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Canada’s Brookfield to acquire RIL's East West Pipeline
for Rs.13,000-Cr
BSE
Canadian alternative assets management company
Brookfield, through its InvIT India Infrastructure
Trust, is to acquire East West Pipeline from publicly
listed Reliance Industries Limited (RIL) for INR 13,000
crore. The InvIT will acquire 100% equity interest in
Pipeline Infrastructure Pvt Ltd (PIPL) which currently
owns and operates the pipeline. East West Pipeline is a
project implemented to transport gas from Kakinada to
Bharuch including various spurs and interconnects on the
way.
RIL’s current investment in preference shares of PIPL,
valued at INR 4,000 crore, will continue and be
converted into equity at the end of 20 years. At the end
of 20 years, RIL also has the right to acquire equity
shares of PIPL held by the InvIT at a value of INR 50
crore.
Post-acquisition by Brookfield, the existing pipeline
usage agreement has been reworked as follows:
• The reserved capacity reduced to 33 MMSCMD against the
56 MMSCMD.
• Any unutilized capacity payment by RIL will be the
difference between INR 500 crore a quarter and actual
revenue earned by PIPL.
• RIL will continue to be entitled to transport gas,
either by itself or of any customers, free of cost
against any outstanding unutilized capacity payments.
RIL will be entitled to a significant participation in
the net earnings of PIPL under the mechanism specified
in the pipeline usage agreement.
Private Equity Fund Investments
Cube
Highways acquires Delhi-Agra Toll Road from Reliance
Infrastructure for Rs.3,600-Cr
BSE
Publicly listed Reliance Infrastructure Limited has signed a
Definitive Binding Agreement with Cube Highways and
Infrastructure III Pte Ltd for the sale of its 100% stake in
Delhi-Agra (DA) Toll Road Private Limited. The total deal
enterprise value is over INR 3,600 crore. In addition, NHAI
claims of INR 1,200 crore to be filed by DA Toll Road Pvt. Ltd.
will flow directly to Reliance Infrastructure. Reliance
Infrastructure will utilize the proceeds of this transaction
entirely to reduce its debt.
DA Toll Road operates the 180-km long six-lane road that
connects the national capital Delhi with Agra on National
Highway (NH) 2. The tolling operation for the project started in
Oct 2012 and has a concession period till 2013.
Embassy Office Parks raises $125-M from Capital Group
Times of India
US-based Capital Group has committed INR 876 crore
(about USD 125 million) to Embassy Office Parks, India’s
first real estate investment trust (REIT) poised for
listing on the bourses. Capital Group, through its
entities - American Funds Insurance Series, New World
Fund, Inc and Small Cap New World Fund - subscribed to
29,208,800 units in the REIT issue. They will have a
six-month lock-in once the REIT starts trading.
Embassy Office Parks, sponsored by private equity giant
Blackstone and Bengaluru-based developer Embassy Group,
is set to debut with a INR 5,000 crore listing at a
valuation of around INR 35,000 crore.
HDFC Capital, Tribeca set up Rs.500-cr
residential development platform
Economic Times
HDFC Capital Advisors, the real estate-focused
fund management arm of HDFC Ltd and property
developer
Tribeca have
set up a platform to develop mid-income housing
projects in Mumbai and Delhi-National Capital
Region (NCR). The platform will invest INR 500
crore through a combination of debt and equity
into projects that Tribeca will develop. Tribeca
is known for branded residential business
through its partnership with the Trump
Organization in India.
HDFC Capital Advisors has invested INR 135 crore
in the first project in this platform, a one
million sq ft residential project in Gurgaon.
The project comprises 600 homes in low-rise and
mid-rise blocks around a four-acre central
forest.
Digital insurer Acko raises $65-M from Binny Bansal,
others
Economic Times
Digital insurer
Acko has raised USD 65
million in a funding round led by Flipkart cofounder
Binny Bansal (who has invested USD 25 million), RPS
Ventures and Intact Ventures. The funding round, which
also saw participation from existing investors Amazon,
Accel India, SAIF and TechPro Ventures, reportedly
values the company at USD 250-300 million. Avendus
Capital was the advisor to the deal. With the latest
financing round, the total capital raised by Acko has
touched USD 107 million.
Acko operates across two verticals - car and bike
insurance - which it sells directly to consumers, as
well as co-creating products and solutions which cater
to new economy and internet companies. Among Acko’s
other backers are NR Narayana Murthy’s Catamaran
Ventures, Infosys co-founder Kris Gopalakrishnan, Ashish
Dhawan of ChrysCapital, and Hemendra Kothari of DSP
Blackrock.
Goldman Sachs and B Capital to
invest Rs.303-Cr in logistics firm BlackBuck
Venture Intelligence Research
Goldman Sachs (via Global Private Opportunities Partners III Aggregator
LP) and B Capital Group (via B Capital - Asia I, LP) are to invest INR
214.11 Cr and INR 89.21 Cr respectively in Zinka Logistics Solutions
Private Limited (which owns trucking logistics platform
BlackBuck).
The purchase aggregates to INR 303.32 Cr and will value the company at
INR 6000 Cr approx. The company will issue 11,060 Series D CCPS at INR
193,589.51 per share to Global Private Opportunities Partners III
Aggregator LP and 4,608 Series D CCPS to B Capital - Asia I, LP.
From the Venture Intelligence PE-VC Deal Database:
Between Jun 2015 and Dec 2018, BlackBuck raised USD 149
million (over INR 1000 Cr) from various investors across several rounds.
Epiq Capital, existing investors invest
Rs.219-Cr in payments tech firm Mswipe
Venture Intelligence
Research
Epiq Capital (via Epiq Capital LP and Epiq
Capital B LP), B Capital Group (via B Capital
Asia I LP), Falcon Edge (via Falcon Edge India I
LP) and DSG Consumer Partners (via DSGCP Souza
PCC) invested INR 71.17 Cr, INR 70 Cr, INR 56.92
Cr and INR 20.92 Cr respectively in payments
technology company
Mswipe Technologies
Private Limited. The purchase, which constitutes
7.41% stake of the company, aggregates to INR
219 Cr and values the firm at INR 2956.40 Cr.
On Mar 8, 2019, the company issued 36,312 Series
E CCPS at INR 9960 per share to Epiq Capital LP,
35,140 Series E CCPS to Epiq Capital B LP,
70,281 Series E CCPS to B Capital Asia I LP,
57,146 Series E CCPS to Falcon Edge India I LP
and 21,000 Series E CCPS to DSGCP Souza PCC.
From the Venture
Intelligence PE-VC Deal Database:
Between Jan 2013 and Dec 2017, Mswipe
Technologies had raised over $72 million (INR
464 Cr) from the PE/VC investors across several
rounds.
Orbimed invests in Advanced
Enzyme for Rs.195-Cr
BSE,
NSE
Healthcare PE firm Orbimed, via Orbimed Asia III Mauritius Ltd, has
acquired 1.10 crores shares (constituting a 9.90% stake) in
publicly-listed
Advanced Enzyme Technologies Ltd. for
INR 195.12 crore. Orbimed had acquired 5,526,624 each on NSE and BSE for
INR 176.43 and INR 176.63 respectively.
Advanced Enzymes is a research driven company with global leadership in
manufacturing of enzymes and probiotics.
AgroStar raises Rs.188-Cr from Bertelsmann, others
Economic Times
Pune-based agri-tech startup
AgroStar has raised INR 188 Cr (USD 27
million) in a Series C round led by Bertelsmann India
with participation from existing investors Accel India,
Chiratae Ventures and Aavishkaar (via Aavishkaar Bharat
Fund). AgroStar uses farm and farmer-specific data to
provide real-time solutions to help reduce cost of
production and improve yields. The company plans to use
the new funding to scale up operations and strengthen
its technology platform. It is also planning to hire
executives to lead verticals such as technology, data
science and agriculture.
From the Venture Intelligence
PE-VC Deal Database: Starting June 2015,
Agrostar has raised USD 17.32 million form Accel India,
Chiratae Ventures and Aavishkaar. (Subscribers to the
database can login to view the valuation, deal
structuring and other transaction details.)
