India October 17 Weekly Newsletter 2011

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

Volume 106, October 17th, 2011

For the period October 10, 2011 to October 16, 2011 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Highlights

Life Healthcare To Acquire 26% In Max Healthcare For Rs516 cr…(3)

Suzlon Completes Hansen Stake Sale For Rs 890 cr…(4) Content Pages Fabindia Acquires Majority Stake In Mergers & Acquisitions News 3-4 Womenwear Retailer – EAST…(5)

Mergers & Acquisitions Deals 5-8 Trivitron Healthcare Acquires Minority Stake In Kiran Medical…(6) Private Equity News 8-10 Religare Enterprises Acquires Shreyas Stocks Pvt Ltd…(7) Private Equity Deals 10-12 International Paper Buys 75% In Andhra Venture Capital News 12-12 Paper For $388 mn…(8)

Venture Capital Deals 12-13 IFC May Invest $25 mn In MicroQual Techno…(8)

Letsbuy.com Close To Raising Over $40 mn…(9)

One97 Communication Raises $10 mn From SAP Ventures…(9)

Eye-Q Hospitals Raises Funding From Helion, Nexus Venture Partners…(10)

Sahara Group Invests $100 mn In …(11)

Sequoia Capital Invests $5 mn In Fast Food Chain - Faaso's…(12)

Singapore-Based Media Firm Cinemacraft Raises SG$1 mn…(13)

Confidential LKP Securities Limited 2 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Mergers & Acquisitions News

Parkway Holdings May Acquire Actis Backed Sterling Hospitals

Parkway Holdings may buyout Actis' 80% stake in Ahmadabad based Sterling Hospitals for around Rs700 cr. Actis had announced it's plans to exit the hospital chain in July. Parkway Holdings, Manipal Group, AMRI Hospitals, DM Healthcare and Fortis Hospitals were interested in acquiring the controlling stake in the company. In September-end, -based AMRI, which was among three short-listed bidders, quit the race when the asking price exceeded Rs 640 crore, leaving the field open to Parkway and Manipal. Parkway is expected to complete the transaction with Actis by the end of this month. Established in 2001, hospital chain Sterling Hospitals has three multi-specialty tertiary care hospitals, one each at Ahmedabad (310-bed), Vadodara (160-bed), Rajkot (190-bed) and Bhavnagar (183–bed) with high-end secondary care setup at Mundra SEZ (114-bed) and at Adipur (70-bed). It also has a satellite center at Mehsana.

Life Healthcare To Acquire 26% In Max Healthcare For Rs516 cr

South Africa based hospital chain - Life Healthcare is acquiring 26% stake in Max Healthcare for Rs516.5 cr, valuing the company at around Rs2000 cr in all cash transaction. Life Healthcare seems to be paying a huge premium, considering the previous transaction in Max Healthcare which valued the company at Rs855 cr. In June this year, Warburg Pincus sold it's 16.37% stake in Max Healthcare Institute Limited to Max India Limited for Rs.140 cr. This being a fresh equity infusion will bring down Max India's holding in Max Healthcare to around 70% from 91.84%. International Finance Corporation owns 3.1% stake in Max Healthcare, while balance 6% is owned by overseas corporate bodies. The funds will be used for expansion and part repayment of it's Rs900Cr debt. Max India will also cancel it's plans of a rights issue. The $1.1- billion Life Healthcare, which operates 63 facilities with 8,322 beds in South Africa and Botswana, will have two nominees on the board of Max Healthcare. It will provide strategic inputs to the Indian venture, but will not actively participate in the management of the company. New Delhi-based Max Healthcare offers healthcare services ranging from consultation to diagnosis and from surgery to pharmacy. It operates 8 hospitals in Delhi and Punjab. The company is planning for an IPO by 2012-13.

