Volume 101, September 12th, 2011
For the period September 5, 2011 to September 11, 2011
Highlights
EDB ErgoGroup To Buy Remaining 49.9% In
SPAN Infotech For $11 mn…(3)
Wadia Group To Sell BCL Springs To Japan’s
NHK Spring For Rs 180.5 cr…(4)
Content Pages
WestBridge To Sell Applabs Stake To
Mergers & Acquisitions News 3-6 Computer Science Corporation…(5)
Mergers & Acquisitions Deals 6-8 DMC Education Acquires 51% In Lifelong
Finishing Academy…(6)
Private Equity News 8-10
ADM Buys Assets Of Rabo Equity-backed
Oilseeds Firm Geepee Agri…(7)
Private Equity Deals 10-13
Taurus Flexibles Setsup a JV With Spanish
Venture Capital News 14-14 Cikautxo…(8)
Venture Capital Deals 14-14 Multiples PE Close To Investing $15 mn In
Barbeque Nation…(9)
Ascent Capital May Invest Rs 150 cr In
Oakridge International School…(10)
Omkar Realtors Raises Rs 200 cr From
Indiareit…(11)
Feedback Infrastructure Raises Rs 100 cr
From Existing Investors…(12)
Upaya Invests In Samridhi; Company To Set
Up Community Dairies…(13)
Kae Capital Pooling Money From VC Firms,
Fund Of Funds For Maiden Fund…(14)
Mergers & Acquisitions News
Olam International To Acquire Vallabhdas Kanji
Olam International may acquire Kochi based Vallabhdas Kanji Limited. If the deal goes through
it would be Olam's second acquisition in India. Olam had acquired Kolhapur based - Hemarus
Industries for Rs.340 cr. Vallabhdas is the spice processing arm of the Kanji Moorarji Group.
The company’s businesses include spices, seasonings, and flavors and fragrances.
Firstsource May Sell-off MedAssist
Firstsource may sell US based healthcare subsidiary - MedAssist. It had acquired MedAssist for
$330 mn in 2007. Firstsource had takes a bridge loan to acquire MedAssist. It then issued
FCCB amounting to $275Mn to pay off the bridge loan. These 5Year FCCBs can be converted
into equity at a conversion price of Rs 92.30 and if not converted will be redeemed in Dec'12 at
a YTM of 6.75%.
EDB ErgoGroup To Buy Remaining 49.9% In SPAN Infotech For $11 mn
Norwegian IT major EDB ErgoGroup ASA has decided to exercise its call option and acquire the
remaining 49.9% stake in Bangalore-based SPAN Infotech India Pvt Ltd for $11 million (Rs 49.5
crore), according to the company statement. In October 2007, EDB had acquired 50.1% stake in
SPAN for an estimated Rs 15.2 crore. Payments will be made no later than February 29, 2012,
and the deal will make SPAN a 100%-owned entity of the Oslo stock exchange-listed firm.
SPAN Infotech was co-founded by G L Pradeep, Prakash Grama, Pramod Grama and
Naganand Doraswamy in 1993, and has around 550 employees working in its three offices in
Bangalore. The company primarily focuses on insurance, supply chain management,
communications and travel software. EDB Ergo Group was formed with the merger of two
leading IT companies – EDB Business Partner and ErgoGroup. Currently, EDB ErgoGroup is
one of the major Nordic IT companies, with some 10,000 employees in 135 offices across 16
countries and an annual turnover approaching NOK 13 billion or $2.4 billion. The company
operates from its headquarters in Oslo and has major operations in Norwegian and Swedish
markets.