Debt products marketplace Vivriti Capital raises
Rs.110-Cr more from Creation Investments
Times of India
Vivriti Capital,
a marketplace for institutional and enterprise
debt products, has raised INR 110 crore in
equity in a fresh round of funding from its
US-based existing investor Creation Investments.
Vivriti had closed its Series A funding in 2018,
raising INR 200 crore from Creation. The company
plans to deploy the funds to scale up its
balance sheet and to strengthen its marketplace
platform.
Vivriti Capital provides sourcing, credit,
distribution, transaction execution and post
deal risk assessment support to issuers and
investors. Its platform offers financial
products including securitisation,
non-convertible debentures (NCDs), direct
assignments and term loans.
Food-on-demand co Fasso’s raises Rs.110-Cr from
Sequoia Capital India, existing investors
Venture Intelligence
Research
Sequoia Capital India (via SCI Investments VI
and Sequoia Capital India Trust), Lightbox (via
Lightbox Expansion Fund and Lightbox Ventures
II) and Evolvence India (via Evolvence India
Fund II Ltd) invested INR 70.24 Cr, INR 33.30 Cr
and INR 7.12 Cr respectively in Rebel Foods
Private Limited (earlier known as
Faaso’s Food
Services Private Limited). The purchase, which
constitutes 4.27% stake of the company,
aggregates to INR 110.66 Cr and values the firm
at INR 2,590.32 Cr.
On Mar 1, 2019, the company issued 1,503 Series
D1 CCCPS at INR 463,941.08 per share to SCI
Investments VI, 11 Series D1 CCCPS at INR
462,521.78 per share to Sequoia Capital India
Trust, 397 Series D1 CCCPS at INR 462,508.76 per
share to Lightbox Expansion Fund, 323 Series D1
CCCPS at INR 462,508.76 per share to Lightbox
Ventures II and 154 Series D1 CCCPS at INR
462,508.76 per share to Evolvence India Fund II
Ltd.
From the Venture
Intelligence PE-VC Deal Database:
Between Oct 2011 and Aug 2018, Faaso’s had
raised USD 81 million (INR 524 Cr) from various
investors.
Nalanda
Capital buys Matrimony.com shares worth Rs.108-Cr
NSE
Nalanda Capital, via Nalanda India Equity Fund Limited, bought
2,110,856 shares (9.29% stake) at INR 509.87 per share of
publicly listed wedding services company Matrimony.com Limited
on Mar 11, 2019 through a bulk deal. The purchase aggregates to
INR 107.63 Cr (~USD 15.3 M).
From the Venture Intelligence PE-VC Deal
Database: Baring India has invested about USD 3
million in Matrimony.com since 2017.
Digital
engagement platform Whatfix raises Rs.92-Cr from
Eight Roads, others
YourStory
Bengaluru-based B2B SaaS-based performance
support startup
Whatfix has
raised Series B funding of INR 92 crore (USD
12.5 million) led by Eight Roads Ventures India
with participation from Eight Roads’ US-based
sister fund F-Prime Capital and Cisco
Investments. Existing investors Stellaris
Venture Partners and Helion Ventures Partners
also participated in the round. Whatfix plans to
use the capital to create digital adoption
category leadership in the enterprise
application software market and continue its
expansion into the global markets. The company
will also grow its R&D, marketing, and sales
teams in the US and India.
Whatfix enables companies simplify their users'
adoption journey with the help of technology
through targeted information, while gathering
insights that can be used to drive more
effective software use. In April 2017, the
company had raised Series A funding of INR 24
crore led by Stellaris Venture Partners with
participation from VC investors Helion Venture
Partners and Powerhouse Ventures. Angel
investors Gokul Rajaram, Girish Mathrubootham,
Aneesh Reddy, and Vispi Daver also participated
in the round. Earlier, in April 2015, Helion
Venture Partners, along with Powerhouse
Ventures, GSF and angel investors from the
valley, had invested INR 5.5 crore in the
company.
Edtech firm
Byju’s raises Rs.80-Cr more from General Atlantic, Tencent
YourStory
Existing investors General Atlantic (GA) and Chinese
conglomerate Tencent have invested an additional INR 75-80 crore
in Think & Learn Pvt Ltd, the owner and operator of edtech
platform Byjus.
The Bangalore-based company is currently valued at over $4
billion.
The Bengaluru-based startup so far raised about $800 million
from investors such as CPPIB, GA, Chan Zuckerberg Initiative,
Sequoia Capital, Sofina, Aarin Capital, Tencent Holdings and
Naspers. The edtech startup claims to have 22 million registered
students for its learning application, and 1.4 million annual
paid subscribers.
IndoSpace buys logistics park near Gurgaon from
Orris Infra for Rs.60-Cr: report
Economic Times
Everstone-backed industrial realty and
warehousing platform IndoSpace has bought a
70-acre logistics park from Orris Infrastructure
on the outskirts of Gurgaon, for a reported INR
60 crore.
Orris deals in construction, manufacturing,
education, energy and hospitality and has a land
bank of more than 1,000 acres in Delhi National
Capital Region (NCR).
Online marketing startup EkAnek
attracts Rs.40-Cr from Sequoia, Lightspeed, Matrix
Entrackr
Sequoia Capital, Lightspeed and Matrix Partners are to invest up to USD
10 million in influencer marketing startup
EkAnek Networks at an estimated
valuation of USD 25 million. EkAnek focuses on building the ecosystem
for new age brands in lifestyle categories through creating influencer
networks, commerce platforms, and other support infrastructure. About
USD 5.7 million (INR 40.14 crore) has already been invested. EkAnek is
led by Kartik Sheth and Chandranshu Sinha. IIM-A alum Kartik has
previously worked at McKinsey & Company, Unilever and Airtel.
Chandranshu is a an IIT KGP alum and a technology startup veteran who
has previously with OfBusiness, Lime Labs, Trilogy consulting and
others.
The company is issuing 4 equity shares and 60,480 Series A CCPS both at
a price of INR 6,637.7 each. Lightspeed is co-leading the tranche with
21,883 CCPS and 1 equity share worth INR 14.53 crore altogether.
Sequoia, investing through two of its entities, is investing the same
amount via 2 equity shares and 21,881 CCPS. Matrix is investing INR 9.68
crore via 14,859 CCPS and 1 equity share. A slew of Angel investors
including Rajan Anandan, Anand Chandrasekaran, Bhavin Kothari, Srini
Gopalan, have invested a total of INR 1.06 crore. The remaining amount
was contributed by QED Innovation Labs and Crimson Holdings.
Everstone picks up 39% stake in
CPC Diagnostics for Rs.30-Cr
Press Release,
ICRA
The Everstone Group, via its healthcare platform Everlife, has made a
strategic investment of INR 30 crore for a 39% stake in Chennai-based
in-vitro diagnostic products manufacturer and supplier
CPC Diagnostics
Pvt. Ltd.
7i Capital Advisors acted as the exclusive sell-side advisor on this
transaction.
NowFloats raises over Rs.25-Cr from Malaysia’s
Wenlyn Global Group, existing investors
YourStory
Hyderabad-based SaaS startup
NowFloats
Technologies has raised additional funding of
INR 25 Cr (USD 3.6 million) from existing
investors including Iron Pillar, IIFL, and
Omidyar Network, as well as a new Malaysian
investor, consulting firm Wenlyn Global Group.
Lightbox invests $4-M in female
wellness startup Nua
Business Standard
Lightbox, via its $200 million third fund, has invested USD 4 million in
Nua, a
female wellness brand. Existing investor Kae Capital has also
participated in the Series A funding round. Nua, operated by Lagom Labs,
creates products and services revolved around women’s health and
wellness. The company works on an innovative direct-to-consumer model
where women are able to subscribe for delivery of customised sanitary
pad boxes. The firm claims to have built a strong community of nearly 1
lakh women.
Agritech
startup TartanSense raises Rs.15-Cr from
Omnivore, Blume, others
Economic Times
Agriculture robotics startup
TartanSense has
raised INR 15 crore from Omnivore Partners,
Blume Ventures, and BEENEXT. Other investors in
the round include Dileep George, co-founder of
Silicon Valley based Vicarious AI, GreyOrange
Robotics co-founders Akash Gupta and Samay Kohli,
and Kush Jawahar from Featherlite.