Reliance Set To Strike Deal With Disney’s UTV

Mukesh Ambani is set to sign a deal with Walt Disney’s Indian subsidiary that will provide his Reliance Industries with the content for its next generation of mobile telecoms. The deal, expected to be sealed in the coming weeks, is between Reliance and UTV, one of Bollywood’s largest entertainment groups, which Disney controls with a 50.44% stake and is in the process

Confidential LKP Securities Limited 3 October 17, 2011 [INDIA WEEKLY NEWSLETTER] of buying fully. It is the first concrete move by the billionaire’s group since it acquired Infotel, the only company to have won a national allocation of fourth-generation spectrum in an auction. It will be the latest in a series of joint ventures signed by India’s largest private sector group. Reliance, which has a cash pile of about $9 bn, has formed a partnership with BP that saw the UK group acquire a 30% stake in Reliance’s off-shore oil and gas interests east of India for $7.2 bn. Reliance also entered the financial services sector by signing a joint venture with DE Shaw, the US hedge fund, and acquiring Bharti’s 74% stake in an insurance venture with France’s Axa.

Suzlon Completes Hansen Stake Sale For Rs 890 cr

Wind turbine manufacturer Suzlon Energy Ltd has completed the sale of its remaining 26.06% stake in Belgium-based Hansen Transmissions International NV to German engineering firm ZF Friedrichshafen AG for Rs 890 crore or GBP 115.25 million. Hansen is a London Stock Exchange-listed wind turbine gearbox and industrial gearbox designer, manufacturer and supplier, which was acquired by Suzlon in 2006. While Suzlon has now completely exited Hansen, the company is also in the final stages of acquiring 100 per cent stake in the wind power firm REpower Systems SE. Last month, REpower’s board passed a resolution to ‘squeeze out’ its minority shareholders who hold the remaining 5 per cent in the German firm for €63 million or Rs 428 crore. Suzlon had acquired stakes in Hansen and REpower during 2006- 2008 but had to start a debt recast programme as its borrowings increased to $2.5 billion during mid-2009. Since then, the firm has been cutting its stake in Hansen while increasing its holding in REpower, in order to take the latter private.

Reliance Infrastructure To Acquire Rs2000 cr Road Projects

Anil Ambani's Reliance Infrastructure Limited may acquire Rs2000 cr worth road projects in Tamil Nadu and Karnataka. Reliance Infrastructure has set aside more than Rs2500 cr to buy distressed assets in highways and road assets. Hyderabad based IVRCL Assets and Holdings and other companies may sell road projects awarded to them by the National Highways Authority of India. IVRCL may sell majority stake in its operational projects, Kumarpalayam- Cheng palli and Salem-Kumarpalayam in Tamil Nadu. Hindustan Construction Company is also looking to acquire stakes in distressed infrastructure projects. Off late, there have aggressive bidding for NHAI projects raising concerns over the profitability of these new projects. The government has received as much as Rs15,729 cr in premiums from the winning bidders of at least 16 big-ticket highway contracts that it has invited bids for since April. That's in contrast with the Rs660 cr the government estimated it would have to pay in order to plug gaps in the commercial viability of the projects, via the so-called viability gap financing. Reliance Infrastructure's road portfolio include 11 projects totaling to about 1000 km.

Confidential LKP Securities Limited 4 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Mergers & Acquisitions Deals

Fabindia Acquires Majority Stake In Womenwear Retailer – EAST

Fabindia has acquired majority stake in UK based womenwear retailer - EAST, with an option to buyout the remaining stake within a year. Fabindia had acquired 25% stake in EAST, for an undisclosed amount in early 2009 with the option of acquiring the rest in the next three years. With this deal, Fabindia's ownership in EAST will go up to 62.5%. EAST, originally called Anokhi was started by Clive Pettigrew, Penny Oliver, and Jonathan Keating in 1986. The stores were rebranded EAST in 1994. The retailer with an annual revenue of more than $62Mn sells women wear through exclusive outlets and high end department store - John Lewis in the UK. Besides garments, EAST offers jewellery as well as accessories sourced from India, China and the South-East Asian countries. It recently introduced two sub brands - EAST Artisan and EAST Boutique. Founded in 1960 by a young American, John Bissell, to market the diverse craft traditions of India, Fabindia started as a company exporting home furnishings. Retail was a small part of Fabindia's business until the mid-to late 1990s, when William Bissell took over the company from his father John Bissell. William later transformed the company from an export house into a national retail brand. William Bissell and family own 50% stake in Fabindia, Wolfensohn holds 8% while employees own the balance 42% stake. Early this year, Fabindia empowered its nearly 700 employees by giving them stake in the company. Fabindia has also invited bids for a Rs200 cr raise & buyout of Wolfensohn Capital Partner’s 8% held since 2007. Wolfensohn entered in 2007 with Rs50 cr for 8% investment.

