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TABLE OF CONTENTS
Acknowledgement ………………………………………………………………………….3
Abstract …………….……………………………………………………………………….. 4
Objective ……………………………………………………………………………………. 6
Definition …………………………………………………………………………………… 7
Private Equity: Current Scenario ………………………………………………………… 8
Types of Private Equity.………………………………………………………………….. .12
The stages of Private Equity ...…………………...………………………………………. 15
Process of Private Equity Investment …………………………………..………………. 16
Advantages of Private Equity …………………………………………………………… 18
Disadvantages of Private Equity …………………………………………………………20
Ways of investment (Entry Route) ……………………………………………………….. 22
Ways of Exit ……………………………………………………………………………….... 24
Major Private Equity Deals in India
Warburg-Pincus & Bharti Tele Ventures……………………………………….. 28
Dalmia Cement & KKR …………………………………………………………...40
Air-Deccan & ICICI Ventures and CI ……………………………………………42
Paras Pharmaceuticals & Actis ………………………………………………….. 44
Shriram Transport Finance & TPG …………………………………………….... 46
Gokaldas Exports Ltd. & Blackstone ………………………………………….... 48
Success of Private Equity in India ………………………………………………………. 50
Future of Private Equity in India ……………………………………………………….. 52
SEBI Guidelines …………………………………………………………………………… 54
World’s Top 10 Private Equity Firms …………………………………………………… 57
Comparing the Indian PE environment to other countries …………………………… 58
Introduction of Khandwala Securities Limited …………………………………………59
References ………………………………………………………………………………...... 61
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PRIVATE EQUITY IN INDIA
Acknowledgement
I take this opportunity to express my profound and sincere gratitude to Mr. Rajesh
Katare (Manager Execution - IBG) for his inputs and feedback in developing this
project. His guidance, continued support, constructive criticism and suggestions helped
invaluably in shaping the form and content of this report.
I acknowledge and thank with deep sense of gratitude to Mr. Giriraj Daga (Research
Analyst) for his constant support and invaluable suggestions right from the conception
to the design and completion of the project.
I also acknowledge and thankful to Mr. Ankit Kothari (Junior Analyst - IBG) for his
consistent eye watching on report and for providing better ideas and suggestions to
improve the project.
This project will help me in understanding the global investment pattern and factors
influencing it. It will also helpful in understand the future scenario of Private Equity in
India. I am sure that project is very useful to know that why PE firms are successful in
India.
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Abstract
India has been witnessing dramatic shift in the size and composition of foreign
investment inflows over the couple of years. Institutional investors in developed
countries, for their portfolio diversification, are continuously seeking new destinations
and innovative and alternative asset class. The Private Equity is the best alternative for
raise money from an investment.
The major PE investments influencing the deal values are Real Estate, IT/IT Services
and Energy sectors. The other sectors, which have significantly contributed to private
equity deal value, are Logistics and Telecom. The most active sectors in terms of deal
volume were IT/IT Services and Manufacturing. Other sectors contributing
significantly to deal volume were Banking, Finance and Insurance and Real estate.
The PE investment pattern follows various stages, which are: seed, start-up, expansion
and replacement stages. It also follows a definite process, which is Deal Origination
(Deal Sourcing), Due Diligence, Deal Negotiation, Deal Closing (Acquisition), Post
Acquisition Monitoring and Exit (IPO, Trade Sale or Buy back).
The Indian Private Equity sector consists of many historical deals so far. Among them
“Warburg Pincus – Bharti Tele Venture” deal was beginning of the PE era in India. By
this deal WP earned 450 % return on its investment which is the biggest earning by any
PE fund worldwide. On the other hand Bharti Tele Ventures Ltd. has result as huge
growth in its subscribers and became 2nd largest telecom company in India. After the
deal with Warburg Pincus, Bharti spread its business worldwide. Currently Bharti have
its operations not only in India, but also in Bangladesh, Sri Lanka and 15 countries in
South Africa. Subsequently Bharti became 5th largest telecom service provider all over
the world.
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The project would deal with understanding the role of private equity in India,
analyzing their investment strategies, their success in the Indian financial market, future
of Private Equity in India, regulatory norms in India and how it is beneficial of Indian
companies. An attempt will also be made to understand their investment patterns.
The project also includes the understanding of competitive profile of different players in
Private Equity in India and the different types of funding done by them in India like -
seed funding, expansion capital, and buyout financing, financing restructuring of
companies and providing mezzanine capital. These all types are discussed in “Major
Private Equity Deals in India.”
The project is consists of top PE firms in the world. According to Private Equity
International (PEI), the largest private equity firm in the world today is TPG, based on
the amount of private equity direct-investment capital. Some other players in this
ranking are; Goldman Sachs Capital Partners, The Carlyle Group, Kohlberg Kravis
Roberts, The Blackstone Group and Warburg Pincus
The project also includes the understanding of the Private Equity model of investments
and analyzing the reason for investments in selective sectors. With India becoming a
preferred investment destination, this heightened level of private equity activity is
likely to continue for some time to come.
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OBJECTIVE
The objective of this project is to study the role of private equity in India, analyzing
their investment strategies, their particular strategies, by studying their entry strategies
into India financial markets, regulatory norms in India and how it is beneficial of Indian
companies. An attempt will also be made to understand their investment patterns.
The project would also deal with some of the major deals in India, this would help to
understand the investment pattern and than the exit strategies of the PE firms.
The project would also help to understand us what could be the scenario of the private
equity investments in the near future, and comparison of the Indian scenario with rest
of the world.
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Definition
Private equity consists of investors and funds that make investments directly into
private companies or conduct buyouts of public companies. Capital for private equity is
raised from institutional investors and can be used to fund new technologies, expand
working capital within an owned company, make acquisitions, or to strengthen a
balance sheet.
