dealtracker - grant thornton...

© Grant Thornton India LLP. All rights reserved.

October, 2014

Volume 10.10

DealTracker Providing M&A and Private Equity Deal Insight


About Grant Thornton

and over

700 offices

More than

38,500 people

based in over

countries

130

Member firm within

Grant Thornton

International

2,000 people

one of the largest

fully integrated

Assurance,

Tax & Advisory

firms in India

11 cities

Ranked among

top 5 in all major markets

including India

Total global

revenues $4.5bn (2013)

Presence in 11 major cities of India – Ahmedabad, Delhi, Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune


Total Deal Volume Spread – October '14 Total Deal Value Spread (USD mn) – October'14

• The month of October 2014 witnessed 100 deals worth USD 2.7bn, higher

in terms of volume and value, as compared to the same period in 2013.

However, October saw lower deal activity when compared to the previous

month, during which 123 deals totalling USD 5.6bn were reported.

• The month saw decline in M&A deal value as compared to Oct'13 and

Oct'12, largely due to a dip in outbound and domestic deal values, despite

robust volumes.

• PE deal values and volumes in Oct'14 clearly surpassed levels seen during

the corresponding month in earlier years and was also among the highest in

any month in 2014.

• The month also saw 4 QIPs worth USD 255mn

Deal Summary Volume Value (USD mn)

2012 2013 2014 2012 2013 2014

Domestic 22 14 19 816 306 107

Cross-border 30 16 24 1,570 1,036 389

Merger & Internal

Restructuring 3 4 2 15 199 504

Total M&A 55 34 45 2,401 1,540 1,000

Private Equity 34 41 55 658 835 1,753

Grand Total 89 75 100 3,059 2,375 2,753

Cross-border includes

Inbound 14 10 12 394 462 277

Outbound 16 6 12 1,177 573 113

Trend spotting

Deal Round Up October 2014

3

• Cross-border deal volumes have gone

up, however this did not reflect in

values as not many big ticket deals

happened in October.

• PE investment has risen significant as

6 deals valued over USD 100mn each

were reported.

658 835

1,753

Private Equity

34 41

55

816 306 107

394

462

277

1,177

573

113

15

199

504

2012 2013 2014

Merger & InternalRestructuring

Outbound

Inbound

Domestic

22 14 19

14

10 12

16

6

12

3

4

2

2012 2013 2014


Total Deal Volume Spread – YTD'14 Total Deal Value Spread (USD bn) – YTD'14

• Aggregating a total deal value of USD 39bn (987 deals) in YTD’14, the

overall deal sentiment in India has surpassed the levels seen in the past two

years.

• With 18% increase in value and 16% increase in volume over YTD 2013,

there was increased activity in the M&A space at USD 29bn (486 deals),

clearly driven by domestic & inbound deal activity.

• PE volume has shown a significant uptick with 18% higher values and 37%

higher volumes over YTD 2013.

Deal Summary Volume Value (USD mn)

2012 2013 2014 2012 2013 2014

Domestic 199 180 213 5,246 4,625 9,824

Crossborder 210 184 238 10,695 14,421 15,177

Merger & Internal

Restructuring 82 42 35 14,629 4,463 3,817

Total M&A 491 406 486 30,569 23,509 28,818

Private Equity 345 363 500 6,710 8,641 10,207

Grand Total 836 769 986 37,279 32,150 39,025

Cross border includes

Inbound 114 113 141 4,063 6,148 9,975

Outbound 96 71 97 6,632 8,273 5,202

Trend spotting

Deal Round Up YTD 2014

4

• The domestic market has seen an

upsurge in deal value with 16 deals

of over USD 100mn each so far.

• The inbound activity has

substantially increased in terms of

value by 38% & volume by 19%,

against 2013 with 24 deals of over

USD 100mn each.

• In YTD 2014, there have been 21

investments of over USD100mn

each

5.2 4.6 9.8

4.1 6.1

10.0 6.6

8.3

5.2 14.6 4.5

3.8

2012 2013 2014

Merger & InternalRestructuring

Outbound

Inbound

Domestic 199 180 213

114 113 141

96 71

97 82

42

35

2012 2013 2014

345 363

500

6.7 8.6

10.2

Private Equity


M&A Round Up October 2014

5

Top M&A Deals of the Month

Acquirer Target Sector USD Mn Deal Type % Stake

Tata Consultancy

Services CMC Ltd IT & ITES 500.00 Merger N.A.

