strategies for your success this week 19 april 2010.pdf© 2010 arc financial services private...

© 2010 ARC Financial Services Private Limited, All rights reserved. Nishant Rustagi: [email protected] I www.arc-fs.com

Strategies for your Success



17,85317,822

17,63917,591

12 Apr 13 Apr 15 Apr 16 Apr

BSE Sensex

11,006

11,019

11,123 11,144

11,019

12 Apr 13 Apr 14 Apr 15 Apr 16 Apr

Dow Jones

22,13822,104

22,121 22,158

21,865

12 Apr 13 Apr 14 Apr 15 Apr 16 Apr

Hang Seng

BUSINESS THIS WEEK - India19 April 2010

Stock Markets: Weak global cues led to a selloff for the week. The BSE Sensex, after

touching a 2-year high this week, closed at 17,591, down 342 points or 1.9% from last week’s

close, while the Nifty dipped by 99 points, down 1.85% from last week to close at 5263

FIIs Activity: During the week till Apr 15, FIIs were net buyers, and purchased Indian equities

worth INR 12B

Foreign Exchange Reserve: Foreign exchange reserves rose by $932M to $280.03B for

the week ended April 9 on account of currency revaluation gains

Inflation: India's annual food inflation dipped marginally to 17.22% for the week ended April

3, 2010 from 17.70% a week before on the back of lower inflation in fuel and primary articles

Crude oil: US crude oil for May’10 delivery settled at $83.24 a barrel on the NYMEX the lowest

close for crude since Mar 30, after continuing strength of the dollar, worries over the Greek debt

crisis and the Goldman Sachs controversy

Gold: Gold prices fell to a two-week low in New York after news of the Goldman Sachs fraud

probe hit the market. US gold futures for Jun’10 delivery on the COMEX fell about $30 or almost

3% to settle at $1,129.65 an ounce

INR vs. USD 44.13 INR vs. GBP 67.76

INR vs. EUR 59.53 INR vs. JPY 0.48

12-Apr 13-Apr 15-Apr 16-Apr

21.65 21.67

21.4821.39

BSE Sensex P/E

BSE: 17,591 NSE: 5,263 DJI: 11,019 Nasdaq: 2,481 S&P 500: 1,192 HSI: 21,865 FTSE: 5,744 Nikkei: 11,102

(-262) (-1.5%) (-99) (-1.9%) +22 0.2% +27 1.1% (-2) (-0.2%) (-344) (-1.6%) (-27) (-0.5%) (-102) (-0.9%)

Currency

Top Gainers Top Losers

Jain Irrigation 4% Jet Airways 6.4%

Allahabad Bank 3% GMR Infra 5.2%

1



Mergers, Acquisitions and Joint Ventures

BUSINESS THIS WEEK - India

2

19 April 2010

Telecom, Media & Technology:

Rolta acquires US firm OneGIS for an undisclosed amount

Rolta is acquiring Atlanta, US based firm OneGIS for an

undisclosed amount

Rolta has acquired the company’s intellectual

property, including the OneView Mobile solution, an application

that helps user to automate their tasks in a configured way

OneView will be merged with existing service

GeospatialFusion, which also provides an enterprise solution

for spatial viewing, integration and business intelligence

Entertainment:

PVR to merge Leisure World with itself in an all-share deal

Leisure World, a promoter company, and the owner of PVR

Anupan multiplex in Saket will be merged with PVR in an all

share deal

The swap ratio is 152 equity shares of PVR Limited against

every 100 equity shares held by the shareholders of Leisure

World

Automobile:

Mahindra to buy out minority stake of Renault in JV

Mahindra will buy the 49% stake of Renault in JV Mahindra

Renault Pvt. Ltd

Mahindra will take over complete management of the Logan

sedan according to the agreement

The Renault name will continue on the Logan sedan till the end

of calendar year 2010

Real Estate & Infrastructure:

JM Financial ends 50-50 JV with SRS by buying out its stake

JM Financial cited differences with its US partner

firm, SRS, and bought out its stake in the JV, Infinite India

Investment Management, for an undisclosed amount.

SRS would like to start PE operations in India which would be in

conflict with JM’s existing PE fund, and hence the need to part

ways.

