Financial Insights

September,2016

www.indcap.in

Contents

Mergers & Acquisitions 3

Private Equity 4

M&A Deals – September 2016 5

PE Deals – September 2016 6

Indcap Opportunities 7-8

CII- Banking Colloquium 9

Markets/ Commodities 10

September, 2016

September, 2016

M&A INSIGHT

Dutch brewer Heineken has increased its equity stake in United Breweries Ltd. by acquiring an additional 0.7% through an open market transaction, by shelling out INR 1,520 Mn

Kotak Mahindra Bank Ltd (Kotak) has acquired BSS Microfinance (P) Ltd. for INR 1,392 Mn in cash

Jayaram Banan, founder of popular south Indian restaurant chain Sagar Ratna, has bought back the stake held by the company’s majority stakeholder India Equity Partners for INR 900 Mn

Real estate company DLF sold two of its assets comprising seven screens across two locations in Delhi for INR 637 Mn to Cinepolis

Casual dining chain Barbeque Nation Hospitality Ltd. has bought the master franchise rights for American burger chain Johnny Rockets in India in an all-cash deal , for INR 170 Mn

Germany’s Fresenius Medical Care AG has bought an 85% stake in Indian dialysis services company Sandor Nephro Services (P) Ltd., which runs the Sparsh Nephrocare chain, from a group of investors.

*An extensive list of M&A and PE deals announced in September 2016 is provided in the subsequent pages

September, 2016

PE INSIGHT

Non-banking financial company (NBFC) Hero FinCorp Ltd. raised INR 7,020 Mn from private equity firm ChrysCapital and Swiss financial services firm Credit Suisse to fuel expansion over the next 12 to 18 months.

Varanasi-based Utkarsh Micro Finance (P) Ltd. has raised fresh capital of INR 3,950 Mn from HDFC Standard Life Insurance, HDFC Ergo General Insurance, ICICI Prudential Life Insurance, Shriram Life Insurance, RBL Bank, Small Industries Development Bank of India and private equity funds Faering Capital and Arpwood Capital.

Enterprise software maker Druva has raised around INR 3,400 Mn in a funding round led by its existing investor Sequoia Capital and new investors Singapore-based EDBI, Blue Cloud Ventures and Hercules Capital

Education technology start-up Byju’s, owned by Think and Learn (P) Ltd., has raised INR 3,350 Mn from the Chan Zuckerberg Initiative, and existing investors Sequoia Capital, Belgian investment firm Sofina SA, Lightspeed Venture Partners and Times Internet Ltd.

Private lender RBL Bank Ltd. has raised debt funding worth INR 3,300 Mn as tier II capital from UK-based development finance institution, CDC Group Plc (CDC)

Private equity firm India Value Fund Advisors (IVFA) has bought a majority stake in hybrid seeds manufacturer SeedWorks International (P) Ltd. for INR 2,700 Mn

*An extensive list of M&A and PE deals announced in September 2016 is provided in the subsequent pages

September, 2016

Target Buyer Industry Deal Value

Stake (%) INR in Mn

United Breweries Ltd. Heineken Food & Beverages 1,520 0.7

BSS Microfinance (P) Ltd. Kotak Mahindra Bank Ltd. Banking & Financial

Services 1,392 N. A

Sagar Ratna Restaurants (P) Ltd.

Jayaram Banan Hospitality 900 N. A

DLF's two assets comprising seven screens

Cinepolis Media &

Entertainment 637 N. A

Master franchise rights for American burger chain Johnny Rockets in India

Barbeque Nation Hospitality Ltd.

Hospitality 170 N. A

Sandor Nephro Services (P) Ltd.

Fresenius Medical Care AG Healthcare N. A 85

Essel Deutschland Germany Essel Propack Packaging N. A 75

Eventjini Procam International (P) Ltd.

IT/ ITes/ Technology

N. A 26

Credit Information Bureau (India) Ltd.

TransUnion Llc. Banking & Financial

Services N. A 5

Stepni Quikr IT/ ITes/ Technology N. A N. A

Drink King Growfit IT/ ITes/ Technology N. A N. A

Dekkoh Voonik IT/ ITes/ Technology N. A N. A

Nurture Talent Academy Chatur Ideas (P) Ltd. IT/ ITes/ Technology N. A N. A

Inuxu Digital Media Technologies (P) Ltd.

Fork Media (P) Ltd. IT/ ITes/ Technology N. A N. A

*INR to USD conversion rate considered at USD 1 = INR 67

M&A Deals- September 2016

September, 2016

Company Industry Investor Amount

INR in Mn

HeroFinCorp Ltd. Banking & Financial

Services Chrys Capital & Credit Suisse

7,020

Utkarsh Micro Finance (P) Ltd.

Banking & Financial Services

Several Institutional Investors 3,950

Druva IT/ ITes/ Technology Sequoia India, EDBI, Blue Cloud Ventures, Hercules Capital

3,400

Byju’s IT/ ITes/ Technology Chan Zuckerberg Initiative, Times Internet Ltd, Sequoia Capital, Sofina, Lightspeed Ventures

3,350

RBL Bank Ltd. Banking & Financial

Services CDC Group Plc. 3,300

SeedWorks International (P) Ltd.

Agri India Value Fund Advisors 2,700

Aptus Value Housing Finance India Ltd.

