India March 19 Weekly Newsletter 2012

This document covers news related to India with a special focus on areas like mergers & acquisitions, private equity & venture capital.

Volume 125, March 19th, 2012

For the period March 12, 2012 to March 18, 2012 March 19, 2012 [INDIA WEEKLY NEWSLETTER]

Highlights

Schroders May Acquire 30% Stake In Axis MF…(3)

Varroc Engg Acquires Visteon Corp's Lighting Content Pages Biz For $92 mn…(4) Asia Motorworks Acquires FamilyCredit NBFC Mergers & Acquisitions News 3-4 In All Cash Deal…(5)

Mergers & Acquisitions Deals 4-7 Spreadtrum Communications Invests $10 mn in Micromax Informatics…(6) Private Equity News 7-9 Commex May Sell 5% Stake In UCX To Private Equity Deals 9-12 SBI…(7) Qatar Investment Authority May Acquire Venture Capital News 12-12 Minority Stake In Violet Arch…(8)

Venture Capital Deals 12-13 Reliance PE To Invest Rs100 cr In Butterfly Gandhimathi For 13.7% Stake…(8)

Khazanah Nasional Sells 4.17% Stake In Yes Bank…(9)

Nabard Acquires 16% Stake in UCX for Rs16 cr…(10)

GIC Invests $100 mn In Vasan Healthcare for a Minority Stake…(11)

Kitara Capital Buys 5.68% In Supreme Infrastructure…(12)

Delhi Based SkillKindle Raises Angel Funding From i3 Consulting…(12)

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Mergers & Acquisitions News

NMDC To Acquire Majority Stake In Brazil Based Amplus

NMDC Limited is planning to acquire Amplus, a Brazilian iron ore company. NMDC is planning an investment of $150 mn for development. It will initially invest around $10-15 mn to acquire 26% holding and buy up to 50% subsequently. Amplus mine is located around 150 km close to the coast with reserves of over 1.5 bn tonne. Last August, NMDC acquired 50% stake in Australia based Legacy Iron Ore for about $100 mn. It floated a subsidiary in Australia to handle the deal and also look at other investment options. NMDC is a state- controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel. NMDC is planning to acquire three overseas coal mines, one each in Russia, Mozambique and Australia, a rock- phosphate mine in Australia and an iron ore mine in Brazil. NMDC had developed many mines like Kiriburu, Meghataburu iron ore mines in Bihar, Khetri Copper deposit in Rajasthan, Kudremukh Iron Ore Mine in Karnataka, Phosphate deposit in Mussorie, some of which were later handed over to other companies in public sector and others became independent companies. Apart from iron ore, NMDC is developing Magnesite mine in Jammu and Arki Lime Stone Project in Himachal Pradesh.

Schroders May Acquire 30% Stake In Axis MF

UK based Schroders is planning to acquire 30% stake in Axis Asset Management Company. The acquisition would allow Schroders to sell its products in India and grant Axis access to the London-listed company's global network. Schroders had applied to the Securities SEBI in April 2008 to start a mutual fund business in India, but did not secure a license till last year. Schroders manages around $291 bn in assets on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world, invested in a broad range of asset classes across equities, fixed income and alternatives. It operates from 33 offices in 26 different countries across Europe, the Americas, Asia and the Middle East. Axis Mutual Fund was set up in September 2009 and sponsored by Axis Bank Limited. Assets of Axis Mutual Fund are managed by Axis Asset Management Company Limited.

