Quarterly Newsletter · • SEBI in order to effect the merger, has amended Securities Contracts...
Transcript of Quarterly Newsletter · • SEBI in order to effect the merger, has amended Securities Contracts...
Systematix Capital Services Pvt. Ltd. : The Capital, A-wing, No. 603 – 606, 6th Floor, Plot No. C-70, G Block, BKC, Bandra (East), Mumbai – 400 051
Quarterly Newsletter
Indian Investment Banking Industry (July- Sept 2015)
Oct 2015
Index
1
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
India Macroeconomics – Growth & Inflation
Indian economy is set to weather the global uncertainty, esp around China. The recent rate cut by RBI is a booster dose for reviving the economy. The recent improvements in Global Competitiveness Index of World Economic Forum reinforces the government’s pro-industry and pro-reform initiatives.
Chart 1: GDP Growth (% YoY)
2
Chart 2: WPI Inflation Trend (%)
Sources: CSO, India; Ministry of Commerce and Industry Note: GDP Figures are at basic constant prices (2011-12) & FY ends on March 31
Modest growth: The Indian economy is the only bright spot among emerging markets after recent sluggishness in growth in China. The world bank has predicted India will growth at 7.5% in FY16.
With the inflation under control, the RBI had cut 50 bps of repo rates in the last policy meet. The lower interest rate regime is expected to fuel the investment cycle.
India’s factory output is expanding at a slower rate over the last couple of months. Corporate earnings and profitability are yet to show any signs of improvement.
Chart 3: IIP Growth (% YoY)
7.2%
7.5%
6.6%
5.3%
6.7%
8.4%
6.6%
7.5%
7.0%
4%
5%
5%
6%
6%
7%
7%
8%
8%
9%
9%
Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 0.5%
2.5%
-4.2%
3.8%
1.7% 2.6%
5.0%
2.1% 4.1% 2.7%
3.8% 4.2%
6.4%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Au
g-1
4
Sep
-14
Oct
-14
No
v-14
Dec
-14
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
1.8
-1.7
-0.5
-1.0 -2.2 -2.3 -2.4 -2.2 -2.1 -4.1
-5.0 -4.5 (6)
(4)
(2)
-
2
4
Oct
-14
No
v-1
4
De
c-1
4
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Capital Flows and USD / INR movement Chart 6: Performance of INR against USD
4
The rupee remained volatile throughout the last quarter due to volatility in equity markets. Lower CAD, falling interest rates and increasing overseas fund flows should help the rupee to maintain its strength against the dollar.
Over the last six months FDIs have gained pace reflecting overseas investor confidence on India’s growth story. However, net FIIs tuned negative in Q2 FY16 as Indian markets turned volatile due to China woes and growing uncertainty in global markets due to sluggishness in global commodity markets.
With ‘Make in India’ and ‘Digital India’ projects gaining traction, FDI inflows are also surging. The Indian government is making continued efforts in order to ease norms for attracting more FDI.
Chart 4: FDI (in USD bn)
Chart 5: FIIs (in USD bn)
Sources: DIPP, SEBI and Capital IQ
7.23 7.45 6.35
9.89 9.51
0
2
4
6
8
10
12
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16
3.91 2.66
5.86
0.45
-2.69 -4
-2
0
2
4
6
8
Q2FY15 Q3FY15 Q4FY15 Q1 FY16 Q2 FY16
63.38
63.85
66.83
65.57
61
62
63
64
65
66
67
68
China the worst performer: Due to economic slowdown, China fell almost 28% in Q2 FY16. Hang Seng almost down 20%. All major indices posted negative returns in the previous quarter. The Sensex fell 5.9% due to global meltdown and valuation concerns in the domestic market.
Almost all sectoral indices fell except IT: Metal was the worst performer with slowdown in China, who is the largest consumer of metal. Capital goods and power fell with 13.7% and 8.9%, respectively. However, IT posted almost 11% returns in the previous quarter following impressive earnings performance in the space.
