1. 9 T H - 1 5 T H J U L Y 2 0 1 2
Private Equity Track
Research4India Weekly update on the Indian PE Sector
100.0 16
PE Activity for the week
14
 During the week ended 15th July, 2012, there
75.0 66.5 12
were 5 PE/VC deals worth $66.5mn compared
to 8 deals worth $4.1mn (size of 6 deals were 8 10
not disclosed), in the previous week. 50.0 8
 Out of the total, 2 were growth stage deals, 2 6
were PIPE deals and one was early stage deal. 25.0 4
5
 In the largest deal during the week, Carlyle 4.1 2
bought a 9.96% stake in the Hyderabad-based
0.0 0
IT firm Infotech Enterprises in the open market
for a total of Rs 2.1bn ($38mn). 8th July'12 15th July'12
PE Investments No. of Deals
PE Deals During The week
Stake Value
Investor (s) Target (%) ($mn) Stage Sector Industry Segment
Infotech Software &
Carlyle 10.0 38.0 PIPE Services IT/ITeS
Enterprises services
Fidelity Growth
Partners, Qualcomm Internet
Big Shoe Bazaar NA 18.0 Growth Services Retail
Ventures, NVP, Retail
Catamaran
SAIF Partners Blue Star 2.8 8.8 PIPE Manufacturing FMCG AC
Media &
Jungle Ventures, Mobikon Asia Digital
NA 1.7 Early Services Entertain
others Pte Ltd marketing
ment
Evolvence India Life Dr. Agarwal's Health
NA NA Growth Services Hospitals
Sciences Fund Healthcare Services
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. Private Equity Track
Carlyle buys 10% stake in Infotech Yebhi.com, has raised Rs 1bn ($18mn) in Series
Enterprises C funding, led by Fidelity Growth Partners India
and Qualcomm Ventures. Existing investors
US-based private equity firm Carlyle on
Wednesday bought a 9.96% stake in the Nexus Venture Partners and Catamaran also
participated in the round. Yebhi.com is an e-
Hyderabad-based IT firm Infotech Enterprises in
the open market at a price of Rs 190 a share, com site offering products across categories like
home, lifestyle & fashion and electronics. In
spending a total of Rs 2.1bn ($38mn). Three
institutional investors - Kotak India Fund, 2010, the company had received Rs 100mn in
Series A funding from Nexus Venture Partners.
American Funds Insurance and Small Cap World
Funds - were the key sellers of the holding This was followed by a second round of funding
of Rs 400mn last year, led by Catamaran
acquired by Carlyle. Infotech Enterprises is a
global engineering services company which Ventures.
provides engineering solutions, including Four-S Comment: Big Shoe Bazaar is planning
product development and life-cycle support, a huge push into the mobile commerce space
process, network and content engineering to and is set to create some unique M-commerce
major organizations worldwide and is platforms over the next 6 months. Online
headquartered in Hyderabad. Other major shopping is set to receive further boost with the
stakeholders in the company holding more than rapid rise of smartphones, tablets and social
10% include Carrier International Mauritius and media networks will greatly influence the way
GA Global Investments. people engage in online shopping. India's
current mobile subscriber base stands at 700mn
Four-S Comment: Private investment in public
subscribers and has been on a rapid growth.
equity (PIPE) is emerging as a hot spot for PE
investors. For PE investors, PIPEs tend to SAIF Partners buys additional stake in
become increasingly attractive in markets Blue Star
where control investments are harder to
SAIF Partners has bought 25 lakh shares of
execute. And India has always been one such
Blue Star Limited at a price of Rs 190 per share
market characterized by growth investments of
representing an investment of Rs 475mn
smaller size for minority stakes. It is more
($8.8mn) in the company and raising its stake
advantageous for a PE fund in India to have a
from 1.39% to 4.17%, an additional 2.78%
relatively liquid minority position in listed
stake purchase. A major seller in the stock was
companies than in unlisted companies. HDFC Standard Life Insurance Company. The
Moreover, investors are finding listed
PE firm had invested Rs 170mn in Blue Star
companies at increasingly attractive valuations earlier in June this year. Blue Star is a central
relative to unlisted firms. In addition, such
air-conditioning company with an annual
investments provide greater liquidity and easier turnover of Rs 27bn, a network of 29 offices, 7
exit options, which attract investors’ interest,
modern manufacturing facilities, over 1,600
especially in a market where traditional options dealers and around 2,800 employees. The
of exit, especially IPO market, has almost dried
company was planning last year to add one
up. In India, PIPE investments more than more unit to its existing 5 manufacturing units,
doubled in 2011 to $1.5 billion in 55 deals
with an investment of Rs 500-600mn by this
compared to $631 million in 30 deals a year year.