Kobe Steel to invest $6 mn in Man Industries for 3.25% Stake

Japan based steelmaker - Kobe Steel is acquiring 3.25% stake in Man Industries for about $6 mn. According to the filings, Kobe Steel will subscribe to 1,818,181 equity shares of Rs5 each for a consideration of Rs165 per share. Man Industries was incorporated in 1988; it commenced operations with the manufacturing of aluminium extrusion products at a unit in Pithampur, MP. In 1995, it diversified into manufacturing SAW pipes. In 2005, MIL commissioned an integrated pipe manufacturing and coating unit in Anjar (Gujarat); in 2006, it de-merged its aluminium business into a separate company named Man Aluminium Ltd, which was hived off in 2008-09. It manufactures SAW Pipes and Coating Systems for high

Confidential LKP Securities Limited 3 March 19, 2012 [INDIA WEEKLY NEWSLETTER] pressure Oil & Gas applications with a potential production capacity of approximately 1 mmtpa. Founded in 1905, Kobe Steel is a Japanese manufacturer with business covering iron and steel, welding, aluminium and copper, machinery, natural resources and engineering, environmental solutions, construction equipment’s and other businesses. It has entered into a partnership with SAIL to set up a steel plant in India.

Trent Ltd To Raise Rs250 cr Via QIP

Tata Group's Trent Limited is raising Rs250 cr through QIP. It will issue 2.74 mn shares of Rs10/- each at a price of Rs912 per share. In April 2010, Trent raised $22 mn through private placement of secured redeemable non-convertible debentures. Trent owns 'Westside' (lifestyle stores), a chain of department stores across India and is also increasing its foothold in hypermarket space through its 'Star India Bazaar' format (value store). Trent is also into books and music retailing space through its subsidiary 'Landmark Limited'. Trent has a JV with Spain's Inditex Group to develop 'Zara Stores' in India. Trent's sourcing, warehousing, clearing and forwarding need are met by its subsidiary 'Fiora Services Limited'.

Mergers & Acquisitions Deals

L&T Finance Acquires Indo Pacific Housing Finance

L&T Finance Holdings has forayed into housing finance by acquiring Indo Pacific Housing Finance Ltd. Indo Pacific Housing Finance was formed in 2007 after Singapore based Pasha Ventures acquired AIG Home Finance India Limited in October 2010. AIG Home Finance India Limited was earlier named Weizmann Homes Ltd, promoted by Weizmann group. AIG acquired the company in June-2007 through AIG Capital India Private Limited - the holding company for AIG Home Finance India Limited) after which the name of the company was changed to AIG Home Finance India Ltd. Singapore based Pacific Century Regional Developments Ltd owns 74% stake in Pasha Ventures while Aman Mehta and Akash Mehta own 26% stake in the company. Indo Pacific Housing Finance has a loan book size of Rs193.5 cr. It has 34 branches, primarily in the southern and western regions. L&T Finance, a subsidiary of L&T, is the holding company for the financial services business of the group. It is the holding company for L&T Infrastructure Finance Company Ltd (infrastructure financing business), L&T Finance Ltd (retail and corporate finance business) and L&T Investment Management Ltd (mutual fund business).

Varroc Engg Acquires Visteon Corp's Lighting Biz For $92 mn

Varroc Engineering has acquired US based Visteon Corporation's lighting business for $92 mn in cash. The transaction, which is subject to regulatory reviews and other conditions, is expected to be completed in the third quarter of 2012. According to the press release, the business to be acquired consists of exterior lighting products supplied to global vehicle manufacturers, including front and rear lighting systems, auxiliary lamps and key subcomponents such as projectors and electronic modules. The business to be sold has Confidential LKP Securities Limited 4 March 19, 2012 [INDIA WEEKLY NEWSLETTER] operations in Europe, North America and Asia. Visteon operations that would transfer to Varroc include manufacturing and engineering facilities in Novy Jicin and Rychvald, Czech Republic; Monterrey, Mexico; and Pune, India. The companies intend for the sale to include Visteon's equity interest in a China-based lighting joint venture, Visteon TYC Corporation. Certain other lighting employees and assets would transfer as well. In total, about 4,200 manufacturing, engineering and administrative employees are part of the lighting business that is involved in the transaction. Varroc Group commenced operations in 1990 by supplying plastic injection moulded parts for Bajaj Auto and Videocon. The company has 20 manufacturing facilities in India and abroad under two business divisions - Varroc Engineering, which contributes 65% to the group's top line and Varroc Polymer, which contributes 35% to the group sales.

