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2
Summary
PE Investments Breakdown, Q4 - Number of Deals
Equity Capital Market
Exits
Our Quarterly Deal Report presents a data-driven overview of private equity, mergers & acquisitions and equity capital market deals in India.
Our findings reiterate the slowing pace of PE investments this year after hitting a peak in 2015. Some of the key trends are:
• In Q4 2016, outlier deals appear to rule the market and have skewed aggregate numbers across investment, exits & M&As
• Early stage investment activity, i.e., Angel/Seed and VC dropped significantly in comparison to the same period last year, suggesting a drop in the overall deal activity
• Exit activity has dropped across all investor types hitting the lowest in the last five years, however the value remained strong on the back of few large exits through M&As
• Inbound deal value rule the M&A wave in this quarter, while the M&A value has largely been kept up by a couple of multi-billion-dollar deals
• The equity capital market was dominated by IPOs in Q4 2016 both by activity and value. IPOs remained robust and continued to be investors preferred mode to raise capital
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PE Investments – Deal activity remain tepid
Private Equity Mergers & Acquisitions Equity Capital Markets
Private equity investments value dipped by 31% to $3.6 billion in the Q4 CY16 as compared to $5.1 billion a year ago, while it is 29% higher than the previous quarter.
Deal making activity declined by 38% to 286 deals as compared to 461 for the same period last year, and 3% lower than the already dismal previous quarter.
4,45
1
1,9
25 2,
771
1,42
9
2,33
6
3,91
2
2,37
9
2,26
1
2,53
4
3,00
8
3,35
1
4,64
5
4,59
7
5,93
9
6,36
6
5,11
9
3,90
7
2,18
2 2,74
3 3,55
2
279
176 166
209
243
188
212
275 284
251
283301
403 407
482461
422
306295
286
0
100
200
300
400
500
$0
$2,000
$4,000
$6,000
$8,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Value of Deals ($ mn) Number of Deals
29%
One mega deal of $ 1.6 bn
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
PE Investments – PE funds remain active investors
83
113
146
255
164
55
92 87
145
75
48 53 52 4738
1 0 1 0 0
22 17 15 14 9
0
50
100
150
200
250
300
2012 2013 2014 2015 2016
Angel/Seed VC PE Funds Pre-IPO Placements
PE Investments Breakdown, Q4 - Number of Deals PE Investments Breakdown, Q4 - Value of Deals ($ mn)
40 31 58 117
93
240 43
0
1,00
0
1,77
6
57180
6
1,63
2
3,15
4
2,59
4
2,7
39
NA
0 8 0 0
340
168 4
25 63
2
149
$0
$1,000
$2,000
$3,000
$4,000
2012 2013 2014 2015 2016
Number of deals has declined across all investor types, On Y-o-Y basis, angel / Seed and VC activity has declined considerably by 36% and 48% respectively in Q4 2016, as compared to the same period last year, while the deal values have declined significantly for VC & Placement deals by 68% & 76% respectively
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
PE Investments – Angel/ Seed investors sustain activity
PE Investments Breakdown – Number of Deals
PE Investments Breakdown – Value of Deals ($ mn)
0
200
400
600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Angel/Seed VC PE Funds Pre-IPO Placements
$0
$1,500
$3,000
$4,500
$6,000
$7,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Investment of $ 1.6 billion in TowercomInfrastructure Pvt. Ltd by PE Fund investor
Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
Deal Size – Big-ticket deals drive investment value
0%
20%
40%
60%
80%
100%
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016
Undisclosed Under $5mn $5 - $25 mn $25 - $50 mn $50 - $100 mn $100 mn+
Number of Deals
Value of Deals ($ mn)
0%
20%
40%
60%
80%
100%
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
Deal Size – Median deal value picked up
On Q-o-Q basis, median deal value increased by 50% & on Y-o-Y basis it increased by more than 100% to $ 1.5 million, highest since Q3 2014. However the rise in the average deal size is clearly contributed by one major investment of $ 1.6 billion in Towercom Infrastructure Pvt. Ltd.
