Financial Insights March, 2018 - Indcap.in · 2018-09-03 · Huhtamaki Ajanta Packaging (India)...

Financial Insights

March, 2018

www.indcap.in 1

Contents

Mergers & Acquisitions 3

Private Equity 4

M&A Deals – March, 2018 5

PE Deals – March, 2018 6

Indcap Opportunities 7

RBI Referred Companies to NCLT 8-9

Transaction Closure Announcement 10

Markets/ Commodities 11

2 March, 2018

Distressed assets player AION Capital Partners Ltd. and steelmaker JSW Steel Ltd. have sought antitrust nod for their joint plan worth INR 35,000 Mn ($538.3 million) aiming to end the bankruptcy of Monnet Ispat and Energy Ltd.

M&A INSIGHTS

Wipro Ltd. India’s third-largest software services exporter, has agreed to sell its hosted data centre business to US-based hybrid IT services provider Ensono for INR 26,260 Mn ($405 million).

GlaxoSmithKline is buying Novartis out of their consumer healthcare joint venture for INR 8,45,000 Mn for 36.5% stake.

3

*INR to USD conversion rate considered at USD 1 = INR 65

March, 2018

ReNew Power Ventures (P) Ltd. India’s second-largest clean-energy producer by capacity, is in advanced talks to buy solar power assets of Waaree Energies Limited. for INR 5,500 Mn.

Tata Power Co. Ltd. will sell its defence business to Tata Advanced Systems Ltd. for INR 22,243 Mn (22.30 billion rupees /$342.21 million).

Fortis Healthcare Ltd. is selling its hospital business to private equity firm TPG Capital-backed Manipal Health Enterprises (P) Ltd. For INR 7200 Mn.

Billionaire Sajjan Jindal-led JSW Steel Ltd. has agreed to acquire US-based steel mill owner Acero Junction Holdings Inc. for up to INR 5,270 Mn ($80.85 million) in cash to expand its North America operations.

EESL EnergyPro Assets Ltd. a subsidiary of state-run Energy Efficiency Services Ltd. (EESL), has acquired UK-based power generation solutions provider Edina for INR 4,930 Mn ($76 million).

Gurgaon-based online grocery startup Grofers India (P) Ltd. has raised INR 4,000 Mn (around $62 million) in a Series E round led by existing investor Japanese Internet conglomerate SoftBank.

Chennai-based cloud billing solutions provider Chargebee has secured INR 1,170 Mn ($18 million) in a Series C investment round led by New York-based Insight Venture Partners.

Impact investment firm Aavishkaar Venture Management Services Ltd. has invested INR 350 Mn ($5.37 million) in Bangalore-based packaged foods startup Kottaram Agro Foods (P) Ltd. which makes breakfast cereals under the brand Soulfull.

PE INSIGHTS

Mumbai-headquartered TrendSutra Platform Services (P) Ltd. which runs furniture e-tailer Pepperfry, has raised INR 2,500 Mn ($38.4 million) in a fresh round of funding from asset management company State Street Global Advisors.

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Bangalore-based Goddard Technical Solutions (P) Ltd. which operates online lending platform Avail Finance, has raised INR 1,110 Mn ($17.2 million) in a fresh round of funding led by venture capital firm Matrix Partners.

HT Media Ltd. has agreed to invest INR 324 Mn ($5 million) in US-based social commerce platform Sagoon Inc.


March, 2018

Auxilo Finserve (P) Ltd. a non-banking financial company focussed on the education sector, has raised INR 3,750 Mn ($5.7 million) from sugar manufacturing company Balrampur Chini Mills Ltd.

Asia-focussed private equity firm ADV Partners has invested INR 6,850 Mn ($105 million) in infrastructure services provider Feedback Infra (P) Ltd.

Buyer Target/Company Industry Amount

Stake (%) INR in

Mn GlaxoSmithKline Novartis Healthcare 8,45,000 37%

AION Capital Partners Ltd. and JSW Steel Ltd.