Bangalore-based TartanSense is developing robots
for small farms, leveraging AI-assisted computer
vision and robotics to build precision sprayers.
These robots can detect diseased plants and
weeds, and precisely spray on the targeted
plant, saving costs and leaving less chemical
residue on fruits and vegetables consumed.
Women-centric beverages brand
‘&ME’ raises $1-M from Matrix, Sauce VC
Economic Times
Matrix Partners and Sauce VC have teamed up to invest USD 1 million
(about INR 7 crore) in Bengaluru-based
&Me, a food and beverage brand promoted
by Stanford business school alumnus Ankur Goyal. The investors have
subscribed to new shares in &Me’s parent company Merhaki Foods and
Nutrition.
&Me manufactures food products and beverages exclusively for women that
serve their health, nutrition and fitness needs. Its products include
liquids that relieve PMS symptoms such as cramps and also provide relief
for patients suffering from polycystic ovary syndrome.
From Venture Intelligence PE-VC Deal Database:
In Aug 2018, &Me had raised seed funding from Matrix Partners India.
Wedding Brigade raises Rs.2-Cr
from Blume Ventures and Akatsuki
Venture Intelligence Research
Blume Ventures (via Blume Ventures India Fund II and 3F Ventures) and
Akatsuki, Inc has invested INR 1 Cr and INR 1.03 Cr respectively in
Sitara Digital Ventures Private Limited (which owns online wedding
service startup Wedding Brigade). The investment values the firm at INR
38.78 Cr.
On Oct 17, 208, the company issued 10 equity shares and 560 Seed Round3
CCPS at INR 18,018 to Akatsuki, Inc, 370 Seed Round3 CCPS to 3F Ventures
and 185 Seed Round3 CCPS to Blume Ventures India Fund II.
From the Venture Intelligence PE-VC Deal Database:
In Apr 2016, Blume Ventures and Others invested $0.46 million in Wedding
Brigade. In Jan 2018, Mountain Pine Capital, Blume Ventures and Others
had invested $1 million.
Co-living spaces co StayAbode
raises addnl pre-Series A funding from Voyage, others
Press Release
Bangalore-based
StayAbode, a startup that builds co-living spaces, has
received an add-on to its pre Series A funding from Voyage Group,
Akatsuki and Incubate Fund. StayAbode currently has 1200 beds live
across 19+ properties in Bengaluru with a further 1,000 beds contracted
to go live in the next 6 months and is operating at 97% occupancy.
Founded in 2016, StayAbode co-living spaces aim to provide young and
single tenants a high level of comfort, convenience and a sense of
community with shared spaces such as kitchens, common areas, game areas,
music, art corners and places to dine and work. StayAbode recently tied
up with CP Developers and is working on Asia’s largest A grade co-living
project in India, with 1400 people living in a community environment, in
the heart of Bengaluru’s Whitefield - a professional hub neighboring
ITPL and large MNCs with a working population of over 50,000 millennials.
From Venture Intelligence PE-VC Deal Database:
In Feb-17 and Jul-18, StayAbode had raised funding from Incubate Fund,
Anupam Mittal, Vineet Sekhsaria, Ishan Manaktala, Angie Mahtaney, Gaurav
Bhalotia, Vishal Lulla, Gaurav Bhalotia, Sanjay Shenoy, Mridul Upreti
and other investors.
Puravankara partners Morgan Stanley fund for
warehousing platform
Mint
Real estate firm Puravankara Ltd and an
investment fund managed by Morgan Stanley have
signed an agreement to set up a warehousing
platform that will build industrial parks in
South India. The JV will look at greenfield
development that include sourcing land and
building out warehousing spaces in the form of
industrial parks.
IoT
startup EroNkan attracts Series A funding from
GVFL
Business Line
GVFL has provided Series A funding to Ahmedabad-based
EroNkan Technologies.
The company, with a product development centre
in Bengaluru, provides infrastructure that
enables IoT technology for applications across
various industries and verticals. The funding
will help EroNkan conduct research and trials
required to develop the engine to amplify
product upgradation and business development
efforts.
Traveltech startup Guiddoo
raises funds from SOSV, Artesian China Fund
Inc42
Mumbai-based travel technology company Guiddoo has raised funding from
New Jersey-based global venture capital firm SOSV and Artesian China
Fund. The company will use the funds to build its products and offerings
specifically for the China market and to strengthen its on ground
operations and product development. Guiddoo also plans to add new
destinations in the Middle East and Africa to its portfolio. As an
aggregator, the firm will also focus on adding independent Chinese
travel service providers into the loop.
Founded in 2013, the startup helps travellers by providing services like
guided tours and activities, dining, entertainment and shopping as
add-ons.
Angel Funding
IAN
invests Rs. 3.5-Cr in online automobile parts
startup SparesHub
Business World
Indian Angel Network has invested INR 3.5 crore
in Pune-based start-up
SparesHub,
which enables online purchase of automobile
parts,. SparesHub will utilise the funds for
geographical expansion and to strengthen its
technology capabilities. The funding was led by
IAN members Neeraj Garg, Harsh Gandhi, and Ankur
Agarwal.
Events equipment rental startup
Tosshead raises Rs.30 Lakhs
Deal Street Asia
Bangalore based event equipment and packages booking startup
Tosshead
has raised INR 30 lakh from non-resident Indians in the US. The company
will use the funds for expanding to major Indian cities including Delhi,
Mumbai, Chennai and Hyderabad in a span of 6-12 months. Part of the
funds will also be used to scale up its technology offering. The company
has also partnered with OYO for banquet hall bookings.
Flipkart CEO Kalyan
Krishnamurthy invests in B2B marketplace Moglix
Business Line
E-commerce major Flipkart’s Chief Executive Officer (CEO) Kalyan
Krishnamurthy has made a personal investment in Noida-based B2B
e-marketplace Moglix.
From Venture Intelligence PE-VC Deal Database:
Till Dec 2018, Moglix had raised around USD 40 million from Accel India,
IFC, Rocketship.vc, Jungle Ventures, Ratan Tata and other investors.
Background screening platform HelloVerify raises
funding from Lead Angels, valley investors
The News Minute
Noida-based
HelloVerify
India has raised funding from Lead Angels
Network, and Silicon Valley investors like Y-Combinator,
Data Collective & Venture Souq. Hello Verify is
an API background screening platform which
claims to have grown 100% y-o-y in the last six
months riding on 30 enterprise customer wins.
The funds raised will be used for expanding
HelloVerify’s technology ecosystem by
integrating and enhancing the role of artificial
intelligence in its background check technology.
Hello Verify plans to expand across India with
particular focus on the south Indian market.
Wi-fi
infra co EasyFi raises funding from Venture
Catalysts
Deal Street Asia
Venture Catalysts Angels has invested in virtual
wi-fi infrastructure firm
EasyFi. The
startup will use the funding round to expand its
network connectivity and establish virtual
infrastructure across new locations.
A product of WI Digital Service Pvt. Ltd.,
EasyFi provides a centralised Wi-Fi service to
end-consumers, thereby helping telecom and
internet service providers get rid of delivering
devices and last-mile operational costs. The
company currently offers its services in
Bangalore. It will use the funds for expanding
to Delhi, Mumbai, Chennai and Hyderabad in a
span of 6-12 months. Part of the funds will also
be used to scale up its technology offering.
Incubation/Acceleration
11 startups from WeWork Labs
attract $5.5 M
Economic Times
WeWork Labs, a programme launched by coworking giant We Work to help
early-stage startups scale in India, announced that 11 out of 31
startups incubated in Gurgaon have raised a total of USD 5.5 million in
funding. The 11 startups include PerkFinance, SpotDraft, Sqrrl and
Upgamel.
WeWork plans to expand the programme to include more labs in India by
the end of the year - one in Mumbai which recently became operational,
one in Bengaluru and a second Lab in Gurgaon. Labs will also be opened
in Chennai and Hyderabad.
