providing m&a and private equity deal...

© Grant Thornton India LLP. All rights reserved.

May, 2014

Volume 10.5

Dealtracker Providing M&A and Private Equity Deal Insight


Total Deal Volume Spread – May '14 Total Deal Value Spread (US$ mn) – May'14

• Active deal making continued in May with 95 deals deals worth US$ 5.3bn

signed during the month.

• The M&A landscape improved dramatically with 52 deals pegged at US$

4.4bn; the top deal being Adani Group's acquisition of Dharma Ports for

US$ 932 mn.

• PE investments stood at US$ 0.9bn (43 deals); the top deal being DST

Global led US$ 210 mn investment in Flipkart Private Ltd.

• Domestic market continued to be buoyant in May both in terms of value

and volume.

• The IT & ITeS sector stole the show in May with e-commerce companies

doing well both in terms of strategic and financial investments.

• The month also saw YES Bank raise US$ 500mn through the QIP route.

Deal Summary Volume Value (US$ mn)

2012 2013 2014 2012 2013 2014

Domestic 19 22 26 488 891 2,465

Crossborder 16 19 21 1,148 481 1,364

Merger & Internal

Restructuring 4 3 5 20 326 548

Total M&A 39 44 52 1,656 1,697 4,377

Private Equity 26 33 43 344 1,951 904

Grand Total 65 77 95 2,000 3,648 5,281

Cross border includes

Inbound 8 9 15 202 107 1,277

Outbound 8 10 6 945 373 87

Trend spotting

Deal Round Up May 2014

2

The overall M&A scenario witnessed an

upsurge in May with 8 deals of over

US$ 100mn each, of which 3 deals were

valued over US$ 500mn each.

Domestic deals saw a big leap in value

In volume terms, PE investments saw a

steady growth

24%

14%

21%

22%

15%14%

7%

11%

11%

9%

5%

3%

38%

54%51%

2012 2013 2014

Private Equity

Merger & InternalRestructuring

Outbound

Inbound

Domestic

29% 29% 27%

12%12% 16%

12% 13% 6%

6%4% 5%

40% 43% 45%

2012 2013 2014

22% 23% 47%

10%3%

24%

49%

10%

2%

1%

9%

10%

18% 54% 17%

2012 2013 2014


• YTD May 2014 saw overall deal value at US$ 20bn (458 deals), up from

YTD May 2013, both in value and volume.

• M&A continues to continues to gather steam with 230 deals worth US$

16.4bn so far this year, driven by big ticket domestic deals.

• PE investment volume is much larger at 228 deals YTD May 2014, against

172 deals YTD May 2013.

• 2014 has seen continuous month on month improvement in deal activity,

building up to the general election in May. This trend continues as the new

government has given positive signals for a strong deal outlook.

Total Deal Volume Spread – YTD May '14 Total Deal Value Spread (US$ mn) – YTD May'14 Trend spotting

Deal Round Up YTD May 2014

3

In terms of deal volume, PE

investments continued to increase.

However, the value is yet to match the

levels seen in previous years.

In terms of deal value, the domestic

M&A shows an uptrend while cross-

border deals have also increased

marginally. The overall M&A has

gathered momentum and is expected

to show the same rate of growth in

the coming months.

Deal Summary Volume Value (US$ mn)

