Financial Insights October,2017 - Indcap.in...October,2017 France-based payments firm Worldline SA...
Transcript of Financial Insights October,2017 - Indcap.in...October,2017 France-based payments firm Worldline SA...
Financial Insights
October,2017
www.indcap.in 1
Contents
Mergers & Acquisitions 3
Private Equity 4
M&A Deals – October 2017 5
PE Deals – October 2017 6
Indcap Opportunities 7-8
Transaction Closure Announcement 9
Markets/ Commodities 10
2 October,2017
US-based spirits maker Sazerac Company has bought a stake in India’s John Distilleries (P) Ltd. from mid-market private equity firm Gaja Capital for INR 10,000 Mn.
M&A INSIGHTS
Homegrown drugmaker Lupin Ltd. has acquired US-based Symbiomix Therapeutics LLC for a cash consideration of INR 9,800 Mn ($150 million).
Jindal Steel & Power Ltd. (JSPL) has sold oxygen plant assets at two of its steel mills to Kolkata-based Srei Equipment Finance Ltd. for INR 11,115 Mn ($171 million).
3
*INR to USD conversion rate considered at USD 1 = INR 65
Kishore Biyani-led Future Retail Ltd. has agreed to acquire K Raheja Corp group company Hypercity Retail (India) Ltd. for INR 6,550 Mn ($100 million) in a cash-and-stock deal.
October,2017
France-based payments firm Worldline SA has entered into a definitive agreement to acquire Chennai-based point-of-sale (PoS) technology service provider MRL PosNet (P) Ltd. for INR 6,825 Mn (€89 million/$105 million).
Tata Steel Ltd. has scrapped a deal to buy Brahmani River Pellets Ltd., a supplier of iron ore pellets, for INR 9,000 Mn ($132 million) including debt.
Billionaire Mukesh Ambani-led Reliance Industries Ltd. has agreed to sell its entire 60% stake in a US shale energy joint venture for INR 8,230 Mn ($126 million).
Payment solutions provider Paynear Technologies (P) Ltd. has acquired Singapore-based mobile commerce firm GoSwiff for INR 6500 Mn.
Homegrown cab aggregator Ola has raised INR 71740 Mn ($1.1 billion) from investors led by China’s Tencent Holdings Ltd.
Cab-hailing firm Ola has raised INR 26200 Mn ($400 million) from Chinese internet giant Tencent as part of its latest funding round.
Lendingkart Finance Ltd., the NBFC arm of Ahmedabad- and Bengaluru-based fin-tech startup Lendingkart, has raised around INR 1620 Mn ($24.9 million) through a mix of debt and equity.
PE INSIGHTS
Abu Dhabi Investment Authority (ADIA), the sovereign wealth fund of the Gulf emirate, has agreed to invest INR 64700 Mn ($1 billion) in the National Investment and Infrastructure Fund’s (NIIF) Master Fund.
4
U.S. fund Global Infrastructure Partners has agreed to buy EquisEnergy, Asia’s largest independent renewable energy firm, for INR 241000 Mn ($3.7 billion) with partners including sovereign fund China Investment Corp, underscoring growing global interest in renewables investment.
Indiabulls Housing Finance Ltd.-backed OakNorth Bank has sold a 16% stake for INR 13180 Mn ($203 million) to three investors (Clement Group, Toscafund and Coltrane.
Chennai-based A & A Dukaan Financial Services (P) Ltd., which operates online financial services marketplace BankBazaar, has raised INR 1950 Mn ($30 million) in a Series D funding round led by UK-based credit rating bureau Experian.
*INR to USD conversion rate considered at USD 1 = INR 65
October,2017
PhonePe (P) Ltd., the unified payments interface-based payments app from homegrown e-tailer Flipkart, has received INR 2544 Mn ($38.7 million) in a fresh round of funding from its Singapore-based group entity.
Buyer Target/Company Industry Amount Stake
(%) INR in Mn
Srei Equipment Finance Ltd. Jindal Steel & Power Ltd. (JSPL) Manufacturing 11,115 N.A.
Sazerac Gaja Capital Consumer 10,000 28%
Lupin Ltd. Symbiomix Therapeutics LLC Healthcare 9,800 N.A.