Markets Movement and Global Peers
5
Chart 7: Performance of Sensex and Global Peers in Q2 FY16 Chart 8: Sensex sectoral indices returns chart (%) in Q2 FY16
Sources: Capital IQ, BSE & NSE
60
65
70
75
80
85
90
95
100
105
110
Jun-30-2015 Jul-31-2015 Aug-31-2015 Sep-30-2015
Nikkei
HangSeng
SanghaiComposite IndexFTSE
DowJones
IBovespa
RussiaMiccex
Sensex
-5.9 -5.0 -7.1 -6.2
0.6
-13.7
-0.5
-0.5
10.8
-26.8
-11.8 -8.9
-1.2
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
Index
5
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
6
M&A activity picked up in in Q2 FY16 Vs Q2 2015. IT saw the highest number of deals, followed by Consumer Discretionary and Industrials.
M&A and Private Equity Activity (July–Sept 2015)
Driven by record activity in VC funding for tech businesses, PE/VC activity showed impressive growth in Q2 FY16 as number of deals increased to 359 vs 246 deals in Q2 FY15.
Chart 9: India - M&A Trend (No. of deals) Chart 10: India - PE Trend (No. of deals)
Chart 11: M&A Deals Break up (Q2 FY16) (No. of deals) Chart 12: PE Deals Break up (Q2 FY16) (No. of deals)
Sources: VCCEdge
254
202
235 213
233
0
50
100
150
200
250
300
Q2FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16
246 257 274 284
359
0
50
100
150
200
250
300
350
400
Q2FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16
Energy 7
Materials 18
Industrials 36
Cons. Discretionary
42
Cons. Staples 10
Health Care 20
Financials 21
Information Technology
69
Telecom 4
Utilities 5
Materials 3 Industrials
34
Cons. Discretionary
70
Cons. Staples 11
Health Care 19 Financials
33
Information Technology
184
Utilities 5
Top Ten M&A Deals by Value (July-Sept 2015)
7
Date Target Buyer Seller Deal value (USD mn)
Industry
23/07/2015 Gavis Pharmaceuticals LLC Lupin Ltd. - 880.0 Pharmaceuticals
17/08/2015 Lafarge India Pvt. Ltd., Cement
Manufacturing Plants Birla Corporation Ltd. Lafarge India Pvt. Ltd. 766.4 Construction Materials
04/09/15 InvaGen Pharmaceuticals Inc. Cipla (EU) Ltd. - 500.0 Pharmaceuticals
24/09/2015 Sabah Forest Industries Sdn Bhd Pandawa Sakti (Sabah) Sdn. Bhd. Bilt Paper B.V. 500.0 Paper Products
30/07/2015 Sharekhan Ltd. BNP Paribas S.A.
Citi Venture Capital International Growth Fund
II ,Infrastructure Development Finance Co. Ltd. , The Baring
Asia Private Equity Fund IV ,Samara Capital Partners Fund
I Ltd.
411.4 Other Diversified Financial Services
27/07/2015 Valcambi S A Rajesh Exports Ltd. Newmont Mining Corporation 400.0 Gold
28/09/2015 Liberty Videocon General Insurance
Co. Ltd. Liberty Mutual Group Inc. Videocon Industries Ltd. 373.7 Multi-line Insurance
12/9/2015 Cavendish Industries Ltd. JK Tyre & Industries Ltd. Kesoram Industries Ltd. 331.1 Tires & Rubber
30/09/2015 Larsen and Toubro Ltd., Commercial
Project Carnival Group Larsen and Toubro Ltd. 269.3 Real Estate Development
15/08/2015 HDFC Standard Life Insurance Co.