Freudenberg Filtration Acquires Pyramid Filters

Freudenberg Filtration Technologies India Private Limited has acquired Pune based Pyramid Filters Private Limited. With this deal, Freudenberg Filtration will be able to add new products to its portfolio. Founded in 1998, Pyramid Filters manufactures air filter elements and systems for clean room applications in the pharmaceutical, medical, food and chemical industries. Established in 2008, Freudenberg Filtration Technologies is a part of Germany based Freudenberg Group, supplies seals, vibration control technology components, filters, nonwovens, release agents and lubricants to car manufacturers around the world. FFT India provides highly efficient industrial and automotive filter products, superior system solutions and value-adding services in air and liquid filtration. It serves automotive, pharmaceuticals, hospitals, petrochemicals, energy, fertilizers, food & beverage, steel and cement industries.

Asia Motorworks Acquires FamilyCredit NBFC In All Cash Deal

Mumbai based Asia Motorworks Ltd has acquired FamilyCredit Ltd in an all cash deal. Kolkata based FamilyCredit was a wholly-owned subsidiary of Societe Generale Consumer Finance, a division of the Specialized Financial Services of Societe Generale Group, France. It offers auto loans, two wheeler loans and loyalty loans. As per the information available on its website, the company has over 3,00,000 customers as on March 31, 2011 with 53 outlets in 17 states and two Union Territories in India. Founded by Anirudh Bhuwalka in 2002, Asia Motorworks manufactures commercial vehicle, auto components, fully built vehicles and forged components. It has a manufacturing facility of Asia Motorworks is located in Bhuj, Gujarat. The capacity for commercial vehicles is at 50,000 annually. It recently acquired a forging unit in Mysore in Southern India, which produces axles and other forged components. Asia Motorworks also manufactures components for the automotive and engineering industries. It’s capacity of 15 million wheel rims makes it the largest single location plant in Asia and the company supplies pressed metal components to some of the world’s most renowned auto and white goods manufacturers. AMW has a network of over 60 touch points across India.

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Pubmatic Acquires Pune Based Mobile Technology Firm – MobiPrimo

PubMatic, a provider of online ad revenue optimization services has acquired Pune based MobiPrimo, mobile development technology firm. With this acquisition, Pubmatic will be able to integrate directly with the leading mobile networks, ad servers and demand-side platforms (DSPs). Post-acquisition, PubMatic will get access to 57 new publishers in the US market and MobiPrimo's employees will now join Pubmatic’s mobile development team. Founded by Samir Karande, MobiPrimo specializes in bringing mobile platform integration to companies such as Nokia, Motorola and Microsoft. Founded in 2006 by Rajeev Goel and Amar Goel, Pubmatic is a media technology company, provides an integrated inventory, data, and advertising revenue optimization platform for digital publishers. It has seven offices around the world in the U.S., Europe and Asia. Last year, it acquired an ad network optimization company ReviNet, to get access to 57 US publishers.

VerSe Innovation Acquires NewsHunt App Developer - Eterno Infotech

Ver Se Innovation has acquired Bangalore based Eterno Infotech - the company behind the popular mobile news application NewsHunt. With this, Rediff has exited Eterno, having initially acquired an undisclosed stake in Eterno in 2008. This acquisition will provide VerSe an entry into the mobile web space. According to Eterno Founder Chandrashekhar Sohoni, Newhunt has over 10 mn downloads from the web, including around 5.5 mn from GetJar, and has pre-embedding partnerships with Nokia and Micromax. NewsHunt aggregates Indian in 10 different languages. Newspapers they’ve tied up with include , , , , , Dainik NavaJyoti, , , Andhara Prabha, Indian Express, Lok Satta, Prabha, , Mathrubhoomi and . Founded in 2007, Verse Innovation reaches out to a universe of 390 mn plus mobile users through it's multiple suite of utility services. VerSe primarily provides job classifieds alerts on the mobile, for which consumers pay a subscription fee of around Rs30 per month, through their telecom operator partners.