Flipkart Acquires Digital Content Platform – MIME360

Flipkart has acquired based Mime360. Mime360 (Manoramic International Media Exchange) is a digital content platform founded by Sameer Nigam and Rahul Chari. The company ties up with content owners to host their digitized content, and then offers APIs to publishers and content aggregators for integrating with their business. The company works on a pure revenue-share basis with content owners, and licenses out the encryption technology to web publishers and cloud service providers. It has tied up with Saregama, Universal Music and Inreco for content and delivers content to publishers like Gaana.com (Indiatimes), Mymusic and iMusti. Bangalore-based Flipkart was founded in 2007 by IIT Delhi classmates Sachin Bansal and Binny Bansal. Flipkart, which started as an online retailer of books in 2007, has slowly diversified into mobiles, cameras, movies and music CD/DVDs and electronic goods. It has offices in Bangalore, Mumbai, Delhi, Chennai and Kolkata.

Confidential LKP Securities Limited 5 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

SEL Manufacturing Acquires Silverline Corporation

SEL Manufacturing has acquired 97.35% stake in Gujarat based Silverline Corporation Limited through it's wholly owned subsidiary - SEL textiles Ltd. Silverline Corporation Ltd. has a spinning unit in Vadodara with a capacity of more than 70,000 spindles. SEL Manufacturing Limited is a part of RS Saluja Group of Companies. It was founded in 1969 and is headquartered in Ludhiana. It manufactures yarns, knitted fabrics, readymade garments, and terry towels.

Trivitron Healthcare Acquires Minority Stake In Kiran Medical

Trivitron Healthcare has acquired a minority stake in Kiran Medical Systems. The deal has a cash component and a stock swap. The agreement between two companies also provides for Trivitron to increase its shareholding over the next few years. GSK Velu and Ramesh Verkot from Trivitron Healthcare will join the board of Kiran Medical Systems. It will continue to function as an independent entity. Mumbai based Kiran Medical Systems was founded in 1974. Kiran Medical provides imaging accessories and radiation protection products for medical facilities. The products are exported in 160 countries across the globe including US, Europe, Japan and Latin America. Trivitron was founded in 1998 by GSK Velu as a trader of medical equipment, medical devices, and medical consumables. It started manufacturing medical equipment in 2009. The Trivitron has also floated about five joint venture companies with leading global medical equipment manufacturers and healthcare service providers. The company also raised about $10Mn from ePlanet Ventures and Headland Asian Ventures Fund II. Recently, it entered into a strategic partnership with Hitachi Medical Systems to provide high end imaging solutions such as CT, MRI, Digital X-ray and Ultrasound systems.

Genpact Acquires US-based High Performance Partners

India’s largest business process and technology management company Genpact has acquired High Performance Partners, LLC (HPP) and its Quantum Mortgage Technology for undisclosed sum. Post this deal, Genpact will own 100% stake in company and will leverage the Quantum software platform to support its mortgage business process as a service (BPaaS) offering. Incorporated in April 2008, High Performance Partners, LLC provides solutions to the mortgage market. HPP has provided consulting and business solutions to the mortgage market, banks, brokerages, insurance companies, and other financial services companies. The Quantum platform helps originators and lenders to automate and streamline major elements of the loan origination process, resulting in a shorter loan lifecycle and a more transparent mortgage asset. Roger Hull, founder and CEO of HPP, will lead the ongoing development of Quantum for Genpact as vice president of Genpact Mortgage Services. Genpact, which went public in the US in 2007, is backed by private equity firms Oak Hill Capital Management and General Atlantic.

