Deal Data Analytics

Quarterly Transaction Roundup

Q4 FY10

DEALCURRY
DEALCURRY Deal Data Analytics

Table Of Contents
M&A Deal Flow Overview......................................... 3

M&A Deal Details .................................................... 4

M&A Deal Flow By Industry ................................... 5

Top 10 M&A Deals Q4 FY10.................................... 6

Private Equity Deal Flow Overview........................... 7

Private Equity Deal Details....................................... 8

Private Equity Deal Flow By Industry...................... 9

Top 10 PE Deals Q4 Fy10........................................ 10

Most Active Private Equity Inverstors....................... 11

Private Equity Exits Details...................................... 12

Fundraising Activity.................................................. 13

About DealCurry....................................................... 14

1 www.DealCurry.com
DEALCURRY Deal Data Analytics

M & A Deal Flow

M&A Deal Round up – Jan-Feb 2010
Expectations for 2010
India M&A Deal Flow - FY10
Although the number of domestic deals currently
outweigh the number of inbound and outbound
deals individually, overall we have seen more
cross-border deals as against domestic
completed M&A transactions in terms of number
of deals.

According to DealCurry's discussion with

Investment Bankers, going forward corporate
India will see sharp rise in the number of cross
border transactions.
The first three months of 2010 saw a total of 100
Of the total 71 announced deals, 46 are domestic
completed M&A deals worth $6.38bn. Telecom
transactions where as 6 are Inbound and 18 are
was clearly the flavor of the quarter with the top 3
Outbound transactions. Many companies in the
deals. It was led by GTL Infrastructure's purchase
BFSI space are looking for buyers. Promoters of
of Tower assets of Aircel Ltd for $1.8bn, Telenor's
ICEX and MCX-SX are looking for buyers to
purchase of additional stake in Unitech Wireless
comply with regulatory requirements and
for $1.03bn and Transcend Infrastructure's
Reliance Capital is looking for a buyer for its
acquisition of Essar Telecom's tower business for
Mutual fund arm, RCAM.
$450mn.

On the other hand, Technology companies like

At the same time, the total number of M&A deals
announced during the quarter is 71 having a
combined value of at least $5.69bn.
This is led by RIL's announcement of acquisition
of Value Creation Inc for $2bn and Fortis'
proposed 24% stake acquisition of Parkway
Hospitals for $685 mn. In terms of sectoral
preference, on M&A front, Technology, Telecom
and Basic Industries (largely in the Metals and
Manufacturing space) saw most number of deals.
Zylog Systems, Zensar Technologies and
GlobalLogic have announced that they are
looking for acquisitions (domestic as well as
outbound), specifically companies in remote
infrastructure management space having annuity
projects in hand. Engineering giant BHEL is also
looking at companies in US & UK in ultra super
critical technologies to compete with Chinese
companies who are coming up with cheaper
equipments.

2 www.DealCurry.com
DEALCURRY Average Deal Size for Fy10
The average deal size of $58 mn in Q4 FY10 is
skewed by GTL Infra Aircel Towers deal of
$1.8bn. Excluding that, the average deal size for
the quarter was $40 mn. During Jan-Feb 2010,
Telenor's investment in Unitech was a major
contributor and Transcend's Essar tower
investment being the highest in Mar 2010.
Percent of M&A Transaction (Count) by Deal Size
M&A deals in the lower and middle market (under
$500 mn) continued to grow accounting for
almost 58% of the total number of deals
(including deals with undisclosed values) in the
past three months. The smaller number of deals
is largely dominated by BFSI deals in the
Banking, Mutual Fund and Trading platform
space. Also, there are more than a dozen
Technology deals in the less than $100 mn space.
3 www.DealCurry.com
Deal Data Analytics
Deal Activity by Geography (Count)
The proportion of cross-border deals (Inbound
plus Outbound) as against Domestic M&A deals
have been 50% of the total number of deals in
last quarter as more and more Technology
companies have started looking out for
acquisitions along with Commodity companies
who are also looking at mining assets abroad to
fulfill their raw material requirements.
Percent of M&A Transaction (Value) by Deal Size
Apart from 2 large completed deals (Aircel GTL
Infra & Unitech Telenor investment) and 1 large
announced deal (RIL Value Creation Inc which is
now off), there were no major big ticket deals in
the last 3 months. However, there are a few fairly
large sized deal rumours (Genpact acquiring
Intelenet and Godrej Sara Lee's Megasari
Makmur).
DEALCURRY Technology
Deal Data Analytics