Former VIP Industries MD Sudhir Jatia Buying 56.55% In Safari Inds
Sudhir Jatia, former managing director of VIP Industries, has struck a deal to acquire a majority
stake in public-listed domestic luggage products firm Safari Industries (India) Ltd for Rs 29 crore
($6.2 million). Jatia had quit as managing director of Dilip Piramal Group’s flagship VIP
Industries (the world’s second largest luggage products maker in early 2010) to pave the way
for Radhika Piramal, the next-generation leader of the promoter family. He had also left the
company’s board early this year. In the latest transaction, he is acquiring 56.55% from the
promoters, who held 53.79% stake in Safari as of June 30. The deal has been struck at Rs 170
per share or 18% premium to the closing price. The deal will also trigger a mandatory open offer
for further 25% stake as per the new takeover norms. This will cost Jatia up to Rs 12.7 crore in
addition. Safari Industries had revenues of Rs 72.3 crore, with net profit of Rs 2.65 crore for the
year ended March 2011. The company produces plastic moulded luggage and has a
manufacturing unit at Halol in Panchmahal district, close to Baroda (Gujarat). It has an installed
capacity to manufacture over 90,000 pieces of moulded luggage per month, while soft luggage
is outsourced.
Wadia Group To Sell BCL Springs To Japan’s NHK Spring For Rs 180.5 cr
Wadia Group firm Bombay Burmah Trading Corporation Ltd (BBTCL) has struck a deal to sell
its precision springs business (housed under a division called BCL Springs) to its overseas
technology partner NHK Spring Co. Ltd of Japan for approximately Rs 180.5 crore, the company
has disclosed to the BSE. The decision to sell the BCL Springs division is in line with the
corporation’s policy to restructure its business portfolio to enable greater focus on its core
activities, the statement adds. The company currently deals in 1,400 types of spring and its
clientele includes Maruti Udyog (Zen, Wagon R, Swift, Esteem and Alto), Suzuki Powertrain
(new model diesel engines), TATA Motors (Indigo, Indica, Marina) and Hindustan Motors
(Isuzu), among others. The auto component unit was set up as a separate company in 1985, in
technical collaboration with NHK Spring Co. Ltd of Japan, to manufacture cold coiled precision
springs. It commenced commercial production in 1987 and over time, expanded its installed
capacity from 1,000 metric tonne to 10,000 metric tonne and from one manufacturing facility to
two manufacturing units – to cater to the growing demands of the Indian automotive
components market. In 1992, it was merged into BBTCL.
Info Edge To Invest $3M More In Zomato, $4.3 mn In Applect
BSE-listed Info Edge (India) Ltd, the company behind the popular recruitment site Naukri.com
and real estate portal 99Acres.com, has informed the stock exchanges of two proposed follow-
up investments. It plans to invest Rs 13.5 crore ($3 million) in Gurgaon-based DC Foodiebay
Online Services Pvt Ltd, which runs the restaurant directory site Zomato.com and Rs 20 crore
($4.3 million) in New Delhi-based Applect Learning Systems Pvt Ltd, which runs
Meritnation.com – a portal offering learning solutions in the K-12 segment. The Zomato deal is
an all-cash one while the Applect deal is a mix of equity and convertible preference shares. Info
Edge has invested a total of Rs 11.5 crore in Applect in two rounds of funding – Rs 6.5 crore for
40% stake in 2008 and a follow-up of Rs 5 crore in May 2010. Applect is a subsidiary of Info
Edge and offers content development services for the education sector. Meritnation.com
currently has 18 lakh registered users, of which 85-90% are active. The funds will be used for
furthering the company’s content development, hiring, marketing as well as new product
development.
Sanlam To Acquire 26% Stake In Shriram Capital For $266 mn
South Africa’s financial services major Sanlam is picking up 26% stake in Shriram Capital
(which holds stake in the Shriram Group’s financial service businesses) for Rs 1,225 crore or
$266 million (1.9 billion South African Rand). Besides the cash investment, Sanlam will also roll
up its 26% stake in the general and life insurance ventures into Shriram Capital. Shriram Capital
has interests in businesses like insurance, commercial financing, retail financing, wealth
products distribution and stock broking. Currently, Shriram Capital holds 51% stake in both
Shriram Life Insurance and Shriram General Insurance, which is expected to go up to 77% after
this transaction. Post-transaction, Shriram Capital is also expected to hold around 21% stake in
Shriram Transport Finance Company (which has expressed interest for a banking licence) and
about 27% holding in Shriram City Union Finance. The deal will help Sanlam broaden its
financial services exposure in a growth market and help share synergies through closer co-
operation. Sanlam also has an exposure to the Indian financial services space through its
8.25% stake in SMC Global Securities.
