corporate finance newsletter - imacs.in transaction advisory newsletter... · idfc’s us $ 27.9...

ICRA Management Consulting Services Limited

Corporate Finance Newsletter

September 2012

Disclaimer

This report and the analysis herein are based on data and information collected by ICRA Management Consulting Services

Limited (IMaCS) from sources believed to be reliable and authentic. While all reasonable care has been taken by IMaCS to ensure

that the information and analysis contained herein is not untrue or misleading, neither IMaCS nor its Directors shall be

responsible for any losses, direct, indirect, incidental or consequential that any user of this report may incur by acting on the basis

of this report or its contents. IMaCS makes no representations or warranties in relation to the accuracy or completeness of the

information contained in the report. IMaCS’ analysis in this report is based on information that is currently available and may be

liable to change. This report and the analysis herein should not be construed to be a credit rating assigned by ICRA Limited for

any securities of any entity. Other than as expressly stated in this report, we express no opinion on any other issue. Our

analysis/advice/recommendations should not be construed as legal advice on any issue.

Table of Contents

Transaction activity………………………..…………………………. 4

Domestic M&A transactions………………………..……………... 8

Inbound M&A transactions……………………...……………...... 11

Outbound M&A transactions……………………………………. 14

Private equity transactions ….………………………………….. 17

Venture Capital transactions .……………………………...…… 21

About IMaCS…………………………….……….………..………..…. 24

Transaction activity

Transaction activity in September 2012… (1/3)

August 2012 September 2012

Volume Value

(US $ mn) Volume

Value (US $ mn)

M&A

Domestic 10 72.9 10 191.1

Inbound 13 367.9 11 353.7

Outbound 10 623.8 9 1476.2

Private Equity 41 2187.7 24 496.4

Venture Capital 15 16.2 12 8.9

Total 89 3268.5 66 2526.3

Note: The value given is only for disclosed deals.

0%

20%

40%

60%

80%

100%

Value wise Volume wise

7.6% 15.2%

14.0% 16.7%

58.4%

13.6%

19.7%

36.4%

0.4% 18.2%

Transaction activity break-up

M&A Domestic M&A Inbound M&A Outbound

Private Equity Venture Capital

Total number of deals in the month decreased

to 66 from 89 deals in August

• The number of Private Equity deals

decreased to 24 from 41 in August

• The number of Inbound M&A deals

decreased to 11 from 13 in August

Total value of deals in September was US $

2.53 billion as compared to US $ 3.27 billion

in August and US $ 2.23 billion in July

• Total value of Outbound deals increased to

US $ 1.5 billion from US $ 624 million in

August

• Total value of Private Equity deals

decreased to US $ 496 million from US $

2.2 billion in August

Average deal size of M&A deals was US $

118.9 million for 17 disclosed deals.

Average deal size of Private Equity deals was

US $ 21.6 million for 23 disclosed deals.


IT/ITeS 17%

Pharma & Healthcare

14%

Real Estate 11%

e-commerce 9%

BFSI 7%

Others 42%

Sector wise break-up (Volume)

Oil & Gas 40%

IT/ITeS 18% BFSI

8%

Pharma & Healthcare

7%

Manufacturing 7%

Others 21%

Sector wise break-up (Value)

The number of deals in IT/ITeS sector were

highest, followed by Pharma & Healthcare,

Real Estate and e-commerce sectors

• Number of deals in IT/ITeS sector,

however, decreased to 11 from 12 in

August

• In Pharma & Healthcare sector, number of

deals decreased to 9 from 10 in August

• The number of deals in Real Estate sector

increased to 7 from 3 in August

Total value of deals in Oil & Gas was US $ 1

billion, followed by IT/ITeS and BFSI sectors

• Total value of deals in IT/ITeS sector

decreased to US $ 457 million from US $

1.1 billion in August

• Total value of deals in BFSI sector increased

to US $ 193 million from US $ 112 million

in August


“Deals of the month”

Infosys acquires Swiss consultancy firm Lodestone for US $ 350 million

o Lodestone offers advisory services in life science, chemical, financial services, investment ,

automotive and consumer goods sectors

o Acquisition will lead to expansion of Infosys’ presence in Europe

o Will strengthen Infosys’ management consulting and systems integration capabilities