Year to Date May 2012 2013 2014 2012 2013 2014

Domestic 112 101 98 2,971 2,862 7,553

Crossborder 106 94 115 4,573 5,412 5,720

Merger & Internal

Restructuring 58 21 17 14,489 445 3,101

Total M&A 276 216 230 22,033 8,719 16,373

Private Equity 184 172 228 3,082 4,642 3,646

Grand Total 460 388 458 25,115 13,361 20,019

Cross border includes

Inbound 65 53 74 2,550 3,695 4,438

Outbound 41 41 41 2,023 1,717 1,282

24%

14%

21%

22%

15%14%

7%

11%

11%

9%

5%

3%

38%

54%51%

2012 2013 2014

Private Equity

Merger & InternalRestructuring

Outbound

Inbound

Domestic

11% 18%38%

10%

29%

22%

8%

13%

6%58%

3%

15%

12% 36% 18%

2012 2013 2014

24% 33% 27%

14%

17%

20%

9%

13%11%

13%

7%5%

40% 29% 37%

2012 2013 2014


21%

17%

16%12%

11%

9%

9%5% 13%

13%

11%

12%10%

8%

33%

M&A Round Up May 2014

4

Top M&A Deals of the Month

Acquirer Target Sector US$ mn Deal Type % Stake

Adani Ports and Special

Economic Zone - Adani

Group

Dhamra Port Company Limited -

JV between L&T and Tata Steel Transport & Logistics 932 Acquisition 100%

Emperador Inc Whyte & Mackay Group - United

Spirits Retail & Consumer 725 Acquisition 100%

Reliance India Ltd - through

Independent Media Trust

Network 18 Media & Investments

Limited (including TV 18

Broadcast Limited)

Media &

Entertainment 678 Majority Stake 78%

Vodacom - Arm of

Vodafone

Neotel - Tata Communications

Limited Telecommunication 455 Majority Stake 68%

Essar Oil Vadinar Power Company Ltd Energy & Natural

Resources 356

Internal

Restructuring 74%

Flipkart India Pvt Ltd Myntra IT & ITEs 340 Acquisition 100%

Sectoral Snapshot Top Sectors based on Deal Volume Top Sectors based on Deal Value (US$ mn)

Transport &

Logistics

Energy & Natural

Resources

Telecom

Real Estate

IT & ITEs

Others

Others

Media &

Entertainment

Infrastructure

Management

Pharma, Healthcare &

Biotech

Manufacturing

IT & ITEs

Banking & Financial

Services

Retail &

Consumers

Media &

Entertainment

Notable Sectors Volume US$ mn

IT & ITeS 7 371

Banking & Financial Services 7 41

Pharma, Healthcare & Biotech 6 37

Media & Entertainment 5 698

Infrastructure Management 4 20

Energy & Natural Resources 3 535

Retail & Consumer 3 735

It is the largest deal in the port sector in India

since 2005.

The deal is subject to shareholder approval and

approval by regulators in India and Britain,

where Whyte & Mackay is based.

Based on public information, the deal is a

stock transaction and is pegged at US$ 340mn


48%

25%

15%

5%

2%

5%

PE Round Up May 2014

5

Top PE Deals of the Month

Acquirer Target Sector % Stake US$ mn

Naspers Ltd., Tiger Global

Management, DST Global,

ICONIQ Capital

Flipkart Private Limited IT & ITEs N.A. 210

Warburg Pincus Laurus Labs Pvt Ltd Pharma, Healthcare &

Biotech 25% 150

Premji Invest, Temasek Holdings,

BlackRock, Myriad and Tybourne

Snapdeal.com-Jasper Infotech

Pvt Ltd IT & ITEs 10% 100

International Finance Corporation Religare Enterprises Ltd Banking & Financial

Services 8% 68

Olympus Capital and India Value

Fund Advisors (IVFA) Aster DM Healthcare


Biotech N.A. 60

Sectoral Snapshot Top Sectors based on Deal Volume Top Sectors based on Deal Value (US$ mn)

Notable Sectors Volume US$ mn

IT & ITeS 18 434

Education 6 14

Banking & Financial Services 5 132

Pharma, Healthcare & Biotech 5 229

Retail & Consumer 3 41

Hospitality & Leisure 2 22

With this investment, Flipkart has raised to

US$780 mn since its inception.