18.3
12.8
19.8
8.2
11.6
25.4
13.4
9.9 10.3
14.3 13.8
17.7
12.7
16.615.0
13.5
11.610.0
13.3
19.1
1.9
3.5 3.4
1.9
2.52.9
1.9
0.91.4
2.2
1.0 1.0 0.91.4
0.8 0.70.6
1.0 1.01.5
$0
$2
$4
$6
$8
$10
$0
$5
$10
$15
$20
$25
$30
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Mean ($ mn) Median ($ mn)
One large deal in the Construction & Engineering
sub-industry affected the average deal value
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Sectors – Secular decline in deal activity all across
Private Equity Mergers & Acquisitions Equity Capital Markets
1
1
1
3
13
19
21
22
41
164
3
0
3
6
13
38
20
25
90
264
0 50 100 150 200 250 300
Telecommunication Services
Energy
Materials
Utilities
Consumer Staples
Industrials
Financials
Healthcare
Consumer Discretionary
Information Technology
Q4 2015 Q4 2016
0
20
0
89
55
1,893
619
174
312
391
1
0
30
850
256
946
569
234
565
1,669
$0 $500 $1,000 $1,500 $2,000
Telecommunication Services
Energy
Materials
Utilities
Consumer Staples
Industrials
Financials
Healthcare
Consumer Discretionary
Information Technology
Number of Deals Value of Deals ($ mn)
Information Technology still rules the deal activity, others like consumer discretionary, healthcare, and financials are significant contributors. The decline in the number of deals across all sectors remains secular and worrying. Although the value of deals across sectors has declined too except for industrial & financial sector
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PE – Key Deals
Date Target Buyer Deal Type Deal Value ($ mn)
Sub- Industry
Dec-2016 Towercom Infrastructure Pvt. Ltd Brookfield Asset Management Inc.Private Equity
Funds1,610
Construction & Engineering
Dec-2016 SBI Life Insurance Company LtdTemasek Holdings Advisors India Pvt. Ltd, KKR India Advisors Pvt. Ltd
Private Equity Funds
266Life & Health Insurance
Oct-2016 TVS Logistics Services Ltd Quebec Deposit and Investment FundPrivate Equity
Funds155 Air Freight & Logistics
Oct-2016 ASK Investment Managers Pvt. Ltd Advent International Corp.Private Equity
Funds135
Investment Banking & Brokerage
Oct-2016 Arvind Fashion Ltd Multiples Private Equity Fund II LLPPrivate Equity
Funds110
Apparel, Accessories & Luxury Goods
Nov-2016 Rivigo Services Pvt. Ltd Warburg Pincus India Pvt. Ltd Venture Capital 75 Air Freight & Logistics
Nov-2016 Freshdesk Inc.Sequoia Capital India Advisors Pvt. Ltd, Accel India Management Co. Pvt. Ltd
Venture Capital 55IT Consulting & Other Services
Oct-2016Punj Lloyd Infrastructure Ltd, 3 Solar Projects
India Infrastructure Fund IIPrivate Equity
Funds52 Electric Utilities
Nov-2016 Capital First Ltd GIC Pte. Ltd Placements 51Thrifts & Mortgage Finance
Dec-2016 IFMR Capital Finance Pvt. LtdStandard Chartered Private Equity Advisory India Pvt. Ltd
Private Equity Funds
50 Specialized Finance
Private Equity Mergers & Acquisitions Equity Capital Markets
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Regional Analysis, Top 5 Cities Q4 2016
Private Equity Mergers & Acquisitions Equity Capital Markets
Number of Deals Value of Deals ($ mn)
80 323
Mumbai
Bengaluru
ChennaiHyderabad
10 267
54
39
7
25
4
Information Technology
Consumer Discretionary
Financials
Consumer Staples
Industrials
Healthcare
2,223
58 162
6 45
Delhi NCR
3
1
1
1
54
11
44 3While Information Technology
dominates across deal markets (except Chennai), consumer discretionary is another dominant sector in Delhi NCR, Mumbai, Bengaluru (the 3 biggest markets) and Chennai
26
9
4
6
7
1
3
4
11
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Fund Raising – Value nosedives further in Q4
Private Equity Mergers & Acquisitions Equity Capital Markets
Value raised through funds has seen a steep decline in Q4 CY16 both on Y-o-Y and Q-o-Q basis. Private Equity funds raised a total of $343 million in Q4 CY16, as compared to $1.2 billion a year ago.