Seed
co-investment program First Cheque announces 7
investments
Medium
FirstCheque - a
new seed investment and acceleration program -
has announced its first set of startups:
Fleetx: A SaaS based fleet management
software
GoPlannr: AI powered Insurance Sales
assistant
Mall91: An e-commerce platform focussing on
vernacular audience
Health Front: Personal loan for medical
emergencies
Bellatrix.Aero: Building new-age thrusters
for Satellites
Uno Finance: Healthcare loans without
collateral
IndShine: Collaborative SAAS platform for
Drone Imagery
Spun out from Early Stage VC firm India
Quotient, FirstCheque will co-invest INR 10–20
Lakhs in startups when they are raising INR 25
Lakhs – 2 crore from reputed angel investors. IQ
along with a couple of other VCs and and some
HNIs will serve as Limited Partners in
FirstCheque, which will be led by its CEO Kushal
Bhagia.
Google announces startups list
for 2nd batch of Launchpad accelerator program
Inc42
Google India has announced the list of startups that will be a part of
its second Launchpad accelerator program in India. The startups are:
Opentalk:
An app that enables one to become a better speaker and make new friends.
THB:
Helps healthcare providers organize and standardize healthcare
information to drive clinical and commercial analytical applications.
Perceptiviti Data Solutions: An AI platform for insurance
claim flagging, payment integrity, and fraud and abuse management.
DheeYantra:
A cognitive conversational AI for Indian vernacular languages.
Kaleidofin:
Customized financial solutions that combine multiple financial products.
FinancePeer:
A P2P lending enabler that connects lenders with borrowers online.
SmartCoin:
An app for providing credit access to underserved lower- and
middle-income segments through advanced AI/ML models.
HRBOT: Uses
AI and video analytics to find employable candidates in tier 2 and tier
3 cities.
Savera.ai:
A service that remotely maps your roof and helps you make an informed
decision about having a solar panel.
Adiuvo
Diagnostics: A rapid wound infection assessment and
management device.
Social VC Investments
Fresh
food aggregator platform Aibono raises $2.5-M
YourStory
AI-powered fresh food aggregator platform
Aibono raised
USD 2.5 million in its Pre-Series A round led by
impact investor Menterra (India), Artha
Initiatives (Zurich), Milliways Ventures (Bay
Area), Rebright Partners (Japan), 3One4 Capital
(India). The Bangalore-based startup will use
this funding to scale its Seed-to-Plate platform
for fruits and vegetables, a step ahead of the
farm-to-fork model, to a larger network of
farmers and cities.
The platform syncs demand with AI-powered
precision farming, connecting both ends of the
food value chain by delivering not only better
yields to the farmer but also fresh, reliable,
and traceable farm produce to the retailer,
hotelier, and the end consumer.
Liquidity Events
Eight
Road Ventures sells Laurus Labs shares worth
Rs.215-Cr, registers 4.91x return
BSE
Eight Road Ventures, via FIL Capital Management
(Mauritius) Ltd, sold 6,118,806 shares (5.75%
stake) at INR 351.15 per share of publicly
listed pharma firm Laurus Labs Ltd on Mar 14,
2019 through a bulk deal. The sale aggregates to
INR 214.86 Cr. Post-deal the investor would hold
5.75% stake (6,118,806 shares) in the company.
From the Venture
Intelligence PE-VC Deal Database:
In Feb 2012, Eight Road Ventures (formerly
Fidelity Growth Partners) had invested INR
171.22 Cr for a 32% stake in Laurus. In May
2014, Warburg Pincus invested INR 544.68 Cr for
a 30.74% stake. The company went public in Dec
2016.
Hotel
rooms aggregator OYO acquires co-working space
firm Innov8 for Rs.200-Cr
Business Standard
OYO Hotels and Homes has acquired co-working
space company Innov8 for INR 150-200 crore. OYO
aims to open more than 35 new co-working spaces
in major metropolitans over the next one year.
Innov8 has presence across four cities and has
over 13 centres. OYO’s partnership with Innov8
will combine its capabilities of asset
management and technology with the scale and
real estate expertise of the co-working firm in
the sphere of managed workspaces.
OYO has also started two new coworking brands -
PowerStation and WorkFlo, which will cater to a
variety of startups and companies.
From the Venture
Intelligence PE-VC Deal Database:
In June 2017, Augment Ventures had invested INR
7.47 crore and in October 2018 Credence Family
office had invested USD 4 million in Innov8.
Angel investors in Innov8 include Vijay Shekhar
Sharma, Venture Catalysts Angels, Rajan Anandan,
Girish Mathrubootham, Anand Chandrasekaran and
Kunal Shah.
DSG Consumer Partners fully
exits Indian budget hotel chain Oyo
DealStreetAsia
DSG Consumer Partners (DSGCP) which was one of the early investors in
Oyo Rooms (OYO), has fully exited its investment in the rapidly
expanding Indian hospitality company.
Lemon
Tree to buy Berggruen’s mid-market hotel chain
Keys
BSE
Publicly-listed Lemon Tree Hotels Ltd has signed
a non-binding term sheet with Berggruen Hotels
Pvt Ltd, a company owning and operating hotels
under various brands i.e Keys Prima, Keys Select
and Keys Lite in India for acquisition of 100%
of the shareholding of
Keys Hotels.
The target currently manages 7 hotels with 936
rooms in Bangalore, Pune, Trivandrum, Ludhiana,
Kochi and Vizag.
Keys Hotels also owns 2 land parcels for hotel
development at Goa and Raipur. Keys Hotels also
operates under management /franchise agreements
14 hotels with 975 rooms in 14 cities viz.
Mumbai, Chennai, Gurgaon, Goa, Mahabaleshwar,
Shirdi, Port Blair, Pune, Aurangabad, Tirupati,
Silvassa, Calicut, Manali, and Kolhapur.
Other Private Equity/Strategic Investments
Spanish
fashion co Puig invests Rs.100-Cr in Kama
Ayurveda
Business Line
Barcelona, Spain-based, family-owned fashion and
fragrance company Puig has picked up a minority
stake in Delhi-based
Kama Ayurveda
for INR 100 crore. Started in 2002, Kama sells
ayurvedic products according to authentic
prescriptions. The investment would be used to
support domestic and international expansion, as
well as for Puig’s India entry.
From the Venture
Intelligence PE-VC Deal Database:
Starting March 2014, Lighthouse Funds has
invested USD 11 million in Kama Ayurveda
(Subscribers to the database can login to view
the valuation, deal structuring and other
transaction details.)
Shilpa
Shetty Kundra to invest Rs.15-Cr in restaurant
firm Bastian
Economic Times
Bollywood actress Shilpa Shetty Kundra has
acquired 50% stake in hotelier Ranjeet Bindra-owned
Bastian Hospitality (earlier Aallia
Hospitality). The investor is expected to put in
between INR 10-15 crore for the stake and
further expansion. Kundra made the investment
through her new company SSK Yog.
Bastian Hospitality will house Bastian and One
Street restaurants as well as meal plan service
‘Whole and Then Some’. The three hospitality
brands will be run by chef Kelvin Cheung, F&B
director of Bastian Hospitality.
FSS
picks up 46% stake in South Africa based
Ecentric
BusinessLine
Chennai-based payments technology and
transaction processing provider Financial
Software and Systems (FSS) has acquired a 46%
stake in in South Africa based
Ecentric Payment Systems
through a combination of primary and secondary
investments, with a potential to further its
stake holding
Ecentric, a Standard Bank subsidiary, is a
leading payment stitching and retail value-added
services provider.
Japanese
electronics co Murata picks up 5% in motor
control products maker Versa
The Hindu
Japanese electronics company Murata
Manufacturing has taken a 5% stake in Coimbatore-based
Versa Drives
that specialises in motor control products and
energy-efficient appliances. Almost 70% of
Versa’s business comprises supply of motor
drives to original equipment manufacturers
(OEMs) in the domestic market and the rest is
manufacture and sale of energy-efficient
appliances under the brand name Superfan.