Tata Steel Ltd. Brahmani River Pellets Ltd. Commodities 9,000 N.A.
Marcellus shale Reliance Industries Ltd. Commodities 8,230 60%
Future Retail Ltd. Hypercity Retail (India) Ltd. Consumer 6,825 N.A.
Worldline SA MRL PosNet (P) Ltd. E-Commerce 6,720 N.A.
Paynear Technologies (P) Ltd. GoSwiff Technology 6,500 N.A.
ESAB Holdings Ltd. Larsen and Toubro Ltd. (L&T) Manufacturing 5,220 N.A.
Ebix Inc Via.com E-Commerce 4,794 N.A.
Hindustan Foods Ltd. Reckitt Benckiser India Ltd. Consumer 1,750 N.A.
Zee Entertainment Enterprises Ltd. 9X Media (P) Ltd. and INX Music
(P) Ltd. Entertainment 1,600 N.A.
Infrastructure Company Ltd. (GRICL) & Oriental Tollroads
IL&FS Transportation Networks
Ltd. Infrastructure 831 10%
Wipro Digital
Cooper Software Inc Consultancy 554 N.A.
Quess Corp Ltd. Vedang Cellular Services (P) Ltd. Service 400 70%
TeamLease Services Ltd. Evolve Technologies and Services
(P) Ltd. Service 367 N.A.
Xerox India Ltd. Modi Rubber Ltd. Manufacturing 251 7%
Goodricke Group Ltd. Godfrey Phillips India Ltd.’s Consumer 200 N.A.
Drugmaker Eris Lifesciences Ltd. UTH Healthcare Ltd. Healthcare 129 N.A.
CL Educate Ltd. ICE GATE Educational Institute (P)
Ltd. Consumer 80 65%
Tara Jewels Ltd. Bevilles Jeweller. Jewellery N.A. 49%
Fosun Pharmaceuticals Group Co. Ltd.
Gland Pharma Ltd. Healthcare N.A. 74%
Precision Camshafts Ltd. MEMCO Engineering (P) Ltd. Manufacturing N.A. 95%
XL Group Mahindra Insurance Brokers Ltd. Finance N.A. 20%
*INR to USD conversion rate considered at USD 1 = INR 65
M&A Deals - October,2017
5 October,2017
Investor Company Industry Amount
Stake (%) INR in Mn
Global Infrastructure Partners EquisEnergy Renewable
Energy 241,000 N.A.
China’s Tencent Holdings Ltd Ola E-commerce 71,740 N.A.
Abu Dhabi Investment Authority (ADIA)
National Investment and Infrastructure Fund’s (NIIF)
Master Fund Finance 64,700 N.A.
Copper Technology Pte Ltd. OLA E-commerce 26,200 N.A.
Clement Group, Toscafund and Coltrane
OakNorth Bank Finance 13,180 16%
Flipkart Payments (P) Ltd. PhonePe (P) Ltd. E-commerce 2,544 N.A.
Experian A & A Dukaan Financial Services
(P) Ltd. Finance 1,950 N.A.
IFMR Capital, Capital First, Tata Capital Financial Services Ltd. (TCFSl)
and Manappuram Finance Ltd. Lendingkart Finance Ltd. Fintech 1,620 N.A.
OpenOcean NearGroup Inc. E-commerce 1,000 N.A.
Rabo Equity Advisors (P) Ltd. Olive Bar and Kitchen (P) Ltd. Consumer 1,000 N.A.
Gaja Capital Kinara Capital Finance 960 N.A.
Tanncam Investment, NetMeds Marketplace (P) Ltd. Healthcare 900 N.A.
Lighthouse Advisors India (P) Ltd. Vishal Retail Ltd. Consumer 760 N.A.
Das Capital AS JustRide Tours and Travels (P)
Ltd. E-commerce 650 N.A.
Amicus Capital RenewBuy.com Consultation 600 N.A.
IL&FS Investment Managers Ltd. GS Farm Taaza Produce (P) Ltd. Management 520 N.A.
Xiaomi Technologies and Shunwei Capital.