Private Equity Funds: Private equity funds are investment companies that, as a rule, do
not trade in publicly-traded securities. Instead, they normally seek equity stakes (that is,
partial ownership) in private companies. They may also invest in so-called private
placements of securities from public companies. Private equity buyers are extremely
focused on cash-flow and have a reputation as cost-cutters.
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India has a very vibrant Venture Capital (VC) / Private Equity (PE) industry with USD
32.5 billion invested across more than 1500 VC/PE deals from January 2006 till date.
Economists estimate that India needs about USD 1 trillion of investment over the next
five years to sustain a GDP growth of above 9 percent. This translates to USD 60-100
billion of VC/PE investments requirement over three years, against which industry
estimates that PE investments would be in the range of USD 9-10 billion in the year
ending December 31, 2010.
After a turbulent 2009, private equity investments in India displayed steady signs of
recovery in the first quarter of 2010. The latest quarter registered the highest value of
deals since 2009.
For the quarter ended March 2010, total announced deal value was $1,943 mn, a jump of
more than 185% from $675 mn in Q1 2009. Total deal count in Q1 2010 also increased by
35% to 88 deals, up from 65 in Q1 2009. Interestingly, despite the enormous growth in
deal value on a quarter-on-quarter basis, the deal count decreased by 11% to 88, down
from 99 in Q4 2009.
(Source: VCCEdge)
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(Source: VCCEdge)
(Source: VCCEdge)
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SECTORAL BREAKDOWN
Real estate, IT/IT Services and Energy were the most targeted sectors for investment
with deals worth $0.65 billion, $0.62 billion and $0.54 billion respectively. Together, they
accounted for more than 40% of total private equity deal value during the year 2009.
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The major PE investments influencing the deal values of these sectors were investments
in Aricent Inc., Indiabulls Real Estate Ltd., Mohtisham Estates and Ind Barath Power
Infra Pvt. Ltd. The other sectors, which have significantly contributed to private equity
deal value in the year 2009, are Logistics and Telecom accounting for 15% of total deal
value.
The most active sectors in terms of deal volume were IT/IT Services and Manufacturing
which lead with 17% and 11% of deal volume respectively in 2009. Other sectors
contributing significantly to deal volume were Banking, Finance and Insurance and
Real estate accounting for 11% and 7% of deal volumes respectively. As seen in the year
2008, 2009 too saw large number of deals in IT/IT Services, Manufacturing, Banking,
Finance and Insurance and Real estate.
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1. Leveraged Buyout
2. Venture capital
Venture capital is a broad subcategory of private equity that refers to equity
investments made, typically in less mature companies, for the launch, early
development, or expansion of a business. Venture investment is most often found in the
application of new technology, new marketing concepts and new products that have yet
to be proven.
Venture capital is often sub-divided by the stage of development of the company
ranging from early stage capital used for the launch of start-up companies to late stage
and growth capital that is often used to fund expansion of existing business that are
generating revenue but may not yet be profitable or generating cash flow to fund future
growth.
Entrepreneurs often develop products and ideas that require substantial capital during
the formative stages of their companies' life cycles. Many entrepreneurs do not have
sufficient funds to finance projects themselves, and they prefer outside financing. To
compensate the risk of failure, venture capitalist's seeks higher return from these
investments. Venture Capital is often most closely associated with fast-
growing technology and biotechnology fields.
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3 .Growth capital
Growth capital refers to equity investments, most often significant minority
investments, in relatively mature companies that are looking for capital to expand or
restructure operations, enter new markets or finance a major acquisition without a
change of control of the business.
Companies that seek growth capital will often do so in order to finance a
transformational event in their life cycle. These companies are likely to be more mature
than venture capital funded companies, able to generate revenue and operating profits
but unable to generate sufficient cash to fund major expansions, acquisitions or other
investments. The primary owner of the company may not be willing to take the
financial risk alone. By selling part of the company to private equity, the owner can take
out some value and share the risk of growth with partners.
5 .Mezzanine capital
Mezzanine capital refers to subordinated debt or preferred equity securities that often
represent the most junior portion of a company's capital structure that is senior to the
company's common equity. This form of financing is often used by private equity
investors to reduce the amount of equity capital required to finance a leveraged buyout
or major expansion. Mezzanine capital, which is often used by smaller companies that
are unable to access the high yield market, allows such companies to borrow additional
capital beyond the levels that traditional lenders are willing to provide through bank
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loans. In compensation for the increased risk, mezzanine debt holders require a higher
return for their investment than secured or other more senior lenders.
6. Secondaries
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• Seed stage Financing provided to research, assess and develop an initial concept
before a business has reached the start-up phase
The above stages can be explained by the diagram which is shown below -:
Liquidity
Expansion event
capital
Follow-on Buyouts
Bridge/
venture
mezzanine
financing
Seed/start up
[Reengineering
restructuring]
[Later stage]
[Development stage]
[Concept stage]
(Source: private-equityonline.com)
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Deal Origination or as some call it ‘Deal Sourcing’ is how Deal Makers get their deals, a
potential deal can either come through a company owner approaching them or from an
intermediary who will try to bring both parties (Company and Deal Maker) to make the
deal. In some cases, they may just approach companies who are expanding fast and
wish to grow further. In a year, Deal Makers come across hundreds of potential deals -
but only a few are selected.
Due Diligence is what you could call ‘doing your homework’. Before starting detailed
negotiations, investor try to make sure everything is fair and secure. Although Auditors
and Consultants are appointed to conduct the Financial, Tax, Legal and Technical Due
Diligence - they also work side by side to understand the target company and its
industry better. All the information collected at this time, is then used during
negotiation.
At the Deal Negotiation phase, investor set out the terms and conditions (covenants,
representations and warranties) and other deal terms that defines (or makes the deal).