Shree Renuka To Sell 25% In Brazilian Subsidiary To Reduce Debt
Shree Renuka Sugars may divest upto 25% stake in it's Brazilian subsidiary - Renuka Brazilian
Holdings to retire debt. Renuka has debt of Rs 72 bn up from Rs 15 bn for the year ended
September 2010. The increase in debt is due to the two Brazilian acquisitions: Renuka Val do
Ivai (in March 2010) and Renuka do Brazil (in July 2010).It acquired the two sugar refiners for
$332 mn.
Promoters To Buyout DE Shaw's 14% Stake In SIS Securities
DE Shaw is exiting its 3 year old investment in SIS securities by selling the stake to the
promoters. In 2008, DE Shaw & Co had invested Rs 300 cr for a 14% stake in SIS India. SIS
had used these funds to acquire Chubb Australia.
WestBridge To Sell Applabs Stake To Computer Science Corporation
US based Technology Services provider - Computer Science Corporation is acquiring Applabs
Technologies Pvt Ltd. It is unclear whether CSC will buy only 50% stake held by Westbridge or
go for a complete buy-out. If the deal goes through, it will be second acquisition for CSC in a
span of 10 days. Westbridge holds about 50% in AppLabs, the rest is held by the founder and
CEO of AppLabs, Sashi Reddi. WestBridge Capital first invested $7 mn in 2004 in AppLabs
followed by a subsequent round of $10 mn in 2006. Westbridge has put Indecomm Global stake
on the block as well.
Navneet To Buy 25% Stake In Gowtham Schools
Navneet Publications is buying out 25% stake in Hyderabad based Gowtham Model Schools for
Rs 60 cr. Gowtham Model Schools are managed by K-12 Techno Services. There are around
70 schools run by 15 different trusts under Gowtham brand in South India. In March this year, K-
12 Techno Services raised Rs 25 cr from Sequoia Capital in it's second round of funding. It had
earlier raised Rs70Cr from Sequoia and Song Investment in Sept 2010. Sequoia along with
Song Investment Advisors together own close to 55% stake in K-12 Techno Services Pvt Ltd.
Earlier in January, HDFC and Gaja Capital Partners bought a stake in Indus World Schools, a
unit of Career Launcher India Limited, for around Rs.40-50 cr.
Mergers & Acquisitions Deals
Synopsys Buys IP Provider nSys Design Systems
US-based Synopsys Inc. has acquired Delhi-based nSys Design Systems Private Limited, a
provider of verification IP (VIP) for an undisclosed amount. Synopsys focuses on software and
intellectual property (IP) used in the design, verification and manufacture of electronic
components and systems. VIP will also offer a new protocol compliance test-suite product line
as it provides functional models of on-and off-chip protocols that verification engineers use to
test all of the interfaces on an SoC before manufacturing. Supported verification methodologies
include VMM (verification methodology manual), OVM (open verification methodology) and
UVM (universal verification methodology).
DMC Education Acquires 51% In Lifelong Finishing Academy
DMC Education Ltd has acquired 51% stake in Delhi-based training institute Lifelong Finishing
Academy for an estimated cost of Rs 1 crore, according to a company disclosure to the Bombay
Stock Exchange. BSE-listed DMC Education (formerly known as DMC International) has
diversified from its original real estate business and aggressively explored the education space
– snapping up small firms to build its presence in the sunrise sector. It currently provides
training for various entrance examinations and plans to establish a strong footprint in the
supplemental education space. Lifelong Finishing Academy offers training courses on personal
grooming, art of cooking, holistic living, etiquette, and home & financial management. Post-
acquisition, DMC plans to take Lifelong’s personal grooming courses pan India and open more
than 100 centres in the next two-three years. These new centres will also offer career guidance
to applicants. The market for supplemental education is estimated at Rs 8,000 crore and
growing at a rate of 16-25%, according to Anuj Ahuja, CEO of DMC Education. An estimated
break-up values engineering tutorials at Rs 4,000 crore, medicine tutorials at Rs 2,000 crore,
IAS training at Rs 300 crore and MBA training at Rs 500 crore. The remaining is shared by
various other segments. In May this year, DMC Education had acquired Kolkata-based
education consulting firm Plansteps for a consideration of $1 million (Rs 4.5 crore) in a bid to
expand the career counselling business across the country. The acquisition would enable DMC
to leverage Plansteps’ established network in the North-East, Nepal and Bhutan. Earlier, DMC
had acquired Mumbai-based VSoft Services Pvt Ltd – an IT company developing bilingual
software for the Indian market. It also entered into a debenture subscription agreement with
D.B. Corp Ltd in June this year and raised Rs 2.67 crore.