42%

14%

11%

12%

7%

14%

IT & ITEs


Biotech

Banking & Financial

Services

Retail & Consumer

Hospitality &

Leisure Others

Others

Retail & Consumer


Biotechnology

Banking & Financial

Services

Education

IT & ITEs


A

cq

uir

er

R

ati

on

ale

T

arg

et

In

vest

or

C

om

men

ts

In

vest

ee

Adani Group acquired

the entire stake of L&T

and Tata Steel in

Dhamra Ports. Valued at

US$ 932 mn, it is one of

the largest deals in the

port sector.

Flipkart raised US$

210mn in a fresh round

of funding, bringing in

technology focused PE

firm DST Global besides

existing investors. Adani Ports

An arm of Adani Group,

Adani Ports and Special Zone

is India’s largest port

operator., with its flagship

Mundra Port in Gujarat being

the largest commercial port in

India.

Dhamra Port Co. Ltd

Dhamra Port, located in

Orissa, is a 50:50 JV between

L&T and Tata Steel. Handling

coal, iron ore and other

minerals, in FY14 the port

handled total cargo of 14.3mn

tonnes.

The acquisition is part of

Adani Group’s strategy to

build their expanse across the

Indian coastline. The deal is,

however, subject to third

party approvals

DST Global, Tiger Global,

Naspers and Iconiq Capital

DST Global, founded by

Russian entrepreneur and

venture capitalist, Yuri Milner is

a technology focused fund. It

has invested for the first time in

Flipkart. It also leads the

investment. Existing investors

also participated in this round.

Flipkart India Pvt. Ltd.

India’s largest e-commerce

website, Flipkart has raised

funds of over US$ 750 mn

since its inception in 2007.

Flipkart plans to upgrade its

technology and acquire firms

across areas like e-commerce,

technology and supply chain;

while DST hopes to bring a

global perspective into the

investment.

6

Deal of the Month M&A

Deal of the Month PE


Deal List

This document captures the list of deals announced based on information available in the public domain and based on public announcements. Grant Thornton India LLP does not

take any responsibility for the information, any errors or any decision by the reader based on this information. This document should not be relied upon as a substitute for

detailed advise and hence, we do not accept responsibility for any loss as a result of relying on the material contained herein. Further, our analysis of the deal values are based on

publicly available information and based on appropriate assumptions (wherever necessary). Hence, if different assumptions were to be applied, the outcomes and results would

be different.

© Grant Thornton India LLP. All rights reserved. 8

Acquirer Target Sector Acquisition

price (US$ mn)

Deal Type %

Stake Domestic/

Crossborder

Unnamed Buyer Dynamatic Technologies Ltd - non core

assets Aerospace & Defense 11.86 Acquisition 100% Domestic

Tata Global Beverages Ltd (Tata

Tea) Bronski Eleven Pty Ltd Agriculture & Forestry N.A. Acquisition 100% Outbound

Motherson Sumi Systems Ltd (JV

Samvardhana Motherson Group &

Sumitomo Wiring Systems)

Stoneridge Inc - wiring harness business Automotive 65.70 Acquisition 100% Outbound

NSE, IIFCO, Star Agriwarehousing

and Collateral Management Ltd

National Commodity and Derivatives

Exchange Ltd

Banking & Financial

Services 11.27 Minority Stake 8% Domestic

Birla Sun Life Mutual Fund ING Mutual Fund - Portfolio

Management services

Banking & Financial

Services N.A. Acquisition 100% Domestic

Fortune Financial Services India Ltd Inga Capital Private Limited Banking & Financial


Indiabulls Asset Management

Company Limited Azure Capital Private Limited

Banking & Financial

Services N.A. Majority Stake 86% Domestic

Edelweiss Financial Services Limited Forefront Capital Management Private

Limited

Banking & Financial


SKS Trust Advisors Pvt Ltd Outreach Financial Services India Banking & Financial

Services N.A. Majority Stake 70% Domestic

Transunion International Credit Information Bureau India

Limited (CIBIL)

Banking & Financial

Services N.A.