Contracts such as Investment Agreement, Share Purchase Agreement, Management
Agreement, Advisory Agreement etc are drafted to include all items that put the deal
together.
Deal Closing is probably the easiest part but also contains an element of risk. It’s the
conclusion of the deal, the signing of all Agreements and transferring funds from the
buyer to seller, conducting other administrative functions (usually done by a separate
entity) like updating any articles of association etc.
Post Acquisition Monitoring requires the Deal Team (those who have worked on
putting the deal together) to closely monitor the company, both from an operational
and financial point of view against the expansion plan and budgets that were setup
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As the company matures (usually after 2 - 4 years) with the presence of the Deal Team,
investor prepare it for an Exit - either an IPO or a Trade Sale (sale to a larger party,
multi-national or conglomerate) or in rare cases a Buy Back by the owners. By this time,
the company will have grown quite a bit with still plenty of room to grow further.
(There’s a saying, in a deal - always leave something extra for the person buying - it
makes everyone happy.)
And once investor have exited the company, they return their money with the profit
they gained for company after taking their fees for all the effort put in the above
process.
Although this may seem like a linear process - it isn’t exactly so, primarily because
investors deal with a number of companies and each one is at a different stage in the
private equity process.
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Investing in a private equity fund has a lot of advantages compared to other investment
areas; here are some advantages of private equity for not only investors but also the
companies that private equity firms acquire:
¾ By definition, private equity firms work outside the public eye and do not have
to follow the same transparency standards that public firms and funds must
adhere to. This allows private equity firms to reform the companies without the
constraint of having to report quarterly to the SEBI, ROC or similar distractions.
¾ Private equity firms generally perform very rigorous due diligence on potential
investments. By utilizing a team of researchers the private equity firm is able to
identify most risks that would not otherwise be found.
¾ The management receives carried interest, a portion of the profits, so managers
and their staff are motivated to produce good results to investors. Although
carried interest is often criticized for taking money from the investors, it is a very
big incentive for managers.
¾ Economic Scenario- India is one of the fastest growing economies in the world,
with enormous growth potential in many industries. This means that capital
requirements are high, translating into an ideal hunting ground for PE funds .
¾ Abundance of skilled labor - India offers a huge advantage in the form of its
highly talented and skilled labor pool, which can lead to the success of the firms
in which investment is made through the private equity route. The funds are not
just bullish about the businesses in India but have also grabbed a fair share of
highly rated managers like Vivek Paul, Rajeev Gupta, Avnish Bajaj, Akhil
Gupta, and Nikhil Khattau. PE funds are invariably on the lookout for high
profile managers, not only to manage their own funds but also as their
representative on the board of companies in which they have invested.
¾ Success of several sectors - India has firmly established itself as the world’s IT
superpower with almost all major software development companies having an
Indian development centre. It is also becoming the the hub of back office
operations, and a leading provider of BPO and KPO services. This has led to
greater confidence in the future growth potential of Indian companies.
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¾ Mature Financial markets - Capital markets have stabilized in the recent past
with regulators like SEBI keeping a firm watch on the market development. This
means both increased opportunities as well as an easier and painless exit route
for PE funds. The emergence of entrepreneurs in India who consider PE their full
time occupation is also a positive sign. Besides, there are well established
corporate houses diversifying their surplus investment, as a strategy for their
assets allocation, through PE funds without involving themselves directly in the
operations of target companies.
¾ Successful M&As- A recent spate of mergers and acquisitions has given rise to
yet another way of exiting from Indian companies for private equity investors.
¾ Private equity managers are paid very well and so it is easy to attract high
caliber, experienced managers that tend to perform very well. The same goes for
lower level employees at private equity firms, they tend to be the top young
business school graduates. This helps the company to utilize best talent in the
industry without shelling out even a single penny from its pocket.
¾ PE helps a company to prepare for stock market listing (IPO) as the exit route of
investment. It opens up enormous opportunities for companies to raise funds.
The continuous scrutiny by stock market participants, SEBI & ROC facilitates
efficiency improvement and proper strategic decisions.
¾ PE helps those companies which cannot raise money from the market. By private
equity company get money from the investors, which help in the growth of the
company.
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¾ Difficult to access for small & medium investors- private equity Limited
Partnership funds may only be marketed to institutions and very wealthy
individuals; in addition the minimum investment accepted is usually more than
£1mn.
¾ Competition from China - China is a direct competitor of India and most of the
private equity investors, eyeing the Asian region, draw a comparison across both
the countries to decide where their money should be parked. The new state-of-
the-art airports in China bear a stark contrast to the abysmal conditions of the
terminals in India’s main cities.
¾ High costs - private equity managers charge relatively high fees for managing
capital committed by external investors (generally around 2%) and, if the fund
performs well, take a sizeable proportion (generally 20%) of realised returns in
excess of investment hurdle rates.
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¾ The private equity managers have control over the timing of a sale of (a part of)
the business.
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Ways of Investment
There are two types of listed private equity investment companies - those which invest
directly in companies and those that invest in funds which invest in companies (fund of
funds). Some private equity investment companies invest in both direct investments
and funds offering a hybrid of the two approaches set out below.
Direct investors
The investment company has a private equity team who invest directly in companies,
subject to the stated objective of the company. The managers’ aim is to help these
companies develop and progress, and sometimes restructure, in order to increase the
long-term value of the companies so these companies can be sold at a profit.
Investing in PE Funds
Direct Investment
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• The top 10 private equity deals accounted for more than 36% of total private
equity deals in 2009. In 2008, top 10 deals accounted for about 40% of total deal
value for the year
• The largest deal by value was KKR’s $255 mn buyout of Aricent, followed by
Siva Ventures investment in S Tel Ltd. and TPG’s $200 mn investment in
Indiabulls Real Estate.