earlier (Four-S Research).
Mobikon raises $1.7mn from Jungle
Big Shoe Bazaar raises $18mn in Series C
Ventures, others
funding
Mobikon Asia Pte Ltd, a digital marketing
Online wholesale cash and carry company Big startup located in India and Singapore, has
Shoe Bazaar India Pvt. Ltd, the brand owner of
raised $1.7mn in a Series A round led by
Research4India 2

3. Private Equity Track
Singapore-based Jungle Ventures. Angel on investing and managing a number of quick
investors including Ravi Mantha, a member of service and casual dining restaurant chains.
the board of trustees at The Indus
Quadria Capital to raise healthcare fund
Entrepreneurs (TiE), and others also took part
in the round. The funds will be used for Quadria Capital and Investment Management is
expansion in India and across South-east Asia. planning to raise $300mn healthcare fund.
The company is opening new offices in Religare Global Asset Management has
Bangalore, Mumbai and Delhi, as well as in committed to invest $15-20mn and become the
Thailand, Indonesia and Australia. Jungle anchor investor in the fund. The plan is to raise
Ventures is a venture capital firm in Singapore one third of the funds in next 5 months and the
that provides early-stage investments and rest by end of 2013 from investors ranging
business-building infrastructure to startups from FIIs, fund of funds and HNIs. Quadria
across the Asia Pacific. The firm focuses on Capital Investment Management is an Asian
early-stage funding across Singapore, India and healthcare PE fund with offices in New Delhi and
the South-east Asia. Singapore. Its target investments include mid-
sized healthcare companies with half the funds
Evolvence Life Sciences invests in Dr. deployed in India and the rest in South and
Agarwal's Healthcare
Southeast Asia.
Life Sciences-focused private equity fund EILSF
(Evolvence India Life Sciences Fund) has Private Equity News
acquired a minority stake in Chennai-based Dr.
Agarwal's Healthcare, its second investment in Karbonn Mobile to raise PE investment
the healthcare services segment. Dr. Agarwal's
Karbonn Mobile is planning to raise Rs 10bn by
Eye Hospital is a comprehensive eye hospital,
diluting 15-20% stake to PE investors. It is
offering one stop solution for eye ailments.
planning to set up a manufacturing plant and
acquiring a Korean R&D firm. Karbonn Mobiles
Fund Raising & Liquidity Events will invest Rs 6bn in the mobile device
manufacturing plant in Chennai over 2013-14,
Bain raises $2.3bn for second Asia fund
for which land has been acquired. The balance
Bain Capital has completed fundraising for its of Rs 4bn will be used in acquiring the R&D
second Asia fund, closing at $2.3bn. Bain is centre based out of Korea, for which due-
offering investors three options on the fees it diligence was going on. As of now, all of
charges to manage the money they invest from Karbonn’s handsets, like for most domestic
its latest global fund, and the concept was first players, are imported largely from China and
tested on its second Asia fund. Bain offered Taiwan while the designing is done in India.