Spreadtrum Communications Invests $10 mn in Micromax Informatics

China based Spreadtrum Communications is investing $10 mn in Micromax Informatics. Post investment, Spreadtrum will become one of Micromax's preferred mobile chipset suppliers. According to the release, the two companies will work together through a joint R&D collaboration to deliver innovations across Micromax's portfolio of products. Gurgaon based Micromax Informatics Ltd is a domestic handset maker established in 1991. In January 2010, TA Associates invested Rs225 cr in Micromax for a 20% stake. The company then raised Rs200 cr from Sandstone Capital, Sequoia Capital and Madison India Capital in September 2010. It had filed for a Rs450 cr IPO in September 2010, but the regulatory approval for the IPO lapsed in January this year. It had plans to set-up a handset manufacturing facility in Tamil Nadu, utilizing 50% of the proposed IPO’s proceeds, while it wanted to use the remaining amount for marketing and for acquisitions. Micromax had said that it had decided to defer the proposed IPO to focus on product development, and would look at a public listing at a later time. Micromax currently ships more than 60 models ranging Confidential LKP Securities Limited 6 March 19, 2012 [INDIA WEEKLY NEWSLETTER] from dual-SIM feature phones to 3G Android smartphones. It has an established sales presence across India and in Hong Kong, Bangladesh, Nepal, Sri-Lanka, Maldives, UAE, Kingdom of Saudi Arabia, Kuwait, Qatar, Oman, Afghanistan and Brazil. It claims to be the 12th largest handset vendor globally and ships over 40 lakh handsets every quarter. Spreadtrum Communications is a fabless semiconductor company that develops mobile chipset platforms for smartphones, feature phones and other consumer electronics products, supporting 2G, 3G and 4G wireless communications standards.

Medfort Hospital Exits Sharp Sight Centres In A Management Buyout

Promoters of Sharp Sight Centers has bought back Medfort Hospitals stake in Sharp Sight centres in management buyout. The MBO is being led by the promoters of the company which include Kamal Kapur and Samir Sud. The process of the buyout involved the promoters purchasing a controlling interest in the company for an undisclosed amount. The buyout was financed through a mix of debt and promoter's equity. After this buyout, the management will have complete freedom in managing the operations of the centers. Chennai-based hospital chain, Medfort Hospitals had taken a significant stake in Sharp Sight Centers in May 2010. Medfort Hospitals Pvt Ltd, a healthcare firm focused on eye and diabetes care was set up by G S K Velu. The company has ambitious plans of opening specialty diabetes and eye care centres all over India and in SAARC countries, Africa and the Middle East. Established in 1998, Delhi based Sharp Sight provides laser vision correction, occuloplastic & cataract surgery, and treatment for viteroretina, glaucoma, squint, etc.

Parekh Aluminex Acquires American Foils Inc.

Parekh Aluminex Ltd has acquired New Jersey based American Foils Inc. American Foils Inc. is engaged in the business of manufacturing of aluminium pans, rolls, containers, foils, etc. Incorporated in 1994, Parekh Aluminex manufactures AFC, lids, covers and allied products. The products are used in packaging food items. The manufacturing facilities of the company are located in Dadra and Nagar Haveli. In 2005, it acquired a Singapore based company to enter the Southeast Asian Markets. In 2008, It's manufacturing units acquired an EOU status.