1,04
5
1,34
5
493 65
0
831
475
1,51
7
412
1,01
7
1,02
4
581
1,34
4
1,98
1
1,38
5
1,13
0
1,16
0
2,24
2
1,07
6
553
34
3
17
20
1112
7
11
13
11
1314
11
14
9
12
10
13 16 13
7 7
0
4
8
12
16
20
24
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Amount Raised ($ mn) Number of Funds Raised
Two funds closed more than 50% of the amount raised in Q4
2016
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Top Funds Raised
Fund Name Fund Status Fund Size ($ mn)
Amount Raised ($ mn)
Asset Manager Launch Date
Amicus Capital Private Equity I LLP First Close 200 90 Amicus India Capital Partners LLP Aug-2016
Ventureast Proactive Fund II First Close 150 83Ventureast Fund Advisors India Pvt. Ltd
Jun-2016
Lightbox Ventures II Secondary Close 90 54 Lightbox India Advisors Pvt. Ltd Oct-2013
Exfinity Technology Fund Final Close 37 44 Exfinity Venture Partners LLP Feb-2014
IDFC Score Fund Final Close 114 43 IDFC Alternatives Ltd Nov-2015
Tara India Fund IV LLC Final Close 300 20 ILandFS Investment Advisors LLC Dec-2010
Blume Ventures India Fund II Final Close 60 9 Blume Venture Advisors Pvt. Ltd Dec-2015
Private Equity Mergers & Acquisitions Equity Capital Markets
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Exits – Exits hit a low not lowest
Private Equity Mergers & Acquisitions Equity Capital Markets
Exit activity slumped considerably, 37% down from 78 deals in Q4 last year and 27% from 67 deals in Q3 2016.
1,77
8
391
1,96
9
1,9
07
1,43
9
1,36
0
1,57
9
1,10
6
860
1,88
6
1,20
5
1,10
7
1,66
4 2,02
8
1,25
4
871
1,8
75
1,47
8
2,29
7
1,14
3
78
54 56
66
81
55
67 6862
8084
80
101
60 58
78
61 62
67
49
0
20
40
60
80
100
120
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Value of Deals ($ mn) Number of Deals
5 deals of over $100 mn contributed 80% to
the total exit value
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Exits – M&A drives activity and value in Exits
20 1916
2722
30 1 3 3
20 21
44
27
1014 14
10 85
914
913
9
0
10
20
30
40
50
2012 2013 2014 2015 2016
M&As Public Offerings Open Market Buyback Secondary Sales
PE Exits Breakdown, Q4 – Number of Deals
PE Exits Breakdown, Q4 – Value of Deals ($ mn)
Private Equity Mergers & Acquisitions Equity Capital Markets
377
19079 75
501
314
0 18
187290
1,124
358
902
371283
73185
10944 3819
372
0
194
30$0
$300
$600
$900
$1,200
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016
Although Open Market has lead the exit activity in the past , but
now it is the second preferred route to exit the market
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
Exits – M&As displace open market as the preferred exit route
PE Exits Breakdown – Number of Deals
PE Exits Breakdown – Value of Deals ($ mn)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
M&As Public Offerings Open Market Buyback Secondary Sales
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
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Exits – Financials sector sees most exit by value
Private Equity Mergers & Acquisitions Equity Capital Markets
Number of Deals Value of Deals ($ mn)
In Q4 2016, Financial sector led the exit activity and value, followed by Industrials, Information Technology and Consumer Discretionary sector. 15 exits in the financial sector accounted for $562 million, deal value riding on the back of outliers