Bain Capital Asia Fund II investors the option of
Alliance Dental to raise funds for
either a 2% management fee and a 20%
expansion
carried interest with a 7% hurdle rate, or 1%
management fee and 30% carried interest with Alliance Dental Care is planning to raise Rs
a 10% hurdle rate. Bain's first Asian fund raised 300mn through PE route. The funds will be
$1bn but the firm has invested $4.4bn in total utilized for expansion of the dental-care chain.
so far in the Asian region. The company is in talk with two domestic PE
players which are interested in healthcare
SAIF Partners floats $18mn restaurant
space. Alliance Dental Care, a subsidiary of
investment vehicle
Alliance Medicorp, is engaged in the business of
SAIF Partners (which invested in Mainland running dental clinics. Alliance Medicorp is a JV
China in 2007 and made a killing on their between Apollo Hospital and medical technology
investment during their IPO a month ago) has company-Trivitron Healthcare. Currently, Apollo
announced a Rs 1bn investment vehicle focused Hospital holds around 70% stake and Trivitron
Research4India 3

4. Private Equity Track
Healthcare holds the rest. This February, institutional placement, has sold 4.45 million
Alliance Dental rebranded its dental care shares or 5.7% stake. SKS Microfinance opened
business to 'White Dental Care'. a QIP on July 12 at a share price of Rs 75.40.
The deal would increase the stake held by
Omshakthy planning to raise PE funds for
new projects WestBridge in SKS Microfinance to
approximately 12.5%, making it one of the
Omshakthy Agencies (Madras) Pvt Ltd. is largest shareholders in the company.
planning to raise Rs 1.5bn through PE
investments for its proposed project at Avantha Power revives plan to raise Rs 10-
Tirumudivakkam near Chennai. The fund raised 15bn through IPO
would comprise half the amount of initial
investment of Rs 3bn. The company had Avantha Power and Infrastructure is planning to
entered into a 50:50 JV last year in Oct. with revive plans to hit the capital market with an
Fire Capital to develop residential projects and initial public offer (IPO) to raise Rs 10-15bn,
townships in and around Chennai named after having failed in its first attempt about two
Omshakthy FIRE Realty Pvt. Ltd. The company years ago. Avantha Power & Infrastructure has
has acquired more than 4,000 acres of land 191 MW of operational thermal power capacity,
since its inception in 1991, and currently has a 2,460 MW of generating capacity under various
land bank of around 250 acre distributed across stages of implementation and 1,320 MW of
various locations. generating capacity under planning. Global
private equity giant KKR has invested in the
Blackstone to acquire Embassy Property's
company. Avantha Power had filed draft IPO
office portfolio
documents with SEBI way back in March 2010
Blackstone Group is set to acquire 36% stake in and the regulator gave its go-ahead a few
the tenanted office space portfolio of Embassy months later in August that year for the public
Property Developments Limited for $230mn. offer. While the company had firmed up its
Embassy would be demerging the FDI plans to hit the market in October, adverse
complaint office buildings in which the PE firm market conditions forced it to postpone the IPO.
will acquire a significant minority stake. The
transaction values Embassy's new holding Fitch assigns grade 4 to Rashtriya Ispat
company for office buildings at $900mn after Nigam IPO
rolling over Blackstone's earlier investment in
Fitch Ratings has assigned 'Fitch 4(ind)' grade
one of the projects. Embassy had shelved a
to Rashtriya Ispat Nigam Ltd's proposed Initial
$500mn IPO last year on account of sluggish
Public Offering out of a maximum of 'Fitch
stock market. It had entered into a Rs 56bn JV
5(ind)'. The grade indicates above-average
with MK Land Holding, a Malysian realty
fundamentals of the issue relative to other
company and had set a Rs 60bn capex for new
listed equity securities in India. The grading
projects in next 3 years in November 2010.
reflects RINL's position as one of India's largest
producers of long product steel, the favourable
IPO, Other Offerings
medium-to-long-term demand outlook for its
products - driven by increasing infrastructure
SKS Microfinance opens QIP
spend and a healthy balance sheet. The
SKS Microfinance Ltd is raising Rs 335.5mn company was conferred 'Navratna' status by
through a preferential allotment to a fund GoI in November, 2010, which provides a
managed by the existing investor WestBridge certain degree of operational and financial
Capital Partners. SKS Microfinance, which is autonomy.
also mobilising funds through a qualified
Research4India 4

5. Private Equity Track
M&A Activity for the Week
During the week ended 15th July, 2012, there were 11 M&A deals worth
$258.1mn (size of 6 deals were not known). In the largest deal during the week,
Sutherland Global Services is acquiring Apollo Health Street, a health care BPO
arm of Apollo Hospitals for Rs 8.75bn ($157mn).