Tech Mahindra’s acquisition of Hutchison Global Services for US $ 87 million

o The deal will increase revenue of Tech Mahindra, US $ 845 million contract for next five years

to service the unit’s existing customers

o Hutchison Global Services operates out of Mumbai and Pune, among the largest captives in the

telecom domain

IDFC’s US $ 27.9 million investment in Parag Milk Foods

o 35% stake to be held by IDFC and existing investor Motilal Oswal PE

o This is the largest private equity investment in the country’s dairy sector

o The company planned to raise funds through IPO last year, withdrew because of adverse stock

market conditions

Domestic M&A transactions

Domestic M&A transactions in September 2012 … (1/2)

Sector Volume Value (US $ mn)

Engineering 2 15

Manufacturing 2 2

Cement 1 105

Telecom 1 48

Retail 1 11

Sector Value (US $ mn) Volume

Cement 105 1

Telecom 48 1

Engineering 15 2

Retail 11 1

BFSI 10 1

Top 5 sectors (Volume)

Top 5 sectors (Value)


0

5

10

15

20

July August September

20

10 10

Deals (Volume)

0

50

100

150

200

250

300

350


337

73

191

In U

S $

Mn

Deals (Value)

Domestic M&A transactions in September 2012 … (2/2)

Target Acquirer Deal Value

(in US $ mn) % stake

acquired Sector

Arohan Financial Services Private Limited

IntelleCash Microfinance Network Company Private Limited

9.5 - BFSI

Adhunik Cement Dalmia Cement Bharat Limited 105.0 - Cement

DoctorsTime Health Services Private Limited

Comp U Learn Tech India Limited - 51% e-commerce

Vaksh Steel Private Limited, Foundry division

Pitti Castings 15.0 - Engineering

Wipro’s water purification and treatment business

Earth Water Group - - Engineering

Neela Systems Ltd Praj Industries Ltd 2.3 9.8% Manufacturing

Innovative Technomics Private Limited Innoventive Industries Limited - 51% Manufacturing

Excel Hospitals Pvt Ltd Nova Specialty Surgery - - Pharma & Healthcare

Express Retail Services Private Limited Future Ventures India Limited 11.3 100% Retail

Comviva Tech Mahindra 48.0 51% Telecom

Inbound M&A transactions

Inbound M&A transactions in September 2012 … (1/2)


Pharma & Healthcare 2 128

IT/ITeS 2 -

Manufacturing 1 97

BFSI 1 87

Engineering 1 39



Manufacturing 97 1

BFSI 87 1

Engineering 39 1

Shipping & Ports 3 1




0

5

10

15


14 13

11

Deals (Volume)

0

100

200

300

400


29

368 354

In U

S $

mn

Deals (Value)

Inbound M&A transactions in September 2012 … (2/2)



acquired Sector

Religare AMC Invesco Limited 87.0 49% BFSI

Mahindra Ugine Steel Company Ltd (Musco)

Mitsui & Co. Ltd, Sanyo Special Steel Co. Ltd

39.0 49% Engineering

Godrej Hershey Limited The Hershey Company - 43% FMCG, Food, Beverage

NewsPage Pte Ltd Accenture - - IT/ITeS

TheMobileGamer SingTel, Softbank - 82% IT/ITeS

BOPP film biz, Max India Treofan 97.0 - Manufacturing

Arch Pharmalabs Mitsui & Co 67.2 25% Pharma & Healthcare

Bilcare Ltd, US & UK arm United Drug plc 61.0 - Pharma & Healthcare

Solaris ChemTech, bromine assets Chemtura Corporation - - Plastics & Chemicals

Propylene plant, Kochi LG Chemicals - 51% Power & Energy

CTI Shipbrokers (India) Limited ICAP Shipping 2.5 - Shipping & Ports

Outbound M&A transactions

Outbound M&A transactions in September 2012 … (1/2)