• Top deals occurred across various sectors, with 3 of the top 10 deals in Real
Estate.
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Ways of Exit
There are different ways in which a private equity investor can exit from an investment:
A. Trade sale
A trade sale, also referred to as M&A (Mergers & Acquisitions), of privately held
company equity is the most popular type of exit strategy and refers to the sale of
company shares to industrial investors.
The trade sale is agreed in private and makes both the buyer and the seller less
vulnerable to the external pressures of a stock market flotation. It is often advisable to
keep the transaction a closely guarded secret because clients, suppliers and employees
may interpret a trade sale negatively. These negative signals become even stronger if
the negotiations fail.
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A stock market flotation should correspond with a genuine wish to make the company
more dynamic over the long term and to profit from the growth possibilities offered by
a stock market. Therefore, the equity share placed on the market (the float) must be
sufficiently large to ensure liquidity – the reward for appealing to the market. A
flotation is not an end in itself but the beginning of a long process of development.
A stock market flotation always leaves company open to the risk of an unwanted bid
whereas equity held by an investor that company has chosen can be better managed. If
company decides to opt for this route, it must be minutely prepared over a long period.
E. Liquidation
This is obviously the least favorable option and occurs when the efforts of the head of
the company and the investors to save the company have not succeeded.
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• 2009 saw 96 exits compared to 44 in 2008 not including the PE stake sale in
Centurion Bank of Punjab to HDFC Bank. Total exit value rose to $2.2 billion in
2009 compared to $0.93 billion in 2008.
• Funds utilized the sharp rise in the stock markets to cash out and return some
money to LP’s. There were 66 open market exits and only one IPO exit – the part
sale of Warburg Pincus’ stake in DB Corp.
(Source: VCCEdge)
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Major Private Equity Deals in India
Curren
Investm Entry Exit t Value Profit /
Investor Company Year ent Type Stage Route Route of Loss
Size Invest
ment
Warburg Bharti-Tele 1999-2001 $ 292 mn Venture Start up Direct Open _______ $ 1.324
Pincus Ventures Capital Market, bn
Seconda
ry Sale
KKR Dalmia Cement 2010 $ 150 mn Growth Expansion Direct Still Unlisted _______
Capital Invested
ICICI Air Deccan 2004 $ 70 mn Venture Start up / Fund * * *
Venture, Capital Expansion Of
Capital Funds
International
Actis Paras 2006 $ 42 mn Growth Expansion Direct Still Unlisted _______
Pharmaceuticals Capital Invested
TPG Shriram 2006 $ 100 mn Growth Expansion Fund Still Unlisted _______
Transport Capital Of Invested
Finance Funds
Blackstone Gokaldas 2007 $ 165 mn Secondaries Replacement Direct Still INR _______
Exports Ltd. Invested 3595.49
mn
* Air Deccan has been merged into Kingfisher Airlines by late 2008.
Warburg Pincus & Bharti Airtel Ltd.
About Bharti Airtel Ltd.
Bharti Airtel provides telecommunication services primarily to retail, corporate, and
small and medium scale enterprises in India. It offers global system for mobile
communication (GSM) services, broadband and telephone services, national and
international long distance services, and enterprise services.
The company also offers long-distance voice and data communication services, as well
as enterprise services, such as voice services, mobile services, satellite services, managed
data and Internet services, and managed e-business services.
Bharti Airtel had strategic alliances with SingTel and Vodafone; partnerships with
Ericsson and Nokia; and an information technology alliance with IBM. The company
was founded in 1995. It was formerly known as Bharti Tele-Ventures and changed its
name to Bharti Airtel in April, 2006. The company is based in New Delhi, India. Bharti
Airtel is a part of Bharti Enterprises.
Between September 1999 and July 2001, Warburg Pincus invested $292 mn to finance
Bharti's growth through acquisition and expansion of existing properties. Since the
initial investment in Bharti in September 1999, it has become the largest private sector
telecom company in India and has undergone a number of changes.
First, the company has formulated a focused acquisition strategy, acquired three
companies and successfully won bids for 15 new licenses. Second, all the key support
functions and processes (like human resources, finances, marketing and technology)
PRIVATE EQUITY IN INDIA
have been strengthened, with experienced professionals heading these functions. Lastly,
in spite of tough market conditions, the company made a successful initial public
offering on the Indian stock exchanges in February 2002 and raised $172 mn.
Top 10 Shareholders
S. No. Holders %
1. Bharti Telecom Limited 45.30
2. Pastel Limited 15.58
3. Indian Continent Investment Limited 6.27
4. Life Insurance Corporation of India 4.23
5. Europacific Growth Fund 1.68
6. Fidelity Management and Research and Funds 1.26
7. Copthall Mauritius Investment Limited 0.97
8. JP Morgan Asset Management and Funds 0.98
9. ICICI Prudential 0.82
10. Emerging Markets Fund 0.73
Total 77.82
(Source: Bharti Airtel Annual Report 2008-2009)
International Footprints
Its area of operations includes:
India- In India, the company's mobile service is branded as Airtel. It has nationwide
presence and is the market leader with a market share of 30.07% (as of May 2010).
Sri Lanka- In December 2008, Bharti Airtel rolled out 3.5G services in Sri Lanka in
association with Singapore Telecommunications. Airtel's operation in Sri Lanka, known
as Airtel Lanka, commenced operations on the 12th of January 2009.
15 countries in Africa:
Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon,
Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda
and Zambia
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About Zain
Zain is a leading telecommunications operator across the Middle East providing mobile
voice and data services to over 31.4 million active customers as at 31 March 2010 with a
commercial presence in 8 countries. Zain is listed on the Kuwait Stock Exchange. Zain
operates in the following countries: Bahrain, Iraq, Jordan, Kuwait, Saudi Arabia and
Sudan. In Lebanon, the company manages ‘mtc-touch’ on behalf of the government. In
Morocco, Zain has a stake in Wana Telecom through a joint venture.
