Private equity investment in India in February 2010 grew more than 33% as compared to the same period last year. Deal value was $455 million in the second month of 2010 as against $346 million in February 2009. Deal volume, was virtually unchanged with 26 deals recorded in February 2010, one more than the 25 deals witnessed in February 2009. There was a certain degree of momentum that had been witnessed in the second half of 2009 with $2.8 billion worth of deals as compared to $2 billion in the first half. This continued on a month on month basis in 2010 with deal value in February 2010, 10% higher than that in January 2010, but substantially lower than December 2009.

1. A RESEARCH PUBLICATION | February 2010
MONTHLY DEAL UPDATE
Feb ’10 Statistics and analysis of Private Equity, Venture Capital
and Mergers & Acquisitions in India

2. Contents
Page Number
I. Executive Summary 1
II. Private Equity Deal Flow
- Introduction 2
- Deal Breakdown 3
- Sectoral Breakdown 5
- Deal of the Month 6
- Top 5 Private Equity Deals 7
III. Private Equity Exits 8
IV. M&A Round Up
- Introduction 9
- Deal Breakdown 10
- Sectoral Breakdown 12
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- Deal of the Month 13
B-128, First Floor, Sector 5, Noida - Top 5 M&A deals 14
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Tel: +91-120-4171111
Email Id: sales@vccedge.com V. Appendix 15
COPYRIGHT © 2010 All rights reserved.

3. MONTHLY REPORT
EXECUTIVE SUMMARY
• Private equity investment in India in February 2010 grew more than 33% as compared to the same period last year. Private
equity firms invested a total of $455 million as against $346 million in February 2009. The total volume of private equity deals
was 26, just one deal more than the 25 deals witnessed in February 2009.
• M&A activity in India saw substantial growth on a month on month basis. The total value of deals was $2,317 million in
February 2010 as against $162 million in February 2009. In terms of volume, total number of M&A deals increased more than
80% from 28 deals in February 2009 to 51 deals in February 2010.
• The largest private equity deal in February 2010 was Tikona Digital Network, that raised $107 million by selling 70% stake to
Goldman Sachs, Indivision India Partners and Oak India Investments. Tower Vision raised $300 million from a consortium led by
Quadrangle, however the equity portion is unclear hence has not been included in our report.
• The environment for private exits too has clearly improved with a sharp rise in February 2010 which saw 10 exits worth $475
million as against only 3 exits each In February 2009 and February 2008. The major exits of the month were:
- the $323 million exit by Siva Ventures from Aamby Valley Ltd.
- the $62 million exit by Nalanda Capital from Sun TV Network.
There is clearly an increase in deal activity in 2010.
There is clearly an increase in deal activity in 2010.
However, India will require much more confidence, risk appetite and the urge to grow rapidly before ititcan get
However, India will require much more confidence, risk appetite and the urge to grow rapidly before can get
back to the peak levels of 2007 and even 2008.
back to the peak levels of 2007 and even 2008.
1

4. PRIVATE EQUITY
INTRODUCTION
Private equity investment in India in February 2010 grew more A look at monthly numbers reveals that four months in 2009 –
than 33% as compared to the same period last year. Deal value June, July, September and December had deal values greater
was $455 million in the second month of 2010 as against $346 than that in February 2010.
million in February 2009. Deal volume, was virtually unchanged
with 26 deals recorded in February 2010, one more than the 25
deals witnessed in February 2009. In terms of deal value, monthly deal activity began with aaslow
In terms of deal value, monthly deal activity began with slow
momentum in Nov ’09 and accelerated in Dec ’09 to reach $586
momentum in Nov ’09 and accelerated in Dec ’09 to reach $586
There was a certain degree of momentum that had been million. However, this pace could not be maintained in 2010 and
million. However, this pace could not be maintained in 2010 and
witnessed in the second half of 2009 with $2.8 billion worth of deal activity in January was recorded lower at $410 million.
deal activity in January was recorded lower at $410 million.
deals as compared to $2 billion in the first half. This continued on a There was an upswing in Feb ‘10 with deal value 10% higher at
There was an upswing in Feb ‘10 with deal value 10% higher at
month on month basis in 2010 with deal value in February 2010, $455 million.
$455 million.
10% higher than that in January 2010, but substantially lower than
December 2009.
Exhibit 1: Month Wise Private Equity Trend
Deal Value ($ Mn)
Deal Volume
(Source: VCCEdge) 2