Confidential LKP Securities Limited 6 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Somany Ceramics Acquires 26% Stake In Vintage Tiles

Somany Ceramics is acquiring 26% stake in Vintage Tiles Private Limited. This deal will allow Somany to market entire quantity of the polished vitrified tiles manufactured by Vintage Tiles. Vintage Tiles Private Limited is setting up a new plant to manufacture about 7500 square meters of polished vitrified tiles per day at Morbi. Not much is available about Vintage Tiles. Delhi based Somany Ceramics was earlier known as Somany Pilkington's Limited. It manufactures ceramic tiles and allied products. It also has 40 retail showrooms. The products are exported to Middle East, Sri Lanka, Mauritius, Australia, UK, Canada, and Africa.

Religare Enterprises Acquires Shreyas Stocks Pvt Ltd

Religare Enterprises has acquired Chennai based broking company - Shreyas Stocks Private Limited and portfolio management company - Shreyas Advisory Services Pvt Ld. Shreyas Stocks was formed in 1995. It offers services ranging from equity, derivatives and commodity (under Shreyas Advisory Services Pvt. Ltd.) broking apart from depository and portfolio management services. Shreyas has a customer pool of over 5,000 clients who its serves from its network of branches across the country. Religare Enterprises Limited - owned by Malvinder and Shivinder Singh has outlined a strategy to build a global asset management business with close to $100 bn in assets under management. As a part of this strategy, Religare has been acquiring companies all across the globe. It then acquired the UK operations of South Africa- based financial services firm Barnard Jacobs Mellet (BJM). In February last year, Religare had bought US-based Northgate Capital, a private equity and venture for around $200 mn. It also acquired a 50% stake in a Sri Lankan stock broking firm Bartleet Mallory Stock Brokers in September2010. In December it acquired 55% stake in Simsbury, Connecticut-based private equity and real estate investment company Landmark Partners for $171.5 mn through its US- based wholly owned subsidiary Religare Global Asset Management Inc. Recently it formed an advisory panel to help the company in getting a banking licence.

Sobha Developers Buys Out Dubai Partner In Bangalore SPV

Bangalore-based Sobha Developers Ltd has bought out the entire 81% stake held by its Dubai- based partner Pan Atlantic Investments in its special purpose vehicle (SPV), Sobha Developers (Pune) Pvt Ltd, for an undisclosed amount. Currently, the SPV is executing a residential township project called Sobha Forest View, located at Hosahalli village in Bangalore. The project is spread across 13.27 acres, with the total developable area amounting to more than 1.7 million sq. ft. Sobha Developers, backed by an investment arm of Singapore’s sovereign wealth fund Temasek, had raised an estimated $20 million from Pan Atlantic in two tranches for its project in Hosahalli. The funding was raised in the year 2008. Incidentally, current norms require a mandatory three-year lock-in for foreign investments in the domestic real estate sector.

Confidential LKP Securities Limited 7 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

International Paper Buys 75% In Andhra Paper For $388 mn

The world’s largest paper company International Paper has completed the acquisition of 75% stake in Andhra Pradesh Paper Mills (APPM) for around $388 million (Rs 1,900 crore), making it the first global paper and packaging company with a significant position in India's fast-growing economy. NYSE-listed International Paper acquired 53.5% of APPM from its promoters, led by L N Bangur, for approximately $226 million in cash. These sellers have also received a non- compete fee of $57 million. In addition, International Paper acquired another 21.5% of APPM in the public offer, since APPM is a public-listed company. The paper giant shelled out around $105 million in the offer that closed last week. Paul Brown, president of IP India, has become executive chairman of the APPM board of directors. APPM is the country’s fifth largest paper producer by revenues, behind Ballarpur Industries, JK Paper, Tamil Nadu Newsprint and the paper division of diversified firm ITC. It operates two mills with a combined annual capacity of 250,000 tonnes of uncoated free sheet paper. The existing management team and 2,500 employees of APPM will continue to operate the business.