Zain-Bharti Deal
Zain, with its African and Middle East businesses, had been considered a natural target
for Bharti, which has thrived in an Indian market with low incomes and tariffs and a
heavily rural population -- characteristics shared by African nations.
Offloading the operations, excluding those in Morocco and Sudan, would mark a
strategic reversal for Zain, which has spent more than US $12 billion expanding in
Africa since 2005.
This transaction has resulted in aggregate net cash proceeds of US $8.968 billion. Zain
confirms that it has received US $7.868 billion of cash proceeds from Bharti.
Over the next 6 months, Zain expects to receive up to an additional US $400 million
upon certain milestones being achieved. The balance of US $700 million is due one year
from completion as per the original agreements signed on 30th March 2010.
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Over the last 30 years, Warburg Pincus has become one of the leading private equity
and venture capital firms in the world. The firm’s experience is unparalleled in
building successful businesses. Working in partnership with management teams,
Warburg Pincus takes an active role in building businesses. The firm operates globally
to source new investment opportunities, provide strategic advice and guidance, and
fund the growth of attractive opportunities, since its inception, Warburg Pincus’
strategy has been to:
Warburg Pincus is a global leader in the industry it helped create: Private equity. With
more than 40 years of experience, its track record of continuous and successful investing
is unmatched by any other private equity firm.
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The firm has been industry-focused for more than two decades. With more than 160
investment professionals worldwide, Warburg Pincus provides deep expertise in a
range of investment sectors including financial services, healthcare, industrial,
technology, media and telecommunications, energy, consumer and retail and real
estate.
The firm also works with its consultants, entrepreneurs-in-residence and advisory
boards, whose expertise can be tapped at any time.
Warburg Pincus has been the lead investor in more than 100 companies that have
completed initial public offerings. Over the last few years, the firm’s global portfolio has
generated more than $20 billion annually in equity and debt financings on a global
basis. The firm’s IT Strategy and Assessment group is available to evaluate and advise
businesses on their technology strategy. Warburg Pincus also provides companies with
marketing expertise to develop brand-building programs and strategic communications
platforms for internal and external audiences.
Key-Points:
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The Deal
The Investment (1999-2001)
Between September 1999 and July 2001, Warburg Pincus invests $292 mn in Bharti Tele-
Ventures in return for an 18.58 per cent stake, the first tranche being invested in
September 1999.
• August 2004: Warburg sells a 3.35 per cent stake for about $208 mn.
• March 2005: Warburg sells another 6 per cent stake for $560 mn, marking the
largest ever equity deals in single scrip on an Indian stock exchange.
• October 2005: Warburg sells its final 5.65% stake to UK-based Vodafone for
$847.5 mn.
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Order Backlog
• Restriction on Licenses
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• Bharti Airtel has more than 200 million customers (June, 2010). It is the largest
cellular provider in India and among top 5 in the world and also supplies
broadband and telephone services - as well as many other telecommunications
services to both domestic and corporate customers.
• Today they are among the top 5 largest Wireless & Cellular Company in world, with
expanded footprints of over 25 countries in two of the largest continents spread over
South Asia and Africa. Bharti Airtel has strategic alliances with Nokia, Sing Tel
and a host of all other international service providers. They have access to
Emerging Africa, which means that they can replicate their Indian business
strategy and knowledge to other parts of the world.
Opportunities
The Indian telecom industry is the 2nd largest wireless markets in the world after
china. The focus on rural penetration and customer affordability will be
instrumental in driving the next phase of growth in India. An increasing number
of rural customers are contributing to the growth in telecom sector.
New technologies also play vital role in growth of telecom sector. Technologies
like HSPA, WiMAX and Wi-Fi has already adopted by customers. 3G and BWA
auction are in the process currently. Besides this DTH and IPTV technologies are
viewed as long term perspective by telecom operators.
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Airtel have a strategic alliance with SingTel, Ericsson, Nokia and IBM. The
partnership with SingTel was to provide quality service to the customers.
Partnership with Ericsson and Nokia was for providing better equipments. IBM
has been working closely with Airtel to transform its IT system.
PE Impact on Bharti
The deal of Warburg Pincus & Bharti Tele ended not only with the increase in profit for
WP, but also high growth in subscribers of Bharti Tele Ventures.
In partnership with Warburg Pincus, Bharti’s management team was able to complete
additional cellular property acquisitions and extend its leading position in India. Today
they are among the top 5 largest Wireless & Cellular Company in world, with expanded
footprints of over 25 countries in two of the largest continents spread over South Asia
and Africa.
“Partnership with Warburg Pincus helps management focus. They’ve helped us look at things in
a different light. And, they know how to move a company from something small to something
much larger…”
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About KKR
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global
alternative asset manager with $52.2 billion in assets under management as of
December 31, 2009. With over 600 people and 14 offices around the world, KKR
manages assets through a variety of investment funds and accounts covering multiple
asset classes. KKR seeks to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its investments. KKR
complements its investment expertise and strengthens interactions with investors
through its client relationships and capital markets platforms. KKR is publicly traded
through KKR & Co. (Guernsey) L.P. (Euro next Amsterdam: KKR).
KKR has invested more than over $1.1 billion in India since 2006, which includes
investments in Aricent, a global innovation, technology and services company; Bharti
Infratel, a telecom infrastructure provider and Coffee Day Resorts, operator of the Café
Coffee Day chain of cafes in India.