Ltd. Standard Life plc
Housing Development Finance Corporation Ltd. 261.5 Life & Health Insurance
Sources: VCCEdge
Top Ten PE Deals by Value (July-Sept 2015)
8
Date Target Investor Deal Value (USD mn)
Industry
2/8/2015 Jasper Infotech Pvt. Ltd. BlackRock, Inc. , Myriad Asset Management
Ltd. , SoftBank Corp. , Hon Hai Precision Industry Co. Ltd. , Alibaba Group Holding Ltd. , PremjiInvest
500.0 Internet Retail
16/09/2015 Intelenet Global Services Pvt. Ltd. Blackstone Advisors India Pvt. Ltd. 384.1 Data Processing & Outsourced Services
2/9/2015 DLF Home Developers Ltd., Upcoming
Projects in Central Delhi GIC Pte. Ltd. 299.5 Real Estate Development
21/07/2015 Piramal Realty Pvt. Ltd. Warburg Pincus India Pvt. Ltd. 284.3 Real Estate Development
14/08/2015 Greenko Mauritius Ltd. GIC Pte. Ltd. 255.0 Electric Utilities
14/07/2015 IIFL Holdings Ltd. Fairfax India Holdings Corporation 255.0 Investment Banking & Brokerage
31/07/2015 Drashti Developers Pvt. Ltd. Asian Development Bank ,International Finance
Corp. ,SCM Real Estate Singapore Pvt. Ltd. 199.8 Real Estate Development
28/08/2015 Ravindranath GE Medical Associates Pvt.
Ltd.
International Finance Corp. , IHH Healthcare Berhad , Everstone Capital Management , Anand
Rathi Financial Services Ltd.
194.0 Health Care Facilities
17/08/2015 Piramal Realty Pvt. Ltd. Goldman Sachs Whitehall Real Estate Fund 150.0 Real Estate Development
20/07/2015 National Collateral Management Services
Ltd. Fairfax India Holdings Corporation 126.1 Diversified Support Services
Sources: VCCEdge
Index
9
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
Regulatory Update (M&A and PE )
10
Sebi notifies revised listing regulations (Circular 3rd Sept 2015)
• Has notified amended listing regulations that allow listed companies to seek shareholders’ approval for related party deals
through ordinary resolutions.
• Sebi’s provisions for listed entities have been aligned with those of the Companies Act, 2013.
• While a 90-day period has been given to implement the norms, Sebi said two provisions in the revised rules that are facilitating
in nature would be applicable with immediate effect.
• Another change in the revised listing norms relates to re-classification of promoters as public shareholders under various
circumstances.
Forward Markets Commission (FMC) has been merged with SEBI (Circular 28th Sept 2015)
• Government repealed Forward Contracts (Regulation) Act, 1952 (FCRA) w.e.f. September 29, 2015 paving the way for the merger of the Forward Market Commission with the Securities and Exchange Board of India.
• SEBI in order to effect the merger, has amended Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations) and SEBI (Stock Broker and Sub-Broker) Regulations, 1992 and SEBI (Regulatory Fee on Stock Exchanges) on September 09, 2015. These regulations enable functioning of the commodities derivatives exchanges and its brokers under SEBI norms and integration of commodities derivatives and securities trading in an orderly manner.
• SEBI has also created a separate Commodity Derivatives Market Regulation Department for the regulation of commodity derivatives including exchange administration, market policies, risk management and products and handling of inspections and complaints.
SEBI
Note: There are hyperlinks on ‘ Notification’ to connect the various Notifications issued by the Concerned Authorities.
SEBI stands for Securities and Exchange Board of India
Index
11
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
12 Source: VccEdge
Chart 13: M&A deals (No. of deals) Chart 14: M&A (Q2FY16) (No. of deals)
Top Five M&A Deals (Consumer & Building Products in July– Sept 2015)
M&A Activity in the Consumer & Building Products Sector
Date Target Buyer Seller Deal Value in
$mn Industry
15-Jul-15 Prism TV Pvt. Ltd. Nickelodeon Asia Holdings Pte.
Ltd. Shinano Retail Pvt. Ltd. 153
Media & Entertainment
19-Sep-15 Hotel Leela Venture Ltd., Leela Hotel MetTube Sdn Bhd Hotel Leela Venture Ltd.
110 Hotels & Resorts
7-Aug-15 Kuoni Travel India Pvt. Ltd. Thomas Cook India Ltd. Kuoni Travel Holding Ltd.
50 Hotels & Resorts
16-Sep-15 Intercontinental Hotels Group India Pvt. Ltd., Holiday Inn, Pune
Intercontinental Hotels Group India Pvt. Ltd., Vascon Engineers Ltd.