New Call Telecom Nimbuzz IT & ITES 175.00 Majority stake 70%

New Generation

Holdings Inc

Valecha Engineering - Toll

projects

Infrastructure

Management 51.50 Acquisition 100%

IMImobile Ltd TxtLocal Ltd IT & ITES 16.60 Acquisition 100%

Ipca Labs

Alpa Laboratories' Oral

Solid Dosage Manufacturing

Plant

Pharma, Healthcare &

Biotech 11.95 Acquisition 100%

Sectoral Snapshot Top Sectors based on Deal Volume Top Sectors based on Deal Value (USD mn)

Notable Sectors Volume USD Mn

IT & ITES 15 779.8

Retail & Consumer 7 34.2

Pharma, Healthcare & Biotech 6 29.6

Banking & Financial Services 5 19.4

Energy & Natural resources 3 15

Automotive 2 25

IT & ITES 33%

Retail & Consumer

16% Pharma, Healthcare &

Biotech 13%

Banking & Financial Services

11%

Energy & Natural

resources 7%

Automotive 5%

Transport & Logistics

4% Others 11%

IT & ITES 78%

Infrastructure Management

5% Retail &

Consumer 3%


Biotech 3%

Transport &

Logistics 3%

Automotive 3%

Banking & Financial Services

2% Others

3%


PE Round Up October 2014

6

Sectoral Snapshot Top Sectors based on Deal Volume Top Sectors based on Deal Value (USD mn)

Notable Sectors Volume USD Mn

IT & ITES 28 785.2

Retail & Consumer 7 438.6

Education 5 9.4

Real Estate 4 239.7

Hospitality & Leisure 3 10.4

Pharma, Healthcare & Biotech 2 11 IT & ITES

53%

Retail & Consumer

21%

Real Estate 12%

Energy & Natural

Resources 6%

Manufacturing 5%

Transport & Logistics

1% Pharma,

Healthcare & Biotech

1% Others

1%

Top PE Deals of the Month

Acquirer Target Sector % Stake USD Mn

Softbank Corp Snapdeal IT & ITES N.A. 627.00

Softbank Corp Olacabs Retail & Consumer N.A. 210.00

Warburg Pincus Kalyan Jewellers India Pvt

Ltd Retail & Consumer 24% 195.60

EIG Global Energy Partners- Greenko Group plc-Greenko

Mauritius

Energy & Natural

Resources N.A. 125.00

International Finance Corp Ballarpur Industries Ltd Manufacturing 14%. 100.00

IT & ITES 45%

Retail & Consumer

25%

Real Estate 14%

Energy & Natural

Resources 7%

Manufacturing 6%

Others 3%


A

cq

uir

er

R

ati

on

ale

T

arg

et

In

vest

or

C

om

men

ts

In

vest

ee

India's largest software

services provider Tata

Consultancy Services Ltd

has obtained its board's

approval to merge its

public listed subsidiary

CMC Ltd with itself.

SoftBank Internet and

Media, Inc. (SIMI) has

become the largest investor

in Snapdeal, investing $627

mn in the online

marketplace.

Tata Consultancy Services

Limited (TCS)

Tata Consultancy Services

Limited (TCS) is an Indian

multinational information

technology (IT) services,

consulting and business

solutions company.

CMC Limited is a leading

systems engineering and

integration company in India,

offering application design,

development, testing services

and asset-based solutions in

niche segments through

turnkey projects.

The amalgamation will enable

TCS to consolidate CMC's

operations in a single

company with rationalised

structure, enhanced reach,

greater financial strength and

flexibility. SoftBank Corp.

It is a Japanese

telecommunications and

Internet corporation with

investments in e-commerce

companies across the world.

Snapdeal

Founded in 2010, Snapdeal has

become one of the fastest

growing and among the top

three online marketplaces in

India, with more than 25 million

registered users and more than

50,000 vendors.

This is the third fund raise for

Snapdeal this year, which

takes the total fund raise to

USD 1bn this calendar year,

mainly to fuel growth and

take on competition in this

space.

7

Deal of the Month - M&A

Deal of the Month - PE


Deal List

This document captures the list of deals announced based on information available in the public domain and based on public announcements. Grant Thornton India LLP does not

take any responsibility for the information, any errors or any decision by the reader based on this information. This document should not be relied upon as a substitute for

detailed advise and hence, we do not accept responsibility for any loss as a result of relying on the material contained herein. Further, our analysis of the deal values are based on

publicly available information and based on appropriate assumptions (wherever necessary). Hence, if different assumptions were to be applied, the outcomes and results would

be different.