Private Equity News

Commex May Sell 5% Stake In UCX To SBI

Commex Technologies is planning to sell 5-10% stake in Universal Commodity Exchange to State Bank of India. Ketan Sheth, MD of Commex Technologies, has approached the SBI group with an offer to sell between 5% and 10% in the exchange to the bank and if the deal goes through shares will be issued at par. UCX main promoter Ketan Seth holds 40% stake in the bourse through IT People India, financial and exchange technology solutions provider. It needs to sell around 16% to government companies to meet the 26% shareholding criteria Confidential LKP Securities Limited 7 March 19, 2012 [INDIA WEEKLY NEWSLETTER] for this class of shareholders. Current shareholder includes - IT People (40%), Indian Farmers Fertilizer Cooperative (15%) and IDBI Bank (10%) and Rural Electrification Corporation (16%). Government rules require promoters of a new commodity exchange to bring in Rs.100 cr as equity capital to start operations. It also allows the main promoter or anchor investor in a new commex to hold up to 40% and to bring this down to 26% within five years of commencement. UCX promoters had an August 2011 deadline for tying up Rs100 cr equity capital, a year after receiving the government's in-principle approval to start operations. They sought an extension for roping in government companies as shareholders.

Everstone Capital Backed Global Hospitals To Raise PE Funding

Global Hospitals Group is planning to raise $75-100 mn PE funding by diluting promoter’s stake to fund its expansion plans. Global Hospitals is planning to expand in Mumbai, Kolkata and New Delhi. Hyderabad-based Global Hospitals Group is a part of Ravindranath GE Medical Associates. It operates 9 hospitals across India with more than 2000 beds. It specializes in gastroenterology, cardiology, nephrology and urology, and has facilities in Hyderabad, Bangalore and Chennai. In 2007, it acquired Sri Kanchi Kamakoti Sankara Hospital (formerly Tamilnad Hospital) in an all-cash deal, for Rs257 cr. Earlier Everstone Capital has also invested in Global Hospitals.

Qatar Investment Authority May Acquire Minority Stake In Violet Arch

Qatar Investment Authority may acquire a minority stake in Violet Arch Capital Advisors. Violet Arch provides I-banking, Securities Trading, Research, Funds Management and other related products to institutional, corporate, and high net worth clients. Violet Arch started its operations by acquisition of Alchemy Shares & Stock Brokers from its promoters and Rakesh Jhunjhunwala. Recently, it partnered with Berenson & Co, a New York-based leading merchant bank, as a strategic investor by selling around 7% stake. SREI Group has a significant minority stake in Violet Arch. It has also tied up with London-based ISM Capital, set up by former Jefferies International chief executive Cliff Siegel. Sanju Verma, former executive director of HDFC Securities, has joined Violet Arch as the managing director and chief executive of its securities business. Varun Bajpai, the founder of Violet Arch holds 67% stake in the entity. Violet Arch Capital Advisors is also planning to raise a $500 mn sector agnostic PE fund Violet Arch Strategic Themes (VAST) fund. VAST fund, a mix of offshore and domestic, will invest in the range of $50-75 mn.

Reliance PE To Invest Rs100 cr In Butterfly Gandhimathi For 13.7% Stake

Reliance Equity Advisors may invest Rs100 cr in Chennai based kitchen appliances maker - Butterfly Gandhimathi Appliances Ltd for a 13.7% stake, valuing the company at Rs730 cr. Reliance Alternative Investments Fund - Private Equity Scheme-I will subscribe to 24,51,000 shares at Rs408 each. Gandhimathi Appliances, a part of the Butterfly group of companies, manufactures kitchen appliances under the brand, Butterfly. The company was initially incorporated in 1986 as Gandhimathi Appliances Ltd and its name was changed to the current one in October 2011 after its merger with associate entity, Gangadharam Appliances

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Ltd. Gandhimathi Appliances is the flagship entity of the Butterfly group and manufactures traditional kitchen appliances, such as LPG stove, mixer-grinders, and table-top wet grinders.

