1. Four-S Private Equity Track…
Issue: 28th May – 3rd June, 2012 …… Your Eye to Indian Private Equity
PE activity for the week
100.0 16
During the week ended 3rd June, 2012, there were 8 PE/VC deals
14
worth $32.1mn compared to 9 deals worth $39mn in the previous
75.0 12
week. 9
8 10
50.0 39.0 8
Out of the total, 5 were PIPE deals, 1 growth stage deal and 2 early 32.1 6
stage deals. 25.0 4
2
In the largest deal during the week, Carlyle Ventures invested Rs 0.0 0
600mn ($10.7mn) in Kerala based South Indian Bank Limited for 27th May'12 3rd June'12
around 2% stake.
PE Investments No. of Deals
Private Equity: Investment Summary during the week
Stake Value
Investor (s) Target (%) ($mn) Sector Industry Segment Stage
Carlyle South Indian Bank 2 10.7 Services BFSI Banking PIPE
Tiger Global , SAIF
Zovi.com NA 10.0 Services Retail Internet Retail Growth
Partners
Construction
HSBC Global
IRB Infra NA 3.7 Construction & Allied Roads, highways PIPE
Investment Fund
Activities
Yarn, fabrics,
Goldman Sachs Alok Industries 1.26 3.6 Manufacturing Textiles PIPE
home textiles
Goldman Sachs Core Education NA 3.1 Services Education Education services PIPE
Misc.
SIDBI Timbor Home NA 1.1 Manufacturing Furniture PIPE
Manufacturing
Helion Venture
Partners, Lightspeed Fashionara NA NA Services Retail Internet Retail Early
Venture Partners
Mumbai Angels and Media & Gaming app
Rolocule Games NA NA Services Early
Blume Ventures Entertainment developer
Source: Four-S PE Database
profit of Rs 4.01bn in the year ended March 2012, against
First Carlyle Ventures invests in South Indian Bank Rs 2.92bn in the previous year.
First Carlyle Ventures has invested Rs 600mn in Kerala
based South Indian Bank Limited for around 2% stake Zovi raises $10mn funding from Tiger Global & SAIF
through bulk deal on BSE. The fund purchased 22.62mn Partners
shares at a price of Rs 26.5 per share. Incorporated in 1929, Zovi.com, a private label e-tailer dealing in apparel and
South Indian Bank is one of the first private sector banks in accessories for men and women, has disclosed that it has
Kerala to become a scheduled commercial bank in 1946. As raised $10mn in series B round of funding from Tiger Global
on September 2011, South Indian Bank had a network of besides existing investor SAIF Partners. Last July it said it has
664 branches with a sizeable footprint in southern India and raised $5.5mn in series A round led by SAIF Partners. The
has 683 ATMs. The bank has recorded the highest-ever net funds has been utilised primarily for expanding warehouse
Indian Private Equity Weekly Update
28th May-3rd June, 2012

2. operations and creating a full logistics team. Zovi has its units of international, infrastructure, garment and domestic
own logistics operations in as many as 15 cities including and retail businesses. It manufactures home textiles,
Bangalore, Chennai and Delhi. The firm has an average apparel fabrics and polyester yarns.The company has 15
order ticket size of around Rs 800-1000 and it is clocking manufacturing plants located at Silvasa, Vapi and Navi
1,200-1,500 transactions on a day on an average. Mumbai. The company is planning to exit its non core
business like reality and to focus on textile business and to
Four-S Comment: Venture capitalists continue to show a lot reduce the debt.
of interest in e-commerce stores. There is also start of
consolidation in the Indian e-commerce arena. At the Four-S Comment: Alok Industries is a heavily indebted
beginning of the year, India’s largest and most-funded e- company, with a D/E ratio of around 3x. The company runs
commerce company Flipkart acquired Letsbuy.com, the a perpetual negative free cash flow business, resulting in
country’s second-largest online electronics retailer, for an steadily increasing D/E. Its valuations are too low to allow it
undisclosed amount, thought to be worth $20-30mn. This to raise equity in any meaningful way. In the last 1-2 years,
was followed by Snapdeal’s acquisition of online sports the company has talked of selling non-core assets to free up
retailer Esportsbuy for around $10-14mn. The consolidation some cash. In May, Alok announced sale of office space for
wave has been triggered by Amazon’s likely entry into the Rs4.25 bn. The company has debt of around Rs 110bn, so it
Indian e-commerce space. Amazon has launched Junglee, a needs to do a lot more to bring down debt.