Private Equity News

IFC May Invest $25 mn In MicroQual Techno

IFC may invest $25 mn in telecom equipment and services company - Microqual Techno Private Limited. Microqual is planning to raise $55 mn to roll out it's first batch of towers. IFC may invest up to $25 mn as a combination of debt and equity/quasi equity instruments. Microqual was set up in 1999 by Mahesh Choudhary and Varun Choudhary. The Company presently provides turnkey active and passive network installation and active & passive network management services. It also manufactures a range of passive components like RF cables & transmission kits, in-building products, repeaters etc. for RF/ microwave industry at its plants located in India. The Company is planning a foray into outdoor telecom leasing infrastructure business by installing mobile telecom towers on existing electricity grid network. Microqual, through competitive bidding processes, has obtained 10-year exclusive rights to develop wireless telecom site solutions on selected power transmission towers from Powergrid Corporation of India (PGCIL) and State Transmission Companies (STC) for installing and operating mobile telecom equipments on these towers. Microqual intends to develop a portfolio of about 10,000 – 15,000 such towers across India and lease it out for use by various telecom operators. To enhance its technical and safety capabilities, Microqual has entered into a JV with US based Buckley Cable Construction Co.

Confidential LKP Securities Limited 8 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Ashoka Buildcon To Raise Upto $150 mn For Road Projects

Ashoka Buildcon is selling stake in it's newly formed road development subsidiary to raise upto $150 mn. The company has formed a holding company for eight of its road projects, which are together worth around Rs 6,000 crore. The holding company currently includes six projects of National Highways Authority of India (NHAI) that the company is executing on build-own- operate basis, and two state road projects. Given a typical 75:25 debt equity funding structure for highway projects, it will need Rs1500 cr as equity for the holding company. Nashik based Ashoka Buildcon mainly constructs and operates roads and bridges on a BOT basis. It also undertakes EPC Contracts to construct distribution transformers and electricity substations.

Letsbuy.com Close To Raising Over $40 mn

Delhi-based Etree Marketing Pvt Ltd, which operates the e-commerce site Letsbuy.com, is in advanced talks to raise over $40 million (Rs 195 crore) from a group of three investors including Sequoia Capital and Matrix Partners. In January this year, the company raised $6 million in venture capital funding from Helion Venture Partners, Accel Partners and Tiger Global. In May 2010, the firm had received an undisclosed sum from angel investors. Although the stake being acquired by the new investors stands undisclosed, assuming a typical deal of 20-30% stake dilution, the e-commerce firm could be eyeing a valuation of up to $200 million or around Rs 1,950 crore. Letsbuy currently has sourcing hubs in Mumbai, Bangalore and Delhi, and now plans to come up with more of these hubs and 1,000-2,000 sq. ft. warehouses in other cities.

Private Equity Deals

One97 Communication Raises $10 mn From SAP Ventures

SAP Ventures has invested $10 mn in One97 Communications Ltd. The funds will be used by the company to expand it's reach in Asia, Africa, hire talent and do research and development. One97 Communications founded in 2000 by Vijay Shekhar Sharma provides value added services to telecom service providers, consumers and enterprises. It also undertakes business of developing, designing, importing and exporting software products and services including telecom related software and services. In June last year, One97 filed DRHP with SEBI to raise Rs.120 cr through IPO for procuring telecom equipment and other general expenses, but the IPO was cancelled citing volatile market conditions. One97 also acquired - Oct2ps Pvt Ltd and Oorja Mobile Services Pvt Ltd, both in 2008 to grow organically in the mobile VAS space. Last year One97 also announced that it is selling its 25% stake in Singapore-based Tencube Pte Ltd to McAfee. It had acquired 25% stake in Tencube Pte Ltd for about $21.74 mn. This is SAP Ventures second investment in India this year. Earlier in the year, it invested $10 million in local search engine Just Dial along with Sequoia Capital Global Equities.