5. PRIVATE EQUITY
DEAL BREAKDOWN Exhibit 2: Private Equity Breakdown
With the global private equity markets shrinking, investors
have turned away from angel and venture capital deals in
general – and India is no exception.
The total number of VC investments announced during Feb ’10
stands at 3 with an announced value of $11 million as against 8
deals with a total announced value of $31.1 million in Feb ’09
and 11 deals amounting to $135.8 million in Feb ’08.
$145Mn $139Mn $537Mn $2029Mn $346Mn $455Mn
Exhibit 3:Median Deal Amount breakdown
(Source: VCCEdge)
Exhibit 4: Average deal size in ($million)
(Source: VCCEdge)
The median deal value in Feb ’10 declined to $10 million as
the volume of larger deals (particularly deals > $100 million)
declined.
(Source: VCCEdge)
3

6. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 5: Number of transactions by Deal Size Exhibit 6: Total investment by Deal Size
Private equity deals under $100 million continued their upward Larger deals ($ 100 million and above) accounted for 76% of total
trend, accounting for 95% of total deal flow in Feb ’10. capital invested in Feb ’10.
Feb'05 Feb'06 Feb'07 Feb'08 Feb'09 Feb'10 Feb'05 Feb'06 Feb'07 Feb'08 Feb'09 Feb'10
Undisclosed 2 9 7 13 4 7 Under $ 5m 17 7 8 10 21 2
Under $ 5m 6 3 5 4 9 1 $5 - $25 m 23 133 77 108 94 158
$5 - $25 m 2 11 7 9 9 13 $25-$50 m 56 - 97 186 71 83
$25-$50 m 2 - 3 6 2 2
$50 -$100 m 50 - 106 - - 104
$50 -$100 m 1 - 2 - - 2
$100+ - - 2 8 1 1 $100+ - - 250 1727 161 107
(Source: VCCEdge)
(Source: VCCEdge) 4

7. PRIVATE EQUITY
SECTORAL BREAKDOWN
Exhibit 7: Top 5 Sectors by Deal Value in Feb’ 10 ($mn)
Major PE investments influencing the deal values of these sectors
were investments in Tikona Digital Networks, Ambit Corporate
Finance, Integreon, Manipal Universal Learning and Multi Commodity
Exchange of India. The other sectors, which have significantly
contributed to private equity deal value in Feb ’10, are IT/IT Services
and Real Estate accounting for 21% of total deal value.
Exhibit 8: Top 5 Sectors by Deal Volume for the month Feb’ 10
(Source: VCCEdge)
Banking, Finance & Insurance, Telecom and Education were the
most targeted sectors for investment with deals worth $125
million, $107 million and $53 million respectively. Together, they
accounted for more than 62% of total private equity deal value
during the month.
Sno. Sector Value ($Mn) Volume Avg Deal Size* (Source: VCCEdge)
1 Banking, Finance & The most active sectors in terms of deal volume were Banking,
Insurance 125 6 31 Finance & Insurance with 6 deals in the month, followed by IT/IT
2 Telecom 107 2 107 Services and Real Estate with 4 deals each. Other sectors
3 Education 53 2 27 contributing to the deal volume were Telecom and Education
4 IT/IT Services 50 4 50 accounting for 2 deals each. As seen in Feb ’09, Feb ’10 also saw a
large number of deals in IT/IT Services .
5 Real Estate 50 4 17
*based on disclosed deal values
5