ADM Buys Assets Of Rabo Equity-backed Oilseeds Firm Geepee Agri
Agriculture conglomerate Archer Daniels Midland Company (ADM) has said that it has acquired
two oilseeds processing facilities in India from Geepee Agri Pvt Ltd, backed by Rabo Equity
Advisors’ India Agri Business Fund. The purchase comes as the $81 billion company is looking
to expand its global oilseed processing capacity. Rabo Equity Advisors picked up 26% stake in
Geepee Agri Pvt Ltd (formerly Noble Grain India Pvt Ltd) for Rs 30 crore in October 2009.
Rabo’s investment came after the GP Group bought out its joint venture partner Noble Group in
the firm. The facilities acquired by ADM are located in the cities of Kota (Rajasthan) and Akola
(Maharashtra), and process rapeseed, soy and palm. The new processing facilities complement
the company’s recent purchase of the remaining interests in Tinna Oils, which is now wholly
owned by ADM. The Tinna Oils acquisition includes a soybean and sunflower seed processing
plant in Latur, a soybean and sunseed processing plant in Dharwad and a port warehouse in
Visakhapatnam. Earlier this year, ADM had purchased the soybean processing assets of
Madhur Agro, located in Nagpur. The facilities in Akola and Nagpur, both in Maharashtra,
include soybean crushing, refining and packaging capabilities, enabling ADM to produce
vegetable oil and meal for food and animal feed markets. The two plants serve the domestic
market for packaged oils and the export market for soy meal. Additionally, the site in Akola
contains a palm oil refinery and warehouses for raw and processed materials. The Kota site
operates a facility for soy and rapeseed crushing, refining and packaging. This location gives
ADM an advantageous access to the growing domestic rape oil market, as well as the rape
meal export market. The plant’s soy processing capabilities will also enable ADM to supply soy
oil directly to the north Indian market. The company has also established its Indian headquarters
in Gurgaon, which will oversee countrywide operations and manage sales, purchase and
administration.
Tommy Hilfiger Acquires Murjanis In India Venture
NYSE-listed PVH Corp, which acquired the Tommy Hilfiger Group from private equity giant
Apax Partners last year, has struck a deal to buy out the licence for trademarks of the Tommy
Hilfiger brand that was with the Murjani Group in India, as well as the 50% stake owned by the
Murjanis in Arvind Murjani Brands (AMB), a local joint venture with the Arvind Group, for an
undisclosed amount. AMB is the apparel sub-licensee of Tommy Hilfiger brand in India since it
was launched in the country. The 50:50 JV will continue between Arvind Ltd and PVH Corp, and
will manage other sub-licensees of the brand in India. The deal marks the direct presence of the
Tommy Hilfiger Group in India, a strategy it has been following in other international markets for
consolidating brand management. The Murjanis, led by the group chairman Mohan Murjani,
partnered with Tommy Hilfiger to launch the brand and the company in the USA way back in
1985. Seven years ago, the Murjanis launched the brand in India. Through the arrangement,
apparel, handbags and footwear were sublicensed to AMB and other products to separate
partners. Products under the Tommy Hilfiger brand are distributed through more than 80 free-
standing stores and shop-in-shops across 30 cities, such as Delhi, Mumbai, Bangalore,
Chandigarh and Hyderabad.
Taurus Flexibles Setsup a JV With Spanish Cikautxo
Taurus Flexibles signed a 50% JV with Spain based Cikautxo Coop and Mondragon Coop to
augment the manufacturing of rubber and plastic hoses for the automotive segment for
international and domestic markets. Cikautxo acquired 50% stake in Taurus’ wholly owned EOU
subsidiary in Pune created from the transfer of assets from the parent group - Cikautxo Taurus
Flexibles Private Ltd. Taurus Flexibles, part of the Taurus Group is one of the leading
manufacturers of hoses and fuel lines for passenger cars and commercial vehicles. The parent
company Taurus was founded in the year 1971 and was the first hydraulic hose plant in India.