Technology emerged as the most active sector for

M&A Transactions in this quarter. Most transactions
were small i.e. less than $50mn. The largest was of
Zylog Systems acquiring Brainhunter Inc., a
software engineering contractor based in Canada,
for $35mn. In an inbound transaction, Qualcomm
bought the Handset User Interface Software
developed by Mango Technologies.

Telecom
The telecom sector has seen a lot of corporate
activity in the past year due to thirst for capital in
new telecom companies and consolidation in the
tower business. The largest telecom M&A deal
happened when Aircel decided to sell its telecom
towers infrastructure to GTL Infrastructure for
$1.8bn. Unitech Wireless received its third and
fourth round of funding in this quarter from Telenor,
totaling to $786mn.There were also two small ticket
acquisitions in the mobile VAS space.

Basic Industires
Basic Industries traditionally sees most number of
M&A transactions in a given period. This is due to
many commodity producers trying to acquire
captive assets aboard. This trend is more prominent
in steel and coke manufacturers. This quarter
however the number of completed deals has been
low. NMDC acquired the Ferrous Resources'
Brazilian operations. Essar Group bought US-based
Trinity Coal for $600mn from Denham Capital.

4 www.DealCurry.com
DEALCURRY Deal Data Analytics

Top Ten M & A Deals for FY 2010

Date Transact ion_Name Buyer Seller Target Asset Sector Sub sector Size

1/12/2010 Aircel Towers-GTL GTL infrastructure Ltd. Aircel Limited Aircel Tower Business Telecom Telecom 1800
Infra Infrastructure

2/24/2010 Essar Telecom- Transcend Infrastructure Ltd. Essar Securities Essar Telecom Telecom Telecom 450
Transcend Ltd Infrastructure Pvt. Infrastructure
Infrastructure Ltd.

3/9/2010 Tata Motors- Daimler AG Tata Motors Ltd. Auto Automobile 429
Daimler- Exit Manufacturer
-

2/10/2010 Unitech Wireless - Telenor ASA Unitech Unitech Wireless Ltd. Telecom Wireless 424
Telenor (IV Round) Wireless Ltd. Services

1/8/2010 Unitech Wireless- Telenor ASA Unitech Unitech Wireless Ltd. Telecom Wireless 362
Telenor (III Round) Wireless Ltd. Services

2/22/2010 Equipav Acucar- Shree Renuka Sugars Ltd. Equipav S.A. Equipav S.A. Acucar Agro Sugar 329
Renuka Sugars Acucar E Alcool E Alcool

3/18/2010 21st Century- Quippo Telecom Tata 21st Century Infra Telecom Telecom 290
Quippo-WTTIL Infrastructure Ltd. Teleservices Tele Limited. Infrastructure
(Maharashtra)
Ltd.
1/7/2010 Unitech Wireless - Telenor ASA Unitech Unitech Wireless Ltd. Telecom Wireless 247.2
Telenor(II Round) Wireless Ltd. Services

2/23/2010 Northgate - Religare Religare Enterprises Ltd. Northgate LLC BFSI FUN DS 200
Enterprises
-

