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  • 2015 Grant Thornton India LLP. All rights reserved.

    Dealtracker Providing M&A and Private Equity Deal Insights

    July 2015 | Volume 11.7

  • Disclaimer

    This document captures the list of deals announced based on information available in the public domain and

    based on public announcements. Grant Thornton India LLP does not take any responsibility for the

    information, any errors or any decision by the reader based on this information. This document should not be

    relied upon as a substitute for detailed advise and hence, we do not accept responsibility for any loss as a

    result of relying on the material contained herein. Further, our analysis of the deal values are based on

    publicly available information and based on appropriate assumptions (wherever necessary). Hence, if

    different assumptions were to be applied, the outcomes and results would be different.

    Dealtracker editorial team:

    Divyabala N, Monica Kothari

    2015 Grant Thornton India LLP. All rights reserved.

  • 2015 Grant Thornton India LLP. All rights reserved.

    Deal Snapshot July 2015

    0.9

    1.7 1.8

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    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    2014 Values $bn 2015 Values $bn 2014 Volume 2015 Volume

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    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    M&

    A S

    na

    ps

    ho

    t P

    E S

    na

    ps

    ho

    t

    "PE activity continues to show

    promising trends as the overall macro

    level indicators continue to look

    positive, whereas domestic M&A

    activity has been slipping. Q2 is

    generally better for M&A and with the

    GST bills clearance becoming clear,

    inflation remaining under good

    control, government spending

    expected to increase, more rate cuts

    expected and earnings to be better

    than the first half, M&A will perhaps

    swell upwards. IPOs will probably

    also witness upward movement as

    companies raise both primary and

    balance sheet repair capital. "

    - Prashant Mehra, Partner, Grant

    Thornton India LLP

  • 2015 Grant Thornton India LLP. All rights reserved.

    Deal Round Up - July 2015

    Deal summary Volume Value (US$ mn)

    2013 2014 2015 2013 2014 2015

    Domestic 22 22 23 237 309 248

    Cross-border 16 28 23 671 3,589 4,322

    Merger & Internal

    Restructuring 4 1 - 3,688 5 -

    Total M&A 42 51 46 4,596 3,903 4,570

    Private Equity 44 55 110 807 1,857 2,154

    Grand Total 86 106 156 5,403 5,760 6,723

    Cross border includes

    Inbound 7 17 8 48 3,297 2,778

    Outbound 9 11 15 623 292 1,543

    Higher volumes, smaller deal sizes

    Deal volume jumped 47% YoY (year-over-year) in July 2015 with

    a 17% YoY increase in deal value, due to notable big ticket deals.

    M&A deal values increased 17% YoY despite a 10% YoY fall in

    the overall deal volumes. This was primarily due to big-ticket

    inbound and outbound deals which drove average deal size in

    this segment.

    Volumes in PE investments have shown a tremendous 100%

    growth over the corresponding month last year with a steady 16%

    YoY increase to US$ 2.2 billion in deal values, marking the

    highest activity in 2015.

    As compared to June 2015, deal activity this month has been

    trending upward (both in terms of volume and value) with 10

    deals valued over US$ 100 million each.

    Deal summary Volume Value (US$ mn)

    2013 2014 2015 2013 2014 2015

    Domestic 138 136 173 3,253 7,808 5,964

    Cross-border 130 161 145 9,140 9,984 13,060

    Merger & Internal

    Restructuring 29 23 4 4,187 3,262 1,316

    Total M&A 297 320 322 16,579 21,055 20,340

    Private Equity 250 340 573 6,446 6,969 9,215

    Grand Total 547 660 895 23,025 28,024 29,555

    Cross border includes

    Inbound 73 105 70 4,148 8,125 10,193

    Outbound 57 56 75 4,992 1,859 2,867

    PE/VC investments driving deal activity

    YTD (year-to-date) July 2015 showed steady growth in overall deal

    sizes (36% YoY) and volumes (5% YoY).

    M&A deal activity remained subdued due to lower mergers and

    internal restructurings. Though M&A cross-border deal volumes

    were muted, deal values increase 31% YoY driven by five inbound

    deals worth over US$ 500 million each.

    PE deals saw a sharp increase (69% YoY) with large investments in

    sectors like IT&ITES, BFS, Real Estate and Manufacturing.