Currently the company has five plants at Jamshedpur, two plants at Pune and one in Hosur,
Tamil Nadu. Cikautxo Coop founded in 1971 designs and manufactures parts and assemblies
in various polymers diverse applications. It is engaged in development and manufacture for the
fluid conduction, shock-absorbing and sealing parts for Automotive, domestic appliances and
biomedical industries. Cikautxo Coop is a member of the Spain based Mondragon; the biggest
cooperative group in the world.
Nadathur Fareast To Acquire Australian Hotel Chain
Private equity firm Nadathur Fareast is set to acquire Australia-based Touraust Corporation’s
Constellation Hotels business for an undisclosed sum. The Nadathur Group has been founded
by Infosys co-founder Nadathur S Raghavan, with a portfolio worth about $600 million (Rs 2,700
crore) across asset classes and investment life cycles – right from angel and venture funds to
private equity, public equity and debt. Raghavan has backed 30 start-ups, investing more than
$70 million or around Rs 315 crore in technology, healthcare and life sciences companies.
Under the current deal, Nadathur Fareast will acquire over 60 hotels in Australia and New
Zealand. The portfolios also include Chifley, Australis Resorts and Hotels and Country Comfort
brands. The company also operates the Sundowner Motels brand and owns six hotels in New
Zealand.
Rakesh Jhunjhunwala To Invest Rs 82 cr In Nikhil Gandhi's Pipavav
Billionaire investor Rakesh Jhunjhunwala is leading a Rs 81.9 crore investment in SKIL
Infrastructure-owned Pipavav Defence & Offshore Engineering (formerly Pipavav Shipyard)
through convertible warrants. Rakesh and Rekha Jhunjhunwala will pick up 5 million warrants
each while Utpal Sheth, a partner at Rare Enterprises(the privately held firm of the ace investor)
will also buy 5 lakh warrants worth Rs 3.9 crore. These warrants, subscribed at Rs 78 each, are
convertible in 18 months. Promoter group unit Grevek Investments and Finance is also
subscribing to 10 million warrants at Rs 78 per unit, amounting to an investment of another Rs
78 crore. Pipavav Defence & Offshore Engineering, has raised PE funding from investors like
New York Life Investment Management India Fund and Trinity Capital. Last year it raised $40
million (Rs 177.80 crore) from PE firm Valiant by issuing compulsorily and mandatorily
unsecured convertible debentures. Pipavav Defence promoter firm, SKIL Infrastructure, filed its
DRHP with market regulator Sebi for a Rs 1,125 crore initial public offering in June this year.
Pipavav Defence operates one of the largest shipyards in India and among the fifth largest in
the world in terms of its size (400000 dwt). Pipavav is the only private shipyard in India to have
license to produce frontline warships and signed a contract with the Ministry of Defence for
construction of 5 naval gunboats worth Rs 3000 crore earlier this year.
Multiples PE Close To Investing $15 mn In Barbeque Nation
Multiples Alternate Asset Management, a private equity firm floated by the former ICICI Venture
CEO Renuka Ramnath, is in talks to pick up a significant minority stake in Barbeque Nation, a
subsidiary of the BSE-listed Sayaji Hotels. The private equity firm is in talks to invest $15 million
or Rs 69 crore for 26-30% stake, thereby valuing the company at around Rs 260 crore – more
than the valuation of its parent company, Sayaji Hotels. The current market capitalization of
Sayaji Hotels is Rs 199 crore. Barbeque Nation works on the concept of a live grill and
customers can actually cook their food on grills, as one is embedded in each table. The
restaurant offers veg and non-veg barbeque starters (unlimited helpings), a main course buffet,
soups, salads, desserts and a great variety of liquors. Barbeque Nation (Mumbai) was started
by Sayaji Hotels Ltd in 2006. After a successful opening in the country’s commercial capital,
Barbeque Nation went on to open branches in Bangalore and Hyderabad in 2007. While the
deal has been in works for some time, of late, it went a little sour owing to the difference in the
equity structures between the company and the investor.