Monnet Ispat and Energy Ltd. Manufacturing 35,000 NA

Ensono Wipro Ltd.-Hosted Data Centre IT 26,260 NA

Tata Advanced Systems Ltd. Tata Power Co. Ltd.-Defence Unit Manufacturing 22,243 NA

Manipal Health Enterprises (P) Ltd. Fortis Healthcare Ltd. Healthcare 7,200 20%

ReNew Power Ventures (P) Ltd. Waaree Energies Limited Manufacturing-

Solar 5,500 NA

JSW Steel Ltd. Acero Junction Holdings Inc. Manufacturing 5,270 NA

EESL EnergyPro Assets Ltd. Edina Infrastructure 4,930 NA

Edelweiss Religare Securities Ltd. Finance 2,500 NA

Zensar Technologies Ltd. Cynosure Inc. IT 2,140 NA

Huhtamaki Ajanta Packaging (India) Manufacturing 1,003 NA

Hinduja Global Solutions Ltd. AxisPoint Health Healthcare 910 NA

Wipro Ltd. Denim Group Ltd. IT 576 33%

Reliance Retail Ltd. KaiOS Technologies, Inc. IT 455 16%

Dabur India Ltd. D&A Cosmetics Consumer 222 NA

Amber Enterprises India Ltd. Ever Electronics (P) Ltd. Electronics 210 70%

Head InfoTech India (P) Ltd. FanFight Gaming 65 NA

Dabur India Ltd. Atlanta Body Consumer 10 NA

Matrimony.com Ltd. Accentium Web (P) Ltd. E-Commerce NA NA

Turn/River Capital Recruiterbox Recruitment NA NA

QuEST Global Services Pte. Ltd. Exilant Technologies (P) Ltd. IT NA NA

Servion Global Solutions Ltd. Innoveo AG Insurance NA NA

Chatpay Commerce (P) Ltd. MotorWhiz Service NA NA

Tata Steel Ltd. Bhushan Steel Ltd. Steel NA NA

JSW Sports (P) Ltd. GMR Sports (P) Ltd. Sports NA 50%

Page Solutions. Aetlo Tech Banking NA NA

Cognizant Bolder Healthcare Solutions Service NA NA

Wibmo Inc. Mypoolin Technology NA NA

Precision Camshafts Ltd. Motoren und Fahrzeugtechnik

GmbH Manufacturing NA 76%


M&A Deals - March, 2018

5 March, 2018

Investor Company Industry Amount

Stake (%) INR in

Mn ADV Partners Feedback Infra (P) Ltd. Infrastructure 6850 NA

SoftBank. Grofers India (P) Ltd. Ecommerce 4,000 NA

State Street Global Advisors TrendSutra Platform Services (P) Ltd. Ecommerce 2,500 NA

Insight Venture Partners Chargebee Technology 1,170 NA

Matrix Partners Goddard Technical Solutions (P) Ltd. Ecommerce 1,110 NA

Balrampur Chini Mills Ltd. Auxilo Finserve (P) Ltd. NBFC 375 NA

Aavishkaar Venture Management Services Ltd.

Kottaram Agro Foods (P) Ltd. Consumer 350 NA

HT Media Ltd. Sagoon Inc. Social Media 324 NA

Alteria Capital Advisors LLP Universal Sportsbiz (P) Ltd. Consumer 300 NA

Amit Singhal DriveU Ecommerce 194 NA

Omidyar Network ZineOne Inc. Technology 160 NA

Anicut Capital LLP Kaynes Technology India (P) Ltd. Manufacturing 150 NA

UK Publisher Callido Learning LLP Ed-tech 130 NA

Chinese venture capital firm(Undisclosed )

Smart Coin Fintech 130 NA

Exfinity Venture Partners AgShift Inc. Research 130 NA

Ideaspring Capital and The Hive Peritus.ai Technology 120 NA

Impanix Hisun Business Solutions (P) Ltd. Finance 120 NA

Dream Incubator,Matrix Partners and Times Internet

Metarain Software Solutions (P) Ltd. E-pharmacy 120 NA

Infosys Ltd. Delaware IT 98 NA

Sixth Sense Ventures AVG Logistics Ltd. Infrastructure 94 NA

Alteria Capital Advisors LLP Maverix Platforms (P) Ltd. Consumer 85 NA

Endiya Partners. Slang Labs Technology 81 NA

Hitachi Ltd. Flutura Decision Sciences and Analytics Analytics 65 NA

The HR Fund HealthAssure Healthcare 65 NA

YourNest Bottle Lab Technologies (P) Ltd. Food- Tech 65 NA

Initia Holdings Ltd. Usha Financial Services (P) Ltd.

(Cash Suvidha ) Ecommerce 65 NA

Omidyar Network Healofy Social

Network 64 NA

SucSEED Venture Partners i2iFunding Ecommerce 50 NA

Incubate Fund Shorebird Technologies Pvt. Ltd, Travel 39 NA

WaterBridge Ventures Doubtnut ed-tech 35 NA


PE Deals - March, 2018

6 March, 2018

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

Sell Side Opportunities

7 March, 2018

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

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

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

• Total Debt: INR 1,30,000 Mn

• Date of referral to NCLT: July 2017

• Present Status: New Delhi based Renaissance Steel has questioned bids by Tata Steel and Vedanta alleging that both are guilty of criminal misconduct, so be barred from bidding.