23 Hotels & Resorts
9-Jul-15 Loyalty Rewardz Management Pvt. Ltd. IndiaIdeas.com Ltd. - 20 Services
* Included E-commerce transactions
32
38
32
47 47 47
0
15
30
45
60
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
*
Hotels & Resorts
8
Food & Beverages
9
Services 2
Media & Entertainment
4
Retail 3
Textiles & Garments
3
Education 3
FMCG 1
Building Products
1
37
17
30
59
71
55
0
15
30
45
60
75
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
PE Activity in the Consumer & Building Products Sector
Chart 15: PE deals (No. of deals) Chart 16: PE Investments (Q12 FY16) (No. of deals)
Source: VccEdge 13
Top Five PE Deals (Consumer & Building Products in July-Sept 2015)
Date Target Investor Deal Value in
$mn Industry
7-Jul-15 Saavn LLC
Steadview Capital Master Fund Ltd., Tiger Global Management LLC, Bertelsmann India Investments, Liberty Media Corporation, Quilvest Group, Mousse
Partners Ltd.
100 Media &
Entertainment
31-Jul-15 JBF Industries Ltd. KKR India Advisors Pvt. Ltd. 77 Textiles & Garments
31-Jul-15 JBF Global Pte Ltd. KKR India Advisors Pvt. Ltd. 73 Textiles & Garments
7-Sep-15 Zomato Media Pvt. Ltd. Vy Capital Management Company Ltd., Temasek
Holdings Advisors India Pvt. Ltd. 60 E Commerce
25-Aug-15 Coursera Inc. Kleiner Perkins Caufield and Byers, New Enterprise Associates Inc., Times Internet Ltd., International
Finance Corp. 60 Education
*
* Included E-commerce transactions
E Commerce, 23
Food & Beverages, 8
Services, 2
Media & Entertainmen
t, 5
Hotels & Resorts, 4
Retail, 4
Education, 3
Textiles & Garments, 6
Index
14
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
15 Source: VccEdge
Chart 17: M&A deals (No. of deals) Chart 18: M&A deals (Value in USD mn)
Top Five M&A Deals (Consumer & Building Products in July– Sept 2015)
M&A Activity in the Logistics Sector
Date Target Buyer Seller Deal Value in $mn
29-Jul-15 Blue Dart Aviation Ltd. Blue Dart Express Ltd. Blue Dart Aviation Ltd
1-Sep-15 Grab a Grub Services Pvt. Ltd. Zomato Media Pvt. Ltd.
1-Sep-15 Pickingo Logixpress Pvt. Ltd. Zomato Media Pvt. Ltd.
1-Sep-15 Zippon.in Turant Delivery.Com
22-Sep-15 WS Retail Services Pvt. Ltd., Logistics
Business Flipkart Pvt. Ltd.
WS Retail Services Pvt. Ltd.
• Included E-commerce transactions • ND means not disclosed
1
6
5
3
5 5
0
1
2
3
4
5
6
7
Q1FY15 Q2FY15 Q3FY15 Q4 FY15 Q1 FY16 Q2 FY16
0
139
ND
10
ND
ND 0
20
40
60
80
100
120
140
160
Q1FY15 Q2FY15 Q3FY15 Q4 FY15 Q1 FY16 Q2 FY16
PE Activity in the Logistics Sector
Chart 19: PE deals (No. of deals) Chart 20: PE Investments (Value in USD mn)
Source: VccEdge 16
Top Five PE Deals (Consumer & Building Products in July-Sept 2015)
Date Target Investor Deal Value in
$mn Deal Type
20-Jul-15 National Collateral Management
Services Ltd. Fairfax India Holdings Corporation 126 Private Equity
15-Jul-15 Carthero Technologies Pvt. Ltd. Nexus Ventures III, Ltd., Blume Venture Advisors Pvt.