Confidential LKP Securities Limited 9 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Eye-Q Hospitals Raises Funding From Helion, Nexus Venture Partners

Gurgaon based Eye-Q Super-Specialty Eye Hospitals has raised funding from Helion Venture Partners and Nexus Venture Partners. The funds will be used to expand it's presence in other regions across the country. Eye Q Vision operates 16 eye care hospitals on a hub-and-spoke model across Haryana, Delhi, Uttaranchal and Uttar Pradesh and is planning to expand its network to another 20 towns in the next two to three years. Earlier in 2010, it raised funding from SONG Investment Advisors – a fund owned and managed by the Soros Economic Development Fund, Omidyar Network and Google. There are 40 odd healthcare focused PE/VC funds operating in India. This sector witnessed $144 mn through 16 deals till September this calendar year, against 39 deals worth $1.6Bn in 2010. There were 34 deals worth $290 mn in 2009.

Yahoo Exits Bharat Matrimony, Sells Stake To Bessemer, Mayfield & Canaan

Yahoo has exited Consim Info Pvt Ltd by selling it's 12% stake to Bessemer Venture Partners, Mayfield Fund and Canaan Partners for Rs100 cr. This deal values the operator of bharatmatrimony.com at Rs900 cr. Bessemer Venture Partners acquired shares for Rs50 cr, Mayfield for Rs36 cr and Canaan for Rs14 cr.

Reliance PE Invests Rs105 cr In Max Flex For A 29% Stake

Reliance Equity Advisors have invested Rs105 cr for a 29% stake in Max Flex & Imaging Systems Limited. The PE investment came after the Mumbai based digital and offset printing materials manufacturer shelved plans for a Rs120 cr IPO. Max Flex had filed DRHP with SEBI for raising Rs120 cr by diluting 29.77% stake in the company. The funds were to be used for setting up a flex manufacturing unit, ink manufacturing plant, a manufacturing plant for PVC Rigid sheets, coating and lamination facility, setting up a showroom and working capital requirements. Incorporated in 1968, Max Flex is owned by Hitesh Jobalia & family. The company is engaged in trading of consumables required in the printing industry and offers over 9,300 variations such as solvent ink, photo paper, flex boards, printing inks, plates etc.

StanChart PE Ups Stake In Innoventive To 9.82%

Standard Chartered Private Equity (SCPE) has acquired another 2.84% stake in Innoventive Industries Ltd, a multi-product engineering company. The private equity firm has picked up the shares from open market, increasing its stake in the company from 6.98% to 9.82%. The share acquisition, done during August and September, might have cost SCPE around Rs 13 crore-Rs 16 crore. Standard Chartered PE had picked 10.14% stake (on a pre-issue share capital basis) in the Pune-based company through a mix of share purchase from non-promoters, besides a fresh issue of shares in February this year. Incidentally, StanChart’s Mid-Market-Mid Cap Fund had invested Rs 46 crore in total and with the current transaction, its exposure will go up to

Confidential LKP Securities Limited 10 October 17, 2011 [INDIA WEEKLY NEWSLETTER] nearly Rs 60 crore. Innoventive has raised around Rs 220 crore through the public issue, which will be used for capacity expansion (Rs 163 crore) and term loan repayment (Rs 50 crore). The company was listed in May this year at an issue price of Rs 117 per share but has been trading between Rs 80 and Rs 100 per share ever since. Established in 1991 for manufacturing domestic appliances, the firm had been taken over by a group of first-generation technocrats under the leadership of Chandu Laxman Chavan in 2002. Currently, Innoventive (formerly Arihant Domestic Appliances Ltd) is a multi-product engineering company focused on precision steel tubes and value-added steel products (including boiler steel strips), as well as oil well couplings (through its subsidiary). The company’s product range caters to diverse industrial sectors including transportation, oil & gas, power, farm equipment and general engineering.