beta site that is seen by many as a precursor to the
imminent introduction of a full-on Amazon India store. Goldman Sachs invests in Core Education
Goldman Sachs Investment has acquired stake in Core
HSBC Global invests Rs 200mn in IRB Infra Education & Technologies Limited through a bulk deal on
HSBC Global Investment Fund has invested Rs 206mn in IRB exchange. Goldman Sachs bought 5.78 lacs shares at a price
Infrastructure Developers Limited. It has bought 1,831,956 of Rs 292 a piece, aggregating to Rs 168.7mn on BSE.
shares at Rs 112.83 through bulk deal on NSE. IRB Founded in 2003, Mumbai based CORE Education and
Infrastructure Developers undertakes construction and Technologies was formerly known as Core Projects and
operation of major road and highway projects in India. IRB Technologies. It offers technology-based education
Infra has a portfolio of 17 road projects, of which 10 have solutions to government organizations and schools in the US
been commissioned while six are under implementation. and the UK. The company has acquired nine companies in
the UK and the US in the past five years in an effort to
Four-S Comment: IRB Infra’s share price has fallen expand its global reach. The company is planning to tap
dramatically in the last one month, ever since its CMD Asia-Pacific, Africa and West Asia and may look at
Virendra Mhaiskar was named a suspect in a murder acquisitions in these regions. It is also planning to start
enquiry. From levels of around Rs 200 in April’12, the stock operations in Singapore and China.
price has now come down to around Rs 110 levels. The
investment could turn out to be a masterstroke for HSBC if SIDBI invests in Timbor Home
IRB’s promoter comes out clean from the investigation. SIDBI has invested Rs 60mn in Ahmedabad based Timbor
Home Limited, an integrated furniture manufacturer. The
Goldman Sachs invests in Alok Industries funds raised will be used to set up 30 high-end 'IKI' kitchen
Goldman Sachs has acquired 1.26% stake in Alok Industries stores across India. Through IKI Kitchens, the company is
Limited for Rs 199.5mn through bulk deal on BSE. It bringing the 'Intelligent Kitchens' concept to the Indian
purchased 10.43mn shares for Rs 19.12 per share. Founded kitchens, making them highly durable, functionally practical
in 1986, Alok Industries operates in four special business and user friendly, by ensuring good ergonomics and
Indian Private Equity Weekly Update
28th May – 3rd June, 2012

3. efficient space utilisation, besides making them look
Fund Raising & Liquidity Events
aesthetically great. Last year, Timbor Home raised Rs
233.5mn through IPO by issuing 3.69mn shares at a price
band of Rs 54-63 per share, by diluting 25% stake. Tech entrepreneurs & VC investor join hands to
float early-stage fund
Four-S Comment: The modular kitchen market in India is A group of entrepreneurs have floated an early-stage
still at a nascent stage but has tremendous growth investment fund called India Quotient, which may back
potential. It has been growing at 50% per annum and is even pre-revenue startups or firms which have not started
expected to maintain this growth rate for some more years. generating revenues but require funds to build on their
Modular kitchen accounts for 40% of the furniture and ideas or live products/services which are yet to start
fittings industry. The increasing number of nuclear families, pumping income. The group includes former Seedfund
rising disposable incomes, affordability, and easy budget, partner Anand Lunia, as well as Vishal Mehta of Infibeam,
will drive awareness levels and demand for modular Kashyap Dalal of Inkfruit, Mohit Dubey, the founder of
kitchen. Carwale, and several other entrepreneurs. There are five
companies which have already received funding, including
Helion, Lightspeed Ventures Invests In Fashionara IIMJobs, a job portal for business graduates; personalised
Helion Venture Partners and Lightspeed Venture Partners gifting startup Engrave; shopping network RedQuanta and
has invested in Bangalore-based Fashionara, an online at-home beauty and personal care services firm Belita,
portal that offers premium fashion and lifestyle among others.
merchandise. The funds raised will be used to build the
business and the company is also planning for second and
Apollo, ICICI to launch $350mn Distress Fund
third round of funding. Founded by Arun Sirdeshmukh,
Apollo Global Management LLC and ICICI Venture are raising
former chief executive of Reliance Trends, and Darpan
$350mn for India distress fund. The fund will invest in
Munjal, former CTO of Times Internet , Fashionara.com is an
companies that are in distressed situation or going for
online retailer that offers merchandise in the space of
restructuring or spinning off assets and also in non-
fashion and lifestyle. Its current focus is on apparel,
performing loans. The fund will be headed by Kalpesh
footwear and accessories.