DCBL has business interests in two major segments, Cement and Sugar. It has cement
plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra
Pradesh (Kadapa), with a capacity of 9MTPA. A leader in cement manufacturing since
1939, DCBL is a multi spectrum cement player with double digit market share and a
pioneer in super specialty cements used for Oil wells, Railway sleepers and Air strips.
The company also produces around 160 MW of Power through thermal and renewable
energy with an aim to increase the power generation from non-conventional methods.
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Over the past 7 decades, the company has earned the trust of the employees,
distribution chain as well as all its stakeholders. DCBL’s vision has been acknowledged
by the existing Private Equity investor, Actis who has been on the Board and adding
valuable insights for the organisational growth. The company is looked upon and
respected for being a value-based organization. DCBL has been recognized and
awarded Hewitt’s Best employer for the year 2009. It has been ranked among the Top
Ten in the Manufacturing industry. DCBL is Head Quartered in New Delhi. It has
employee strength of more than 3,500 people.
PE Impact on DCBL
Dalmia Cement (Bharat) Ltd. (DCBL), and Kohlberg Kravis Roberts & Co. L.P. (together
with its affiliates, “KKR”) announced the signing of a definitive agreement under which
KKR has agreed to invest up to Rs 7,500 mn in DCBL’s wholly owned unlisted
subsidiary (“Company”) which will house post restructuring DCBL’s 9MTPA cement
manufacturing capacity, DCBL’s stake in OCL India Limited (5.3MTPA capacity) along
with the upcoming green field projects of 10MTPA across the country. The use of
proceeds will be for both organic/inorganic growth and de-leveraging.
“When we realigned our businesses in March, 2010, one of our goals was to create
separate pure play entities that could thrive on their own and have flexibility to raise
capital. This transaction with KKR is not just about capital but the foundation of a long
term relationship. It will enable us to enhance our capacity and market share through
organic as well as inorganic routes, while benefiting from KKR’s global network and
proven value creation capabilities,” said Mr. Puneet Dalmia, MD of Dalmia Cement
(Bharat) Limited.
“We are excited to be working with a dynamic and entrepreneurial family with a
successful execution track record in India. While the cement industry by nature is
cyclical, this is a long-term investment in a great family business, its management team
and in India’s economy. This is a way to invest behind and contribute to the continued
development of India’s residential, commercial, and public sector infrastructure,” said
Mr. Sanjay Nayar, CEO of KKR India.
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Air Deccan was established in 2003 with the objective of setting up a budget airline, the
first of its kind in India. Price sensitivity and the aspirations of the typical Indian
consumer were cited to be the main reasons for a budget airline.
Both ICICI and Capital International played an active role in formulating strategy. With
the PE firms’ assistance, Air Deccan appointed a person from Ryan Air to run the
business.
The funds were intended to build capacity in a phased manner. Accessing PE funds was
critical for being able to raise the much needed debt and to guarantee leases, without
which project implementation would have been difficult.
The funds were also used to enhance plane capacity quickly by ordering 60 airbuses on
purchase and leased bases. By 2007, Air Deccan flew into 68 cities, as compared with the
incumbent, Government owned Indian Airlines coverage of 45 cities.
The high capacity was both an advantage (as it became an attractive acquisition target
for Kingfisher) and a disadvantage (as it adversely impacted the company financially
due to the economic slowdown and unforeseen spike in fuel cost).
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The airline industry began to face significant changes in its operating environment from
2005. Large rises in fuel prices and competition from other budget airlines like Spice Jet,
Indigo and Go Air adversely affected Air Deccan’s profitability. With ICICI Ventures’
assistance, some of the aircraft that had been purchased were re-contracted on a lease
basis, thereby improving cash flows.
In 2006, Air Deccan offloaded 25 percent of its equity in an IPO. The IPO took place
during a very difficult time for Indian equity markets. Fortunately, with ICICI’s support
in the form of stepped up funding as well as marketing to other investors, the issue was
completed at the offer price. At its peak, the market capitalization of Air Deccan
reached USD 1.1 billion.
By late 2007, the ongoing pressure of competition and lower than expected growth
forced Air Deccan into significant losses. In 2008, the company was merged into
Kingfisher Airlines, a premium domestic airline. Kingfisher was attracted by Air
Deccan’s large fleet that enabled Kingfisher to rapidly scale up its operations. Although
the initial understanding was that Air Deccan would be the budget brand of Kingfisher,
it was later rebranded with the Kingfisher name.
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Paras Pharmaceuticals-Actis
Paras Pharmaceuticals is one of India’s leading OTC healthcare and personal care
companies, with a track record of introducing successful branded products. Its two
leading brands, MOOV (a pain relieving ointment) and D’Cold (a cough syrup) are both
in the top 10 OTC brands in India. Personal care products are among the fastest
growing consumer segments with a growth rate in recent years at 14 percent. Paras
have grown faster and expect to grow by 25 percent in FY 2010-2011.
Actis, a PE firm, invested USD 42 mn in 2006 for a minority stake, raising it to a majority
shareholding in 2008, which they continue to hold. Actis’ rationale for the initial
investment was based on Paras’ ability to create strong brands in niche, fast-growing
areas. They were impressed with the company’s ability to compete effectively against
global organizations with innovative products; for example, the success of MOOV in a
market dominated by market leader Iodex (a Glaxo brand).
Actis’ view of Paras noted above is shared by its promoters. As a key company insider
commented: “A company goes through three stages: incubation, implementing the
initial vision and professionalization.” At the second stage, the team needs to be willing
to take risks and follow the founder’s vision. Professionals are likely to be too risk-
averse to do so as failure would hurt their long-term career prospects. At the third
stage, once the vision has been implemented, professionals need to take charge.