Siemens
Financial picks 46% stake in Greenko’s Tamil
Nadu wind project
BusinessLine
Siemens Financial Services (SFS), the financing
arm of Siemens AG agreed to pick up a 46% equity
stake in Greenko Group’s 200-MW Poovani Wind
Power project being developed in Tamil Nadu. The
project involves installation of 100 units of
wind turbines manufactured by Siemens Gamesa
Renewable Energy.
M&A
Mahindra CIE
Automotive acquires Aurangabad Electricals for Rs.876-Cr
BSE
Publicly-listed Mahindra CIE Automotive Limited is to acquire
100% stake in
Aurangabad Electricals Limited
(AEL) at an enterprise value of INR 875.6 crores (Equity Value
of INR 830 Cr)), which includes a deferred payment of up to INR
62.2 crores. The target had reported a turnover of INR 651 Cr
and a PAT of INR 34.4 Cr for FY18, with long term borrowings of
INR 88 Cr. Motilal Oswal was the financial advisor to the
sellers.
AEL, part of the Bagla Group, is a leading manufacturer of
automotive aluminum die casting products based in Aurangabad,
India, with five manufacturing facilities in the country across
Aurangabad, Pune and Pantnagar. With more than 3,300 employees,
AEL is a crucial supplier to a number of domestic and global
two-wheeler and passenger car OEMs and Tier 1 companies. It
makes a variety of body, brake and engine parts through high
pressure die casting as well as gravity die casting processes.
Redington acquires 90% stake in consumer goods
logistics firm Auroma Logistics for Rs.45-Cr
BSE
Publicly-listed Redington India Ltd has acquired
90% stake in Auroma Logistics Pvt Ltd (ALPL) for
INR 45.67 crore and plans to acquire the
remaining stake after 3 years at a pre-agreed
formula. ALPL, having its registered office at
Kolkata, India and corporate office at
Pondicherry, is into the business of warehousing
and logistics, particularly for consumer durable
goods segment. The company had a revenue of INR
60.55 crore for FY 18.
McLeod in pact with Jatinga Agro
to sell some assets of Boroi Tea Estate for Rs.28-Cr
BSE
Publicly-listed McLeod Russel has entered into an agreement with Jatinga
Agro Tech Ltd to dispose of the Tea Estates & Bearer Plants and other
assets of Boroi Tea Estate in Assam. Boroi Tea Estate had a turnover of
a little over INR 23 crore in FY18 and contributed close to 1.48% to the
company’s total turnover. McLeod is likely to receive a consideration of
around INR 28 crore from the sale of the estate. Jatinga Agro is engaged
in the business of manufacture of tea.
Tech
Mahindra acquires Japanese mobile communication
co K-Vision for $1.5 M
BSE
Publicly-listed Tech Mahindra Ltd, through its
wholly owned subsidiary Mahindra Engineering
Services (Europe) Ltd, has acquired 100% stake
in Osaka, Japan-based K-Vision Co Ltd for a cash
consideration of USD 1.5 million.
K-Vision is primarily engaged in providing
network services for mobile communication
carries in Japan. For the financial year ending
31 March 2018, the company had revenue of USD
3.3 million. For the 12 month period ending 31
January, 2019, the company had revenue of USD
4.8 million.
HCL Tech
acquires US-based IT consulting co Strong-Bridge
Envision
Press Release
Publicly listed IT Services firm HCL
Technologies (HCL) has acquired Seattle, WA
(USA)-based
Strong-Bridge Envision
(SBE), a digital transformation consulting firm
with offices in Seattle, Denver, Atlanta, and
New York City. SBE will become part of HCL’s
global Digital and Analytics business (HCL Mode
2 services). The deal will bring to HCL 200
experienced SBE employees from across various
industries and top-tier consulting firms. CG
Petsky Prunier served as the financial
advisor to the sellers.
Suven JV
acquires assets of US-based generics pharma co
Aceto
BSE
Publicly-listed Suven Life Sciences Ltd has
entered into a “stalking-horse” asset purchase
agreement to buy the assets of Aceto
Corporation’s Rising Pharmaceuticals and Rising
subsidiaries through its joint venture partner
Shore Suven Pharma, Inc., The acquisition of
Rising’s assets would transform Shore Suven
Pharma into a strong U.S. generic pharmaceutical
company
Shore Suven Pharma, Inc. is a joint venture
between Suven Life Sciences and Shore Pharma
Investments, LLC of USA.
Dodla Dairy acquires KC Dairy
Products
Press Release
Hyderabad-based Dodla Dairy Ltd has acquired
KC Dairy Products Pvt Ltd (KCDPL) for
over USD 10 million. KCDPL is engaged in the business of procurement,
processing and sale of milk and milk based products. Cyril Amarchand
Mangaldas was the legal advisor to Dodla Dairy on the transaction.
Undone:
Irda rejects Digit’s plan to buy Sudhir Valia’s
ITI Re
Economic Times
The Insurance Regulatory and Development
Authority of India (Irda) has rejected Prem
Watsa-promoted Digit’s proposal to acquire ITI
Reinsurance owned by Sudhir Valia,
brother-in-law of Sun Pharma cofounder Dilip
Shanghvi. The regulator’s stand is that ITI
Reinsurance’s licence stipulates a five-year
lock-in during which its shares can’t be sold
ITI Reinsurance got its licence in December 2016
and has a capital base of Rs 500 crore but was
yet to commence business, according to the Irda
annual report for FY18.
Last year, the Watsa-promoted Digit Insurance
had filed an application with Irda to buy ITI
Reinsurance from Valia’s Fortune Financial
Services.
Other Deals -
Listed Firms
CG Power creditors invoke 6.76
Cr pledged shares held by promoter Avantha Holdings
Business Line
Creditors to CG Power and Industrial Solutions have invoked 6.76 crore
pledged equity shares, constituting 10.8% of the company’s share
capital, held by Avantha Holdings, one of the promoters. Avantha
Holdings will continue to have the right to require a re-transfer of the
shares to itself upon repayment of the debt.
Other Deals
Times Group invests in Canadian
multi-platform entertainment co Wattpad
DealStreetAsia
Times Bridge, the global investments and partnerships arm of The Times
Group, has made a strategic investment in Canada-based global
multi-platform entertainment company
Wattpad. Times Bridge will help Wattpad
grow its community of readers and writers and establish new strategic
partnerships in India.
Insurance broking co Marsh raises stake in
Indian arm to 49%
Economic Times
Global insurance broking firm Marsh has raised
its shareholding in Marsh India from 26% to 49%
- the maximum permitted foreign direct
investment in India-based insurance broking
firms. Marsh India is a joint venture between
Marsh International Holdings Inc. and its
India-based partners, which include the Rampart
Trust. TT&A were the legal advisers to
Rampart Trust. With 17 branches across India, it
employs more than 600 professionals, servicing
close to 4,500 clients.
Debt Financing
Payment
solutions provider Innoviti raises $11.5-M from
Trifecta Capital, NBFCs
DealStreetAsia
Enterprise payments solutions provider Innoviti
has raised USD 80 crore in debt from venture
debt fund Trifecta Capital and non-banking
finance companies (NBFCs). Innoviti provides
technology-led payment solutions for businesses,
and partners with banks, digital wallets and
merchants such as retailers. Innoviti plans to
use the funds for its payments infrastructure
and terminals, technology expansion and for
hiring people.
Innoviti raised USD 18 million equity in a July
2017 Series B round led by Bessemer Venture
Partners, Singapore-based private equity fund
SBI-FMO and Catamaran Ventures. Catamaran had
also invested USD 5 million in Innoviti’s Series
A round in 2015.
Brookfield to
acquire Oaktree to build $475-B AUM PE behemoth
Reuters
Canada-based Brookfield Asset Management will
buy most of US-based Oaktree Capital Management
in a roughly USD 4.8 billion deal, creating an
alternative-asset manager that will challenge
the likes of Blackstone Group. Led by distressed
debt investor Howard Marks, Oaktree will
continue to operate as an independent business
with Marks joining Brookfield’s board of
directors. The combined businesses will have
about USD 475 billion of assets under
management, including debt.