Infrastructure India Investing Rs 122 cr In MW Corp’s Hydel Project
Infrastructure India Plc. (IIP), an investment firm listed with the London Stock Exchange and
focusing on Indian infrastructure assets, is investing £16.5 million (Rs 122 crore) in the MW
Corp Group-promoted Shree Maheshwar Hydel Power Corporation, according to a company
statement to the exchange. IIP made an initial investment of around £13 million in the company
in mid-2008 (its value rose to £21.4 million or Rs 158.36 crore as of March 31, 2011). The
current funding is its second investment in the firm, which will take IIP’s aggregate equity
interest in Shree Maheshwar to 17.7% (7.9% on a fully diluted basis). Shree Maheshwar Hydel
Power is the first private sector hydro project in the state of Madhya Pradesh. It is a 400 MW
run-of-the-river project on the river Narmada, located at Mandleshwar in the district of Khargone
– 108 km south-west of Indore. The project is expected to commence power generation by late
2011. The investment returns are protected by way of regulation and a power purchase
agreement, which will provide for a return on equity to investors in the project, while IIP’s returns
are to be protected by way of an IRR guarantee arrangement on cash flows.
Carlyle, IDG Ventures May Invest In Ashok Soota's Happiest Minds
Carlyle and IDG Ventures may invest upto $25 mn in Ashok Soota's new venture - Happiest
Minds Technologies Pvt Ltd. Ashok Soota left Mindtree to start his own software company -
Happiest Minds. It will work on emerging technologies such as cloud computing, social media,
mobility solutions, unified communications, business intelligence and analytics. Ashok raised
Rs94 cr for his new venture by selling half of his 11.5% stake in Mindtree to VG Siddharta. A
deal with IDG could go through as IDG Ventures' Sudhir Sethi was with Walden, when it
invested in Mindtree. Ashok Soota recently announced 11 more co-founders of his new firm.
Five of the eleven are former senior executives of Mindtree.
Ascent Capital May Invest Rs 150 cr In Oakridge International School
Private equity firm Ascent Capital Advisors is close to picking up stake in the Hyderabad-based
Oakridge International School, one of India’s largest International Baccalaureate (IB) school.
The deal will involve Ascent Capital investing Rs 150 crore in Oakridge. The deal is expected to
value the company anywhere between Rs 500 crore-Rs 600 crore and the parties have already
signed the shareholders’ agreement. Oakridge has two branches in Gachibowli and Bachupally,
two IT suburbs of Hyderabad. People Combine Avenues, which runs Oakridge, also raised Rs
20 crore in mezzanine funding from ICICI Venture last year.
MFI Bandhan Raises Rs 135 cr From IFC
Microfinance firm Bandhan Financial Services Pvt Ltd states that it has raised private equity
funding of Rs 135 crore from International Finance Corporation (IFC). The deal marks the
single-largest exposure by the World Bank arm to India’s microfinance sector. Till date, IFC has
invested in smaller MFIs like Satin Creditcare Network and Swadhaar FinServe, besides
backing a host of sector-focused fund managers like Aavishkaar and Lok Capital. The
investment will enable Kolkata-based Bandhan, which is registered as a non-banking finance
Company (NBFC), to shore up its networth to nearly Rs 650 crore by March 2012. Bandhan is
projected to reach out to 6.5 million customers with a loan book of Rs 5,000 crore, maintaining
minimum capital adequacy ratio (CAR) of 17%. Bandhan aims to reach out to nearly 1,000,000
poor women and disburse Rs 5,300 crore during FY 2011-12. It also aims to increase its loan
book to Rs 3,200 crore by March 2012. Bandhan currently reaches 3.5 million poor women
through its network of 1,553 branches, spread across 18 states of the country, with a loan book
of more than Rs 2,400 crore. Most of its loan portfolio is accounted by West Bengal and North-
Eastern states.