    In YTD July 2015, M&A and PE together accounted for 51 deals

    valued over US$ 100 million each and 31 deals of over US$ 50

    million each.

    Ju

    ly 2

    015

    Y

    TD

    Ju

    ly 2

    01

    5

    17%

    16%

    17%

    10%

    100%

    47%

    1%

    69%

    36%

    3%

    32%

    5%

  • 2015 Grant Thornton India LLP. All rights reserved.

    M&A Round Up July 2015

    Key sectors

    Notable sectors Volume US$ mn

    IT & ITES 19 251

    Pharma, Healthcare & Biotech 6 961

    Energy & Natural Resources 4 2,571

    Manufacturing 4 54

    Banking & Financial Services 2 328

    Retail & Consumer 2 169

    Energy & natural resources, banking & financial services and pharma, attracted big ticket

    deals valued over US$ 100 million. Energy & natural resources sector witnessed the Rosneft-

    Essar deal estimated at over US$ 2.2 billion.

    The month witnessed the largest acquisition by Indian pharmaceuticals company in the US, -

    Lupins acquisition of Gavis Pharmaceuticals for US$ 880 million.

    Top M&A deals of the month

    Acquirer Target Sector US$ mn Deal Type % Stake

    Lupin Ltd

    Gavis

    Pharmaceuticals Llc.

    and Novel

    Laboratories Inc.

    Pharma,

    Healthcare &

    Biotech

    880 Acquisition 100%

    Rajesh Exports Ltd Valcambi SA

    Energy &

    Natural

    Resources

    400 Acquisition 100%

    Heineken

    International BV United Breweries

    Retail &

    Consumer 137

    Minority

    Stake 3%

    Fairfax India

    Holdings

    Corporation-FIH

    Mauritius

    Investments

    National Collateral

    Management Services

    Agriculture &

    Forestry 125

    Majority

    Stake 74%

    Wipro Digital Designit IT & ITES 94 Acquisition 100%

    Top sectors based on deal value (US$ mn)

    Top sectors based on deal volume

    Energy & Natural

    Resources 56%

    Pharma, Healthcare & Biotech 21%

    Banking & Financial

    Services 7%

    IT & ITES 6%

    Retail & Consumer 4%

    Others 6%

    IT & ITES 41%

    Pharma, Healthcare & Biotech 13%

    Energy & Natural

    Resources 9%

    Manufacturing 9%

    Banking & Financial

    Services 4%

    Others 24%

  • 2015 Grant Thornton India LLP. All rights reserved.

    PE Round Up - July 2015

    Key sectors

    Notable sectors Volume US$ mn

    IT & ITES 70 810

    Retail & Consumer 6 54

    Hospitality & Leisure 5 68

    Pharma, Healthcare & Biotech 4 39

    Real Estate 3 323

    Manufacturing 3 157

    Telecom 1 500

    With more than 60% of total volume, IT & ITES continues to be the preferred sector for

    PE/VC investments

    Sectors like telecom, real estate and manufacturing also witnessed big ticket PE investments

    of over US$ 100 million.

    Top PE deals of the month

    Investor Investee Sector % Stake US$ mn

    TA Associates and India

    Value Fund Advisors

    Atria Convergence

    Technologies Telecom 95%

    500

    Warburg Pincus Piramal Realty Real Estate N.A.

    284

    Investment AB Kinnevik and

    Rocket Internet SE

    Global Fashion Group

    (GFG)- Jabong.com IT & ITES N.A.

    168

    Kohlberg Kravis & Roberts JBF Industries Ltd & JBF

    Global Pte Ltd Manufacturing N.A.

    150

    SoftBank Corp, Sequoia

    Capital

    Oravel Stays Pvt Ltd-

    OYORooms.com IT & ITES N.A. 100

    IT & ITES 38%

    Telecom 23%

    Real Estate 15%

    Manufacturing 7%

    Automotive 5%

    Others 12%

    Top sectors based on deal value (US$ mn)

    Top Sectors based on deal volume

    IT & ITES 64%

    Retail & Consumer 5%

    Hospitality & Leisure 4%

    Pharma, Healthcare & Biotech 4%

    Education 4%

    Others 19%

  • 2015 Grant Thornton India LLP. All rights reserved.

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