© Grant Thornton India LLP. All rights reserved. 9

Acquirer Target Sector USD mn Deal Type %

Stake Domestic/ Crossborder

New Call Telecom Nimbuzz IT & ITES 175.00 Majority stake 70% inbound

Future Group- Future Supply Chains Brattle Foods Transport & Logistics N.A. Acquisition N.A. Domestic

Mahindra Two Wheelers Ltd (MTWL) PSA Peugeot Citroen Automotive N.A. Majority stake 51% Outbound

IMImobile Ltd TxtLocal Ltd IT & ITES 16.60 Acquisition 100% Outbound

Ipca Labs Alpa Laboratories' Oral Solid Dosage

Manufacturing Plant


Biotech 11.95 Acquisition 100% Domestic

Minda Corporation Minda Furukawa Electric Pvt. Ltd. Automotive N.A. Increasing stake to 51% 2% Domestic

Sumitomo Group-SMAS Auto Leasing

India. Carzonrent- Auto lease business Retail & Consumer N.A. Acquisition 100% inbound

MPS Limited Electronic Publishing Services Media & Entertainment N.A. Acquisition 100% Outbound

Cognizant Technology Solutions Cadient Group IT & ITES N.A. Acquisition 100% Outbound

DaVita HealthCare Partners Inc Express Clinics Pvt Ltd Pharma, Healthcare &

Biotech N.A. Strategic Stake N.A. inbound

I. M&A Deals




Nihilent Technologies GNet Group IT & ITES N.A. Acquisition 100% Outbound

Amulya Leasing & Finance Ltd Apollo Pipes Ltd Manufacturing N.A. Increasing stake to 30.9% 14% Domestic

PayUmoney Cobboc Private Limited- Eashmart IT & ITES N.A. Acquisition 100% Domestic

Binatone Communications Group -

Hubble Connovate Private Limited Retail & Consumer N.A. Majority stake N.A. inbound

Trivitron Healthcare Kiran Medical Limited and Imaging Products

India Pvt Ltd


Biotech N.A. Acquisition 100% Domestic

Godrej Consumer Products Ltd (GCPL) Darling Group Holdings - Ghana business Retail & Consumer N.A. Acquisition 100% Outbound

dMACQ Software Pvt Ltd Aspire IT Services IT & ITES N.A. Strategic Stake 40% Domestic

Celio International SA

Celio Future Fashion Limited (CFFL)

Retail & Consumer N.A. Stategic Stake 32% inbound

FutureLifestyleFashions Elisir Lifestyle Pvt Ltd Retail & Consumer N.A. Majority stake 60% Domestic

BIBA Apparels Anjuman Brand Designs Pvt Ltd Retail & Consumer N.A. Strategic Stake 27% Domestic

I. M&A Deals




Dachser GmbH & Co. KG Dachser India Pvt Ltd Transport & Logistics N.A. Increasing stake to 100% 50% inbound

B2X Care Solutions GmbH The Service Solutions Pvt Ltd (TSS) IT & ITES N.A. Acquisition N.A. inbound

Kellton Tech Solutions Ltd Vivos Professional Services IT & ITES N.A. Acquisition N.A. Outbound

Dr. Amin Controllers Pvt. Ltd Intertek India - Mineral business Professional / Business

Services N.A. Acquisition N.A. Domestic

Times Internet Moneysights-RupeeStreet Financial Services

Pvt Ltd IT & ITES N.A. Acquisition N.A. Domestic

Alembic Limited Adwiya Mami SARL Pharma, Healthcare &

Biotech N.A. Stategic Stake 49% Outbound

Brillio Marketelligent IT & ITES N.A. Acquisition N.A. inbound

Cigital Inc iViZ Techno Solutions Pvt Ltd IT & ITES N.A. Acquisition N.A. inbound

Larsen and Toubro- L&T Infotech Information Systems Resource Centre Pvt.

Ltd. (ISRC), subsidiary of Otis elevator Co IT & ITES N.A. Acquisition N.A. Domestic

Superior Energy Services Inc Yennai Hydrocarbon Services Pvt Ltd Energy & Natural

resources N.A. Acquisition N.A. inbound

I. M&A Deals




ONGC -Videsh PetroVietnam Exploration Production

Corporation-Block 102/10

Energy & Natural

resources N.A. Acquisition 40% Outbound

ONGC -Videsh PetroVietnam Exploration Production

Corporation-106/10 block

Energy & Natural

resources N.A. Acquisition 50% Outbound

Deepak Fertilisers Mangalore Chemicals and Fertilizers Ltd

(MCFL) Agriculture & Forestry N.A.