2/5/2010 Vodafone Essar - Vodafone Mauritius Ltd Telecom Wireless 187

Vodafone Plc Services
- -

5 www.DealCurry.com
DEALCURRY Deal Data Analytics

PE & VC Deal Flow

India PE Deal Flow - FY 2010
Interestingly, action on the Outsourcing
industry's front has been limited to just 2 small
ticket completed deals and another 2 small ticket
announced deals. Several investors (mainly PE
firms) in this sector are looking for exit since last
6 months, but no deal has been struck yet.
Warbug Pincus and Nalanda India Fund are
looking to exit WNS Global, while PE investors in
Outsourcing Partners International (OPI) are
looking to offload their stake. Even ICICI has
been in talks to sell its stake in 3i Infotech since
last 4-5 months, but none of the investors have
The private equity space witnessed 62 completed yet cracked any deal.
deals in Q4 FY10 totaling $2.09 bn. Asian Genco's
$425mn PE raising activity and Quadrangle's
$300mn investment in telecom tower company
Tower Vision India Pvt Ltd were the two major
deals this quarter. Coffee Day Holdings $200 mn
fund raising from New Silk Route Partners, KKR
and StanChart PE was another long pending deal
that finally materialized this quarter.

On Venture Capital front, there were 20

completed deals. Of these 2 were Seed Funding
deals while 1 was an early stage investment deal.
Rabo India Finance's $35mn investment in
Asmitha Micro Finance was the biggest VC deal
followed by Draper Fisher Jurvetson India's
investment in I-Yogi ($15mn) and Globespan
Capital Partners' investment in SMS Gupshup
($12mn) in Mobile VAS space. SIDBI announced
investments in 2 Micro Finance companies,
Asmitha Microfinance and Village Financial
Services. Novatium Solutions and Ecologix
Knowledge Solutions are 2 companies looking for
VC investment.

6 www.DealCurry.com
DEALCURRY Deal Data Analytics

Average Deal Size for FY10

Average deal size this quarter shot up due to few big

ticket deals. However, if we exclude the top 2 deals
totaling $725 mn, the average deal size comes down to
$21mn which is in line with previous quarters.

Percent of PE/VC Transactions (Count)

by Deal Size

More than 70% of private equity deals by deal count

were in the less than $50 mn bracket. A large
number of announced as well as rumoured deals are
also below $50 mn range. TPG Capital's proposed
$222 mn investment in Shriram Capital is one big-
ticket announced deal apart from a few real estate
PE investments. About 7 real estate deals and 4 MFI
deals are currently in the Announced phase.

Percent of PE/VC Transactions (Value)

by Deal Size

In contrast, if we go by deal size, more than 70%

completed deals fall in the above $50 mn category.
$425 mn investment in Asian Genco by a consortium
of investors and $325 mn PE investment by
Quadrangle PE in telecom tower company,
TowerVision India were the two largest deals
followed by $200 mn PE funding received by Coffee
Day holdings.

7 www.DealCurry.com
DEALCURRY Technology
Deal Data Analytics

Technology saw the most number of deals in this

quarter. These deals were mainly venture capital
deals in small tech startups. Perfios, a maker of
personal finance software, received Series 'A'
funding of $2mn from individual investors.
Circuitsutra is a software developer for the
semiconductor industry and it raised early stage
funding of about a crore rupees ($0.2mn) from
SIDBI SAS. In private equity, FlightRaja managed to
raise $10mn from Sequotia Capital for its expansion
program.

Telecom
Two new type of businesses received private equity
funding in telecom this quarter. Metro Wireless
Engineering Services, a provider of network support
and planning services, received seed funding from
Zephyr Peacock. TA Associates invested $49.5mn
for a less than 20% stake in Indian mobile handset
manufacturer, Micromax. Apart from these, telecom
tower operator TowerVision India received PE
funding from Quadrangle of $300mn. This deal
shows there is still appetite among PE funds for
tower companies despite falling tower valuations.

BFSI
BFSI sector saw $120mn flowing from private equity
deals this quarter. Most of this is accounted by Star
Health and Allied Insurance, which received $100mn
from India Advantage Fund Series III, Sequoia
Capital India, The Carlyle Group. Fidelity sold 2%
stake in MCX, each to Intel Capital and Passport
India fund for an undisclosed amount.