Ltd., Sequoia Capital India Advisors Pvt. Ltd. 11 Venture Capital
22-Sep-15 LogiNext Solutions Pvt. Ltd. One 97 Communications Ltd. 10 Venture Capital
11-Sep-15 Shadowfax Technologies Pvt. Ltd. Eight Roads Ventures 9 Venture Capital
4-Aug-15 Pickingo Logixpress Pvt. Ltd. Orios Venture Advisors Pvt. Ltd., Zishaan Hayath 1 Angel/Seed
* Included E-commerce transactions
2
5
3 3
7 8
0
2
4
6
8
10
Q1FY15 Q2FY15 Q3FY15 Q4 FY15 Q1 FY16 Q2 FY16
7
72
4
47
264
158
0
50
100
150
200
250
300
Q1FY15 Q2FY15 Q3FY15 Q4 FY15 Q1 FY16 Q2 FY16
Index
17
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
M&A Activity in the Pharma & Healthcare Sector
18
21
9
27
10
19
-2
3
8
13
18
23
28
Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16
Date Target Buyer Transaction Deal Value (USD mn)
Industry
23-Jul-15 Gavis Pharmaceuticals LLC Lupin Ltd. Outbound 880 Pharmaceuticals
4-Sep-15 InvaGen Pharmaceuticals Inc. Cipla (EU) Ltd. M&A 500 Pharmaceuticals
4-Sep-15 Exelan Pharmaceuticals Inc. Cipla (EU) Ltd. M&A 50 Pharmaceuticals
22-Sep-15 Lumora Ltd. Transasia Bio-Medicals Ltd. Outbound 38 Health Care Equipment
23-Sep-15 Pfizer Ltd., Manufacturing Plant Thane Vidhi Research and Development
LLP Domestic 27 Pharmaceuticals
Chart 21: M&A Trend in the Sector (No. of deals) Chart 22: M&A Deals Break up (Q2 FY16) (No. of deals)
Top Five M&A Deals (Pharma & Healthcare in July - Sept 2015)
Sources: VCCEdge
Pharmaceuticals
11
Health Care 8
PE Activity in the Pharma & Healthcare Sector
19
Date Target Buyer Deal Value (USD mn)
Industry
28-Aug-15 Ravindranath GE Medical
Associates Pvt. Ltd. International Finance Corp., IHH Healthcare Berhad, Everstone Capital
Management, Anand Rathi Financial Services Ltd. 194
Health Care Providers & Services
6-Aug-15 Practo Technologies Pvt. Ltd. Sequoia Capital India III LP, Matrix India Asset Advisors Pvt. Ltd., Tencent
Holdings Ltd., Google Capital, Altimeter Capital Management, Sofina Societe
90 Health Care Technology
20-Sep-15 Healthvista India Pvt. Ltd. Qualcomm Ventures, Accel India III LP, VenturEast Life Fund III LLC,
International Finance Corp. 38
Health Care Providers & Services
23-Jul-15 MedGenome Labs Pvt. Ltd. Sequoia Capital India Advisors Pvt. Ltd. 20 Health Care Providers &
Services
9-Sep-15 Sarvejana Healthcare Pvt. Ltd. India Life Sciences Fund II LLC 15 Health Care Providers &
Services
2
11
Pharmaceuticals
Healthcare
12
2 3
5
13
0
5
10
15
Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY 16
Chart 23: PE Trend in the Sector (No. of deals) Chart 24: PE Deals Break up (Q2 FY16) (No. of deals)
Top Five PE Deals (Pharma & Healthcare in July- Sept 2015)
Sources: VCCEdge
Index
20
Headings Slide Nos.
Macros & Markets Overview 2
M&A and PE Activity (July–Sept 2015) 6
Regulatory Update (M&A and PE) 10
Sector Highlights (Consumer & Building Products) 12
Sector Highlights (Logistics) 15
Sector Highlights (Pharma & Healthcare) 18
Systematix Capital - Investment Banking Business 21
21
Systematix is a 28-year old financial advisory firm, founded by Mr. C.P. Khandelwal in 1987
Overview of Systematix Group
Investment Banking/Advisory
Wealth Management
Institutional Broking
Retail Broking
Venture Capital Funds/Private Equity
Established corporate advisory, capital markets advisory and fund raising capabilities.
Closed transactions aggregating to USD 1.5 bn over the last years.
SEBI Registered ‘Category I’ Merchant Banker.
Serving a majority of the top institutional money managers: FIIs, DIIs, Insurance, Mutual Funds, etc.