8. PRIVATE EQUITY
DEAL OF THE MONTH
Target : Tikona Digital Networks Pvt. Ltd. Announced : 10-Feb-10
Indivision India Partners, Oak Investment Partners,
Buyer : Deal Value ($ mn): 107.1
Goldman Sachs
Industry : Telecom Deal Feature : Co investing
(Source: VCCEdge)
Tikona Digital Networks, the wireless Internet broadband The broadband service provider will use the funds to expand its
service provider, raised $107.1 million (INR 500 crores) from network coverage to 50 cities by 2010 from the current 10 cities
three PE investors by selling a 70% stake. The investors include it has operations in.
Goldman Sachs, Indivision India Partners and Oak India
Investments. The company is also looking at raising additional funds of up to
INR 1200 crore by 2011 and has already submitted its proposal to
Tikona Digital Networks (TDN) designs and develops wireless the Foreign investment and promotion board (FIPB) to raise
broadband services for home and enterprise customers in India. Foreign Direct Investment (FDI).
TDN provides edge voice, video, IT applications and multimedia
content services over any broadband or IP centric network.
Tikona is engaged in building the next generation wireless
broadband services for home and enterprise customers in India.
It has an all India class A ISP license granted by the Ministry of
Communications, Govt. of India, for this purpose. The company
was founded in 2008 by Rajesh Tiwari and Prakash Bajpai.
6

9. PRIVATE EQUITY
Exhibit 9: Top Private Equity deals in Feb ‘10
S.No. Industry Target Buyer PE Type Deal Value ($ mn)
Indivision India Partners,
1 Telecom Tikona Digital Networks Pvt. Ltd. Oak Investment Partners, Private Equity 107
Goldman Sachs
Banking, Finance,
2 Insurance Ambit Corporate Finance Pte. Ltd. QInvest LLC Private Equity 54
3 IT/IT Services Integreon Managed Solutions, Inc Actis LLP Private Equity 50
4 Education Manipal Universal Learning Pvt. Ltd. PremjiInvest Fund Private Equity 43
Banking, Finance, Multi Commodity Exchange of India Ashmore Investment
5 Insurance Ltd. Management Ltd. Private Equity 40
(Source: VCCEdge)
TOP 5 PRIVATE EQUITY DEALS
The largest deal by value was Tikona Digital Networks which
raised INR 500 crore from Goldman Sachs, Indivision India
Partners and Oak India Investments by selling a 70% stake. The top 5 PE deals accounted for more than 63%
of the total private equity deals in Feb ’10. In
This was followed by the investment made by Qinvest LLC in Feb ’09, the top 5 deals had accounted for more
Ambit Corporate Finance Pte. Ltd. and Actis LLP’s investment in
than 76% total value for the month.
Integreon Managed Solutions, Inc .
The Top 5 deals occurred across various sectors.
7

10. PRIVATE EQUITY
PRIVATE EQUITY EXITS
Exhibit 10: Top Private Equity Exits in Feb ’10
S.No. Sector Target Buyer Exit Type Deal Value ($ mn)
1 Real Estate Aamby Valley Ltd. Siva Ventures Ltd. Buyback 323
2 Media & Entertainment Sun TV Network Ltd. Nalanda India Fund Open Market 61
Media & Entertainment Hathway Cable & Datacom ChrysCapital & Morgan
3 Limited Stanley India IPO 40
4 Logistics SpiceJet Ltd. Istithmar World Capital Open Market 36
5 Logistics Pipavav Shipyard Ltd. 2i Capital PCC Open Market 21
(Source: VCCEdge)
The month of Feb ‘10 saw 10 exits worth $475
million. In comparison there were only 3 exits
each In Feb ’09 and Feb ’08.
Exhibit 11: Private Equity Exits in Feb’ 10
(Source: VCCEdge)
8

11. MERGERS & ACQUISITION
INTRODUCTION
M&A deal value during February 2010 stood at $2,317 million, A look at monthly numbers reveals that two months in 2009 –
13 times the same period last year. Deal count also witnessed March and December had deal values greater than that in
an upward trend and increased by 82% to 51 deals in February February 2010.
2010, as compared to 28 deals witnessed during February 2009.
There was a certain degree of momentum that had been In terms of deal value, the monthly deal activity began with aa
In terms of deal value, the monthly deal activity began with
witnessed in the second half of 2009 with $8.4 billion worth of slow momentum in Nov ’09, accelerated in Dec ’09 to reach
slow momentum in Nov ’09, accelerated in Dec ’09 to reach
deals as compared to $6.6 billion in the first half. However on a $2,991 million. However, this pace could not be maintained in
$2,991 million. However, this pace could not be maintained in
month on month basis deal value in February 2010 was 2010 and deal activity recorded aa dipin Jan ’10 & Feb ’10 with
2010 and deal activity recorded dip in Jan ’10 & Feb ’10 with
substantially lower than that in Jan ’10 and Dec ’09. deals worth $2,816 million and $2,317 million respectively.
deals worth $2,816 million and $2,317 million respectively.
Exhibit 12: Month Wise M&A Trend
Deal Value ($ Mn)
Deal Volume
(Source: VCCEdge)
9