8 www.DealCurry.com
DEALCURRY Deal Data Analytics

Top Ten PE & VC Deals for FY 2010

Date Transaction_Name Buyer Seller Target asset Sector Subsector Size($ mn)

3/18/2010 Asian Genco - Consortium of Morgan Stanley Infrastructure Asian Genco Asian Genco Energy & Utilities Power Generation 425
Investors Partners, Goldman Sachs, Everstone
Capital, Norwest Venture Partners

2/3/2010 Towervision – Quadrangle Quadrangle LLC TowerVision India Pvt. Ltd. TowerVision India Pvt. Ltd. Telecom Telecom Infrastructure 325

1/29/2010 Greenko-TPG TPG Growth, Arden Partners Plc, Greenko Group PLC Greenko Group PLC Energy & Utilities Clean Energy 116
Mirabaud Securities LLP Technology

2/11/2010 Tikona - Goldman - Indivision Goldman Sachs Capital Partners, Tikona Digital Networks Tikona Digital Networks Technology Internet Service Provider 107.5
- Oak Indivision India Partners, Oak Pvt. Ltd. Pvt. Ltd.
Investment Partners

1/15/2010 Strides Arcolabs-Zenith Zenith Pharmaceuticals Ltd Strides Arcolab Ltd. Pharma Pharmaceuticals 102
Pharma -

3/31/2010 Star Health and Allied India Advantage Fund Series III, Star Health and Allied BFSI Mutual Fund/Life 100
Insurance- PE Funding Sequoia Capital India, The Carlyle Insurance Company Insurance
Group - Limited

3/31/2010 Coffee day Holdings - NSR New Silk Route Partners Coffee Day Holdings Coffee Day Holdings Food & Beverage Beverage 75

3/31/2010 Coffee day Holdings - KKR KKR Coffee Day Holdings Coffee Day Holdings Food & Beverage Beverage 75

2/11/2010 Sun TV - Nalanda Unknown Nalanda India Fund Sun TV Media Entertainment 62

1/1/2010 Bain Capital-Himadri Bain Capital Advisors India Pvt. Ltd. Himadri Chemicals & Himadri Chemicals & Chemicals Industrial Chemicals 54.15
Chemicals Industries Ltd Industries Ltd

9 www.DealCurry.com
DEALCURRY Deal Data Analytics

Most Active Private Equity Investors in FY 2010

By Number of Investments

Technology Sequoia Capital India 8

IDG Ventures India Fund 3
Nexus India Capital
Advisors Pvt. Ltd. 3
Draper Fisher Jurvetson India 2
Matrix Partners India Investment
Holdings,LLC 2

BFSI International Finance Corp. 4

Norwest Venture Partners India 3
Aavishkaar Goodwell India
Microfinance Development Co. Ltd. 3
Sequoia Capital India 2
Lok Capital LLC 2

Basic Industries Blackstone Advisors India Pvt. Ltd. 2

Indus Capital Partners LLC. 2
ADG Fund Ltd. 1
Standard Chartered Private
Equity Ltd. 1
India Strategic Opportunities Fund 1

Real Estate Red Fort Capital 3

ICICI Prudential Asset
Management Services Ltd 1
TPG Capital Inc. 1
Oman Investment Fund 1
Goldman Sachs Whitehall Real
Estate Fund 1

Transport & Logistics India Value Fund Advisors Pvt. Ltd. 1

Blackstone Advisors India Pvt. Ltd. 1
Bessemer Venture Partners India 1
Aureos India Fund 1
Mayfield Fund 1

10 www.DealCurry.com
DEALCURRY Deal Data Analytics

Private Equity Exits

This quarter saw a flurry of exits as compared to same period in 2009 and 2008. PE firms exited through
various routes including IPO, Buyback, Open market sale as well as stake sale to strategic investors.

The Infrastructure space saw a few exits through secondary market transactions. CLSA sold 1.45% in
Maytas Infrastructure for $3.13mn and 2i Capital India Pvt Ltd offloaded 3% in Pipavav Shipyard for
$2.4mn. Nalanda India Fund's exit from Sun TV was the biggest exit PE deal for last two months. The
1.96% stake sale for $61.76mn gave Nalanda a return of 2.5 times its investment in a span of 14 months.