Sahara Group Invests $100 mn In Force India

Indian business conglomerate Sahara group has invested $100 million in Force India and taken a 42.5% stake in the team which it now co-owns with liquor baron while Dutch entrepreneur takes a backseat. The Sahara Group, which has interests in the financial sector, entertainment, housing and sport among others, said that it had subscribed to new shares in the F1 team and has an equal stake with Mallya. The Mol family owns the remaining 15%. The flamboyant Mallya will continue as the team principal of India's only Formula One team, to be now known as Sahara Force India, while Sahara group chairman will be the chairman. Force India was formed in 2007 when a consortium led by Mallya and Mol bought the loss-making Spyker Formula One team and later renamed it Force India. The F1 team, whose current drivers are German and Britain's , are sixth in the constructors' standings ahead of Sunday's race in South Korea.

Realty Services Firm Investors Clinic Gets BCCL Backing

Bennett, Coleman & Co. Ltd (BCCL) has acquired an undisclosed stake in an ad-for-equity deal with Noida-based Investors Clinic Infratech Pvt Ltd, a real estate marketing and brokerage firm operating under the brand of Investors Clinic. The company, started by first-generation entrepreneur Honey Katiyal, works with builders to market their developments and also provides real estate brokerage services. The company is also in talks with two large private equity funds to raise $15 million and expects to close the round in the coming months. Incidentally, the firm’s business model is based on companies like E-House (China) Holdings Ltd, which was listed on the New York Stock Exchange in 2007 with its market capitalization crossing $1 billion. E-House currently offers services like real estate advertising, consulting and also manages a PE fund, besides offering primary and secondary real estate brokerage. Investors Clinic currently spends around Rs 2 crore a month on advertising expenditure and the deal with BCCL will help it leverage its properties. BCCL publishes leading newspapers such as and Navbharat Times, besides running Radio Mirchi and TV channels such as Zoom and Times Now. Investors Clinic has helped around 15,000 home buyers and investors in FY2011. It is

Confidential LKP Securities Limited 11 October 17, 2011 [INDIA WEEKLY NEWSLETTER] currently working with more than 40 builders and is involved with more than 145 projects. The company has offices in Delhi, Noida, Faridabad, Indirapuram, Chandigarh, Meerut, Gurgaon, Mumbai, Bangalore, Hyderabad, Patna, Moradabad, Lucknow, Bhopal, Ahmedabad, and Dehradun. It also plans to open offices in Agra and Chennai soon. In addition, it will use the franchisee route to open 50 more branches in smaller towns by March 2012. Investors Clinic has recently launched two overseas offices in Dubai and Singapore, targeting the NRI market keen to invest in India and also helping Indians who want to buy properties abroad.

Venture Capital News

No news in the current week

Venture Capital Deals

IDG Ventures Invests $3 mn in Online Fashion Retailer - eShakti.com

IDG Ventures has invested $3 mn in online fashion retailer - eShakti.com Pvt Ltd for a minority stake. The funds will be used to scale up operations, add new product lines and cater to Indian customers as well. The company may look at yet another round of fund-raising next year. Presently, Chennai based eShakti exports custom made designer clothes to US and is in the process of launching the firm's Indian brand Zapelle. The company will add accessories including belts, bags and jewellery to it's product line in the next six months. In the past, eShakti.com has raised angel funding from Indigo Monsoon Group. The Indigo Monsoon Group is an investment firm that focuses on early stage internet, mobile and technology start-ups either located in India or targeting Indians. IDG Ventures is a division of US-based International Data Group Inc.(IDG).

Sequoia Capital Invests $5 mn In Fast Food Chain - Faaso's

Sequoia Capital is investing $5 mn in Pune based Kebab and wraps chain - Faaso's. The funds will be used to set up 50 units in Mumbai in the next 18 months. It also plans to expand in Bangalore and the National Capital Region. The firm primarily serves fresh wraps with fillings such as paneer tikka and paneer reshmi. Currently Faaso operates 13 restaurants in Pune and is coming up with it's first in Mumbai. Quick Service Restaurants have attracted a lot of PE/VC interest in past couple of years.