• Issue: Sect on 29A(d) of the IBC, prohibits bidding by

entities or their subsidiaries that have been convicted for an offence punishable for more than two years. Renaissance Steel has claimed that subsidiaries of both Tata Steel and Vedanta have been convicted in the UK and Zambia, respectively.

Electrosteels Steel

• Total Debt: INR 4,90,000 Mn • Date of referral to NCLT: June 2017

• Present Status: Locked in a Battel between Arcelor Mittal and Russia’s Numetal

• Issue: Both Bidders are questioning each others

eligibility on the basis of the revised insolvency and Bankruptcy code which bar promoters or related parties of defaulted firms to bid if they had not cleared dues, Ravi Ruias son Rewant Ruia is associated with Numetal and rival Arcelor Mittal promoter Lakshmi Mittal is associated with defaulter Uttam Galva.

RBI Referred Companies to NCLT

8

March, 2018

Essar Steel

• Total Debt: INR 2.90,000 Mn • Date of referral to NCLT: June 2017

• Present Status: JM Asset Reconstruction Company is the alone bidder for the company after initial interest from four including Kotak Mahindra Edelweiss. This is the second biding process for the fully integrated textile unit.

• Issue: Bankers are worried bid may be too low,

even lower than the liquidation value. But many believe that at least real estate holdings and some attractive business segments should lead to banks demanding higher bids.

Alok Industries

• Total Debt: NR 1,02,370 Mn • Date of referral to NCLT: June 2017 • Present Status: The JSW Steel - AION Capital was

the only bid that came for Monnet Ispat and Energy. The bid was for INR 24500 Mn to the Lenders along with an equity funding of INR 10500 Mn .

• Issue: The consortium will hold 75% In the company while 18% will be held by lenders and 3% by the existing promoters. Final approvals still pending as lenders are seeking legal opinion to make sure that the bid is in order.

Monnet Ispat

• Total Debt: INR 4,40,000 Mn • Date of referral to NCLT: July 2017 • Present Status: Tata Steel has emerged the top

bidder outsmarting JSW Steel offering INR 34,8000 INR as upfront payment against INR 29,7000 Mn offered by JSW.

• Issue: The deal was thought to be final until late last week when Larsen&Toubro(L&T)moved the NCLT seeking 'higher priority’ in repayment of dues owed by Bhushan Steel. It owes INR 9000 Mn to L&T.

Bhushan Steel

Electrosteel Steel

Adapted from Economic Times dt. 14.03.2018


• Date of referral to NCLT: June 2017

• Present Status: UK based Liberty House, Mahindra & Mahindra and the Mistry family controlled Shapoorji Pallonji Group were the three bidders in October last. Now only Liberty House is said to be the remaining bidder.

• Issue: It is unclear as to what exactly is the offer from

Liberty House. Bids were in the range of INR 40000 Mn and lenders are yet to take a decision on whether to offer the company at such a steep discount.

Electrosteels Steel


• Date of referral to NCLT: August 2017

• Present Status: Four companies about whom little is known have submitted bids for the Hyderabad based Lanco lnfratech within interests in power and infrastructure projects. Little known companies like OPG Group, Prem Energy, Goyal Group and Diva Group have bid for the company.

• Issue: Bids by little known companies and suspect financial strength have stoked concerns among the Ienders so no decision yet .

RBI Referred Companies to NCLT

9

March, 2018

Lanco lnfra

• Total Debt: INR 1,27,220 Mn • Date of referral to NCLT: July 2017

• Present Status: UK based Liberty House has declared itself the winner in the bid but there has been no final word from bankers. Liberty House and US-based hedge fund Deccan Value Investors were the final bidders for the asset.

• Issue: Liberty House's green metal strategy

Involves recycling of scrap metal instead of producing it from scratch. However while the company has declared itself as a winner it is unclear as of what price it is willing to pay.

Amtek Auto

• Total Debt: NR 4,92,000 Mn • Date of referral to NCLT: June 2017 • Present Status: UK based Liberty House Group

has challenged the rejection of its bid by the resolution professional which were received after deadline.