JM will continue to invest in realty and expects to raise $100M

next year

Energy:

JSW pays $85M for controlling stake in South African

mining firm

JSW acquired a controlling stake in South African Coal Mining

Holdings(SACMH) for $85M

This will give access to JSW to coal for its power plants in India


Strategies for your SuccessBUSINESS THIS WEEK - India

Capital Raising (PE, VC, Right Issue)

3

Private Equity Funds:

Renuka Ramnath led Multiples raises $250M in First

Close

The fund, with a target corpus of $450M, is expected to

announce another close soon

The fund will be sector-agnostic and will make investments

in Indian companies, management-led buyouts and spin-offs

of divisions from large Indian groups

Canada Pension Plan Investment Board commits $100M

In Multiples

This is CPPIB's first investment in an India-focused private

equity fund. It manages $123.9B in assets

The fund will make long-term growth investments in mid-

sized Indian companies, management led buyouts, and

spinoffs of divisions from large Indian groups

Mantri Developers on course to raise PE Funds

The realty major has struck a INR5.5B rental securitization

deal to generate enough cash to chase new projects

This strategic shift is also a precursor to the company’s plans

of roping in big-ticket private equity funding to fuel its future

expansion

19 April 2010

Telecom, Media & Technology:

Taib Securities reduce holding in Kaashyap Tech

Taib currently owns 24.71% stake ahead of its open

offer to acquire 20% additional stake in the Chennai –

based IT consulting and services firm

The open offer made at just 73 paise, would cost Taib

INR 95.9M and is slated to be open between May 24-

June 12

KKR negotiating to buy a stake of about 68% in

First source

Deal has not been finalized, but the sale price could

be about $250M

Firstsource has a market value of $300M



Capital Raising (PE, VC, Right Issue)

4

19 April 2010

Banking, Financial Services & Insurance:

IFC to invest $15M in Aavishkaar Goodwell Fund

Aavishkaar Goodwell is in the midst of raising its second

fund, Aavishkaar Goodwell Fund II, of $100M size

The first fund was raised in 2006 and it was closed at

$18.3M in May 2008

CX Partners invests undisclosed sum in Convexity

Solutions

Convexity Solutions , launched by former Reliance Money

honcho Sudip Bandyopadhyay will offer equity broking and

portfolio advisory services on derivatives to the

institutional, corporate and retail segments

CX Partners, the private equity firm floated by former head

of Citigroup Venture Capital Ajay Relan, has two other

partners in the fund - former CVCI colleague Jayanta Basu

and Amit Bhatiani, who was with New York-based hedge

fund Duma Capital

Education:

Milestone Religare invests INR 600M in Resonance

Eduventures

Resonance is a Kota-based test preparation firm and offers

coaching for engineering entrance exams like IIT-JEE

The investment has been made from the India Build-Out

Fund 1, a INR 6B private equity fund backed by Religare

Enterprises and Milestone Capital. This is the fourth

investment of the fund so far

Reliance Venture Partners Stanford Varsity

Entrepreneurship Body

RVAM will be a jury in BASES' upcoming business plan

competition , e-challenge

This is part of company’s plan to strengthen the

entrepreneurship collaboration between India and Stanford

University

Aviation:

Reliance acquires stake in Airline Cargo Venture, Deccan

360 The undisclosed investment by RIL will help Deccan 360 to

fast-track growth

RIL's stake in Deccan 360 is expected to be above 26% but

below 50%. Two RIL representatives will be on the board of

the cargo venture

Healthcare & Life Sciences:

Citigroup VC prunes holding In Jubilant Organosys

CVC recently sold a fifth of its holding at INR334.77, at

double its initial purchase cost

CVC has encashed around INR500M. Its remaining stake of

around 3.5% is valued at INR 1.77B



5

IPOs Listing

Year IPOs*

2010 YTD 24

2009 17

2008 37

2007 103

2006 75

2005 39

Company Issue Price

(INR)

Issue Size (INR) Listing Price (INR)

Goenka Diamond & Jewellery 135-145 1.35B 130

Intrasoft Tech 137-145 536.5M 140

IPOs Listed

19 April 2010

*On the basis of Listing,

Company Issue Size (INR) Shares Issue Opens Issue Closes Rating Price Band (INR)

Talwalkars Better value Fitness

Ltd.

760M 6.05M 21 Apr’10 23 Apr’10 - 123-128

Nitesh Estates Ltd. 4.5B - 23 Apr’10 27 Apr’10 - -

Future Plans

DRHP Filed

No DRHP filed this week



ARC Financial Services Private Limited

311, Ansals Majestic Tower

PVR Complex, Block G, VikasPuri

New Delhi – 110018

India

Tel: +91 11 4560 1622

Tel: +91 11 4562 2127

Website: www.arc-fs.com

Email: [email protected]

strategies for your success this week 19 april 2010.pdf© 2010 arc financial services private...

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