From the Venture
Intelligence PE-VC Deal Database:
In India, Oaktree has invested in Cogent Glass
(2013) and CureFit (2018). Starting in 2015,
Brookfield has made several mega infrastructure
investments including in Reliance Infratel and
road projects of KMC Infrastructure.
Dutch
fund APG, Piramal to raise $500-M second fund to invest in
infra projects
Business Standard
Dutch pension fund manager APG Asset Management and the Ajay
Piramal-led Piramal Enterprises are looking to raise USD 500
million (nearly INR 3,500 crore) in a second fund to invest
in infrastructure projects in India.
WaterBridge
Ventures to raise $75-M for second fund
DealStreetAsia
Early stage VC firm WaterBridge Ventures is
looking to raise around USD 75-100 million for
its second fund.
IFC to
help with capacity building in insolvency segment
Business Line
The Insolvency and Bankruptcy Board of India (IBBI) has
signed a cooperation agreement with the International
Finance Corporation (IFC). The agreement will enable IFC to
assist IBBI to further build the capacity of insolvency
professionals, and insolvency professional agencies for the
purposes of the code
No side deals with
investors: Sebi to PE-VC firms
Economic Times
Capital market regulator Sebi is asking PE-VC funds to stop
discriminating between investors and refrain from adding
clauses in the investment documents that favour certain
investors. Since alternative investment funds (AIFs) are
pooled vehicles, Sebi believes all investors in each fund
should enjoy uniform terms. The regulator also wants a
certain uniformity in the PPM (private placement memorandum)
offered by funds. Sebi wants some of the key information to
be stated upfront. The regulator is looking to
curtail the discretion of investment managers in
potential conflict scenarios (including
“warehoused deals”), stressing on making more
disclosures so that investors can take informed
decisions.
VI
Updates
|
Deal Showcase |
|
|
The Deal:
Equity funding round by ITI Growth
opportunities Fund in Evolve Snacks Private
Limited Deal Date: March 5, 2019 Deal Description: Equity funding round
Advisory Role:
Advising on legal aspects of the transaction
including conducting legal due diligence and
drafting and finalizing transaction
documents. |
|
The Deal:
Equity funding round by ITI Growth
opportunities Fund in Revos Autotech Private
Limited Deal Date: January 30, 2019. Deal Description: Equity funding round
Advisory Role:
Advising on legal aspects of the transaction
including conducting legal due diligence and
drafting and finalizing transaction
documents. |
|
The Deal:
Stake acquisition by Arrina Education
Services Private Limited in Grey Campus
Eductech private limited Deal Date: January 30, 2019. Deal Description: Acquisition of stake
Advisory Role:
Advising on legal aspects of the transaction
including conducting legal due diligence and
drafting and finalizing transaction
documents. |
|
Legal Capsule |
|
|
Acquisition of
Shares – A perspective on tax considerations while determining
fair market value |
New Product Alert
|
Directory of Active Acquirers of Indian companies |
|
Please email directory@ventureintelligence.com with your contact details or call Priya on 91760 00521 to receive a sample & pricing details. |
Highlighted Sponsor
Technology Holdings is an M&A and strategic
advisory group that assists companies and
private equity funds globally with their
acquisition, growth and exit strategies. We are
exclusively focused on creating strategic
transactions for IT Services & BPO, Technology &
SaaS, Analytics, Digital Transformation,
Healthcare IT/BPO and Engineering Services
companies. Technology Holdings has offices
across India, USA and the UK. For more
information, please visit:
http://www.technology-holdings.com/
Write to us at:
anurag@technology-holdings.com
or call us at +91-9108671235
Private Equity/Strategic Investments
Baring PE Asia to acquire health tech co AGS
in Rs.2,230-Cr dea
Times of India
Buyout investor Baring Private Equity
Partners Asia is set to acquire AGS Health,
a medical revenue cycle management (RCM)
company, in a deal valued at USD 320
million, or Rs 2,230 crore.
The Chennai and Newark-based AGS provides a
host of services, including medical billing,
claim submission, denial management and
medical coding. AGS Health manages USD 35
billion in receivables annually, employing
over 5,000 billing specialists working
across 50 billing systems and electronic
medical records.
Samara Capital in talks to buy 3i Infotech
for $150-M
Times of India
Private equity firm Samara Capital is in
talks to acquire troubled mid-market IT
services firm 3i Infotech in a transaction
pegged at an enterprise value of USD 140-150
million. The deal has been triggered by
lenders of 3i Infotech, which has been
undergoing a debt restructuring scheme since
2016, after it defaulted on foreign currency
convertible bonds (FCCBs). Edelweiss
is working with lenders of 3i Infotech on
the process.
3i Infotech was set up in 1993 as the back
office of ICICI. It has over 5000 employees
and counts SBI Mutual Fund, Standard
Chartered Bank and Bayer Crop Science as
customers. The company offers IP-based
software solutions and IT services with a
strong presence in BFSI besides areas like
manufacturing, retail, telecom and
healthcare verticals.
Shapoorji Pallonji to raise Rs.850-Cr for
two smart city projects
Economic Times
Shapoorji Pallonji, which is eyeing
opportunities in the smart city space, is
looking to raise INR 850 crore in debt over
the next six months to fund two smart city
projects - INR 450 crore for the Eluru
project and INR 400 crore for the Bengaluru
project. It will be the company's first
independent smart city project and it will
operate and manage it for 10 years. The
project will be completed in the next 30
months spread over five phases.
Two-wheeler rental startup Bounce in talks with
B Capital for $50-M
Mint
Two-wheeler rental startup Bounce is in talks
with Facebook co-founder Eduardo Saverin’s
venture fund, B Capital Group, to raise around
USD 50 million. The company is also talking to
other investors in the US, Taiwan and Japan, and
the round may end up at USD 70 million.
CPPIB, Allianz- led InvIT in talks to acquire
Sadbhav Infra’s 12 road assets
Economic Times
Canada’s largest pension fund manager Canada
Pension Plan Investment Board (CPPIB) is in
talks to acquire 12 operating road assets of
Sadbhav Infrastructure Project Ltd (SIPL), in a
deal worth USD 400-500 million (INR 3,000 crore).
CPPIB, which has entered into exclusive talks
with SIPL, will acquire Sadbhav road assets
through the infrastructure investment trust (InvIT),
floated by L&T Infrastructure Development
Projects Ltd. CPPIB and Allianz Capital Partners
own about 55% of the InvIT units. The InvIT was
created after CPPIB bought into L&T toll road
portfolio and subsequently hived it off into the
independent vehicle, which is also the first
private infrastructure investment trust called
IndiaIndInfravit Trust.
Reliance Capital in talks with global investors
to sell its 43% stake in AMC JV with Nippon Life
Business Standard
Publicly listed Reliance Capital (RCap) has
begun talks with global investors to sell its
42.88% stake in Reliance Nippon Life Asset
Management (RNAM), which manages the mutual fund
(MF) business. The investors it is talking to
include the Abu Dhabi Investment Authority (ADIA),
Mubadala, Singapore-based Temasek, the Ontario
Teachers’ Pension Plan, and private equity funds
Blackstone and The Carlyle Group.
Regional language based e-comm startups
DealShare, WMall, Bulbul, Mall91 in funding
talks
Times of India
Startups like Bulbul, Simsim, WMall, Mall91
and DealShare, which are using regional
languages to enable social shopping among
the “Next 500 Million” online consumers, are
attracting VC attention.
DealShare is in talks to raise USD 2-3
million from New York-based hedge fund
Falcon Edge and Matrix Partners India,
WMall is likely to bag USD 1-2 million from
SAIF Partners.
Bulbul — a videobased e-commerce platform -
is raising capital from Sequoia Capital.
Mall91 is raising INR 5-7 crore from Beenext.
Most of these platforms are still testing
their products and are in beta stage.Some of
these platforms are also leveraging the
bargain-hunting and social-shopping
behaviour to build trust.
KKR,
lenders may take over CG Power from Avantha
Group
Economic Times
Gautam Thapar family may lose control of CG
Power and Industrial Solutions after it
defaulted on payments forcing private equity
giant KKR to convert its loans into equity.
