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DEALS SNAPSHOT
DEALS SNAPSHOT-INDIA MARKET UPDATE
April to June 2016
DEALS SNAPSHOT
Dear Clients and Associates:
Welcome to the KNAV India Market update for quarter ended June 2016.
Private equity/venture capital (‘PE/VC’) firms invested US$3.96 bn in the quarter ended June 2016, this update includes an analysis of PE/ VC investments. We have also analyzed some key mergers & acquisitions (‘M&A’) transactions in the update.
Key highlights:
• The quarter had 327 PE/VC investments rounding up to a value of US$3.96bn. Some notable deals includes;o Mphasis, where Blackstone bought 50% stake for US$1.1bn, making it the largest IT deal for the US based investor in Indiao NewQuest, where a diverse group of pension funds, sovereign funds, Insurers and financial institutions based in Asia, North America,
Europe and the Middle East for US$540mn • Blume Venture has been the investor of the quarter by investing in 12 startups which amounts about US$16.05mn (including
undisclosed amount);• The top three sectors in which most investment took place are: healthcare with investments in 32 start-ups followed by finance with 30
start-ups and technology & content with 26 start-ups each;• The quarter had 106 M&A deals rounding up to US$5.76bn;• The highest deal in M&A was US$1.4bn where Tata Power acquired Welspun’s renewables energy; and• The top three sectors that had maximum M&A deals are: technology with 23 deals, pharmaceuticals with 10 deals and power with 9
deals
A detailed analysis and a selected listing of few of the notable deals are presented in this update.
Do share your comments and/or feedback on [email protected]
Thank you.
Vaibhav Manek Suparna DuaPartner- Advisory services Partner - Investment banking2
DEALS SNAPSHOT
PE/VC investments
For the quarter ended June 2016
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DEALS SNAPSHOT
Sector-wise analysis | PE/ VC deals
The ensuing charts provide an analysis of venture capital/private equity investments in number ofdeals and total investment value.
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Of the total 327 deals in the quarter, the highest
number of deals are in healthcare sector (32) followed
by finance (30), technology (26) and content(26). The
other sectors that showed continuing traction included
e-tail, food & beverages, education, etc.
Of the total US$3.96bn invested in the quarter, the
highest amount of funds has been attracted by
technology sector (US$1.19bn), followed by finance
(US$966.5mn) and chemicals (US$268mn)
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Number of deals
268.00
966.50
1,186.00
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Transaction value in US$ mn
DEALS SNAPSHOT
Name of the startup Sector
Content
Fitness
Content
Real Estate
Mobile
Technology
Blume Ventures | investor of the quarter
Blume Ventures has been an active investor and has closed 12 deals in the quarter ended June 2016. Its portfolio
includes: Servify, Healthifyme, RailYatri to name a few. The following start-ups have received investment in this quarter.
Name of the startup Sector
Content
Technology
Content
Education
Logistics
Education
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DEALS SNAPSHOT
Investee name Investee businessPrivate Equity/ Venture Capital/
Individual InvestorInvestment value
(US$ mn)
Data Analytics Khazanah 100
Travel
Softbank, Sequoia Capital, LightspeedVenture Partners, Greenoaks Capital, DSG Consumer Partners and Venture Nursery
100
E-Tail
International Finance Corp, TPG Growth, Adveq Management, IDG Ventures, Ratan Tata, Kris Gopalakrishnan
60
Payments GMO Payment Gateway, MediaTek 50
Marketplace Tiger Global 30
Top PE/VC deals | consumer technology
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DEALS SNAPSHOT
Investee name Investee businessPrivate Equity/ Venture Capital/
Individual InvestorInvestment value
(US$ mn)
Media Xiaomi Inc. 25
FinanceCreation Investments Capital Management, SAIF Partners, Sequoia Capital, Aspada Ventures
25
TechnologyMicrosoft Ventures, Salesforce Ventures
23
Finance Omidyar, Triodos Investment Management
20
Fashion Bertelsmann India Investment 15
Top PE/VC deals | consumer technology (cont…)
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DEALS SNAPSHOT
Investee name Investee businessPrivate equity/venture capital/
individual investorInvestment value
(US$ mn)
IT Blackstone Group 1100
Finance
Diverse group of pension funds, sovereign funds, insurers and financial institutions based in Asia, North America, Europe and the Middle East
540
ChemicalsFairfax India Holding Corporation