Kikani, senior general manager of ICICI Bank. ICICI Venture
and Apollo aims to raise about $750 Mn for the fund.
Mumbai Angels, Blume Ventures invests in
Rolocule Games Private Equity and M&A News
Pune based - Rolocule Games Private Limited, a gaming
startup has raised angel investment from Mumbai Angels IFC to invest $20mn in Ramkrishna Forgings
and Blume Ventures. Rolocule Games is a game IFC is planning to invest $20mn in Kolkata based Ramkrishna
development studio creating realistic, casual and social Forgings Limited for expansion activities. The company is
video games for tablets and smartphones. It has earlier planning to install new Front Axle Beam manufacturing line
received seed fund from CIIE (Centre of Innovation in Jamshedpur requiring a capital expenditure of
Incubation and Entrepreneurship, IIM Ahmedabad). approximately $97mn. Founded in 1981 by Mahabir Prasad
Jalan, Ramkrishna Forgings manufactures forged and
machined Transmission and axle components for medium
and heavy commercial vehicles. It caters to the automobile,
railway, defence and mining sectors.
Indian Private Equity Weekly Update
28th May – 3rd June, 2012

4. Kurlon to raise PE investment IPO, Other Offerings
Bangalore based Kurlon Limited, mattresses and furnishing PE-backed Shriram EPC to raise up to $26.4mn
manufacturer is planning to raise Rs 2bn for minority stake Engineering procurement & construction firm Shriram EPC,
in the company to fund its expansion plans and double its backed by Bessemer Venture Partners and others, is
manufacturing capacity in India. The company is in talks planning to raise funding up to $26.4mn (Rs 1.50bn). The
with Apax Private Equity, Darby Private Equity - an arm of funding could be done through rights issue of equity shares
Franklin Templeton among others for fund raising. The or QIPs, ADRs, GDRs, FCCBs or any other securities
company has plans to increase the manufacturing capacity convertible into equity shares. According to a BSE filing, the
and workforce capacity of Kur-lon’s mattress business. It company has also appointed Vishal Vijay Gupta of Bessemer
has also applied for bank loans to fund the capex Venture Partners as its nominee director after RS Chandra
requirement. (also from Bessemer) resigned from Shriram EPC’s board.
BookmyShow to raise funds for expansion Speciality Restaurants IPO gives a breather to PE
Bigtree Entertainment Private Limited is planning to raise investors
$10-12mn funds through VC and PE investors for expansion. Fine dining operator Speciality Restaurants recently
Established in 1999, Bigtree offers ticketing for movies, concluded its IPO at Rs 150 per share, raising over Rs
plays, concerts and live events through its website - 1.75bn. The IPO was oversubscribed 2.54 times on the last
www.bookmyshow.com. It also provides doorstep delivery, day of its issue on 18 May. Two PE investors have made
cash collection, warehousing and software for ticketing attractive gains on their investments in the company.
transactions. The portal has partnered with 850 screens Though SAIF Partners and Glix Securities Pvt. Ltd are not
across 87cities. BookMyShow has ticketed for over 1,500 selling their shares in the restaurant chain, the former could
plays online and have the exclusive and permanent rights potentially earn an internal rate of return, or IRR, of 18.16%
for ticketing for theatre venues like Prithvi Theater, on its investment while Glix could earn 31.17%, going by the
Mumbai, NCPA Mumbai, Indian Habitat Centre Delhi and issue price of the restaurant chain. SAIF had invested Rs
Rangshankara Bangalore. They have international presence 355mn in the company in December 2007, followed by an
in Malaysia and New Zealand. investment of Rs 150mn by Glix Securities in May 2010. The
cost per share, after the conversion of preference shares, is
Voicetap to raise VC funds for expansion Rs 71 for SAIF and Rs 81 for Glix.