Increasing stake to

55% 8% Inbound

I. M&A Deals



price (US$ mn)

Deal Type %

Stake Domestic/

Crossborder

Essar Oil Essar Power Energy & Natural Resources 173.73 Internal

Restructuring 10%

Merger & Internal

Restructuring

Essar Oil Vadinar Power Company Ltd Energy & Natural Resources 355.93 Internal

Restructuring 74%

Merger & Internal

Restructuring

Pace Power Systems GE (General Electric) Power

Electronics India Energy & Natural Resources N.A. Acquisition 100% Domestic

Epicurean Events and Services Nalas Aappakadai Hospitality & Leisure N.A. Majority Stake 51% Domestic

Future Consumer Enterprise Ltd Integrated Food Park Private

Limited Infrastructure Management N.A. Majority Stake 74% Domestic

Shapoorji Pallonji & Company

Ltd Sterling and Wilson Ltd Infrastructure Management N.A.

Increasing Stake

65.7% 10.7% Domestic

Texmaco Rail & Engineering Kalindee Rail Nirman (Engineers) Infrastructure Management N.A. Merger N.A. Merger & Internal

Restructuring

Indsur Group CDA Contracts Ltd Infrastructure Management N.A. Acquisition 100% Outbound

Flipkart* Myntra IT & ITEs 340.00 Acquisition 100% Domestic

Bharti Softbank Holdings Pte

Ltd Y2CF Digital Media Pvt Ltd IT & ITEs N.A.

Increasing Stake to

100% 51% Domestic

I. M&A Deals

*Based on public information, the deal is a stock transaction and is pegged at US$ 340mn



price (US$ mn)

Deal Type %

Stake Domestic/

Crossborder

Concur Technologies Cleartrip Private Limited IT & ITEs N.A. Increasing Stake 25% Inbound

MasterCard Inc ElectraCard Services Pvt Ltd IT & ITEs N.A. Acquisition 100% Inbound

Pegasystems Inc MeshLabs Software Pvt Ltd IT & ITEs N.A. Acquisition 100% Inbound

Kirusa Inc Plusray Innovations Pvt Ltd - Cooltok IT & ITEs N.A. Acquisition 100% Inbound

Hopscotch Wholesale Trading Pvt

Ltd - Hit the mark Inc SkoolShop - Occasion Kommerce Pvt Ltd IT & ITEs N.A. Acquisition 100% Domestic

Unnamed Buyer MBE Coal & Minerals Technology –

McNally Bharat Engineering subsidiary Manufacturing 2.03 Majority Stake 90% Domestic

Unnamed Buyer Lake Cement Limited - Banco Products

India Limited Manufacturing 17.68 Majority Stake 51% Domestic

Jaypee Development Corporation Andhra Cements Manufacturing N.A. Increasing Stake to

68.79% 9% Domestic

Godrej & Boyce Manufacturing

Company Ltd

Somany Foam Limited - polyurethane (PU)

foam business Manufacturing N.A. Acquisition 100% Domestic

Kajaria Ceramics Ltd Taurus Tiles Pvt Manufacturing N.A. Majority Stake 51% Domestic

I. M&A Deals



price (US$ mn)

Deal Type %

Stake Domestic/

Crossborder

Toshiba Mitsubishi-Electric

Industrial Systems Corporation AEG Power Solutions India Pvt Ltd Manufacturing N.A. Acquisition 100% Inbound

Reliance India Ltd through

Independent Media Trust

Network 18 Media & Investments Limited

(including TV 18 Broadcast Limited)