250
Power GIC, ADIA 230
Finance TPG 150
Top PE/VC deals | other sectors
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DEALS SNAPSHOT
Investee name Investee businessPrivate equity/venture capital/
individual investorInvestment value
(US$ mn)
Finance Premji Invest & 16 anchor investors 98.94
Real Estate Altico Capital 86.60
PharmaceuticalsInternational Finance Corporation (IFC)
75
Healthcare International Finance Corporation 68
Consumer DVI 64
Top PE/VC deals | other sectors (cont…)
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DEALS SNAPSHOT
Investee name Investee businessPrivate equity/venture capital/
individual investorInvestment value
(US$ mn)
Real Estate Piramal Fund Management 63
Finance Overseas Investors 53.43
Food & Beverages West Bridge Capital 52
Real Estate ICICI Prudential 33
Food & Beverages Peepul Capital 30
Top PE/VC deals | other sectors (cont…)
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DEALS SNAPSHOT
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Investor Target Particulars US$ mn Sector
Prestige Estates buy back CapitaLand's 49% stake in Bangalore project
8.50Real estate
Fairwinds PE exits school chain Pathways at profit
74.63 Education
Bessemer Venture Partners exits Indian Energy Exchange
NotAvailable
Power
Norwest exits Yes Bank with healthy gains
NotAvailable
Banking
ASK Property exits ATS housing project
40.50 Real estate
Exits for quarter June 2016
DEALS SNAPSHOT
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Investor Target Particulars US$ mn Sector
Mcap Fund Advisors part exit Union Bank with profit
11 Banking
IFCI makes part exit from NSE
9 Finance
IFCI VC part exits Him Teknoforge
1.20 Engineering
SAIF, Seqouia and Sapphire Ventures gains high returns in Just Dial part exit
NotAvailable Technology
Fulcrum plans part exit from Richfeel Health and Beauty
NotAvailable
Beauty and wellness
Partial exits for quarter June 2016
DEALS SNAPSHOT
Mergers & acquisitions
Key sector deals
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DEALS SNAPSHOT
Winning sectors of M&A quarter ended June 2016
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• Technology is placed at #1 position with 23 deals worth over $492.4mnSome of the deal in technology sector are: HCL Tech acquired Geometric, TechMahindra acquired UK based Targetgroup & BIO Agency Ltd.
• Pharmaceuticals is placed at #2 position with 10 deals worth over $404.35mnSome of the deals in pharmaceuticals sector are; Adcock’s India unit acquired by Samara, Teva Pharma & Allergangeneric drugs (few brands) acquired by Dr. Reddy’s, and Pfizer-Piramal.
• Power is placed at #3 position with 9 deals worth $2.89bnSome of the deals in power sector are: Tata Power acquired Welspun’s Renewable Energy business & KS OrkaRenewable; JSW Energy acquired Jindal Steel’s power plant, etc.
Technology (23)
Power(9)
Pharmaceuticals (10)
DEALS SNAPSHOT
Top M&A deals in the quarter June 2016
The ensuing charts provide an analysis of the M&A transactions in the quarter in number of deals & transaction value
Of the total 106 deals in the quarter, the highest
number of deals are in the Technology (23) followed by
Pharmaceutical (10) & Power (09). The other sectors
that showed increasing traction included
pharmaceuticals, telecom, infrastructure, etc.
Out of the total US$5.76bn, Power sector has seen
largest consolidation worth US$2.89bn followed by
Telecom with value of US$1.59bn.
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Number of deals
13.7
2888.54
33.850
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Transaction value in US$ mn
DEALS SNAPSHOT
• India’s fourth largest information technology company HCL Technologies acquires by way of demerger, all of the
business of Geometric Limited apart from its 58% share in a joint venture with Dassault Systèmes, 3DPLM Software
Solutions.
• The total value of the transaction will be approximately US$260-270mn (about ₹12.37 crore).
• Geometric incorporated in 1994, listed on the BSE & NSE is one of India’s leading Product Lifecycle Management
(‘PLM’) consulting, mechanical engineering and manufacturing engineering service providers.
• Geometric has more than 60 global clients in the US and Europe, majorly in automotive and industrial engineering
segments.
• HCL acquired Geometric’s business, is one of the largest acquisitions in the engineering services space.
• In consideration of this acquisition, HCL will issue 10 equity shares of ₹2 each to Geometric shareholders for every
43 equity shares of Geometric of ₹2 each held by them.
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HCL Technologies acquires Geometric Ltd.