1
1
0
3
5
6
8
9
15
0
0
6
4
9
10
14
16
17
0 5 10 15 20
Utilities
Energy
Consumer Staples
Materials
Healthcare
Consumer Discretionary
Information Technology
Industrials
Financials
Q4 2015 Q4 2016
NA
NA
0
28
175
137
NA
242
562
0
0
17
123
184
152
177
137
81
$0 $100 $200 $300 $400 $500 $600
Utilities
Energy
Consumer Staples
Materials
Healthcare
Consumer Discretionary
Information Technology
Industrials
Financials
Date Target Seller Exit Type Exit Value ($ mn)
Sub Industry
Dec-2016 International Tractors Ltd Blackstone Advisors India Pvt. Ltd M&A 235Construction & Farm Machinery & Heavy Trucks
Oct-2016 Lodha Group, World One HDFC Property Fund M&A 224 Real Estate Development
Dec-2016 Laurus Labs LtdAptuit Inc.,Eight Roads Ventures,Warburg Pincus India Pvt. Ltd
Initial Public Offering 154 Pharmaceuticals
Oct-2016 IDFC Bank Ltd Khazanah Nasional Berhad Open Market 151 Diversified Banks
Oct-2016 Endurance Technologies Ltd Actis Advisers Pvt. Ltd Initial Public Offering 135 Auto Parts & Equipment
Dec-2016Multi Commodity Exchange of India Ltd
Blackstone Advisors India Pvt. Ltd Open Market 45 Specialized Finance
Oct-2016 Prestige Estates Projects Ltd Westbridge Crossover Fund LLC Open Market 44 Real Estate Development
Oct-2016 Ekta World Pvt. Ltd, Ekta Tripolis SUN Apollo India Real Estate Fund Buyback 38 Real Estate Development
Nov-2016National Stock Exchange of India Ltd
Goldman Sachs (Principal Investments) Secondary Sales 30 Specialized Finance
Dec-2016 S H Kelkar and Company Ltd Blackstone Advisors India Pvt. Ltd Open Market 26 Specialty Chemicals
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PE Exits – Key Deals
Private Equity Mergers & Acquisitions Equity Capital Markets
20
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M&As – Mega deals continued to busts the chart
M&A deals value stays strong, rising by 163% on y-o-y basis to $21 billion thanks to a few multi-billion-dollar deals that companies struck either to slash debt or to consolidate their market share
4,78
3
2,76
5
3,83
2
9,83
2
6,33
6
5,61
8
6,50
3
5,73
6
5,09
2
9,42
0
6,72
7
11,6
70
4,73
9
3,59
0 7,54
7
7,83
7
10,0
64
5,7
24
25,0
31
20,6
25
230
180 183
215
258
180
239
192
214 220
263
214
264
205
254
272 272
250257
223
0
50
100
150
200
250
300
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Value of Deals ($ mn) Number of Deals
A few large deals has skewed the
M&A value for both Q3 & Q4 2016
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Deal Type – Domestic activity remains strong, Inbound deal value explodes
Private Equity Mergers & Acquisitions Equity Capital Markets
3541 38
33 34
48
2633
38
24
115109
116
175
134
17 16
27 2631
0
30
60
90
120
150
180
2012 2013 2014 2015 2016
Inbound Outbound Domestic Others
4,18
5
3,10
3
872
3,40
7
13,8
38
3,33
5
1,17
3
744
957
6671,
703
1,01
1
6,47
2
2,86
0
3,68
4
609
448
3,58
2
613
2,43
7
$0
$4,000
$8,000
$12,000
$16,000
2012 2013 2014 2015 2016
M&A Breakdown, Q4 – Number of Deals M&A Breakdown, Q4 – Value of Deals ($ mn)
Deal value picked up for inbound M&As by more than 300% from $ 3.4 billion to more than $ 13 billion on the back of the acquisition of Essar Oil Ltd while outbound deal value slipped by 30% during the quarter.
