards pre-payment and repayment of existing debt, expanding business operations and general corporate purposes.

http://goo.gl/oWcPf 

HDIL denies bankruptcy as shares continue plummet

Housing Development & Infrastructure Ltd. (HDIL), whose shares have plummeted on market speculation over its debt repayments, has denied it is in financial trouble, reports Reuters. The share price crash, triggered when the company’s vice chairman and co-founder Sarang Wadhawan sold 5 million shares worth Rs. 570 million, reducing his stake to 0.99% from 2.19%, has wiped Rs.19.5 billion from HDIL's market value.

The company is 37% owned by its founders including Wadhawan, with 98% of their shares pledged with banking and financial institutions.

http://in.reuters.com/article/2013/01/24/india-hdil-idINDEE90N05520130124

Brigade Group launches Rs. 200-Cr premium housing project in Hyderabad

Real estate firm Brigade Group has launched Rs 200-crore premium housing project at the upmarket Banjara Hills area in Hyderabad, reports Business Line. The project will have 55 apartments in 11 blocks of five floors each on a 3- acre site. It will have only one apartment per floor ranging upwards of 3,350 sq ft and priced at Rs.3.6 crore onwards.

http://www.thehindubusinessline.com/news/real-estate/article4344600.ece

Our Sponsor Ascent Capital, a leading Indian Private Equity firm focused on growth capital, manages about $600 million across three funds. The funds are backed by marquee investors from India and overseas. Contact Information Ascent Capital, Concorde Block, 16th Floor, UB City, #24 Vittal Mallya Road Bangalore 560 001 Tel: + 91 80 3055 1200 info@ascentcapital.in www.ascentcapital.in

India, Ahoy! 

UK's NU Cosmetic Clinic enters India via Beams Hospitals

UK-based NU Cosmetic Clinic has formed a strategic agreement with Beams Hospital at Koramangala, Bangalore to launch the first Nu Cosmetic Center in India. Through this venture Beams Hospital will provide advanced cosmetic treatments and expertise. The tie-up was initiated by SMEJoinup, a services network for SMEs. 

From the Venture Intelligence PE Deal database: Ambit Pragma has invested about $16-M in Beams Hospital across four tranches. 

http://www.beamshospitals.com 

Malaysia-based Royal Selangor enters India

Malaysian firm Royal Selangor, which produces a range of modern homeware, drinkware and personal accessories, has entered the Indian market by setting up two outlets in Mumbai, reports PTI. The company plans to set up 18 more outlets in the next three years in Delhi, Chennai, Bangalore, Pune, Hyderabad and Kolkata at a cost of Rs.2 crore per outlet. 

For more information:

http://bit.ly/XA2Gzr

http://www.royalselangor.com

Juris Corp opens in Chennai, with Islamic banking expert Hufriz Wadia

Juris Corp will open an office in Chennai next week after former Wadia Ghandy associate Hufriz Wadia, joined the firm as partner two weeks ago, reports Legally India. She will focus on growing the firm’s banking, corporate, dispute resolution and real estate practice in Chennai, with a specialization on Islamic finance.

http://www.legallyindia.com/201301213377/Law-firms/juris-corp-opens-in-chennai-with-islamic-banking-expert-hufriz-wadia

New Ventures

Ceat forms JV with Bangladesh company

Ceat Tyre has formed a 70:30 joint venture company with Bangladesh-based AK Khan & Company to set up a manufacturing facility in the neighboring country, reports PTI. The facility, which will come up at the investment of $67 million, is expected to be functional by December 2014. The 110 tons per day facility will roll out tires for trucks, LCVs and 2/3 wheelers for the Bangladeshi market.

http://www.thehindubusinessline.com/companies/article4344987.ece

DTDC forms JV in Australia, expands ops in Middle East

DTDC Courier and Cargo Ltd., express courier company, has formed a JV in Australia and a franchisee arrangement in Kuwait in order to expand its presence in the APAC and Middle-East regions, reports Economic Times. 

The Australian venture will be handled jointly by DTDC and Fast World Express Pty Ltd where DTDC has 34% stake. The Kuwait venture will be handled by Kuwait Bayarek General Trading and Contracting Co. W.I.I. who is the Master franchise. With this DTDC's global footprint goes up to 16 countries providing services to over 240 international locations.

http://economictimes.indiatimes.com/articleshow/18115012.cms

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Expansion/Diversification 

Indsur to set up an engine block facility in Gujarat

The Indsur Group is to set up a facility for auto engine block making in Vadodara at an investment of Rs.125 crore, reports PTI. It will be the first fully automated plant for manufacturing engine blocks in Gujarat. The facility will produce 4-cylinder blocks, tractor blocks compressor housing and similar products, and will have an annual production capacity of 30,000 tons.

http://www.thehindubusinessline.com/companies/article4329352.ece

Manipal Global, Federal Bank launch banking school

Manipal Global Education Services (MaGE) and Federal Bank have launched the Federal Manipal School of Banking at the Manipal University Bangalore Campus, reports Business Standard. The fully residential campus offers a one-year full-time program in various areas of banking and management disciplines, coupled with intensive grooming and soft skills training.

http://www.business-standard.com/499526/ 

Spice Global enters healthcare, to invest over Rs.1,400-Cr

Singapore-based diversified company Spice Global forayed into healthcare vertical and announced plans to invest over Rs.1,400 crore by 2016 to set up its first 1,000-bedded hospital in New Delhi, reports Business Line. The company has already committed Rs.400 crore for the first phase of the project, which will have 230 beds by June this year. The hospital will be called Saket City Hospital.

http://www.thehindubusinessline.com/companies/article4332289.ece

Aeon Renewable Energy to invest Rs.250-Cr in solar power in 3 yrs

Aeon Renewable Energy Solution, a newly-launched solar energy firm of Chennai-based Madurai Appu Chain of restaurants, plans to invest Rs.250 crore over the next three years on setting up 25 MW of solar power generation capacity in Tamil Nadu, reports Business Standard. The company is planning to establish its presence in the retail solar power generation solutions for domestic and industry for captive use. The investment would be from the promoters and funding from family, friends and associates, and the company might approach banks for further funds later. 