DEALS SNAPSHOT
Top M&A deals in the quarter June 2016
Target name Acquirer name SectorTransaction value
(in US$ mn)
Power 1400
Power 975
Telecom 635
Telecom 525
Telecom 428
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DEALS SNAPSHOT
Top M&A deals in the quarter June 2016 (cont…)
Target name Acquirer name SectorTransaction value
(in US$ mn)
Pharmaceuticals 350
Power 300
Technology 200
Technology 175
Power 125
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DEALS SNAPSHOT
Top M&A deals in the quarter June 2016 (cont…)
Target name Acquirer name SectorTransaction value
(in US$ mn)
Finance 82
Technology 66
Entertainment 55
Chemicals 51
Power 45.40
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DEALS SNAPSHOT
Key highlights (M&A) for quarter June 2016
• The quarter had 106 M&A deals rounding up to US$5.76bn;
• Tata Group companies have been active in this space –
o Tata Power acquired Welspun’s Renewable Energy for US$1.4bn
o Tata Power’s subsidiary - Tata Power International Pte. Ltd. sold its 50% stake in a joint venture that is
developing geothermal power project by KS Orka Renewables in Indonesia for US$30mn
o Tata Steel to sell its European long business products to investment firm - Greybull Capital;
• Zee Media Corporation to return to teleshopping business with the launch of a new channel by acquiring two
companies owned by Living Media India Ltd. for US$55.03mn; and
• Girnar Software Pvt. Ltd. acquired three companies in technology sector –
o Help on Wheels for US$198.97mn in all cash deal
o Connecto is an IT software company
o Volob is a virtual reality platform.
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DEALS SNAPSHOT
Key players for quarter June 2016
AcquirerNumber of
transactionsAbout acquirer About transactions
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Voonik, Bangalore based company, is a fashion e-tailer which provides online merchandising servicefor products like western wear, Indian wear, lingerieand sleepwear, accessories, footwear and bags, etc.
Acqui-hired Zohraa & Picksilk to build its e-commerce platform for premium boutiquesand independent designers. Also, tostrengthen its technology, it acqui-hired asalon & spa booking app – Styl.
3
Girnar Software Pvt. Ltd. is engaged in developinginformation technology offshore products. It offersan enterprise mobility solution, mobile applicationdevelopment, e-commerce solution, web design anddevelopment, testing and quality assurance services.It also provides viral marketing, web analytics andothers.
Acquired Help On Wheels to bolster itsoperations.Acquired Connecto, a tool to improve userexperience across all its websites and apps.Acquired virtual reality startup Volob togrow its 3D visualization capabilities.
2
TechMahindra headquartered in Pune provides ITservices & solutions. It caters to the requirement oftelecom service providers, equipmentmanufacturers, software vendors, systemintegrators, wirelines, wireless and broadbandoperators in Europe, Asia-Pacific & North America.
Acquisition of UK’s Target Group and BIOAgency – the deals valued up to US$175mnand $66mn respectively. The purpose of thedeals was to boost its offerings in BFSIservices & Digital space.
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DEALS SNAPSHOT
About KNAV
KNAV refers to one or more of the member firms of KNAV International Limited (‘KNAV International’), which itself is a not-for-profit, non-practicing, non-trading corporation incorporated in Georgia, USA.
KNAV International is a charter umbrella organization that does not provide services to clients. Services of audit, tax, valuation, risk and business advisory are delivered by KNAV's independent member firms in their respective global jurisdictions. All member firms of KNAV in India and North America are member firms of the US$ 1.6 billion, US headquartered Allinial Global.
Reach Us
If you want to know more about KNAV or its services please contact Ms. Suparna Dua at the KNAV Mumbai office on: +91 97696 57090
Suggestions/Feedback
For suggestions/feedback on this newsletter please contact Mr. Vaibhav Manek at the KNAV Mumbai office on: [email protected] will be glad to hear from you.
Editorial Credits
Deals Snapshot Editorial Kajal Gupta, Leela Pai and Akshay Mahalaxmikar–– KNAV Mumbai
The source of our data is our market research, publicly available reports and press items, and independent databases. While KNAV has madereasonable endeavors to ensure that the information provided in this newsletter is accurate and up to date as at the time of issue, KNAV shall notbe liable for any errors, inaccuracies or delays in the information, nor for any actions taken in reliance thereon, nor does it endorse any views oropinions. KNAV disclaims all warranty, express or implied, as to the accuracy or completeness of any of the content provided, or as to the fitness ofthe content for any purpose to the extent permitted by law. The content herein is not appropriate for the purposes of making a decision to carryout a transaction or trade and does not provide any form of advice (investment, tax, legal) amounting to investment advice, nor make anyrecommendations or solicitations regarding particular financial instruments, investments or products, including the buying or selling of securities.KNAV has not undertaken any liability or obligation relating to the purchase or sale of securities for or by any person in connection with thisdocument.
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DEALS SNAPSHOT
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