IT/ITeS 3 437

Oil & Gas 1 1000

Retail 1 38

Manufacturing 1 1

Education 1 -


Oil & Gas 1000 1

IT/ITeS 437 3

Retail 38 1

Manufacturing 1 1

Education - 1




0

5

10

15


15

10 9

Deals (Volume)

0

500

1000

1500


1,274

624

1,476

In U

S $

mn

Deals (Value)

Outbound M&A transactions in September 2012 … (2/2)



acquired Sector

Alta Vista EdServ Softsystems Limited - - Education

Lodestone Infosys 350.0 - IT/ITeS

Hutchison's BPO Tech Mahindra 87.1 100% IT/ITeS

Sabre's Philippines Development Centre

NIIT Technologies - - IT/ITeS

Linea De Seguridad Superhouse Limited 1.11 - Manufacturing

Digital Domain Media Galloping Horse, Reliance MediaWorks Inc.

- - Media & Entertainment

Caspian Sea oil & gas block, pipeline ONGC Videsh Limited 1000.0 2.72% Oil & Gas

Healthcare BPO, Deloitte Hinduja Global Solutions Inc - - Pharma & Healthcare

Woolworths Limited, India wholesale unit

Infiniti Retail 38.0 - Retail

Private Equity transactions

Private equity transactions in September 2012 … (1/3)


Real Estate 7 127


BFSI 3 96

FMCG, Food, Beverage 2 46

Media & Entertainment 2 36


Real Estate 127 7

BFSI 96 3

Manufacturing 73 1


FMCG, Food, Beverage 46 2




0

10

20

30

40

50


24

41

24

Deals (Volume)

0

500

1000

1500

2000

2500


541

2,188

496 In U

S $

mn

Deals (Value)




acquired Sector

Religare Enterprises IFC 75.0 - BFSI

Mahindra Insurance Brokers Limited LeapFrog 15.0 12.27% BFSI

Sonata Finance Private Limited Creation Investments, yourstory.in 6.35 - BFSI

Zomato Media Private Limited Info Edge India Limited 2.31 - e-commerce

Altus Learning Kaizen 4.5 - Education

Parag Milk Foods Private Limited IDFC 27.88 - FMCG, Food, Beverage

Prabhat Dairy Rabo PE, Abraaj Capital 17.99 - FMCG, Food, Beverage

Capillary Technologies Pvt Ltd Sequoia Capital, Norwest Venture Partners

15.5 - IT/ITeS

Covacsis Blume Ventures, Indian Venture Partners

0.45 - IT/ITeS

Jain Irrigation Mount Kellett, IFC 73.0 - Manufacturing

Great Indian Nautanki Company L Capital 35.97 - Media & Entertainment

DB Corp Nalanda Capital - - Media & Entertainment

SH Kelkar & Company Blackstone 43.7 33% Others

Thyrocare Technologies Ltd Norwest Venture Partners 22.0 10% Pharma & Healthcare

Thyrocare Technologies Limited Norwest Venture Partners 21.58 10% Pharma & Healthcare

NationWide Primary Healthcare Services Private Limited

Norwest Venture Partners 4.5 - Pharma & Healthcare

Super Religare Laboratories (SRL) Avigo Capital Partners 4.0 - Pharma & Healthcare




acquired Sector

Prestige Estates Projects Limited Red Fort Capital 35.97 - Real Estate

Shriram Properties, Bangalore project ASK Property Investment Advisors (ASK PIA)

18.2 - Real Estate

Amrapali Developers JP Morgan 18.18 - Real Estate

Lalbagh project, Bangalore, Mantri Developers Private Limited.

ASK Property Investment Advisors Private Limited

18.1 50% Real Estate

Earth Water Group CLSA Capital 15.0 20% Real Estate

Semi-luxury residential project, Bangalore

ASK Property Investment Advisors 14.0 - Real Estate

Century Real Estate Reliance Capital 7.25 - Real Estate

Venture Capital transactions

Venture Capital transactions in September 2012 … (1/2)


IT/ITeS 4 3

e-commerce 4 2


Power & Energy 1 -

Hospitality 1 -


IT/ITeS 3 4


e-commerce 2 4

Power & Energy - 1

Hospitality - 1




0

5

10

15

20

25

30


27

15 12

Deals (Volume)