Rosneft,United Capital Partners Mauritius Ltd, Trafigura Ltd acquired Essar Oil Ltd for $10.7 bn
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M&A Breakdown – Inbound M&As led deal value on the back of outliers
M&A Breakdown – Number of Deals
M&A Breakdown – Value of Deals ($ mn)
$0
$10,000
$20,000
$30,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
0
100
200
300
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Inbound Outbound Domestic Others
Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd
Deal Size – Large-sized deals accounted for 93% of total value
Number of Deals
Value of Deals ($ mn)
23
0%
20%
40%
60%
80%
100%
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016
Undisclosed Under $5mn $5 - $25 mn $25 - $50 mn $50 - $100 mn $100 mn+
Private Equity Mergers & Acquisitions Equity Capital Markets
0%
20%
40%
60%
80%
100%
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016
24
Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
Deal size – Few giants, many midgets
49.3
32.245.1
106.9
52.4 57.9 63.1 63.050.4
99.2
58.5
117.9
43.1 39.9
64.5 61.2
75.7
48.5
217.7
180.3
11.710.9 10.9
13.1
8.3
10.7
8.0
10.610.0
11.6
9.4
14.4
6.5
10.0
15.0
12.3
5.34.7
6.2 6.0
$0
$2
$4
$6
$8
$10
$12
$14
$16
$0
$50
$100
$150
$200
$250
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Mean ($ mn) Median ($ mn)
The average deal value of $ 169 million clearly indicates the impact of standout deal (acquisition of $10.7 billion) in Q4 2016
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Sectors – Large deal skewed the M&A value in energy
Private Equity Mergers & Acquisitions Equity Capital Markets
3
4
7
12
20
16
20
35
44
62
4
2
12
14
13
19
44
44
50
70
0 20 40 60 80
Telecommunication Services
Energy
Utilities
Consumer Staples
Materials
Healthcare
Financials
Industrials
Consumer Discretionary
Information Technology
Q4 2015 Q4 2016
Number of Deals Value of Deals ($ mn)
28
11,971
92
125
427
2,734
70
2,770
1,485
923
1,906
0
48
171
96
478
2,977
770
668
723
$0 $4,000 $8,000 $12,000
Telecommunication Services
Energy
Utilities
Consumer Staples
Materials
Healthcare
Financials
Industrials
Consumer Discretionary
Information Technology
Deal activity has dropped marginally across sectors with substantial increase in value within, energy, healthcare, industrials and consumer discretionary sector
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M&A – Key Deals
Date Target Buyer M&A Type Deal Value ($ mn)
Sub Industry
Oct-2016 Essar Oil LtdRosneft,United Capital Partners Mauritius Ltd, Trafigura Ltd
Inbound 10,680 Integrated Oil & Gas
Oct-2016 Vadinar Oil Terminal LtdRosneft,United Capital Partners Mauritius Ltd, Trafigura Ltd
Inbound 1,990 Marine
Dec-2016Gujarat State Petroleum Corporation Ltd, KG-OSN-2001/3 Block
Oil and Natural Gas Corporation Ltd Domestic 1,195Oil & Gas Exploration & Production
Nov-2016 Videocon D2H Ltd Dish TV India Ltd Domestic 1,125 Cable & Satellite
Nov-2016 Chase Pharmaceuticals Corporation Allergan Plc Others 1,000 Pharmaceuticals
Oct-2016Teva Pharmaceutical Industries Ltd, Actavis United Kingdom and Ireland Generics Business
Accord Healthcare Ltd Others 771 Pharmaceuticals
Dec-2016 Claris Injectables Ltd Baxter International Inc. Inbound 625 Pharmaceuticals
Oct-2016 Appirio Inc. Wipro Ltd Outbound 500IT Consulting & Other Services
Dec-2016 International Tractors Ltd Yanmar Company Ltd Inbound 235Construction & Farm Machinery & Heavy Trucks
Oct-2016Janssen Pharmaceutica NV, Five Anesthesia and Pain Management Injectable Products
Piramal Critical Care Inc. Others 175 Pharmaceuticals
Private Equity Mergers & Acquisitions Equity Capital Markets
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ECM – Lacklustre quarter for equity market
The up-down trend continues in the equity market. In Q4 2016, the number of deals recorded were 22, raising ~$ 1.3 billion, as compared to 47 companies that raised $2.4 million in the previous quarter. However during the same time period an year ago, 15 companies raised $2.1 billion, indicating a higher ticket-size
561
99
1,66
1
1,82
0
1,9
53
988
55
6
1,19
7 1,46
5
1,41
7
2,64
6
661
1,44
9
1,55
3
1,06
5
2,10
6
511
841
2,36
7
1,27
4
16
8
20
14
25
16
24
9
23
16
37
22
31
22
30
15
29
19
47
22
0
5
10
15
20
25
30
35
40
45
50
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Capital Raised ($ mn) Number of Deals
$1.1 bn of the capital in Q4 2016 was raised
in five IPO deals
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Deal Type – IPOs rule, while value for QIPs shrink
ECM Breakdown – Number of Deals ECM Breakdown – Value of Deals ($ mn)