Confidential LKP Securities Limited 12 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Nexus Venture Partners Leads $4 mn Series A Funding In GENWI

Cloud-based Tablet and smartphone publishing platform GENWI of the USA has received $4 million or Rs 20 crore in series A funding, led by Nexus Venture Partners. GENWI had earlier raised seed funding of $1.1 million or Rs 5.5 crore from Inventus Capital Partners and Quest Venture Partners, who also participated in this round of funding. With the additional funds, the company has raised a total of $5.1 million or Rs 25.5 crore till date. Jishnu Bhattacharjee of Nexus Venture Partners will be joining GENWI’s board of directors. Co-founded by PJ Gurumohan, Rahul Patel and Raju Sagiraju in 2010, GENWI enables publishers to create and manage interactive, social, and live media apps on various platforms. The company is also planning to build its own apps network for distribution of apps and cross-pollination of the apps. Finally, the firm wants to tap the growing Tablet and smartphone market in India. The funding will be used to build out the infrastructure and an extensive app network to offer more advanced monetization and distribution features for publishers, global expansion and the development of multilingual functionality.

Seeders VC Invests In Capricorn Gifting Solutions

Hyderabad based Corporate gifting firm - Capricorn Gifting Solutions Pvt Ltd has raised seed funding Seeders Venture Capital. Corporate Gifting Solutions was founded in April 2011 by Rajiv Lulla. Corporate Gifting is a corporate gifts and promotional products company with clients in IT, Pharma and other industries. Capricorn Gifting aims to use technology and Internet as key enablers to grow exponentially by increasing its reach and customer experience. Corporate Gifting Solutions Pvt Ltd competes with eYantra in this space. Seeders Venture Capital Pvt Ltd - started by Pallav Nadhani (of Fusioncharts) and Abhishek Rungta (IndusNet) invests in software, mobile, web services and gaming companies that either have a differentiating product or service where Internet is a key enabler.

Singapore-Based Media Firm Cinemacraft Raises SG$1 mn

Singapore-based venture capital firm Jungle Ventures has partnered with independent investors to infuse SG$1 million (Rs 3.87 crore) into Singapore-based mobile media solutions provider Cinemacraft, founded by Indian-origin entrepreneur Sandeep Casi. Other investors in this funding round include Jayesh Parekh (founder of Sony Entertainment Television), Jai Maroo (director, Shemaroo Entertainment), Devesh Chetty (ex-CEO, RGM Media) and Takuro Wakabayashi (from Xseed Partners). Cinemacraft’s flagship product is a proprietary, Cloud- based interactive media broadcast platform (and player) that ensures consistent, high quality delivery of content across a multitude of mobile devices and networks. The company also provides Platform API to third parties to deploy its innovative media solutions. Based in Tokyo, Cinemacraft’s founder Casi is an angel investor as well, focusing on media technologies. He is also the co-founder and board member of TiE, Japan. TiE is world’s largest non-profitable organization, fostering entrepreneurship globally. Confidential LKP Securities Limited 13 October 17, 2011 [INDIA WEEKLY NEWSLETTER]

Disclaimer

This document is being communicated to you solely for the purposes of providing the current market trends and developments based on generally available information. This document is being communicated to you on a confidential basis and does not carry any right of publication or disclosure to any third party. By accepting delivery of this document each recipient undertakes not to reproduce or distribute this presentation in whole or in part, nor to disclose any of its contents without the prior written consent of LKP Securities Limited. The recipient will keep permanently confidential information contained herein and not already in the public domain.

This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. The use of any information set out in this document is entirely at the recipient's own risk and should not be regarded as a substitute for appropriate detailed professional advice.

LKP Securities Limited or any of its associates or employees do not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. We have not independently verified the accuracy of the contents contained in this document.

The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially however we assume no obligation to update you of any information pertaining to the contents of this document.

Visit us at: www.lkpsec.com

Confidential LKP Securities Limited 14