With the IPO market heating up, some PE funds chose to exit via IPO route. Temasek Holdings and JP
Morgan India PE Fund took IPO exit route in Infinite Computer Solutions Ltd and Jubilant Foodworks Ltd
respectively. While Chrys Capital and Morgan Stanley partially exited their investment in Hathway Cable
IPO generating around 50% and 25% return on their investment respectively.
Private Equity Exits Change of
Strategic Ventures Fund, a PE fund managed by
Hands /
Frontline Strategy Ltd exited Titagarh Wagons IPO, 19%
Corporate
this quarter through a mix of IPO offer and Acquisition,
secondary market sale. 24%

Zenith Pharma, backed by Symphony Capital

Partners sold 5% in Strides Acrolab in January
through open market transactions for about $10
mn. Later on, in March it offloaded another 2%.
Open
Market Buyback,
Sale, 33% 24%

Top 5 Exits for the Quarter:

Sr. No Company Name Seller Name Sector Exit Type Size ($ mn)
1 Ambey Valley Siva Ventures Real Buy back 315
Estate
2 India Infoline Investment Orient Global Tamarind BFSI Buy back 80
services & India Infoline Fund
Marketing Services

3 Nalanda India Fund Sun TV Media Seconday 62

Market Sale
4 JP Morgan India PE Fund Jubilant Foodworks Food & IPO exit 59.2
Beverage
5 Reliance Power Fund,
Tano India Fund Ravin Cables Basic M&A 43.5
Industries

11 www.DealCurry.com
DEALCURRY
Fund Raising Activity in Jan-Mar 2010 Quarter
Deal Data Analytics

Cleantech, Infrastructure and MFI were the flavor of the quarter for fund raising activities during the last
quarter. Aditya Birla Capital Advisors Fund I ($291 mn) and Ascent Capital Advisor's Ascent India Fund III
($350 mn) were the two largest funds to achieve closure this quarter.

Saif Partners, JP Morgan and HSBC combined have closed Asia focused infrastructure funds totaling $2.7
bn of investments. Microwest has closed $60 mn MFI focused fund. A couple of cleantech funds have also
been announced by ADB, Yes Bank and Global Environment Fund.

Infrastructure, MFI and Cleantech have already attracted huge investments during the last one year.

Company Fund Focus Size Status

ADB Proposed cleantech fund $100 mn Announced

Yes bank & Global Environment Cleantech Fund $200 mn Announced

Fund
Affinity Equity Partners Affinity Asia Pacific Fund IV LP > $2.8bn Announced

Incofin Investment Belgian MFI Fund $139 mn Announced

Management
Saif Partners Saif Partners 4 Asia Infrastructure Fund $1250 mn Closed

HSBC Infrastructure Fund III Asia focussed infra fund $580 mn Closed

JP Morgan Asset Management JPMorgan Asian Infrastructure & Related $858.6 mn Closed
Resources Opportunity Fund
MicroVest Capital Management, MicroVest II, LP - MFI focussed fund $60 mn Closed
LLC
Battery Ventures Battery Ventures 9 $750 mn Closed

3i Group 3i Growth Fund € 1,200 Closed

Yes Bank Cleantech Fund $80 mn Announced

HBM Partners Tata Capital HBM Healthcare Fund 1, $150 mn Announced

BTS Investment Advisors India Clean energy Fund $150 mn Announced

Elevar Poverty focussed growth capital fund, $70 mn Closed

Lending to MFI's in India & Phillipines
Steer Capital Steer Capital India Buyout Fund $300 mn Announced

Aditya Birla Capital Advisors India focussed fund $291 mn Closed

Fund I
Ascent Capital Advisors India Ascent India Fund III $350 mn Closed
Pvt. Ltd
Tata Capital Tata Capital Special Situations Fund $163 mn Closed

Multiple Alternate Asset Renuka Ramnath's fund $100 mn Commitment

Management received

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DEALCURRY
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