It was at that third stage that Paras sought Actis as a PE investor to enable the
transformation to a professionally-run company. In fact, the money was the minor part
of the transaction in a sense, since it was used primarily to buy out the promoter’s
holding rather than to be infused into the company (the company was already cash
rich). Paras required the PE firm to possess a deep understanding of the industry as
well as understand the company, both of which Actis possessed. As a company insider
notes: “PE is expensive money: it should only be used if it comes with other benefits.”
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The transformation of Paras from a family run to professional company faced the
challenges of cultural transformation and was not a simple task but accomplished by
focusing on these key areas and showed clear results. EBITDA margins rose from 20
percent prior to PE funding to about 30 percent afterwards. Subsequent to the Actis
investment, the company has also expanded internationally, especially in the Middle
East and North Africa.
Impact of PE on Paras
As is evident from the above, Actis’ impact was transformative in the sense of changing
how the company was run, while being supportive of a quality that was already
ingrained, that of conceptualizing and developing a range of high-margin products that
could successfully compete with large players, many of which are global organizations.
Actis achieved its transformation by getting to know the company, and then bringing in
talent in selected areas that were critical for raising margins and enabling the efficient
introduction of new products, while retaining the innovative core intact. Among the
many positive effects was a change in practice in procurement, governance and
reporting, thus enabling a stronger brand being built? As a result, revenue growth rates
rose to 40 percent and gross margins rose by 10 percent. Actis also supported the
strategic shift in sales and distribution networks; as well as international expansion.
Critically, Actis was able to bring in a sophisticated board support through a domain
expert and bring on board a prominent business leader (who is their advisor) as an
advisor to the company.
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Shriram Transport Finance (STF), India’s largest commercial vehicle finance company,
was established in 1979. As of March 2010, the company runs 479 branches and service
centers offering finance for purchasing commercial vehicles, including trucks, three-
wheelers and tractors. The company also offers ancillary services, including working
capital and a cobranded credit card. The company has been consistently profitable for
several years. For the financial year ended March 2009, STF’s revenue was INR 36.9
billion and PBT was INR 2.9 billion. It employed 12,500 persons. The company has been
quoted on the stock exchanges for several decades. As of March 2010, its market
capitalization was INR 91.6 billion.
The truck financing business at the time, and even as of 2010, was fragmented and high-
cost due to the risks and transactions costs of lending to unorganized, single-truck
owners. STF catered to this market but was also beginning to access the organized
borrowers that were coming into play as the trucking business became more organized
in India. These factors had enabled STF to perform well in a regulatory environment
that was significantly more favorable to banks than to NBFCs. However, the company
was undercapitalized at the time of receiving the PE investment.
Global PE major TPG invested USD 100 mn in 2006 and, as of 2010, remains an active
investor. TPG was interested in the financial sector in India, but the banking regulations
prevented it from buying a large holding in a regulated bank. TPG was attracted by
STF’s stability in terms of customers and credit-ratings, in the midst of the NBFC
meltdown at the time. STF further attracted TPG because of its reputation of integrity,
efficient management and customer loyalty.
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The first PE funds were used by STF to integrate its regional operations and control
them from its home base in Tamil Nadu, as well as to consider international expansion.
The second round of investing, from TPG, brought in high standards of credit
evaluation and corporate governance. TPG’s portfolio of Asian finance firms, such as
First Bank, Korea, provided it with the experience to establish these stronger standards.
These were needed as the management was largely promoter dominated, which made
credit rating agencies and investors somewhat cautious. Also, their securitization
business was relatively undeveloped.
Helped by better practices, STF’s portfolio, which was at USD 1 billion in assets when
TPG invested, had risen to USD 6.5 billion by 2010.
Impact of PE on STF
PE initially enabled a national strategy, when Chrys Capital invested in STF. Till then,
STF’s four regional entities operated independently. Thus, in the words of a company
insider: “Chrys Capital provided capital during the growth phase of STF.”
STF is the country’s largest player in commercial vehicle finance. The primary impact of
the PE investment on the industry was to begin the transformation of the business from
a fragmented, money-lender dependent business to a more organized business.
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Blackstone Group, among the world largest buyout firms, has accelerated its
investments in India, pulling off its second buyout deal in less than three months by
picking up a 50.1% stake in Gokaldas Exports Ltd, the country’s largest garments
exporter, for $116 million and setting aside another $49 million for an open tender
mandated under local securities laws for an additional 20% of the target’s shares.
The holding of the promoters in Gokaldas Exports, the Bangalore-based Hinduja family
(not related to the Hinduja Group) will come down from 70.1% to 20% before the open
offer.
Blackstone saw large opportunities in the garments outsourcing business and expects
firms from its overseas portfolio and extended network to outsource manufacturing to a
400-acre so-called special economic zone that Gokaldas is setting up at Kanakapura
outside Bangalore.
“We are associated with a large network of retailers through our global portfolio of
investments who may want to outsource to India,” said Akhil Gupta, managing director
of Mumbai-based Blackstone Advisors India Pvt. Ltd.
Companies running operations from special economic zones or SEZs enjoy several
incentives. The Gokaldas SEZ, expected to employ around 50,000 people, will house
units of several garment manufacturers. The company will have a unit that will employ
around 4,000 people in the SEZ.
“More companies will outsource (to) us,” said Rajendra Hinduja, managing director of
Gokaldas Exports, referring to the benefits of the sale. “We will get access to textile
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companies in the US that have investments from Blackstone.” The names of such
companies were not immediately available. Gokaldas earns more than 96% of its
revenue from exports to global brands such as Tommy Hilfiger, Nike and Adidas, and
to large retailers such as Wal-Mart Inc. and Gap Inc.