Mobile education startup - Voicetap is planning to raise
$7mn from VC funds in the US, Singapore and India. It has Goodwill Hospital re-files DRHP
already raised $1mn from CCube Angels, Frontline Strategy Goodwill Hospital and Research Centre, which withdrew its
and angel investor Umesh Kumar Baveja. Founded in 2009 IPO in January this year due to poor investor response, has
by Mrigank Tripathi, Voicetap is focused on mobile- again filed draft papers with market regulator SEBI for the
education and work closely with leading telecom operators public issue. Goodwill Hospital, engaged in running a multi
in India & Africa. Voicetap's technology allows students to speciality hospital in Noida under the name "Ojjus
assess themselves and also access actual educational Medicare", is planning to mop-up Rs 980mn from the capital
content and counselling services over the mobile. The market through an initial public offering (IPO). The
technology allows students to search topics and relevant healthcare firm said it is considering a pre-IPO placement
experts and then listen to content either live, from for a cash consideration of Rs 300mn. Goodwill Hospital
recordings or through a user-generated call. withdrew its IPO in January after the issue failed to get
subscription of even 1% of its shares on sale. Goodwill was
the first company to withdraw its IPO in 2012.
Indian Private Equity Weekly Update
28th May – 3rd June, 2012

5. M&A Activities
During the week ended 3rd June, 2012, there were 5 M&A deals worth $117.6mn. In the largest deal
during the week, CRISIL acquired 100% stake in UK based analytics firm - Coalition Development
Limited along with its subsidiaries, for $44.5mn.
M&A Activity: Summary during the week
Stake Deal value ($
Acquirer Target Target business (%) mn)
CRISIL Coalition Development Ltd BFSI - Analytics firm 100 44.5
Antwerp Port Authority Essar Ports Infrastructure and Construction NA 31.0
Jindal Steel & Power Gujarat NRE Coking Coal Cola mines 9 25.0
Centre For Sight New Vision Laser Centre Healthcare NA 10.0
Bharti Softbank Holdings Y2CF Digital Media Media & Entertainment 49 7.1
Source: Four-S Database, Acquisition price is in $mn
Market Update
Key Domestic Indices
Indian Market Movements 52 Week
Index 25-May-12 1-Jun-12 Change (%) High Low
BSE Sensex 16,217.82 15,965.16 -1.58% 19,619.65 15,135.86
S&P CNX Nifty 4,920.40 4,841.60 -1.63% 5,740.40 4,770.35
CNX Nifty Junior 9,519.15 9,440.35 -0.83% 11,550.00 9,268.50
Nifty Mid Cap 50 1,989.50 1,945.85 -2.24% 2,515.70 1,907.15
CNX IT 5,879.85 5,902.75 0.39% 6,835.25 5,802.85
Bank Nifty 9,456.30 9,267.60 -2.04% 11,451.25 9,110.45
CNX Infrastructure 2,174.15 2,141.20 -1.54% 3,191.60 2,099.70
CNX Realty 208.15 204.65 -1.71% 302.20 196.65
Source: BSE, NSE
Key Global Indices
Global Market Movements 52 Week
Index 25-May-12 1-Jun-12 Change (%) High Low
NASDAQ 2,837.53 2,747.48 -3.28% 3,134.17 2,298.89
Dow Jones Industrial Average 12,454.83 12,118.57 -2.77% 13,338.66 10,404.49
S&P 500 1,317.82 1,278.04 -3.11% 1,422.38 1,074.77
NIKKEI 225 8,580.39 8,440.25 -1.66% 10,255.20 8,135.79
Hang Seng 18,713.41 18,558.34 -0.84% 23,317.79 16,250.27
Straits Times Index 2,772.75 2,745.71 -0.98% 3,227.28 2,521.95
FTSE 100 5,351.53 5,260.19 -1.74% 6,084.08 4,791.01
Source: Yahoo Finance
Indian Private Equity Weekly Update
28th May – 3rd June, 2012

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Indian Private Equity Weekly Update
28th May – 3rd June, 2012