Private Equity Track

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1 2 7 T H A U G - 2 N D S E P T 1 2 Private Equity Track R e s e a r c h 4 I n d i a W e e k l y u p d a t e o n t h e I n d i a n P E S e c t o r PE Activity for the week The year 2012 has so far aggregated $5.86bn (309 deals) of PE investments compared to $8.70bn (284 deals) during the same period last year. During the week ended 2nd Sept, 2012, there were 4 PE/VC deals worth $21.2mn compared to 10 deals worth $266.3mn in the previous week. In the largest deal during the week, ChrysCap increased its stake in the Federal Bank by investing $8.7mn Till date 2011 Till date 2012 PE Investments No. of Deals PE Deals During The week Investor (s) Target Stake (%) Value ($mn) Stage Sector Industry Segment ChrysCap Federal Bank NA 8.7 PIPE Services BFSI Banking Info Edge Canvera Digital Technologies NA 6.5 Growth Services Misc. Services Online photography West Bridge Ventures IndoUS Venture Partners SKS Microfinance PIPE Services BFSI Microfinance Simplilearn NA NA Early Services Education Supplemental Source: Four-S PE Database Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. For subscription / custom queries, please contact Seema Shukla at seema@four-s.com.

2 ChrysCapital ups stake in Federal Bank ChrysCapital has increased its stake in Federal Bank while British banking major HSBC has exited the private sector lender. ChrysCapital, which already held 1.41% stake as of June 2012, has picked up less than 1% stake in the latest transaction for Rs 470mn. The private equity major has been building up stake in Federal Bank since earlier this year. Other investors in Kerala-based Federal Bank include International Finance Corporation (4.99%), L&T Capital Holdings (4.67%) and LIC (4.88%). Canvera raises $6.5mn in Series B from Info Edge Bangalore-based online photography company Canvera Digital Technologies Pvt Ltd has raised $6.5mn (Rs 350mn) in Series B round of funding from Info Edge (India), which runs a slew of consumer Internet portals including Naukri.com, among others, and is also an investor in various other digital media properties. With this round of funding, Canvera has raised a total of approximately $13 million (Rs 700mn) till date. The company had earlier raised funding from Footprint Ventures, DFJ and Mumbai Angels. The funds will be primarily used for expanding sales and marketing operations. In addition, the fresh money raised will also be invested for building various hosted solutions for photographers. SKS Micro raises funds from West Bridge Ventures SKS Microfinance Limited has allotted 44.5 lakh shares to Kumaon Investment Holdings, a subsidiary of West Bridge Ventures, in a preferential allotment. The MFI has raised Rs 335.5mn ($6.03mn) divesting around 4.11% stake and giving Kumaon Investment increased voting rights. The allotment was made at a discount to current share price. The new issue would take West Bridge s stake to 8.83% from the previous 4.72%. Simplilearn receives funds from IndoUS Simplilearn.com received an undisclosed amount of funds from IndoUS Venture Partners. The web portal providing services like education and training for professional certification courses, plans to utilize the funds for adding more to the certification courses, spreading into new geographies and double its workforce. The website, started in Bangalore, is an online/offline course training platform. Currently conducting classroom trainings of over 300 per month, the company offers courses in the project management, IT service/security management, quality management, technological certification and financial management fields. Fund Raising & Liquidity Events Coffee Day Resorts buys Sequoia stake in Café Coffee Day Coffee Day group has consolidated its stake in its flagship enterprise Café Coffee Day by buying out investor Sequoia Capital India s stake. According to separate media reports, the deal would give Sequoia 18-20% internal rate of return on its six-year-old investment in Bangalore-based Amalgamated Bean Coffee Trading Company Ltd (ABCTL). Sequoia Capital invested $20 million in ABCTL, a subsidiary of Coffee Day Resorts Pvt Ltd, back in July ABCTL had also raised funding from International Finance Corporation (IFC), Darby Asia Mezzanine Fund II and Deutsche Bank AG between 2006 and Nereus Capital s renewable energy fund eyes final close next year Nereus India Alternative Energy Fund LLC expects to make the final close of its $250mn debut fund by next year. The fund is said to have made its first close earlier this month. Nereus India Alternative Energy Fund will target companies engaged in the development, construction and operation of renewable & clean energy generation assets or those focused on Research4India 2