Two other lenders including Yes Bank and BOI
AXA are in the process of doing the same in
a move that will reduce the Thapar family to
a minority. KKR now owns about 10.8% in the
firm and the combined stake of the lenders
is set to touch 30% if Yes Bank and others
go ahead with their conversion. The Thapar
family held about 34.42% in the capital
goods firm till KKR’s conversion. Thapar had
signed a deal with KKR and other lenders
when flagship Avantha Holdings took a loan
almost three years ago. In December 2016,
KKR along with coinvestors had agreed to
invest INR 900 crore in Avantha Holdings
through a structured credit deal to replace
the Thapar-controlled firm’s short-term debt
facilities. Creditors have nudged the board
of CG Power to remove B Hariharan, director
and group CFO of Avantha Group as a
promoter-nominee and appointed Narayan
Seshadri, former chairman of AstraZeneca
India and former partner of KPMG India as
independent director.
CG Power is a manufacturer of ultra-high
voltage transformers and switchgears in the
world and is a spin-off from the demerger of
Crompton Greaves. The promoters own 34.42%
of CG Power but around 32% of that is
pledged with financial institutions. Among
the non-promoters, around 37% stake is held
as material stakes by domestic insurance and
asset management companies. While mutual
funds like HDFC, Birla Sun Life and Reliance
Capital together own a 32% block, foreign
portfolio investors including ADIA and
Vanguard own 11.82%.
Liquidity Events
RIL
in talks to acquire fashion e-comm startup
Fynd
Entrackr
Reliance Industries Ltd is in talks to
acquire fashion e-commerce platform
Fynd which
lets fashion and lifestyle brands sell
online. Fynd had raised over INR 100 crore
from over 50 investors including Google,
IIFL, Kae Capital, Patni and Axis Capital.
In FY18, the company had reported revenue of
INR 4.8 crore at a total loss of INR 24
crore.
Other Private Equity/Strategic
Investments
PNB
to sell its 4% stake in credit info provider
CRIF High Mark
Economic Times
Punjab National Bank has put its stake in
CRIF High Mark, a credit information company
that tracks individual and corporate payment
history, on sale as it looks to sell all
non-core investments and offset the delay in
monetising its stake in life insurance
business. PNB owns 3.98% staje in CRIF High
Mark Credit Information Services.
Other investor in the company, Alpha Micro
Finance Consultants, has put up its 1.99% of
the paid-up equity on the block. PNB
Investment Managers are running the
process to find a buyer, and the floor price
of the shares is Rs 103 per share.
CRIF High Mark services credit information
bureau which covers credit information for
borrower segments including micro small and
medium enterprises and commercial borrowers,
retail consumers and microfinance borrowers
across urban or rural areas spread across
India. Apart from PNB and Alpha
Micro-Finance, investors include CRIF S.p.A,
SBI , SIDBI, Edelweiss, Shriram City Union
Finance.
M&A
Ebix makes $336-M bid for Yatra.com
Business Standard
US-based software firm Ebix has made an
offer to acquire fellow Nasdaq-listed online
travel firm Yatra.com for USD 336 million.
Ebix has offered to acquire 100% of
outstanding stock of Yatra Online at USD 7
per share - an 84% premium to the stock’s
closing price of USD 3.80 as on March 8.
Ebix would pay for the deal either in cash
or by issuing Ebix stock.
From the Venture
Intelligence M&A Deals Database:
Starting in 2014, Ebix has made 20
acquisitions in India - four of them in Q1
2019, following 9 in 2018.
PayU in talks to buy online payments
processor Wibmo for $60-M
Economic Times
Digital payments company PayU is in final
stages of discussions to acquire Bengaluru
and Cupertino-based Wibmo that specialises
in processing online payments. If the deal,
estimated at USD 50-60 million, goes
through, it will be another wager by PayU
that has earmarked more than USD 1 billion
to deploy in India. Wibmo, backed by
early-stage venture fund Accel Partners,
specialises in multiple payment service
offerings, including 3D secure, for ensuring
safety of digital transactions in mobile
merchant payments.
IDBI
Bank puts insurance, MF biz on the block
Economic Times
IDBI Bank has put on the block its insurance
and mutual fund businesses as it seeks to
increase the capital base after Life
Insurance Corporation (LIC) acquired over
51% stake in the bank. IDBI Bank owns 48%
stake in the company, while Federal Bank and
Belgian insurer Ageas are the other
shareholders of the insurer with 26% each.
Life insurance business has 0.38% market
share in the overall new business income
during April-January 2018-19.
Quikr in talks to acquire refurbished goods
portal Zefo in all-stock deal: report
Economic Times
Online classifieds platform Quikr is close to
acquiring Bengaluru-based refurbished goods
marketplace Zefo for INR 200 crore (about USD
28.5 million) in an all-stock deal. Sequoia
Capital and Helion Venture Partners-backed Zefo
will continue to operate independently after the
acquisition.
Founded in 2015, Zefo specialises in quality
check, repair and refurbishment for products
across categories such as TVs, mobile phones and
furniture.
Srei,
Avendus, Lodha Ventures in the race to buy
Essel Group’s MF business
Economic Times
The Essel Group has put its mutual fund
business on the block in its drive to
monetise non-media businesses amid concerns
over debt repayment. Srei Mutual Fund Asset
Management, Avendus Capital and Lodha
Ventures Holdings are currently in the race
to acquire Essel Mutual Fund, which has
Assets Under Management (AUM) worth about
INR 1,428 crore, in a deal estimated to be
valued at around INR 100 crore.
At the group level, Essel has total debt of
INR 17,174 crore. Out of this, INR 11,466
crore is infra-related debt. Apart from
repaying its infrastructure-related debt,
the company is planning to use the funds
raised through asset monetisation to reduce
the pledged portion of the promoter shares
in Zee Entertainment Enterprises. The
promoters had pledged their 59% stake in Zee
Entertainment to raise money that served as
equity funding for the group’s
infrastructure related businesses.
In 2016, Essel Finance Wealth Zone Private
Ltd (EFWZ), a wholly-owned subsidiary of
Essel Finance Management LLP, had acquired
the entire shareholding of Essel Finance AMC,
formerly Peerless Funds Management Company,
and Essel MF Trustee Limited formerly
Peerless Trust Management Company.
Secondary Issues
DLF to raise Rs.3,000-Cr through QIP
Times of India
Realty major DLF plans to raise an estimated INR
3,000 crore through the sale of equity shares to
qualified institutional investors. Aiming to
become a debt-free company, DLF had last year
announced plans to issue up to 17.3 crore shares
through qualified institutional placement (QIP)
to raise funds and pre-pay loans. DLF promoters
K P Singh and family have already infused INR
9,000 crore in the company and would pump in INR
2,250 crore more.
Other Deals - Listed Firms
Tiles maker Asian Granito plans Rs.90-Cr pref
issue
Business Line
Listed tiles maker Asian Granito India Ltd plans
to issue 50 lakh convertible warrants on
preferential basis to the promoter and
non-promoter groups at INR 180 per share. The
company is expected to raise INR 90 crore, which
will be used to fund its expansion plans, debt
reduction, meet working capital requirements and
improve capital structure.
Other Deals
SBI to auction NPAs worth Rs.2,338-Cr
Business Standard
State Bank of India has put on sale six
non-performing accounts worth INR 2,337.88 crore,
which will be auctioned on March 26. The bank is
looking to sell all the accounts on a 100% cash
basis to banks, ARCs, NBFCs and other financial
institutions. Except for Mittal Corp and Shree
Vaishnav, all the auctions are under the Swiss
Challenge method.
BoM to sell Videocon's TN unit to recover
Rs.154-Cr
Business Standard
Bank of Maharashtra (Mahabank) will sell the
consumer electronics manufacturing plant of
Videocon Industries in Tamil Nadu in an auction
to recover its outstanding debt worth INR 153.77
crore. The bank has issued a notice to the
company and the public about the immovable
property, which has been mortgaged to the bank.
The sale will help the firm recover the amount
due to the bank from the borrowers and
guarantors, including Unity Appliances (the
factory owner), Venugopal Dhoot, Pradip Kumar
Dhoot, and Videocon Industries.