Private Equity Deals

JP Morgan Acquires 8% Stake In NICE From Anil Ambani

Anil Ambani has sold 8% stake in Nandi Infrastructure Corridor Enterprises to Airro Mauritius, a fund affiliated to JP Morgan for $65 mn. With this deal, JP Morgan Chase would have 18% stake, while BF Utilities will hold 75% stake. Anil Ambani bought 11% stake in NICE for Rs60 cr seven years ago. In August 2010, JP Morgan acquired 10% stake in NICE. Nandi Infrastructure, a subsidiary of BF Utilities is promoted by Kalyani Group. It develops Bangalore-Mysore infrastructure corridor, a build-own-operate-transfer (BOOT) project, as well as operates link road, peripheral road, and expressway. The project has been in controversies since the day of planning. The project was suspended temporarily when H. D. Deve Gowda, and H. D. Kumaraswamy, of the Janata Dal, came to power in Karnataka. Deve Gowda alleges that this project is the country's biggest fraud and needs to be stopped. The problem got resolved with the High Court of Karnataka ruling in favour of NICE, and the BJP-led state government allotting 13,000 acres of land for the project.

Khazanah Nasional Sells 4.17% Stake In Yes Bank

Khazanah Nasional has sold 4.17% stake in Yes Bank Ltd for $106 mn (Rs5.31bn) through block deal on NSE. Titiwangsa Investments Mauritius Ltd, managed by Malaysia's sovereign wealth fund Khazanah Nasional sold 14.7 mn shares at an average price of Rs362 per share. Khazanah Nasional Berhad is the sovereign wealth fund of the Malaysian Government. It invests in finance, telecommunications, media and communications, utilities, information technology, and transportation sectors. It prefers to invest in government-linked companies. Its other investment includes IDFC and Apollo Hospitals. Founded by Rana Kapoor, Yes Bank currently has 217 branches across India and plans to add another 33 branches by June. By 2015, the bank plans to increase the number of branches to 750. Recently, the bank raised $75 mn 15-year subordinated debt from IFC. The funds will be used to augment its capital base and to prepare it for Basel III implementation, improving the Bank's maturity mismatch position and growing its assets, increasing its reach and improving its market share especially in the SME and agricultural space.

ICICI Emerging Markets Part Exits MCX

ICICI Emerging Market has part exited from Multi Commodity Exchange through bulk deal on NSE. ICICI Emerging Sectors Fund offloaded 258,345 equities of MCX for Rs1226.49 a piece, valuing the deal to Rs31.68 cr. ICICI Trusteeship Services Ltd, through ICICI Emerging Sectors Fund, held a total of 1,349,181 shares constituting 2.65% stake in MCX.

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Macquarie, Providence Acquires News Corp's Stake In Hathway Cable

Macquarie Bank and US based PE fund Providence Equity Advisors has acquired Star India's 17.3% stake in Hathway Cable & Datacom Ltd for Rs358 cr. The shares were bought from a News Corp subsidiary, Asian Cable Systems, in a series of bulk deals at Rs145 a share. Macquarie purchased 10.5 million shares or 7.7% stake for about Rs153 cr and Providence acquired 9.9% stake in the company for about Rs205 cr. Star India is the Indian unit of Rupert Murdoch's News Corporation. It had acquired 26% stake in Hathway in 2000 by investing Rs342 cr. Established in 1995, Hathway Cable & Datacom Ltd offers services such as cable TV, digital cable TV, broadband Internet, channels and allied services. The company offers cable TV services across 125 cities and towns and high-speed cable broadband Internet across 18 cities. The company is distributing cable TV signals through fibre-optic networks belonging to Tata Power and Bharti. Hathway has a reach of close to 8.2 mn cable TV homes for its analogue services. The company currently offers up to 176 channels through its digital platform. The company has been expanding it's geographic reach by acquiring regional multi-system operators (MSOs) independent cable operators (ICOs) and local cable operator (LCOs).