Increasing stake to

32% 6% Domestic

Panasonic Corporation Panasonic Appliances India Ltd Retail & Consumer 4.20 Increasing stake to

74.22% 17%

Merger & Internal

Restructuring

Dewan Housing Finance Pramerica Asset Management Banking & Financial

Services 4.08 Stategic Stake 50% Domestic

Muthoot Finance Ltd Asia Asset Finance PLC Banking & Financial

Services 2.90

Increasing stake to

44.32% 14% Outbound

Centrum Capital's private arm Centrum

Direct Ltd BCB Finance Ltd

Banking & Financial

Services 2.45 Majority stake 52% Domestic

Indovation Technologies Limited Symetric Life Sciences Pvt Ltd Pharma, Healthcare &


Indovation Technologies Limited Sristek Clinical Research Solutions Ltd Pharma, Healthcare &


Amazon QwikCilver Solutions IT & ITES N.A. minority stake 20% inbound

I. M&A Deals




Manappuram Finance Asirvad Microfinance Banking & Financial

Services N.A. Majority stake N.A. Domestic

Manappuram Finance Asirvad Microfinance Banking & Financial

Services N.A. Majority stake N.A. Domestic

Tata Consultancy Services CMC Ltd IT & ITES 500.00 Merger N.A. Merger & Internal

Restructuring

Wipro Ltd Opera Solutions LLC IT & ITES 8.2 Increasing stake N.A. Outbound

New Generation Holdings Inc Valecha Engineering - Toll projects Infrastructure Management 51.50 Acquisition 100% inbound

I. M&A Deals


Investor Investee Sector % Stake Value USD mn

Blackstone Group and Embassy Property

Developments Pvt Ltd

Goldman Sachs-Century Real Estate owned Bangalore

project Real Estate N.A. N.A.

Qualcomm Ventures BirdsEyeSystems-Traffline IT & ITES N.A. N.A.

MatrixPartners & Angel investors Alchemy Web IT & ITES N.A. N.A.

MatrixPartners GrownOut Solutions IT & ITES N.A. N.A.

Indian Angel Elementia Wellness Pvt Ltd - Tattva Retail & Consumer N.A. N.A.

Helion Private Limited TalentPad IT & ITES N.A. N.A.

Angel investor Fortuna Retail Pvt Ltd -GemPundit Retail & Consumer N.A. N.A.

Hyderabad Angels1, Chennai Angels and other

investors. Sumiran Spiritual Services Pvt Ltd-OnlinePrasad IT & ITES N.A. N.A.

Individual investors Right Angle Web India Pvt Ltd-TimeSaverz IT & ITES N.A. N.A.

Bedrock Venture Management Private Ltd MyRefers.com IT & ITES N.A. N.A.

II. Private Equity



Healthstart Manna Healthcare Pvt Ltd-ObiNo IT & ITES N.A. N.A.

Angel Investors People10 Technosoft Pvt Ltd IT & ITES N.A. N.A.

Vivekanand Education Society’s Institute of

Technology (VESIT) NoteMyBook Pvt Ltd IT & ITES N.A. N.A.

VentureNursery & Angel investors Instant Hotels Around You Pvt Ltd IT & ITES N.A. N.A.

Michael & Susan Dell Foundation Kinara Capital Banking & Financial Services N.A. N.A.

Angel investor Zuci Energy Pvt Ltd Infrastructure Management N.A. N.A.

Indian Angel InThree Professional / Business Services N.A. N.A.

Softbank Corp Snapdeal IT & ITES N.A. 627.00

Softbank Corp Olacabs Retail & Consumer N.A. 210.00

II. Private Equity



Warburg Pincus Kalyan Jewellers India Pvt Ltd Retail & Consumer 24% 195.60

EIG Global Energy Partners- Greenko Group plc-Greenko Mauritius Energy & Natural Resources N.A. 125.00

KKR Bhartiya Group's integrated township project Real Estate N.A. 66.67

KKR Wadhwa Group's luxury home project Real Estate N.A. 58.33

Premji Invest Financial Software & Systems IT & ITES N.A. 58.33

WarburgPincus, Canaan Partners and Tiger

Global CarTrade IT & ITES N.A. 30.20

LetsVenture Posist IT & ITES N.A. 0.50

Mandala Capital Gati Limited - Gati Kausar India Transport & Logistics 30% 24.45

Telstra Ventures and Global Brain AdNear Pte Ltd IT & ITES N.A. 19.00

LetsVenture & angel investors TestBook Education N.A. 0.25

II. Private Equity



Saif Partners Senco Retail & Consumer N.A. 13.33

Fidelity Growth Partners India and Somerset

Indus Capital Cygnus Medicare Pharma, Healthcare & Biotech 30% 10.00

Superior Investments Pte. Ltd and HDFC

Investment Trust II Sterling Urban Developers- Bangalore project Real Estate N.A. 9.70