Omkar Realtors Raises Rs 200 cr From Indiareit
Indiareit Fund Advisors, a private equity real estate fund manager, is investing Rs 200 crore in
the premium residential project being developed by Mumbai-based Omkar Realtors &
Developer. The investment, done through Indiareit’s Rs 930 crore Domestic Fund IV, is for a
stake in the residential project at a prime location in Worli, with a development potential of over
a million sq. feet. In spite of the overall sentiment of the market being low, Omkar has launched
four projects in Mumbai in the last six months. Incorporated in 2005, the company is in
infrastructure and real estate development and aims to develop projects spanning 20 million sq.
ft. or so in the Mumbai Metropolitan Region (MMR). The company essentially focuses on
development projects across the island city and its sub-urban districts over a five-year horizon.
Indiareit, promoted by the Ajay Piramal Group, is set to be acquired by the listed flagship firm
Piramal Healthcare for a total deal value of Rs 225 crore or $50.3 million. It currently manages a
corpus of nearly $900 million, spread across four funds (three domestic funds and one offshore
fund), besides the AIM-listed Trinity Capital Plc.
ChrysCapital Invests In Ahmedabad’s Eris Lifesciences
Private equity major ChrysCapital has invested an undisclosed amount in Eris Lifesciences Pvt
Ltd (ELPL), a branded formulations company based out of Ahmedabad. Founded in March 2007
by Amit Bakshi, the company operates with a strong focus on cardiovascular, diabetes, gastro
and ortho segments. Eris currently employs over 1000 people across five divisions – Eris,
Nikkos, Adura, Asta and Montana. The company markets and distributes pharmaceutical drugs
such as tablets, syrups and injections under the prescription drugs segment. It also provides
contract manufacturers with formulations and purchase orders for manufacturing drugs. Eris has
over 70 registered brand names.
Feedback Infrastructure Raises Rs 100 cr From Existing Investors
Feedback Infrastructure Services Pvt Ltd, one of the leading infrastructure services company,
has placed Rs 100 crore non-convertible debentures with L&T, IDFC and HDFC to fund its
growth plans, according to a company statement. The issue has participation of all three
shareholders – L&T, IDFC and HDFC – in proportion to their shareholding. The funds will be
drawn in tranches with the first tranch already undertaken this week. Feedback Infrastructure is
an integrated infrastructure services company, providing advisory, planning & engineering,
transactions, project management and operations & maintenance services, with focus on areas
like transportation & logistics, energy, housing & townships, healthcare, water & sanitation,
urban development, industrial infrastructure, commercial infrastructure, retail & entertainment,
education, hospitality and special economic zones. The company is currently working on several
projects including 35,000 MW of power generation, 20,000 km of national and state highway
construction and 100,000 acres of real estate development. The company has over 1200
professional’s employees, nationally and internationally.
Aditya Birla PE’s Sunrise Fund Invests Rs 40 cr In SMS Paryavaran
Aditya Birla Capital Advisors, the private equity arm of the Aditya Birla Financial Services
Group, has made its second fund at Rs 220 crore and also made its debut deal by investing Rs
40 crore in SMS Paryavaran, a water and wastewater treatment company. Sunrise Fund’s
investment in New Delhi-based SMS Paryavaran will be for a substantial minority stake and will
be used to fund its aggressive growth plans in the backdrop of significant order flow. The
company is primarily involved in the construction of public works, such as water transmission,
treatment, storage & distribution, sewage system and treatment on turnkey basis. Its clients
mainly include municipalities and state governments.
J.P. Morgan Invests $110 mn In Hyderabad’s Soma Group
J.P. Morgan Asset Management is investing $110 million or around Rs 500 crore in Hyderabad-
based Soma Group, which is involved in construction and development of infrastructure projects
in the transportation, hydel power and water resource sectors. J.P. Morgan, which raised an
$860 million Asian infrastructure fund last year, will invest in the company in two tranches, as
per this report. Although the specifics of the investment cannot be determined, it may have been
done for the funding of Soma’s highway projects unit, which holds its portfolio of BOT (build,
operate, transfer) projects in the highways and road sector. Earlier reports had stated that the
firm was looking to raise fund for Soma Highway (Toll) Projects Pvt Ltd. Soma is currently
executing nine national highway projects under different Special Purpose Vehicles (SPVs).