TVS Capital, IFC Invests Rs124 cr in Dunar Foods

VS Capital and IFC have invested Rs124 cr in Haryana based rice processor - Dunar Foods. TVS Capital has invested Rs50 cr, while IFC invested the rest. Founded in 1979 by Late Duli Chandra Agarwal and currently managed by his son Surender Gupta, company is in the business of procurement, processing and supply of basmati rice. It has two manufacturing facilities in Karnal, Haryana with a capacity of 26 tons per hr (tpH) and Amritsar, Punjab with a capacity of 24 tph. Dunar is planning to expand its production capacity in Karnal from 26 tph to 50 tph during the next two years. It also plans to invest in additional silo capacity of 60,000 metric ton and rice husk-based power generation capacity of 3 MW in Karnal and a new rice husk-based power plant of 2MW in Amritsar (in addition to the existing 1 MW capacity). Dunar is planning to invest around $140 mn which includes capex for the expansion and for working capital. Surender Gupta and his family currently own 91% stake in Dunar. The remaining stake is held by company’s management.

Nabard Acquires 16% Stake in UCX for Rs16 cr

National Bank for Agriculture and Rural Development (Nabard) has bought a 16% stake in Universal Commodity Exchange (UCX) for Rs16 cr. Recently, Commex Technologies was planning to sell 5-10% stake in UCX to State Bank of India. UCX promoters had an August 2011 deadline for tying up Rs100 cr equity capital, a year after receiving the government's in-principle approval to start operations. They sought an extension for roping in government companies as shareholders. Following this deal, Commex Technologies will complete the formalities on compliance with norms for a new exchange to commodity futures regulator Forward Markets Commission after which it will receive the nod to start operations. UCX main promoter Ketan Seth holds 40% stake in the bourse through IT People India, financial and exchange technology solutions provider. Current shareholder includes - IT People Confidential LKP Securities Limited 10 March 19, 2012 [INDIA WEEKLY NEWSLETTER]

(40%), Indian Farmers Fertilizer Cooperative (15%) and IDBI Bank (10%) and Rural Electrification Corporation (16%).

IAN Invests $0.5 mn In Hotel Booking Site StayZilla.com

Indian Angel Network (IAN) has invested $0.5 million in Chennai-based StayZilla.com, a hotel booking site which offers value-stays in any district (hence the word Zilla, which means district in ) across the country, through an inventory of 3,751 hotels. The investment will enable StayZilla to expand its network of properties, upgrade its technology platform and build its foundation for a scalable business. With this investment, IAN has spread its footprint to Chennai. The company was founded by Yogendra Vasupal in 2005 and was earlier known as Inasra.com. But it was rebranded as StayZilla in 2010. Unlike popular OTAs like MakeMyTrip and Yatra which offer both ticket booking and hotel reservation, StayZilla solely focuses solely on room bookings. The site currently offers accommodation in more than 3,751 hotels in 448 cities in India. StayZilla has a wide range of options to suit every pocket and the hotel rooms can cost you anywhere between Rs 250 and Rs 60,000.

GIC Invests $100 mn In Vasan Healthcare for a Minority Stake

Government of Singapore Investment Corporation (GIC) has invested $100 mn in Vasan Health Care Pvt Ltd for a minority stake. Vasan Healthcare will use the funds expand its network of eye hospitals from its current 102 hospitals and its dental hospitals from the present network of 14 centres. The company is also looking to expand by acquiring hospital chains that fit into its day-care model that doesn’t involve overnight stays. Vasan Healthcare was founded by AM Arun in 2002. Vasan had raised $50 mn from Sequoia and Westbridge in three rounds of funding. The investment by GIC is one of the biggest deals in Indian healthcare. GIC is a global investment management company to manage Singapore’s foreign reserves. With a network of offices in nine cities worldwide and headquartered in Singapore, GIC invests internationally in equities, fixed income, natural resources, treasury & currencies, real estate, private equity and infrastructure. GIC also has a stake in Fortis Healthcare.