Media &

Entertainment 678 Majority Stake 78% Domestic

Diadeis Alia Group's pre-media packaging unit Media &

Entertainment N.A. Acquisition 100% Inbound

Sony Music Entertainment Infibeam Digital Entertainment Private

Limited

Media &

Entertainment N.A. Strategic Stake 26% Inbound

Starwatch - ProSiebenSat.1 Talent House Private Limited - Reliance

Entertainment

Media &

Entertainment N.A. Acquisition 100% Inbound

PubMatic Inc Mocean Mobile Inc Media &

Entertainment N.A. Acquisition 100% Outbound

Cipla Limited Chase Pharmaceuticals Inc Pharma, Healthcare

& Biotech 1.50 Minority Stake 15% Outbound

Cancer Genetics Inc BioServe Biotechnologies (India) Pvt Ltd Pharma, Healthcare

& Biotech 1.86 Acquisition 100% Inbound

Ebix Healthcare Magic Pharma, Healthcare

& Biotech 18.50 Acquisition 100% Inbound

SeQuent Scientific Limited Arvee Synthesis Private Ltd Pharma, Healthcare

& Biotech N.A. Acquisition 100% Domestic

EID Parry (India) Ltd Parry Phytoremedies Private Limited Pharma, Healthcare

& Biotech N.A.

Increasing Stake to

100% 37%

Merger & Internal

Restructuring

I. M&A Deals



price (US$ mn)

Deal Type %

Stake Domestic/

Crossborder

Shasun Pharmaceuticals Ltd ScolrPharma Pharma, Healthcare

& Biotech N.A. Acquisition 100% Outbound

Concept Public Relation India

Limited I:Connect Enterprise

Professional /

Business Services N.A. Acquisition 100% Domestic

Sobha Developers Puravankara project: 16.69 Acres of Land

in Kochi Real Estate 55.25 Strategic Stake 50% Domestic

Embassy Office Parks - JV between

Embassy Group and Blackstone

Vrindavan TechVillage - 106 Acre

development Real Estate 330.68 Majority Stake 60% Domestic

Asian Paints Ltd Ess Ess Bathroom Products Pvt Ltd –

front end business Retail & Consumer N.A. Acquisition 100% Domestic

Groupe SEB Maharaja Whiteline Limited Retail & Consumer N.A. Increasing Stake to

100% 45% Inbound

Emperador Inc Whyte & Mackay Group - United Spirits Retail & Consumer 725.00 Acquisition 100% Inbound

OnMobile Systems Inc OnMobile Global Telecommunication 8.07 Increasing Stake to

43.46% 10%

Merger &

Internal

Restructuring

Synchronoss Technologies Inc Voxmobili SA - OnMobile Global Ltd Telecommunication 26.00 Acquisition 100% Inbound

Vodacom - Arm of Vodafone Neotel - Tata Communications Limited Telecommunication 455.25 Majority Stake 68% Inbound

Adani Ports and Special Economic

Zone - Adani Group

Dhamra Port Company Limited - JV

between L&T and Tata Steel Transport & Logistics 932.20 Acquisition 100% Domestic

I. M&A Deals


Investor Investee Sector % Stake US$ mn

International Finance Corporation Religare Enterprises Ltd Banking & Financial Services 7.9% 68.0

WestBridge Capital, Elevar Equity, Omidyar

Network and Saama Capital Vistaar Financial Services Pvt Ltd Banking & Financial Services N.A. 27.1

ChrysCapital City Union Bank Banking & Financial Services 4.1% 23.0

MicroVentures Investments Grameen Financial Services Pvt Ltd Banking & Financial Services N.A. 13.5

Accel Partners, Angel Investors LetsVenture Banking & Financial Services N.A. 0.7

Pearson Affordable Learning Fund Zaya Labs Education N.A. N.A.

KalaariCapital II and Lightbox Ventures Embibe - Indiavidual Learning Pvt Ltd Education N.A. 4.0

BanyanTree Growth Capital MT Educare Education 4.4% 2.8

Angel Investor Foradian Technologies Education N.A. 2.0

SAIF Partners and Helion Ventures Toppr - Haygot Education Private Limited Education N.A. 2.0

II. Private Equity



Abu Dhabi Investment Authority MT Educare Education 1.0% 0.7

GTI Capital and Equity International SAMHI Hotels Pvt Ltd Hospitality & Leisure N.A. 21.4

Angel Investor Zostel Pvt Ltd Hospitality & Leisure N.A. 1.0

Blume Venture Advisors; Gennext Ventures Covacsis Technologies Pvt Ltd IT & ITEs N.A. N.A.