Soma Enterprises Ltd, the group’s flagship, is promoted by Rajendra Prasad Maganti and it
raised Rs 191 crore from 3i Infrastructure Fund in November 2007. The company started out
with irrigation projects and further expanded into areas like tunnelling, roads and hydropower.
The company is currently executing projects in various states including Andhra Pradesh,
Maharashtra, Tamil Nadu, Punjab, Kerala and Assam.
LeapFrog Invests $15 mn In Shriram CCL For Micro-insurance Push
LeapFrog Investments, a private equity fund focused on the micro-insurance sector, has
invested $15 million or Rs 67 crore in Shriram CCL. According to reports, LeapFrog has picked
up a little less than 10 per cent stake, valuing the company over $150 million. The deal will help
Shriram CCL expand its services in areas like insurance, savings and investment products for
the underserved Indian market. Shriram will use this funding to expand the operations of its
subsidiaries – Shriram Fortune Solutions Ltd (involved in financial product distribution) and
Shriram Insight Share Brokers Ltd (engaged in share broking business). Shriram Fortune
distributes mutual funds, debentures, fixed deposits and life & non-life insurance products, and
has a network of 400 branches. However, this network may soon expand to 100 branches.
Shriram Insight will also expand its network from 1,200 to 2,000 branches. Launched in 2008,
LeapFrog manages a $135 million fund focused on inclusive insurance and related financial
services in Asia and Africa.
Upaya Invests In Samridhi; Company To Set Up Community Dairies
Lucknow – based milk production and procurement company Samridhi Agri Products Pvt Ltd
has tied up with Upaya Social Ventures to set up community dairies in Uttar Pradesh that will
help create jobs and stabilize the income for families living under poor economic conditions,
according to a company statement. Samridhi is the first partner to join Upaya’s Life-changing
Interventions for the Ultra Poor (LiftUP) Project, a 24-36 month social business accelerator
programme that provides seed funding and strategic guidance for the development and growth
of early-stage, ultra-poor-focused social enterprises. Under this deal, Samridhi’s dairy units will
create 93 jobs, and every job will provide a woman with a guaranteed pay cheque. Employees
will also receive training and participate in all stages of the production process including
collection, quality testing, cooling and distribution, the company has said. Upaya Social
Ventures is a not-for-profit organization, building businesses which will create jobs and improve
the quality of life for the ultra-poor. The organization achieves its goals in two ways – by
supporting the growth of start-up social enterprises through the LiftUP Project business
accelerator and consulting with established organizations on innovative projects that target
deeply impoverished communities.
TIFAC Launches Revolving Technology Fund For MSMEs
Technology Information, Forecasting and Assessment Council(TIFAC) has set up a Rs 30 cr
'Revolving Technology Innovation Fund' with SIDBI for funding MSMEs for development, up-
scaling, demonstration and commercialization of innovative technology based projects. SIDBI
will manage the fund on behalf of TIFAC. The fund will provide capital assistance upto 80% of
the total project cost, which should not be more than Rs1 cr.
Kae Capital Pooling Money From VC Firms, Fund Of Funds For Maiden Fund
Kae Capital, an early-stage fund floated by Sasha Mirchandani (former India head of the US-
based VC firm BlueRun Ventures), is aiming to rope in tier – I VC firms like Sequoia Capital for
its maiden early-stage fund. The new early stage investment firm is looking to raise up to $25
million by the end of this month to invest in start-ups. A fund of funds (FOF) is also expected to
come on board as an anchor investor. Getting VC funds as LPs on board will also help Kae
Capital in deal sourcing, as these larger investors can always pass on a deal of a smaller ticket
size that does not fit into their investment strategy. Kae Capital is targeting an average ticket
size of investment of up to $500,000 or Rs 2.3 crore. While the fund will be sector-agnostic in
nature, it will have a bias towards technology start-ups.
Regional Ad Venture-Amagi Raises Rs 25 cr from Nadathur Holdings
Bangalore based Spot-Ad firm - Amagi has raised Rs 25 cr in it's third round of funding from
Nadathur Group. It had earlier raised Rs12 cr from Nadathur in earlier rounds of funding. Amagi
will use the funds to expand it's reach to about 100 cities in the next two years.
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