12. MERGERS & ACQUISITION
DEAL BREAKDOWN
Exhibit 13: M&A Breakdown
The number of domestic deals increased from 18 and 8 in Feb
’08 & Feb ’09 respectively to 23 in Feb ’10. The value of
domestic deals was $980 million in Feb ’10 compared to $4
million in Feb ’09.
In terms of volume, the number of outbound deals more than
doubled from 8 in Feb ’09 to 18 in Feb ’10.
The number of inbound deals was virtually unchanged with 8
deals in Feb ’10, one less than the 9 deals witnessed in Feb ‘09.
Exhibit 14:Median Deal Amount breakdown
$395Mn $443Mn $19,237Mn $2,689Mn $162Mn $2,317Mn
(Source: VCCEdge)
Exhibit 15: Average deal size in ($million)
(Source: VCCEdge)
The median deal value in Feb ’10 increased to $22 million as
the volume of larger deals increased.
(Source: VCCEdge)
10

13. MERGERS & ACQUISITION
DEAL BREAKDOWN
Exhibit 16: Number of transactions by Deal Size Exhibit 17: Total M&A volume by Deal Size
M&A deals under $100 million showed an upward trend, Larger deals ($ 100 million and above) continued their dominance
accounting for more than 80% of deal flow in Feb ’10. accounting for 72% of total capital invested in Feb ’10.
Feb'05 Feb'06 Feb'07 Feb'08 Feb'09 Feb'10 Feb'05 Feb'06 Feb'07 Feb'08 Feb'09 Feb'10
Undisclosed 7 6 12 21 17 23 Under $ 5m 8 13 6 10 13 10
Under $ 5m 5 4 4 4 7 5 $5 - $25 m 22 50 96 99 5 136
$5 - $25 m 2 3 8 7 1 10 $25-$50 m 57 112 78 258 68 197
$25-$50 m 2 3 2 7 2 5
$50 -$100 m - - - 121 76 249
$50 -$100 m - - - 2 1 3
$100+ 1 2 7 1 - 5 $100+ 309 267 19056 2200 - 1724
(Source: VCCEdge)
(Source: VCCEdge) 11

14. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
The major transactions influencing the deal values of these sectors
were transactions in Essar Telecom Infrastructure, Unitech Wireless
Ltd. and Equipav SA Acucare amongst others. Other sectors, which
have significantly contributed to M&A deal value in Feb ’10, are
Manufacturing and Banking, Finance & Insurance, both accounting
for 21% of total deal value.
Exhibit 18: Top 5 Sectors by Deal Value for the month Feb’ 10 ($mn)
(Source: VCCEdge)
Telecom, Agriculture and Real Estate were the most targeted sectors
for investment with deals worth $867 million, $358 million and $323
million respectively. Together, they accounted for more than 65% of
total private equity deal value during the month. Exhibit 19: Top 5 Sectors by Deal Volume for the month Feb ’10
(Source: VCCEdge)
Snos. Sector Value ($Mn) Volume Avg Deal Size *
The most active sectors in terms of deal volume was
1 Telecom 867 4 289
Manufacturing with 11 deals in the month. Followed by Telecom,
2 Agriculture 358 4 119 Agriculture and Banking, Finance & Insurance with 4 deals each in
2 Real Estate 323 2 323 Feb ’10. Other sector contributing significantly to deal volume Real
4 Manufacturing 262 11 37 Estate accounting for 2 deals . As seen in Jan ’09, Jan ’10 also saw
a large number of deals in Manufacturing.
5 Banking, Finance & 243 4 121
Insurance
*based on disclosed deal values
12