• Issue: Liberty House claims that its offer was higher than what was offered by Tata Steel. It claims that it got confused between the deadline of Bhushan Power and Bhushan Steel and its bid was rejected without even opening the envelope.

Bhushan Power& Steel • Total Debt: INR 80,000 Mn • Date of referral to NCLT: July 2017 • Present Status: JSW Group is the highest bidder

among six, including Adani group, Jieyang Zhonguci of China, Deutsche Bank, Sudhir Walla-promoted Suraksha ARC, and parent Jaiprakash Asso.

• Issue: JSW Group has offered INR 99140 Mn as a one-time payment to lenders but has refused to settle claims of 32,000 home buyers, farmers and any penalty imposed by Rera (Real Estate Regulation and Development Act,2016).

Jaypee lnfratech

ABG Shipyard

Adapted from Economic Times dt. 14.03.2018

This announcement appears as a matter of record only

TRANSACTION CLOSURE ANNOUNCEMENT

Indcap Successfully advises Resolution Applicant for acquisition under Insolvency

& Bankruptcy Code, 2016 through NCLT

(Kolkata’s first resolution plan approved by NCLT)

Exclusive Advisor to

C P Ispat Private Limited Led Consortium (Resolution Applicant - bidder)

for

Taking over the 100% equity ownership of ‘M/s Divya Jyoti Sponge Iron Pvt.. Ltd.’

About C P Ispat Pvt.. Ltd. Led Consortium and Divya Jyoti Sponge Iron Ltd.:

C P Ispat Pvt.. Ltd. (CPIPL) is part of the renowned Jaishree Group based out of Durgapur, West Bengal. Over the years, the Group has revived 7 sick companies. The total manufacturing capacity of the Group stands at 1,000 TPD Sponge Iron, 1,200 TPD MS Billets and 900 TPD TMT Bars. CPIPL led consortium (Resolution Applicant) had bid for taking over the entire assets and liabilities of Divya Jyoti Sponge Iron Pvt.. Ltd. (DJSIPL)

DJSIPL has a Sponge Iron & Billet manufacturing unit situated at Bankura, West Bengal. Due to non payment, their account turned NPA with all lender. Accordingly, PNB, the Lead Bank had approached NCLT for its debt resolution. Transaction Details:

Indcap advised CPIPL Led Consortium to emerge as the highest bidder amongst several bids received as resolution plan for Divya Jyoti Sponge Iron Pvt. Ltd.

About Indcap:

For further information, please contact:

Samir Agarwal, Director

+91 98303 35062 [email protected]

Dheeraj Aswani, Sr. Vice President +91 96745 11107

[email protected]

Vikram Singh, Senior Advisor

+91 96745 11109 [email protected]

Indcap’s role included but not limited to the preparation of resolution plan, assistance in timely submission of plan and bid, representing company and management at various meetings as well as at NCLT. With Indcap’s advisory, CPIPL Lead Consortium was chosen as the highest bidder by the COC and accordingly got NCLT’s approval on 13.03.2018.

Indcap’s Role:

www.indcap.in

Ahmedabad | Kolkata | Mumbai | New Delhi

Post introduction of Insolvency and Bankruptcy Code,2016 (IBC), Indcap has developed the required knowledge, skills and teams to advise, prepare and implement any resolution plan in accordance with the provision of IBC.

Being a boutique investment banking company, Indcap also offers specialized services in the fields of M&A advisory, Resource Raising including Private Equity Placements, Financial restructuring and Corporate Advisory.

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mailto:[email protected]



http://www.indcap.in/

Stock Indices Opening

(1st March’18) Closing

(31st March’18) Change %

Sensex 34,141.22 32,968.68 -3.43%

Nifty 10,479.95 10,113.70 -3.49%

FTSE 7,115.98 7,056.61 -0.83%

Nikkei 21,901.13 21,454.30 -2.04%

Dow Jones 25,024.04 24,103.11 -3.68%

Gold ( INR/10 Grams) 30,193.00 30,408.00 0.71%

Silver (INR /1 Kg) 37,891.00 38,322.00 1.14%

USD ($) (INR /Dollar) 65.24 65.14 -0.15%

Euro (€) (INR /Euro) 79.72 80.23 0.64%

GBP (£) (INR /British Pound)

89.75 91.23 1.65%

Sources – Global Indices, BSE, NSE, RBI, MCX INDIA

MARKETS/ COMMODITIES

11 March, 2018

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

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10 March, 2018


Financial Insights March, 2018 - Indcap.in · 2018-09-03 · Huhtamaki Ajanta Packaging (India)...

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