Manappuram Finance Promoter Divests 4% Stake To PE Investors

Promoter of Manappuram Finance - V P Nandakumar has divested 4% stake in the company through bulk deal on NSE to PE investors to repay all outstanding public deposits of Manappuram Agro Farms. V P Nandakumar has sold 3.61 cr shares at Rs40/- per share to Barings India, Beaver Investment, BRIC II Mauritius and Nambe Investments. As on Dec 2011, Nandakumar held 6.74% stake in the company as a promoter and his wife held 0.54% in the company. Manappuram Agro Farms is the group company of Manappuram Finance, which is into the gold loan business. Last month, The Reserve Bank of India banned Manappuram Finance and Manappuram Agro Farms from taking public deposits as it is a violation of rules governing its license to function as a lender. Under the RBI Act, 1934, the lender, which provides funds with gold as collateral, has been directed not accept even renew those deposits which mature. Manappuram Finance, which was a deposit-taking

Confidential LKP Securities Limited 11 March 19, 2012 [INDIA WEEKLY NEWSLETTER] finance company, turned into a non-deposit taking one in March 2011. But it continued to take deposits from individuals and also in the farming company to boost its funding.

Kitara Capital Buys 5.68% In Supreme Infrastructure

Investment firm Kitara Capital has acquired over 5% stake through market deals in Supreme Infrastructure India Ltd, a mid-sized EPC contract firm. The shares were picked up for Rs 23.78 crore on the National Stock Exchange. Through its arm Kitara Piin 1101, the firm picked up 5.68% stake from more than half-a-dozen selling shareholders, such as Reliance Mutual Fund. The shares of Supreme Infrastructure were bought for Rs 250 per unit.

ChrysCapital Buys 3.92% Stake In Karur Vysya For $31.3 mn

Private equity major ChrysCapital is increasing its bet on the Indian banking sector. The private equity firm has acquired nearly 4% stake in Tamil Nadu-based Karur Vysya Bank Ltd for Rs 160 crore ($31.3 million as per the current exchange rate). This comes even as it is increasing stake in another private sector lender, ING Vysya Bank. A ChrysCapital entity picked up shares on both Bombay Stock Exchange and National Stock Exchange as markets slipped considerably after the budget. The PE firm acquired 4.2 million shares in Karur Vysya Bank, translating to approximately 3.92% stake, according to exchange data.

Venture Capital News

No news in the current week

Venture Capital Deals

Zivame Raises Funding From IDG Ventures, Indo US Partners

Lingerie portal - Zivame.com has raised series A funding from IDG Ventures and Indo-US Venture Partners. Zivame will use the funds to scale up technology and operations and to create many more consumer touch points and bring many more brands and products on board. Bangalore based Zivame started operations in August 2011 by Kapil Karekar and Richa Kar. It hosts more than 12,000 SKU’s from domestic and international brands like Jockey, Triumph, Amante, Enamor, Bw!tch, Inaya, Hanes, Hollywood Fashion Secrets, Lovable and many more. IDG Ventures is a division of US-based International Data Group Inc. (IDG). In 2006, IDG Ventures had set up its first India-based fund of $150 mn and has plans to raise another $150-200 million for investments in tech start-ups in India.

Delhi Based SkillKindle Raises Angel Funding From i3 Consulting

Delhi based startup - SkillKindle has raised angel funding from i3 Consulting for expansion. SkillKindle was started in 2011 by ex-Mckinsey executive Tanuj Choudhry. It offers an Confidential LKP Securities Limited 12 March 19, 2012 [INDIA WEEKLY NEWSLETTER] opportunity for anyone looking to learn a skill to find credible, convenient and affordable real- world workshops offered by experts in the city. It has so far featured 76 workshops (since December 2011) and has contributed between 10-15% seats to the workshops. The startup will use the funds to expand it's team from 5 to 10 in the next 6 months, particularly in the marketing and technology functions. It is also planning to launch in Mumbai and Bangalore by Jul-Aug 2012, and then opening up pan-India by October 2012. It is also planning to develop a strong foothold in the semi-professional / professional skills market where typical workshops don’t go beyond a 20-25 hours in total. The firm has started development of a stronger platform for hosted content.

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