15. MERGERS & ACQUISITION
DEAL OF THE MONTH
Target : Unitech Wireless Ltd. Announced : 10-Feb-2010
Buyer : Telenor ASA Deal Value ($ mn): 433.4
(Source: VCCEdge)
Industry : Telecom Deal Feature : Strategic Investment
(Source: VCCEdge)
Telenor, a Norway-headquartered telecom major, hiked its Unitech Wireless was founded in 2008 and is based in New
stake in Unitech Wireless, with an investment of $433.4 million Delhi. With this fresh round of funding, Telenor’s total
(INR 2,022 crore). Post this transaction, the investors stake has investment in Uninor stands at INR 6,135 crore. This is the
increased to 67.25% from the 60.1% held earlier. fourth and final tranche by Telenor into the firm.
Unitech Wireless is a joint venture company of real estate firm
Unitech Ltd and Nordic telecom giant Telenor Group. It
launched its India operation across eight circles initially, under
the brand name Uninor. The eight circles include Tamil Nadu,
Kerala, Karnataka, Andhra Pradesh, Uttar Pradesh East, Uttar
Pradesh West and Bihar.
.
13

16. MERGERS & ACQUISITION
Exhibit 20: Top M&A deal in Feb ’10
Snos
. Sector Target Buyer M&A Type Value
1 Telecom Unitech Wireless Ltd. Telenor ASA Inbound 433.4
Essar Telecom Transcend Infrastructure Ltd. Domestic 433
Infrastructure Pvt.
2 Telecom Ltd.
3 Agriculture Equipav SA Acucare Alcool Shree Renuka Sugars Ltd. Outbound 334.7
(Source: VCCEdge)
Sahara India Commercial Domestic 323
T4 5 M&A DEALS
OP Real Estate Aamby Valley Ltd. Corp. Ltd.
Banking, Finance, Religare Enterprises Ltd. Outbound 200
5 Insurance Northgate Capital LLC
The largest deal by value was Telenor ASA acquisition of a 7.15%
stake in Unitech Wireless Ltd. for a price of $433.4 million. This
was followed by, Transend Infrastruture’s $433 million buyout The top 5 M&A deals accounted for more than
of Essar Telecom Infrastructure and Shree Renuka Sugars’ 71% of the total M&A deals in Feb ’10. In Feb
acquisition of a 51% stake in Equipav SA Acucare Alcool for a ’09, top 5 deals accounted for more than 94%
price of $334 million.
of total value for the month.
Top deals have occurred across various sectors. Two of the top
five deals were in the Telecom sector.
14

17. APPENDIX
MOST ACTIVE INVESTMENT BANKS AND LAW FIRMS
Active Investment Banks in 2010 Active Law Firms in 2010
Motilal Oswal Investment Advisors Pvt. Ltd. AZB & Partners
SBI Capital Markets Limited Desai & Diwanji
Angermann M&A International GmbH Indus G&D Law
Banco Itau BBA SA Khaitan & Company
Blend Financial Services Ltd. Lexygen
Enam Securities Pvt. Ltd. Nishith Desai Associates
Equirus Capital Pvt. Ltd. Rajani Associates
Ernst & Young Pvt. Ltd. Allen & Overy LLP
Grant Thornton ALMT Legal
ICICI Securities Ltd. Argus Partners
IL&FS Financial Services Ltd. Davis Polk & Wardwell LLP
Jefferies India Pvt. Ltd. Goodwin Procter LLP
Kalozal Consultants Pvt. Ltd. MMB Legal
Kotak Investment Banking Naik Naik & Co.
Mape Advisory Group Pvt. Ltd. Reed Smith Richards Butler LLP
Marks Baughan & Co, LLC Tatva Legal
Merrill Lynch & Co. Inc. Vaish Associates
o3 Capital Global Advisory Pvt. Ltd. Sand Hill Counsel
Singhi Advisors Limited
Viedea Capital Advisors Pvt. Ltd.
Yes Bank Ltd.
15

18. Deals
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equity and venture capital deals in India starting
from 2005 with detailed transaction information.
Companies
VCCEdge contains more than 10,000 companies
searchable on various parameters including industry
and geography.
Directories
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capital funds, investment banks and law firms active
in India with details of their transactions.
Intelligence
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the market using its innovative tracking tool.
VCCEdge is an online financial research Call +91-120-4171111 or
platform brought to you by The Email sales@vccedge.com
VCCircle Network.