Finovation Tech Solutions (P) Ltd. Technology 517 N.A.
InnoVen Capital Zinka Logistics Solutions (P) Ltd. Logistics 500 N.A.
Accel Partners Maverix Platforms (P) Ltd. Consumer 450 N.A.
Dixon Technologies (India) Ltd. Motilal Oswal Private Equity Investment Advisors (P) Ltd.
Finance 430 1.36%
Verlinvest Veeba Food Services (P) Ltd. Consumer 400 N.A.
DSG Consumer Partners, Sequoia Capital and Saama Capital
Rakyan Beverages (P) Ltd. Consumer 400 N.A.
*INR to USD conversion rate considered at USD 1 = INR 65
PE Deals - October,2017
6 October,2017
Sector Location Company Brief Acquisition Criteria
Footwear Delhi One of the Leading Footwear Manufacturers and Marketers
with Strong Brand Presence
Manufacturing of footwear based on PVC, EVA, Rubber, Hawai etc. under multiple renowned brands.
State-of-art manufacturing facility in Northern India
• Area- 36,300 sq. yds. • Manufacturing Capacity- 42 lac pieces/
month • Capacity Utilization- 30%
Product Mix: Moccasins, Sports Shoes, Slippers
Product Distribution: PAN India & Exports
Infrastructure Madhya Pradesh
The Company operates in commodities and Infrastructure
domain
Signed Concession Agreement with Madhya Pradesh Road Development Corporation (“MPRDC”). for executing Road projects on DBFOT, (Design – Build – Finance – Operate – Transfer) basis
Length : 40.50 km Status : Operational Revenue Model: Both Toll and Annuity.
Semi-annually Annuity is Rs. 5.46 crores
Infrastructure
Rajasthan One of the leading
Infrastructure Development companies in India
Signed Concession Agreement with Rajasthan PWD (State Govt. of Rajasthan) for executing state Highway project on DBFOT, (Design – Build – Finance – Operate – Transfer) basis
Length : 212 km Status : Operational Revenue Model: Toll (Four Toll Plazas
along the project road)
Sell Side Opportunities
7 October,2017
Sector Location Company Brief Acquisition Criteria
FMCG India
The company is engaged in the manufacturing of FMCG
products and is exploring to diversify into new businesses.
Looking for some Regional brands in the categories like Personal Care, Health Care (OTC), Health Food (like Nutraceuticals, Dietary Supplements, health food etc.)
Minimum turnover ~ Rs. 40-50 Crs. Gross Margin should be over and above 50% The brand should have good visibility in the
market. Also looking for brands in Africa, SE Asia,
SAARC region, Middle East and Russia
Healthcare Mumbai The group has an extensive
experience in the field of healthcare and pharmaceuticals.
The company is looking to expand into Pharma, Healthcare, Consumer, Renewable, BFSI, NBFC
Pipes & Tubes
India
The company manufactures a wide range of welded and
seamless stainless steel tubes and pipes & carbon steel pipes
Actively scouting targets with similar product lines
Preferably in southern and western India Investment Size: USD 25-50 Mn. Prefers to acquire total management
control
Auto Component
Mumbai One of the country's largest
bearings manufacturer and is a part of US$ 2 Bn conglomerate.
Looking to acquire company engaged in manufacturing of bearing used in automotive and railway industries, and for general industrial applications.
Architectural Hardware
Fittings New Delhi
The Company is one of India’s most popular Architectural Hardware Solution provider
through a wide range of standard & customized products
The company is looking for acquisition in the following space: • Door manufacturers- Fire door, clean
room used in pharmaceutical and hospital
• Kitchen manufacturer - Prefer into retail but can also look in commercial
• Electronic home security- example door phone
Looking at companies with revenue INR 500-1000 Mn
Renewable Energy
Gujarat The Company is a diversified player based out of Gujarat
Looking to acquire wind and solar assets in Gujarat and Rajasthan
Hydro assets in Himachal Pradesh
Buy Side Opportunities
8 October,2017
This announcement appears as a matter of record only
TRANSACTION CLOSURE ANNOUNCEMENT
Sole Management Consultant
and Financial Advisor
Ahmedabad | Kolkata | Mumbai | New Delhi
Successful implementation of
Scheme for Sustainable Structuring for Stressed Assets (S4A) for total funded and non funded debt of Rs
2531.31 crores
November 2017
About SPML Infra Ltd:
SPML Infra Ltd is an Engineering Procurement Construction (EPC) contractor and is engaged in development and execution of various infrastructure projects initiated by the Govt. / State Govt. /Govt. undertakings and others. The shares of the company are listed on NSE and BSE. Transaction Details:
The company was facing financial crisis owing to cash flow mismatch, non realisation of fund in timely manner from various government department/agencies, etc.