Well experienced Research Team and Expertise in identifying hidden gems from small cap and mid cap space.
Pan India presence, servicing over 62,652 clients.
‘Customer First’ philosophy is the cornerstone of the firm’s success.
Structured finance solutions to Corporates and HNIs.
Managing investment portfolios of over USD 200 million for Corporate, UHNI / HNI clients.
SEBI registered Venture Capital funds:
• USD 30 mn Real Estate fund
22
Systematix has offices in 20 locations across 13 cities in India
The Systematix Network
Note: Cities may have more than one office
Ludhiana
New Delhi
Jaipur
Kolkata
Mumbai
Pune
Bangalore Chennai
Hyderabad
Lucknow
Indore
Brahmapur
Ujjain
Karnal
Associate Partners
Europe
Singapore
UK
Japan US Middle East
India: Systematix
Systematix Capital and Bridge & Sun Partners have formed exclusive partnerships for Indo-Japan M&A transactions.
Systematix’s India Presence Systematix’s Global Presence
Systematix – Recent Deal Announcement
23
Elitecore Technologies Pvt Ltd (ETPL) Established in 1999, Elitecore Technologies is a global provider of software product and services company with over 15 years of experience in delivering Business Support Systems (BSS), Packet Core and Carrier Wi-Fi Solution with flexibility of modular as well as pre-integrated offerings. ETPL has proven case references with over 150 deployments for 52 CSPs across 40 countries. ETPL’s other products include 24 online access gateway and NEOX IP Telephony. Headquartered in Ahmedabad, ETPL has a team of over 700 strong industry professionals spread across its offices in India, South East Asia, UAE and Africa. The company is majority owned by First Carlyle Ventures Mauritius, whose affiliate is advised by The Carlyle Group. Sterlite Technologies Ltd (STL) Sterlite Technologies Limited develops & delivers products, solutions and infrastructure for telecom & power transmission networks, globally. STL is among the global leaders in all its business areas of Optical Fibre, Fibre Optic Cables, Power Conductors and HV / EHV Power Cables through its operations in India, China & Brazil. As the most integrated Optical Fiber company in the world, STL is pioneering Fibre-to-the-Home (FTTH) deployment in India to enable high speed broadband connectivity. The company was founded in 1988 and is headquartered in Pune. Transaction Details Sterlite Technologies Limited has entered into a definitive agreement for the acquisition of Elitecore Technologies Private Limited for an overall enterprise value of ~ INR 1800 Mn in an all-cash deal. Systematix advised the Carlyle Group for its divestment in EliteCore by identifying the right fit partner, analyzing the benefits of a strategic partnership in the OSS / BSS market. Systematix Capital Services Pvt. Ltd. Systematix Capital is the Investment Banking arm of Systematix Group. Systematix Capital offers full spectrum of investment banking services ranging from M&A, Private-Equity Syndication, Equity Capital Markets and Restructuring. The team has strong domain expertise in certain focus sectors, including Pharmaceuticals, Medical Devices, Logistics, Consumer Products & Services, E-commerce and Building materials.