Stake Deal value
Acquiror Target Sector (%) ($ mn)
Sutherland Global Services Apollo Health Street IT/ITeS 100 157.4
Tube Investments of India Shanthi Gears Manufacturing NA 52.5
CHD Developers Empire Realtech Real estate NA 18.0
Providence Educational Academy Myra Mall Management Company Real estate 100 17.6
Cosme Farma Laboratories - some
Adcock Ingram Healthcare Healthcare NA 12.7
assets
KPIT Sankalp Semiconductor Private IT/ITeS NA NA
Parker Hannifin Corporation John Fowler (India) - filtration biz Manufacturing NA NA
Solving Efeso Q-Spread IT/ITeS NA NA
InMobi MMTG Labs Media & Entertainment 100 NA
Genpact Triumph Engineering IT/ITeS NA NA
Tamco Switchgear Henikwon Corporation Manufacturing NA NA
Source: Four-S PE Database
Market Update
Key Domestic Indices
Indian Market Movements 52 Week
Index 6-Jul-12 13-Jul-12 Change (%) High Low
BSE Sensex 17,521.12 17,213.70 -1.79% 19,619.65 15,135.86
S&P CNX Nifty 5,316.95 5,227.25 -1.72% 5,740.40 5,263.35
CNX Nifty Junior 10,334.65 10,185.95 -1.46% 11,526.10 10,102.75
Nifty Mid Cap 50 2,190.35 2,147.75 -1.98% 2,515.70 2,137.95
CNX IT 6,027.25 5,713.90 -5.48% 6,835.25 6,114.75
Bank Nifty 10,655.35 10,594.45 -0.57% 11,451.25 10,303.65
CNX Infrastructure 2,471.05 2,424.95 -1.90% 3,191.60 2,415.10
CNX Realty 233.05 230.90 -0.93% 302.20 222.75
Key Global Indices
Global Market Movements 52 Week
Index 6-Jul-12 13-Jul-12 Change (%) High Low
NASDAQ 2,937.33 2,908.47 -0.99% 3,134.17 2,298.89
Dow Jones Industrial Average 12,772.47 12,777.09 0.04% 13,338.66 10,404.49
S&P 500 1,354.68 1,356.78 0.15% 1,422.38 1,074.77
NIKKEI 225 8,896.88 8,724.12 -1.98% 10,255.20 8,135.79
Hang Seng 19,800.64 19,092.63 -3.71% 22,835.03 16,250.27
Straits Times Index 2,937.56 2,995.56 1.94% 3,227.28 2,521.95
FTSE 100 5,662.63 5,666.13 0.06% 6,084.08 4,791.01
Source: Google Finance, Yahoo finance
Research4India 5

6. Private Equity Track
Four-S Services Pvt Ltd
Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and
objective advice to top Indian & global companies & PE Firms. Four-S has already proven
success in corporate finance, strategy consulting, fund-raising, investment banking and
investor relations mandates with 100+ corporates and large PE funds.
Four-S, trusted advisor to top Indian & Global Cos
Offering comprehensive bouquet of services to SMEs, Corporates and PE Funds
Research4India 6

7. Private Equity Track
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 www.research4india.com, 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 Ajay Jindal
Seema@four-s.com Ajay.jindal@four-s.com
Gurgaon Office: Mumbai Office:
214, Udyog Vihar, Phase I, 101,Nirman Kendra, Opposite Star TV,
Gurgaon – 122016 Off Dr E Moses Road, Mahalaxmi,
Tel: +91-124-4251442 Mumbai – 400001
Tel: +91-22-42153659
Research4India 7