The company has entered into an agreement with China-based solar panel manufacturing firm Yingli Solar for technical support and equipment for South India. It will assemble and install initially in Tamil Nadu.

http://bit.ly/V5KUEv 

CloudByte expands US operations

Technology product company CloudByte has taken steps to aggressively grow in the US market as its CTO Felix Xavier moves to a Silicon Valley office to lead and expand US operations, reports YourStory.in. The company had raised a $2.1 million series A round led by Nexus Venture Partners last year.

http://bit.ly/V7EIfj

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People

Seventymm appoints Bhawna Agarwal as CEO

Fashion & lifestyle e-commerce company Seventymm.com has appointed Bhawna Agarwal as its CEO, replacing Mudit Khosla. Prior to Seventymm, Agarwal was a founding member of the management team at Yatra.com.

From the Venture Intelligence PE Deal database: Investors in Seventymm.com include Kalaari Capital, ePlanet Ventures,Matrix Partners India and DFJ.

For more information:

http://bit.ly/UugIG1

http://shop.seventymm.com

Ajit Krishnakumar joins Tata Group's M&A team

Ajit Krishnakumar, an investment banker with Rothschild and the son of Tata Group veteran RK Krishnakumar, has joined the Tata Group as a member of a newly established mergers and acquisitions team, reports Economic Times. Ajit Krishnakumar had been based in the London office of Rothschild, and had held the position of Director-Investment Banking since 2009. Before to that, he had served as vice-president of Merrill Lynch for six years, from 2003 to 2009.

http://bit.ly/WHg5aA 

SS Mundra takes charge as CMD of Bank of Baroda

The government has appointed SS Mundra as the CMD of Bank of Baroda, the country's second largest lender, reports Business Standard. Prior joining to this appointment, he was the executive director of Union Bank of India. K Subrahmanyam, GM of Indian Overseas Bank, has been now appointed as executive director of Union Bank of India.

http://www.business-standard.com/india/news/ss-mundra-takes-charge-as-cmdbankbaroda/203496/on

COO Lokendra Tomar to exit KPO firm Integreon

Lokendra Tomar, global COO and the number two executive in KPO firm  Integreon, is leaving the company after a disagreement with the top brass, reports Economic Times. Integreon is promoted by Philippines-based Ayala and private equity firm Actis.

http://goo.gl/tsNLd

Ex-HAL chief Ashok Baweja to head new unit of QuEST Global

Engineering services provider QuEST Global Engineering has appointed former HAL chairman Ashok K Baweja to head the company’s nascent QuEST Global Defence Engineering Services unit, reports Deccan Herald. He will be based out of Bangalore.

Prior to joining Quest, Ashok Baweja was associated with HCL Technologies for over two years as a senior advisor for aerospace and defence for evolving long-term strategies and business development plans.

From the Venture Intelligence PE Deal database: In December-2010 Warburg Pincus had invested $73 million in QuEST Global and in May 2003, Carlyle had invested $6 million in the company. Carlyle had made a partial exit in November 2007.

http://bit.ly/TsdYL7

Regulatory News

SEBI may mandate scrutiny of small cos' IPO fund use through monitoring agency

Market regulator SEBI plans to make it mandatory for companies with an issue of less than Rs.500 crore to appoint a monitoring agency to keep track of the use of funds, reports Economic Times. The monitoring agency will have to provide up-to-date information of the end use of the money raised till such time the funds have been fully utilized. At present, only companies with an issue size above Rs.500 crore have to appoint a monitoring agency, usually a banker to the issue.

http://economictimes.indiatimes.com/articleshow/18141784.cms 

SEBI issues norms for separate debt segment on bourses

SEBI has come out with guidelines for setting up a separate debt segment on bourses where entities like banks and pension funds can also execute trades, reports Business Standard. The debt segment, that would include debentures, bonds, deposits, notes or commercial paper, would provide separate trading, reporting, membership, clearing and settlement rules. Trading would occur from 0900 hours to 1700 hours.

Scheduled commercial banks, primary dealers, pension funds, provident funds, insurance companies and mutual funds can trade on the debt segment either as clients of registered trading members or directly as trading member on proprietary basis only.

http://www.business-standard.com/india/news/sebi-issues-norms-for-separate-debt-segmentbourses/204006/on

SEBI clears air over ‘beneficial ownership’

Capital market regulator SEBI has tightened rules to identify "beneficial ownership" of assets, companies and trust to counter black money and money laundering, reports Economic Times. The regulator said all intermediaries registered with it will have to identify the person exercising controlling ownership interest in a company.

If a person, whether acting alone or together with one or more judicial person, owns more than 25% of shares or capital or profits in a company, he will be identified as a beneficial owner. In case of a partnership and Hindu undivided family (HUF), the threshold limit is 15%. In cases where there are doubts about this, the person can be identified as one who exercises control through other means such as voting rights, agreement and arrangements. If these two steps fail to provide clarity on the beneficial owner, then the senior managing official of the company will be identified as the beneficial owner.

http://bit.ly/SJ81Ie

http://reut.rs/14gcTYJ

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