Innosight Ventures, Cub Capital, Angel Investors Anchanto IT & ITEs N.A. N.A.

Angel Investor GetActive IT & ITEs N.A. N.A.

UnitusSeedFund Jiffstore IT & ITEs N.A. N.A.

UnitusSeedFund mGaadi IT & ITEs N.A. N.A.

Naspers Ltd.; Tiger Global Management; DST

Global; ICONIQ Capital Flipkart Private Limited IT & ITEs N.A. 210.0

Premji Invest, Temasek Holdings, BlackRock,

Myriad and Tybourne Snapdeal.com-Jasper Infotech Pvt Ltd IT & ITEs 10.0% 100.0

II. Private Equity



Axon Partners LLP iYogi Private Limited IT & ITEs N.A. 28.0

Unnamed Investors PolicyBazaar - eTechAces Marketing and

Consulting Pvt Ltd IT & ITEs N.A. 20.0

TigerGlobal LLC, Matrix Partners, Lightspeed AM Marketplaces - Limeroad IT & ITEs N.A. 15.0

Bertelsmann India Investments and Norwest

Venture PepperFry IT & ITEs N.A. 15.0

Apax Partners Persistent Systems Ltd IT & ITEs 1.5% 9.8

Apax Partners KPIT Technologies Ltd IT & ITEs 1.7% 9.0

Norwest Venture CRMnext IT & ITEs N.A. 7.1

Helion Private Limited RapidValue IT & ITEs N.A. 4.2

Nomura, Ernst & Young, Government of

Singapore, Jefferies and other HNI's BankerBay IT & ITEs N.A. 1.0

Qualcomm Ventures and Accel Partners Demach Software IT & ITEs N.A. 0.1

Qualcomm Ventures and Accel Partners Mavin Technologies IT & ITEs N.A. 0.1

II. Private Equity



KKR Archean Group Manufacturing N.A. N.A.

Angel Investor FilmySphere Media & Entertainment 3.0% 0.1

Warburg Pincus Laurus Labs Pvt Ltd Pharma, Healthcare & Biotech 25.0% 150.0

Olympus Capital and India Value Fund Advisors

(IVFA) Aster DM Healthcare Pharma, Healthcare & Biotech N.A. 60.0

Morgan Stanley Asia Strides Arcolab Pharma, Healthcare & Biotech N.A. 9.8

Macquarie Bank Strides Arcolab Pharma, Healthcare & Biotech N.A. 4.6

Helion Private Limited Today’s Healthcare India Pharma, Healthcare & Biotech N.A. 4.6

Angel Investor SkillBoost Professional / Business Services N.A. N.A.

Piramal Fund Management Satya Group - Gurgaon project Real Estate N.A. 16.9

MatrixPartners Chumbak Pvt Ltd Retail & Consumer N.A. N.A.

PremjiInvest Future Lifestyle Fashions Retail & Consumer 8.0% 21.2

Ascent Capital Maiya’s Beverages and Food Private Limited Retail & Consumer N.A. 16.9

II. Private Equity


Investor Investee Sector US$ mn

Unnamed Investors Muthoot Finance Ltd Banking & Financial Services 70.90

Unnamed Investors SKS Microfinance Limited Banking & Financial Services 68

Unnamed Investors YES Bank Banking & Financial Services 500

III. QIP

Company Issue Price Equity Offered Sector Capital Raised

INR mn Capital Raised

US$ mn

Wonderla Holidays Ltd 125 14,500,000 Hospitality & Leisure 1,813 29.23

GCM Capital Advisors Ltd 20 4,500,000 Banking & Financial Services 90 1.45

Women's Next Loungeries Ltd 65 1,000,000 Retail & Consumer 65 1.05

IV. IPO


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