Angel investor Adlabs Entertainment Ltd Hospitality & Leisure N.A. 8.18

SequoiaCapIndia & Angel investor ZoomCar Private Limited Retail & Consumer N.A. 8.00

Orios Venture Sapience Analytics IT & ITES N.A. 7.50

Helion Venture Partners iD Fresh Food (India) Pvt Ltd Retail & Consumer N.A. 5.69

Bertelsmann India Investments (BII), iNurture Education Solutions Pvt Ltd Education N.A. 5.00

Angel investor ShieldSquare IT & ITES N.A. 0.35

Michael & Susan Dell Foundation Edutel Technologies Education N.A. 2.07

II. Private Equity



SeedFund. V Resorts Hospitality & Leisure N.A. 2.00

Nirvana Ventures and Beenos BigFoot Retail Solutions - KartRocket IT & ITES N.A. 2.00

Aspada Investment Company PI Policy Innovations Pvt Ltd-Xamcheck Education N.A. 1.80

Ideaworks Partners People10 Technosoft. IT & ITES N.A. 1.67

Info Edge (India) Ltd Canvera Digital Technologies Pvt Ltd. IT & ITES 4% 1.64

Indian Angel & Other investors Zippr IT & ITES N.A. 1.00

Ventureast Tenet Fund & Government of

India’s Technology Development Board Angels Health Private Limited-MediAngels Pharma, Healthcare & Biotech N.A. 1.00

India Quotient & Angel investors Gadget research site-91mobiles IT & ITES N.A. 1.00

Kickstarter- crowd funding MindHelix Inc-Rico IT & ITES N.A. 0.66

Info Edge Happily Unmarried Marketing Pvt Ltd IT & ITES 9% 0.65

II. Private Equity



GSF, Globevestor, Asian Ecommerce Alliance

GmBH and People Group Flinto Education N.A. 0.30

LetsVenture Adpushup IT & ITES N.A. 0.63

Angel Investor GourmetItUp Hospitality & Leisure N.A. 0.30

Angel investor-V Balakrishnan Avekshaa Technologies IT & ITES N.A. 0.04

Bright Ventures PriceBurp IT & ITES N.A. 0.10

International Finance Corp Ballarpur Industries Ltd (Bilt) - Bilt paperBV Manufacturing 14% 100.00

II. Private Equity


Company Name Sector Issue Price Equity Offered Capital Raised INR mn Capital Raised USD mn

Raghuvansh Limited Agriculture & Forestry 11 360,000 3.96 0.07

III. IPO

Investee Sector % Stake Value USD mn

DCB BANK LIMITED Banking & Financial Services N.A.

41.7

Dynamatic Technologies Limited Manufacturing N.A.

90.0

Sadbhav Engeneering Limited Infrastructure Management N.A.

42.0

CESC Limited Energy & Natural Resources N.A.

81.8

IV. QIP


Grant Thornton India LLP is a member firm within Grant Thornton International Ltd. The firm is one of the oldest and most prestigious accountancy firms

in the country. Today, it has grown to be one of the largest accountancy and advisory firms in India with nearly 1,200 professional staff in New Delhi,

Bangalore, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai and Pune, and affiliate arrangements in most of the major towns and cities

across the country.

About Grant Thornton

We would be delighted to receive your feedback!

[email protected]

Dealtracker Editorial team:

Sowmya Ravikumar & Monica Kothari

Advisory

‒ Business Risk

‒ Corporate Social Responsibility

‒ Corporate finance

‒ Forensic & Investigations

‒ Government & Infrastructure

‒ Healthcare &Life Sciences

‒ Leadership Consulting

Service Areas

The firm’s core service areas are as follows –

Assurance

- Audit

- FRAS

Taxation

- Compliance & Outsourcing

- Direct tax

- Indirect tax

- Transfer Pricing

- US Tax

Our Corporate Finance Services (CFS) practice leverages on our understanding of corporate

strategy, capital markets, and international jurisdictions and regulatory requirements, to help unlock

the potential for growth in dynamic businesses.

We operate in a matrix structure with a sector focus and service focus to increase our ability to service

clients. Our pool of highly experienced and qualified personnel possesses the requisite expertise to assist

businesses in their varied transactions requirements pertaining to acquiring, divesting, listing, or raising

capital.

Our CFS practice offers the following services:

• Lead advisory

• Transaction advisory

• Valuation

To know more visit us on http://www.grantthornton.in/html/services/ corporate-finance-services/

22

dealtracker - grant thornton...

Documents