Indcap advised the company in successful implementation of S4A scheme pursuant to which, out of the total funded debt of Rs. 1,117 crores, a sum of Rs. 547.42 crores got converted into a mix of equity and long term instrument (OCDs). This realignment of existing debt will have a cash flow benefit in terms of deferred and reduced debt service obligations of approximately Rs 70 crores per annum.
About Indcap:
Indcap Advisors Pvt Ltd, is a boutique investment banking company offering specialized services in the fields of M&A advisory, Resource Raising including Private Equity Placements, Financial restructuring and Corporate Advisory.
For further information, please contact:
Samir Agarwal, Director
+91 98303 35062 [email protected]
Dheeraj Aswani, Sr. Vice President +91 96745 11107
Vikram Singh, Sr. Vice President +91 96745 11109
Indcap provided end to end solution to the company for successful implementation of the S4A scheme.
Indcap’s role included but not limited to the preparation of business plan, assistance in timely completion of TEV and Forensic Audit, assistance and negotiation in finalization of Resolution Plan, representing company and management at various JLF meetings as well as at individual lender’s meeting.
Indcap’s Role:
www.indcap.in 9 October,2017
Stock Indices Opening
(1st October’17) Closing
(31st October’17) Change %
Sensex 31,537.81 33,213.13 5.31%
Nifty 9,893.30 10,335.30 4.47%
FTSE 7,467.58 7,493.08 0.34%
Nikkei 20,400.51 22,011.61 7.90%
Dow Jones 22,423.47 23,377.24 4.25%
Gold ( INR/10 Grams) 29,557.00 29,180.00 -1.28%
Silver (INR /1 Kg) 39,457.00 38,873.00 -1.48%
USD ($) (INR /Dollar) 65.32 64.75 -0.87%
Euro (€) (INR /Euro) 77.18 75.43 -2.27%
GBP (£) (INR /British Pound) 87.50 85.97 -1.75%
Sources – Global Indices, BSE, NSE, RBI, MCX INDIA
MARKETS/ COMMODITIES
10 October,2017
Indcap Advisors (P) Ltd. Office locations
Disclaimer This document is issued by INDCAP ADVISORS (P) Ltd... The information contained herein is derived from various public documents we believe to be reliable, but which we have not independently verified. INDCAP makes no guarantee as to the accuracy or completeness of this information and is not responsible for errors of transmission of factual or analytical data, nor shall it be liable for damages arising out of any person’s reliance upon this information. The opinions in this document constitute our present judgment, which is subject to change without notice. The document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Unless governing law permits otherwise, you must contact a INDCAP member in your home jurisdiction if you wish to use INDCAP services in effecting a transaction in any investment mentioned in this document. No part of this publication August be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of INDCAP.
e: [email protected] w: www.indcap.in
Ahmedabad Office A-707, Infinity Tower,
Corporate Road, Prahladnagar,
Ahmedabad – 380 015 Ph: +91 79 4002 6336
Mumbai Office Suite # 603, 6th Floor, Balarama, Bandra (E),
Bandra Kurla Complex, Mumbai ‐ 400 051
Ph:+91 22 3058 4445
Kolkata Office
Suite # 68, 6th Floor, Chitrakoot Building
230 A, A.J.C. Bose Road, Kolkata - 700 020
Ph: +91 33 4069 8001
New Delhi Office
Suite # 823, 8th Floor, DLF Tower A,
Jasola District Centre New Delhi – 110 025 Ph: +91 11 2694 2340
10 October,2017