Banking & Financial Services

WestBridge Capital Partners LLC & Caspian Impact Investment Advisors

2,700

Pepperfry IT/ ITes/ Technology Goldman Sachs Group, Zodius Technology Fund, Norwest Venture Partners, Bertelsmann India

2,100

Den Networks Ltd. Media & Entertainment Goldman Sachs 1,424

Zeta IT/ ITes/ Technology Bhavin Turakhia 1,273

Swiggy IT/ ITes/ Technology Bessemer Venture Partners 1,005

Nykaa IT/ ITes/ Technology Sunil Munjal, Mariwala family 824

Zilingo IT/ ITes/ Technology

Venturra Capital, Sequoia India, Susquehanna International Group. Wavemaker Partners, Beenext, Beenos, Digital Garage

536

*INR to USD conversion rate considered at USD 1 = INR 67

PE Deals- September 2016

September, 2016

Indcap Buy Side Opportunities

Sector Location Company Brief Acquisition Criteria

Renewable Energy

Odisha The Group has diversified business interests

5.5 MW operational solar power plant Land : 30 acres (100% owned by

developer) Tariff : PPA with GRIDCO - Rs. 7.00 per

unit (Fixed for 25 years since COD) COD : 19th August 2014 PLF : FY 16- 16%

Sandalwood Madhya Pradesh

The company is engaged into Plantation of Sandalwood and Amla and Trading in agricultural commodities and medicinal & aromatic plants.

Sandalwood Plantation established in 2006

Location: Madhya Pradesh Area: 226 Acres 95000 live trees including about 40,000

Mysore quality sandalwood trees and 45,000 Amla trees.

Steel Odisha The company is engaged in the manufacture of sponge iron

A 2x100 TPD Sponge Iron Plant set in an area of approx. 25 acres

Well connected with major modes of transport

Availability of railway siding at distance of 4 kms

Infrastructure

Madhya Pradesh

The Company operates in commodities and Infrastructure domain

Signed Concession Agreement with Madhya Pradesh Road Development Corporation (“MPRDC”). for executing Road projects on DBFOT, (Design – Build – Finance – Operate – Transfer) basis

Length : 40.50 km Status : Operational Revenue Model: Both Toll and Annuity.

Semi-annually Annuity is Rs. 5.46 crores

Edible Oil West Bengal

The company is into manufacturing of edible oil

An edible oil and Vanaspati manufacturing plant spread over an area of 12 acres

The unit has the following facilities • Vegetable oil refinery • Vanaspati Plant • Rice Bran Oil Plant • Fractionation plant for manufacturing

of palmolien oil

Indcap Sell Side Opportunities

August, 2016

Sector Location Company Brief Acquisition Criteria

Healthcare Mumbai The group has an extensive experience in the field of healthcare and pharmaceuticals.

The company is looking to expand into Pharma, Healthcare, Consumer, Renewable, BFSI, NBFC

Pipes & Tubes

India The company manufactures a wide range of welded and seamless stainless steel tubes and pipes & carbon steel pipes

Actively scouting targets with similar product lines

Preferably in southern and western India Investment Size: ~USD 25-50 Mn. Prefers to acquire total management control

Auto Component

Mumbai One of the country's largest bearings manufacturer and is a part of US$ 2 Bn conglomerate.

Looking to acquire company engaged in manufacturing of bearing used in automotive and railway industries, and for general industrial applications.

FMCG India The company is engaged in the manufacturing of FMCG products and is exploring to diversify into new businesses.

Looking for some Regional brands in the categories like Personal Care, Health Care, Health Food (like Nutraceuticals, Dietary Supplements, etc.)

Minimum turnover ~ Rs. 40-50 Crs. The brand should have good visibility in the

market.

Diversified Tamilnadu A diversified group engaged in the manufacture of different industrial products

Looking to acquire companies in the Thermocol packaging and prefab verticals.

Electric Distribution

Bangalore Provide its customers a One stop sourcing option for all their requirements right from active components, RF / Microwave components, Passive components, Displays, Connectors and PCB etc

Looking at Electronics distribution Companies that are having B2B sales of products of high margins

Company engaged in the related space and can provide synergy to its existing business

Company engaged in manufacturing of product which are currently being marketed by them

Target Investment Size: USD 50-100 mn

Architectural Hardware Fittings

New Delhi The Company is one of India’s most popular Architectural Hardware Solution provider through a wide range of standard & customized products

The company is looking for acquisition in the following space:

• Door manufacturers- Fire door, clean room used in pharmaceutical and hospital

• Kitchen manufacturer - Prefer into retail but can also look in commercial

• Electronic home security- example door phone Looking at companies with revenue INR 500-

1000 Mn

Renewable Energy

Gujarat The Company is a diversified player based out of Gujarat

Looking to acquire wind and solar assets in Gujarat and Rajasthan

Hydro assets in Himachal Pradesh

Indcap Buy Side Opportunities

September, 2016

CII- Banking Colloquium

“Banking Colloquium” was organised by CII on Friday, 16th September, 2016 at Taj Bengal, Kolkata. Indcap was Corporate Partner for this event.

September, 2016

Stock Indices Opening

(1st Sep’16) Closing

(30th Sep’16) Change %

Sensex 28,459.09 27,865.96 -2.08%

Nifty 8793.60 8611.15 -2.07%

FTSE 6781.51 6,899.33 1.74%

Nikkei 16,885.16 16,449.84 -2.58%

Dow Jones 18,396.57 18,308.15 -0.48%

Gold ( INR/10 Grams) 30,839.00 31,075.00 0.77%

Silver (INR /1 Kg) 44,264.00 46,127.00 4.21%

USD ($) 66.87 66.60 -0.40%

Euro (€) 74.86 74.85 -0.01%

GBP (£) 88.75 86.66 -2.35%

Sources – Global Indices, BSE, NSE, RBI, MCX INDIA

MARKETS/ COMMODITIES

September, 2016

Indcap Advisors Pvt. Ltd. Office locations

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