Acquired
INR 1800 Mn
23rd Sept 2015
Advisor to Carlyle Group and Elitecore Technologies Pvt Ltd
Systematix Investment Banking – Select Transactions Overview
We have closed transactions aggregating to USD 1.5 billion
Select Transaction Experience
24
Healthcare and Pharma
Mar 2013
Sole Transaction Advisor
Goa formulation unit has been acquired by
Secondary Placement of
Shares to
Sole Transaction Advisor
Consumer Feb 2013
Consumer Dec 2012
Sole Advisor to Clearwater
Open Offer
Private Equity Jan 2014
Carlyle Group Valuation
Consumer Jan 2014
Future Life Style Fashions Ltd
ESOP Advisory
Hospitality Feb 2014
Marriott International
Inc. Fair Market Valuation
Thomas Cook (India) Ltd
ESOP Advisory
Tours & Travels Mar 2014
Sole Advisor
has sold 22.5% stake in
Insurance Mar 2013
to
Sole Advisor to LEAP
Kellton Tech Solutions Ltd. ESOP Advisory
IT & & ITES Apr 2014
Acquisition of 5% stake in
Sole Advisor to KWE
Logistics April 2014
Logistics Dec 2014
Raised Venture Capital from
Sole Advisor to Manash
Lifestyle Pvt Ltd
Raised Venture Capital from
Consumer Jan 2015
USD 2.5 mn USD 4.1 mn
USD 5.9 mn
USD 36.8 mn USD 62.5 mn
USD 22.3 mn USD 12.3 mn
FY 2014-2015 FY 2012 -2013
Average USD FY 2015-FY 2016*: INR ~ 63.5 FY 2014-2015 : INR ~ 61.1
Sole Advisor to Stericat Gutstrings
Acquired
Healthcare and Pharma
June 2015
USD 12 mn
Average USD FY 2013-2014 : INR ~ 57.4 FY 2012-2013 : INR ~ 54.3
FY 2015-2016
Fair Market Valuation
IT & ITES April 2015
FY 2013 -2014
IT & ITES Sept 2015
Acquired
Advisor to Carlyle Group and Elitecore Technologies
USD 28.3 mn
IT & ITES Aug 2015
ODI Valuations
Systematix Group – Leadership Team
Mr. C.P. Khandelwal Chairman
Mr. Sunil Sarda Managing Director
Founded the company as an advisory business in 1987.
With over 27 years of experience in financial services, he has been instrumental in aiding the company achieve several key milestones including obtaining a merchant banking license in 1994-95, initiating its broking desk in 2000, starting NBFC operations in 2007, portfolio management (SEBI Registered) in 2008 and the recent foray into Venture Capital / Private Equity business.
The organisation is driven by his vision to think different and think big, while focusing on our core mission of adding value to our Corporate and Investor Clients.
More than 18 years of experience at various levels in the financial services industry.
Currently overseeing the Brokerage (Stocks, Commodities & Currency), Wealth & Portfolio management and NBFC business within Systematix.
Previously, Executive Director with Anand Rathi Securities and Manager-Finance with Indian Rayon and Industries Ltd., part of the Aditya Birla Group.
Mr. Nikhil Khandelwal Managing Director
Leads the Investment Banking and Institutional Brokerage business of Systematix and has ~10 years of rich experience in M&A, Private Equity and Strategic Advisory for a wide variety of industries and clients in India and internationally.
Has been instrumental in building Systematix’s advisory business into an Industry Focused Cross Border M&A platform – with strong engagements with several mid to large India, US, Japan and Europe based companies.
Nikhil holds a degree in management studies (MBA) from the ISB, Hyderabad and Bachelor in Engineering (BE) from Manipal Institute of Technology (MIT).
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Systematix Investment Banking
Mr. Abhishek Dhanesha
Leads the Industrial sector initiatives for the firm.
Previously worked with Avista Advisory - An associate of Houlihan Lokey, US, & Aarayaa Advisory, Investment banks
Abhishek is a Chartered Accountant (CA) and a Law graduate (LLB).
Major prior transactions include:
• Advisory to Elitecore stakeholders (incl. Carlyle) for their buyout by Sterlite Technologies.
• Advisory to LEAP India for private equity raise by Mayfield.
• Advisory to Future Group for divestment of its minority stake in Future Generali Life Insurance to IITL.
• Advisory to KWE for strategic investment in Gati Express & Supply Chain
• Advisory to Classic Stripes on their buyout by Navis Capital
• Fund raising for Astarc Group Companies from various lenders
• Pre-IPO equity placement for Pipavav Shipyard Limited
• Advised Shin-Etsu Polymer India for their India Entry Strategy
Leads the Pharmaceuticals & Healthcare initiatives for the firm.
Previously worked with major Indian financial organizations like SMC Global, Proactive Universal Group (India) and CNBC TV 18.
He is a Chartered Accountant (CA) and Holds an MBA - Finance from one of the premier institutes in India.
Major prior transactions include:
Acquisition of Stericat Gutstrings Pvt. Ltd by Peters Surgical SAS
Acquisition of Parenteral Drugs’ Goa Formulation Unit by Fresenius Kabi
Mr. Souvik Chatterjee
Senior Bankers
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Team
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