7
7
8
1016
1
1
1
1
1
2
25
13
331
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
IPO Follow-On Rights Issue QIPs IPPs
1,030
13 70
1,138
1,135
169
1,139
1
46
1
126
101
575
590
843
3645
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
Private Equity Mergers & Acquisitions Equity Capital Markets
Indian companies rushed to float initial share sales this quarter, but on Q-o-Q basis, fundraising on the stock exchanges slumped due to market volatility and weak economic and investment scenarios
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd Private Equity Mergers & Acquisitions Equity Capital Markets
ECM Breakdown – Investors favour IPOs to raise capital
ECM Breakdown – Number of Deals
ECM Breakdown – Value of Deals ($ mn)
0
10
20
30
40
50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
IPO Follow-On Rights Issue QIPs IPPs
$0
$1,000
$2,000
$3,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd
Equity Capital Markets – Key Deals
Date Target Offering Type Offering Size ($ mn) Sub Industry
Nov-2016 PNB Housing Finance Ltd Initial Public Offering 446 Thrifts & Mortgage Finance
Dec-2016 Laurus Labs Ltd Initial Public Offering 199 Pharmaceuticals
Oct-2016 Endurance Technologies Ltd Initial Public Offering 173 Auto Parts & Equipment
Nov-2016 Varun Beverages Ltd Initial Public Offering 165 Food Distributors
Dec-2016 Sheela Foam Ltd Initial Public Offering 76 Home Furnishings
Private Equity Mergers & Acquisitions Equity Capital Markets
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd
Glossary
PlacementsPlacement deals include QIPs, Open Market & Private Investment in Public Equity (PIPE deals).
MaterialsMaterial sector covers chemicals used in different segments, construction materials, containers & packaging, metals & mining, and paper & forest products.
Consumer DiscretionaryConsumer Discretionary sector includes automobiles & components, consumer durables & apparel, consumer services, media, and retailing.
Consumer StaplesConsumer Staples sector contains food & staples retailing, food, beverage & tobacco, and household & personal products.
HealthcareHealthcare incorporates healthcare equipment & services, and pharmaceuticals, biotechnology & life sciences.
FinancialsFinancial sector includes banks, diversified financials, insurance, and real estate.
Information Technology (IT)IT comprises software & services, technology hardware & equipment, and semiconductors & semiconductor Equipment.
Telecommunication ServicesIt includes both diversified and wireless telecommunication services.
UtilitiesUtility encompasses electric, gas, water & multi-utilities and independent power producers & energy traders as well.
IndustrialsIndustrial sector contains all the capital goods , Commercial & Professional Services, and Transportation (air freight & logistics, airlines, marines, road & rail, infrastructure).
EnergyEnergy sector consists of energy equipment & services, and oil, gas & consumable fuels.
Private Equity Mergers & Acquisitions Equity Capital Markets
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Copyright 2016 Property of Mosaic Media Ventures Pvt. Ltd
Abbreviations
PE- Private Equity
VC- Venture Capital
M&A- Mergers & Acquisition
ECM- Equity capital Market
IPO- Initial Public Offering
Follow-On- Follow-On Offerings
QIPs- Qualified Institutional Placement
IPPs- Institutional Placement Programme
Private Equity Mergers & Acquisitions Equity Capital Markets
VCCEdge is India’s premier financial research platform providing comprehensive data and information to subscribers for deal origination, deal structuring and valuations, gaining market insights, carrying out due diligence, and tracking competition. The platform has in-depth profiles of private and public companies, including detailed financials, deals including private equity, venture capital, M&A, equity capital market issues and debt offerings, key developments, and detailed data on investors and their portfolios.
VCCEdge is fully hosted solution that users access to follow private equity investments and M&A transactions, industry trends, keep track of companies and markets, generate actionable intelligence, identify targets, originate deals and research on deal multiples and valuations. With the help of its robust search and screening tools and download options, the platform provides information on demand and helps reduce research time, allowing users like strategy managers, investors, bankers and consultants to spend more time on analysis.
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