3 the deployment of clean energy technologies in India. The fund is looking to invest in independent power producers (IPPs) in segments like wind, hydro, biomass and solar besides waste-to-power and energy efficiency firms. It will also build a portfolio of 7-10 investments of $15-35 million each. Private Equity News Kalyani family in talks to strike PE deal for wind energy biz The founders of Indian auto components maker Bharat Forge are in talks with private equity firms to sell a $300mn stake in their wind energy firm, Kenersys. The transaction would dilute part of the controlling stake of the Kalyani group in the alternative energy firm and also enable First Reserve Corp, a US-based energy-focused private equity firm, to make a partial exit from an investment it made in Kenersys in Kenersys is an integrated wind energy company that designs, assembles and markets wind turbine generators. Senco Gold looking for funds from PE investors Kolkata-based jewellery retailer Senco Gold Ltd is in talks with private equity investors to raise Rs 850mn-1bn ($15-18mn). Founded in 1945, Senco today owns 27 retail stores spanning over 30,000 sq. ft. across Kolkata and eastern India. The company sells gold, diamond, precious and semi-precious stones, platinum and silver jewellery, and exports handmade jewellery to the US, the UK, South-east Asia and the Middle East. iprof eyes $20mn in Series B by year-end Two-year-old tablet education firm iprof Learning Solutions India Pvt Ltd is now looking to raise $20mnin Series B round of funding by the end of The Noida-based firm, which has just launched a digital library, had earlier raised $6mn in Series A from IDG Ventures, Norwest Venture Partners and Kaplan Ventures back in April The firm is targeting revenues of Rs 1bn from the new initiative alone by FY15. Yo China looking to raise funds Moods Hospitality, parent of Chinese restaurant chain Yo! China is looking to raise Rs 600mn. The fund raise is targeted at expansion of two of its chains Yo! China and Dim Sum Bros and planned to raise money in the first quarter of next year. The company is backed by Matrix Partners India. It had invested Rs 270mn in 2007 in the firm. Techno Electric to raise PE funds Techno Electric & Engineering is in talks with PE investors to raise funds to fuel its future expansion plans in its subsidiary Simran Wind Power Project. Techno Electric is an engineering procurement and construction company, focused on the power sector. Apart from EPC projects, it is also increasingly expanding into the wind power generation sector. Its total wind capacity at present is 240 Mw, bulk of which is under Simran. Techno forayed into power generation through the acquisition of Simran Wind Project Pvt. Ltd. in It plans to add 600 Mw of wind power capacity through Simran in the next 5-6 years and the aim is to make it a 1,250 Mw company by IPO, Other public offerings Thejo Engineering's to be the first SME IPO on NSE Thejo Engineering is looking to raise Rs 190mn through the public issue and it will open on September 4. It will be the first IPO to be listed on Emerge, the SME platform. Four SME companies have already listed on rival BSE's SME Exchange. Price band has been fixed at Rs per share of Rs 10 each and the issue closure date is September 6. Crisil has assigned a fundamental grade of SME 5/5 to IPO indicating excellent fundamentals of the company. Research4India 3

4 M&A Activity for the Week During the week ended 2nd Sept, 2012, there were 6 M&A deals worth $216.3mn (size of 4 deals were not known). In the largest deal during the week, Orchid Chemicals & Pharmaceuticals Ltd sold its penicillin and penem API business to Hospira for $200mn. Acquiror Target Sector Hospira Source: Four-S PE Database Stake (%) Deal value ($ mn) Orchid Pharma - penicillin & penem API biz Pharmaceutical Altruist Technologies Teligent Telecom Telecom NA 16.3 Toshiba Machine L&T Plastic Machinery - L&T s stake Manufacturing NA NA Fashionandyou.com UrbanTouch.com Internet retail 100 NA Dentsu Inc. Taproot India Communication Media & Entertainment 51 NA ELGI Equipments Rotair S.p.a. Manufacturing NA NA Market Update Key Domestic Indices Indian Market Movements 52 Week Index 24-Aug Aug-12 Change (%) High Low BSE Sensex 17, , % 18, , S&P CNX Nifty 5, , % 5, , CNX Nifty Junior 10, , % 10, , Nifty Mid Cap 50 2, , % 2, , CNX IT 6, , % 6, , Bank Nifty 10, , % 11, , CNX Infrastructure 2, , % 2, , CNX Realty % Key Global Indices Global Market Movements 52 Week Index 24-Aug Aug-12 Change (%) High Low NASDAQ 3, , % 3, , Dow Jones Industrial Average 13, , % 13, , S&P 500 1, , % 1, , NIKKEI 225 9, , % 10, , Hang Seng 19, , % 21, , Straits Times Index 3, , % 3, , FTSE 100 5, , % 5, , Source: Google Finance, Yahoo finance Research4India 4

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6 About Research4India Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. These reports will be available on our upcoming site as well as from leading international research sellers like Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc. Disclaimer The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information, projections or opinions contained in this document or upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability whatsoever, with respect to the use of this document or its contents. This document has been distributed for information purposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be reported or copied or made available to others. The company may from time to time solicit from, or perform consulting or other services for, any company mentioned in this document. For further details/clarifications please contact: Seema Shukla Gurgaon Office: 214, Udyog Vihar, Phase I, Gurgaon Tel: Ajay Jindal Mumbai Office: 101,Nirman Kendra, Opposite Star TV, Off Dr E Moses Road, Mahalaxmi, Mumbai Tel: Research4India 6