0

10

20

30

40

50

60


53

16

9

In U

S $

mn

Deals (Value)

Venture capital transactions in September 2012 … (2/2)



acquired Sector

Travelmob Jungle Ventures 1.0 - e-commerce

99labels.com Info Edge (India) Ltd 0.9 - e-commerce

DailyObjects Seedfund - - e-commerce

Unbxd Indian Angel Network - - e-commerce

Poncho Indian Angel Network - - Hospitality

Datagres Technologies Nexus Venture Partners 2.0 - IT/ITeS

DesiCrew Solutions Private Limited responsAbility Ventures and Ventureast Tenet Fund

1.2 - IT/ITeS

i7 Networks <Angel Funding> 0.25 - IT/ITeS

Aurus Network Indian Angel Network - - IT/ITeS

Social Deal Factory Seedfund - - Others

Vyome Biosciences Private Limited IndoUS Venture Partners, Aarin Capital, Navam Capital

3.3 - Pharma & Healthcare

Avani Bio Energy Acumen Fund 0.25 - Power & Energy

About IMaCS

About IMaCS

India based management consulting firm with over 18 years of experience in policy advisory,

strategy, operations and transaction advisory

A wholly-owned subsidiary of ICRA Limited, one of India’s leading credit rating agencies

Offices across India at New Delhi, Noida, Gurgaon, Mumbai, Chennai, Bangalore, Kolkata,

Hyderabad, Pune and Ahmedabad and International office in USA

Clients include governments, bilateral/multilaterals, industry associations, financial investors

and corporates

Significant experience across the consulting continuum with assignments spanning; policy

advisory, business strategy, operations improvement and transaction advisory services

Knowledge repository with continuous tracking of over 100 industries and sector

Policy Advisory | Strategy & Operations | Capacity Building | Transaction Advisory

40 countries | 600+ clients | 1300+ assignments

Contact us

Rajesh B V DGM and Head – Corporate Advisory, IMaCS Bengaluru, India Phone: +91-98860-21200 Email: [email protected]

Shaleen Agarwal Principal - Corporate Advisory, IMaCS Noida, India Phone: +91-99581-11350 Email: [email protected]

Corporate Office:

Noida

Logix Park, First Floor,

Tower A4 & A5,

Sector - 16,Noida - 201 301

Tel: +91-120-4515 800

Fax: +91-120-4515 850

Mumbai

4th Floor, Electric Mansion

Appasaheb Marathe Marg,

Prabhadevi

Mumbai – 400 025

Tel: +91-22-3047 0047

Fax: +91-22-3047 0081

Chennai

5th Floor, Karumuttu Centre,

634, Anna Salai,

Nandanam,

Chennai - 600035

Tel: +91-44-4596 4300

Fax: +91-11-2434 3663

Kolkata

FMC Fortuna, A-10 & 11, 3rd

Floor, 243/3A,

AJC Bose Road,

Kolkata – 700 020

Tel: +91-33-2283 1412

Fax: +91-33-2287 0728

Hyderabad

116, First Floor, Block-III,

White House,

Kundan Bagh, Begumpet,

Hyderabad- 500 016

Bengaluru

M-01, Prestige Infantry Court,

130,Infantry Road,

Bengaluru – 560 001

Tel: +91 80 4093 4100/ 4123

Fax: +91 80 4093 4111

IMaCS offices

Ahmedabad:

907&908 Sakar II

Ellisbridge

(Opp. Town Hall)

Ahmedabad-380006

Tel: +91 80 4093

4100/2008/4924/5494

Fax:+91 79 26584924

Pune:

5A, 5th Floor, Symphony

S.N. 210, CTS3202, Ranga

Hills Road, Shivaji Nagar

Pune:411020

Tel:+91 20

25561194/25560195/ 0196

Fax: +91 2025561231

Gurgaon

Building No.8

Cybercity Phase II

Gurgaon-122002

Tel: +91 124 4545800

Fax:+91 124 4545850

corporate finance newsletter - imacs.in transaction advisory newsletter... · idfc’s us $ 27.9...

Documents