IDBI Bank to sell bad loans, including RCom
Times of India
In a bid to clean up its book faster and protect
its balance sheet from further provisions, IDBI
Bank has put on the block several large loans,
including those given to Reliance Communications
(RCom) and Reliance Telecom. The bank, which was
recently sold by the government to Life
Insurance Corporation (LIC), has put on the
block loans of RCom and Reliance Telecom with
gross principal outstanding of INR 1,056 crore.
It is also selling loans of Loop Mobile valued
at INR 105 crore.
India Ahoy
YouTube launches music streaming service in
India
Economic Times
YouTube has launched its paid service, YouTube
Premium and music streaming app, YouTube Music,
in India. YouTube Premium will be available for
INR 129 a month, and will also include
membership to YouTube Music Premium. The service
will offer an ad-free experience with background
play and offline downloads for millions of
videos on YouTube, as well as access to all
YouTube Originals.
Expansion/Diversification
Jubilant launches Chinese restaurant brand
Hong’s Kitchen
Business Line
Jubilant FoodWorks Ltd has entered the Chinese
cuisine segment with the launch of its first
home-grown restaurant brand, Hong’s Kitchen. It
has opened the first outlet in Gurugram. The
company currently operates Dominos and Dunkin
Donuts outlets in India.
Helmet maker Steelbird forays into tech
space through social networking app
Business Standard
Steelbird Group, which has presence across
verticals including helmet manufacturing and
entertainment, has forayed into the
technology space with the launch of a social
networking application. The app 'Steelbird
Connect - Share & Earn' lets users earn as
well in addition to networking and
socialising. The app lets users accumulate
points which then can be redeemed for
shopping at Steelbird Connect Share & Earn
shopping mall which has over 10,000 product
listings.
People
Former Infy CFO Rajiv Bansal joins DXC
Technology
Times of India
Rajiv Bansal, former chief financial officer of
IT Services giant Infosys, is joining US IT
services firm DXC Technology as senior VP and
head of finance (Americas).
LIC
names M R Kumar as chairman; appoints 2 MDs
Times of India
The government has appointed M R Kumar as
the chairman of the Life Insurance
Corporation (LIC) in place of V K Sharma,
whose term ended in December 2018. The
government has also named Suseel Kumar and
Vipin Anand as managing directors of the
corporation. M R Kumar will take over from
Hemant Bhargava, managing director who has
been officiating as chairman.
All the three appointments are for a period
of five years. Kumar will also be the
non-executive chairman of IDBI Bank.
Regulatory News
Govt
extends feedback submission deadline for
draft e-comm policy
Economic Times
The government extended the deadline for
submission of feedback on the draft
e-commerce policy by three weeks to March 31
following demands by some companies for a
separate policy on data with easier sharing
norms. At a stakeholder consultation with
the Department for Promotion of Industry and
Internal Trade (DPIIT), e-commerce companies
sought a broad policy that favours both
traders and buyers as well as retail trade
and banking.
The department floated the draft e-commerce
policy on February 23 in which it proposed
regulating cross-border data flows, locating
computing facilities within the country to
ensure job creation and setting up a
dedicated data authority for issues related
to sharing of community data. It asserted
that the data generated in the country is a
national asset and citizens and the
government have a sovereign right over it.
Bankruptcy
NCLT
clears ArcelorMittal's Rs.42,000-Cr resolution plan for
Essar Steel
Economic Times
The Ahmedabad bench of the National Company Law Tribunal
(NCLT) has approved the lenders’ plan to award Essar
Steel to global steel giant ArcelorMittal. However, the
legal wrangling over the bankrupt steel firm may not be
over yet, with the promoter Ruia family and Standard
Chartered Bank seeking permission to appeal against the
order.
The NCLT okayed the resolution professional’s (RP’s)
plan, approved by Essar Steel’s lenders, with a slight
amendment that could throw in a bit more for operational
creditors. The court suggested that the payment of INR
42,000 crore by Arcelor-Mittal be distributed among
financial and operational creditors in the ratio of
85:15. The earlier proposal envisaged just about a few
hundred crores for operational creditors whose claims
are below INR 1 crore.
The resolution plan for Essar Steel has been tied up in
legal knots for almost two years with the Ruias
challenging nearly every procedure associated with the
bankruptcy proceedings. The steelmaker was among the
first 12 cases selected by the Reserve Bank of India to
be resolved under the Insolvency and Bankruptcy Code
(IBC).
NCLAT pulls up RCom lenders over Rs. 37,000-Cr
asset sale 'golden outlook'
Business Standard
The National Company Law Appellate Tribunal (NCLAT)
pulled up SBI, the lead lender of debt-ridden
Reliance Communications, along with others for
giving a 'false impression' to monetise INR
37,000 crore from asset sales of the telecom
company to Reliance Jio. According to the bench,
the lenders gave a "golden outlook" to NCLAT to
recover around INR 37,000 crore from sale of
assets but nothing happened. After failing to
get money from assets, creditors are now trying
to recover INR 260 crore which the company has
got from the Income Tax refunds.
NCLAT restricts handing over of Bafna Pharma
to its promoter
Business Standard
The NCLAT has ordered the monitoring
committee of Chennai-based Bafna
Pharmaceuticals to not handover the
company's assets to its promoters.
NBCC may up offer to banks for Jaypee Infra
Times of India
Public sector player NBCC is expected to sweeten
its offer to lenders for Jaypee Infratech to
address their concerns over a high haircut as
the resolution plan for the company under
insolvency action enters the final lap. NBCC
appears set to bag the high-profile entity
comprising over 30,000 residential units, an
expressway and a hospital. NBCC may offer to
acquire a small stake in the special purpose
vehicle (SPV) to take over the Taj Expressway
and also develop 1,000 acres lying with lenders
by promising to service it till the end and
offer an upside to banks. Lenders led by IDBI
Bank are due to meet on Thursday to hear the
pitch from both the bidders — NBCC and Suraksha
Asset Reconstruction Company.
Others
HC
asks Reliance group firms, Edelweiss' NBFC
arm to settle out of court
Business Standard
The Bombay High Court (HC) asked Anil Ambani-led
Reliance group companies and Edelweiss’
non-banking financial (NBFC) arm ECL Finance
to try and find a workable solution out of
court. The next court hearing would be on
March 26.
Lawyers representing Anil Ambani group
companies — Reliance Wind Turbine
Installators Industries and Reliance Project
Ventures and Management — said the company
is looking for a strategic investor who can
buy promoter shares and gain control of the
company. Counsels representing the two sides
reiterated their arguments on the sale of
pledged shares. ECL Finance said the group
should pay the INR 190-odd crore it owes to
the company and not advice on how to sell
the pledged shares or at what price.
The court was informed that the Anil Ambani
group had approached Edelweiss’ NBFC arm
requesting a moratorium on selling of
pledged shares till a strategic investor is
brought on board. However, the latter was
not prepared to wait.
On February 8, 2019 L&T Finance and certain
entities of Edelweiss Group invoked pledge
of listed shares of Reliance Group and made
open-market sales of the value of
approximately INR 400 crore in early
February. The Reliance group companies had
moved Bombay HC seeking damages from
Edelweiss for selling its shares
“illegally”.
Myntra shutters two loss-making offline stores
in Mumbai, B’luru
Economic Times
Walmart-owned online fashion portal Myntra has
shuttered a prominent Mango store in Mumbai and
the flagship store of private brand Roadster in
Bengaluru, which had marked the company’s
high-profile entry into brick-and-mortar
retailing. The closure of the loss-making stores
is part of Myntra’s change in strategy after
Walmart acquired parent Flipkart Group for USD
16 billion in May.
Liquidator opposes banks plea to sell Vijay
Mallya’s properties
Rediff
The official liquidator appointed by the
Karnataka High Court opposed a plea by banks to
restore the confiscated properties of fugitive
economic offender Vijay Mallya to them. A
consortium of banks led by State Bank of India
had filed an application before the special
court of MS Azmi in Mumbai to liquidate Mallya's
assets so that they can recover INR 6,203.35
crore with annual interest at 11.5% payable
since 2013.
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