Armed with a stake over 70% in Gokaldas, the buyout firm expects to play a more
active role in the company than most of its peers in private equity, who typically play
the role of financial investors. Gupta said that apart from participating at the board
level (Blackstone will have three board positions at Gokaldas), Blackstone will get
involved in actively managing the company by adding professionals, bringing in global
best practices such as Six Sigma and beefing up the company’s marketing operations in
the US.
Blackstone, which will pay Rs275 per share or a premium of 25% for the shares of
Gokaldas, had initially prospected the Bangalore target as a ‘growth deal’ with the
intention of acquiring a minority stake. Blackstone has invested $525 million, excluding
Gokaldas, in India and intends on deploying $2 billion up to 2010.
In terms of deal size, this transaction ranks third in India for Blackstone, whose local
portfolio is led by a $275 million investment in media house Ushodaya Enterprises Ltd.
The financier invested $50 million in mid-sized drug maker Emcure Pharmaceuticals
Ltd.
Gokaldas employs over 54,000 people in 46 factories and is among the largest
employers in the garments business.
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Though the Sensex closed 2009 with a 81 per cent gain thanks to renewed FII inflows in
the second half of the year, this recovery in the primary markets did not help the PE
activity. The number of Private Equity deals (PE) in 2009 slid to a 4-year low, according
to a new report on PE activity in India.
In terms of deal value, 2009 raised $3.35 billion from the market — the lowest in the last
four years — as compared to $10.59 billion in 2008 and $19.03 billion in 2007. Out of the
191 deals, as many as 118 came in the second half of 2009, garnering $1.8 billion and
accounting for more than 50% of the total deal value in 2009.
Telecom, Media & Technology emerged as the hottest sector of 2009. It accounted for 60
deals in 2009. Telecom, Media & Technology sector witnessed 31.4% of total deals
followed by Industrials and Real Estate & Infrastructure with 22.5% and 11.5%.
India accounted for 6 per cent of total global PE deals volume in 2009, while only 2 per
cent in terms of deal value. The deal activity in India declined by 39 per cent and 68 per
cent in terms of deal volume and deal size respectively in 2009 as compared to 2008.
Better environment for investment- The Indian economy has been enjoying a period of
sustained growth at around 8 per cent a year. The latest boom has attracted the
attention of private equity houses who have been participating in an unprecedented
number of investment deals. In sharp contrast to the time private equity funds invested
in India from a base overseas (for example Singapore), many private equity firms have
now established a presence in the country, spurred on by a bullish market and some
spectacular and well documented exits. This reflects the importance of understanding
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Innovative ideas- The Indian private equity market is different from that of Europe or
the United States in that small family-owned and family-managed businesses account
for a high proportion of the market and therefore investment opportunities are higher
than Europe and US. The next generation having different mindset and they believe in
innovation, i.e. Ranbaxy, which sold its stake in Daiichi, was result of innovative
mindset. The average deal size in India is significantly lower than in China or South
Korea, for instance, but 6,000 companies are listed on Indian exchanges, a huge number
by any standard, and the rising performance of the stock market since 2004 has resulted
in substantial wealth creation for families with majority stakes in listed companies.
Investors’ role in decision taking- An aspect of private equity that companies find
attractive is that they gain an investment partner who is able and willing to provide
continuous advice and support. Here the Indian connection becomes important, since
many Indian companies understandably want Indian solutions to Indian problems.
Many companies appreciate being able to have in-depth discussions with their
investment partners about a variety of business decisions, for instance advertising
investment, merchandising or retailing.
Globalization- There has been phenomenal growth in the value of private equity
investment in India over the past decade. With an expanding domestic market and
additional opportunities brought by globalization, the impact of private equity on
Indian business is likely to increase further in the coming years.
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After a euphoric two years, the second half of 2008 and the first half of 2009 have
mirrored global trends difficult for PE investments in India. Until last year’s credit
crunch, deal sizes had been increasing and were hotly competed for at high premiums.
Today, the PE landscape has changed due to the global financial crisis. There have been
fewer exits and lower volumes. Allocations to PE funds by Limited Partners (LPs) are
down, some even requesting a rescheduling of existing commitments. In response,
some PE funds, notably some global funds, have reportedly reduced their management
fees and reduced LP commitments.
It is likely that India will continue to be among the developing world’s largest
destinations for growth capital, while control and buyout deals will be sought only by
the largest funds. However, deal volume and average deal size have declined, driven by
declining capital overall, with recovery only in Q2 2009.
PE funds will find another change in their operating environment: that global LPs are
likely to invest in fewer funds than before, picking those whose management teams
have operating experience and a track record. The reduction in capital from overseas
may be offset to an extent by the emergence of a number of domestic LPs investing from
family and corporate accounts. Overall, however a smaller PE industry is likely, this is a
healthy development. Previously, about 350 funds were active. The market was
oversupplied with capital relative to the quality of targets.
The future of PE is bright in India because India is an untapped market for private
equity. The spending of infrastructure is in large amount in India. Another reason for
opportunities in India is that India is one of the few growing economies in the world
even in recession.
The collapse of the IPO market is a factor, leading to a shift in exit to lower-yielding
strategic and secondary sales. However, older funds with investments three years or
longer on average are yet exiting with high returns.
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Driven by less capital, higher due diligence and lower deal closure, the PE industry is
turning to more intensive portfolio management. Providing financial support is now
less important than operational and strategic support, quality corporate governance and
regulatory compliance. As the PE industry settles into its new habitat of a tighter
investment funnel and longer-term holdings, investment choices will shift to domestic
demand-driven and non-cyclical industries like infrastructure, healthcare and
education.
The logic of investing in scale and in locations of growth means that India will likely be
at the forefront of a global PE recovery. The year ahead should be viewed as an
opportunity to build value in portfolio firms, and thus to show that PE is an integral
part of India’s future.
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SEBI Guidelines
| 1. The Securities and Exchange Board of India (SEBI) issued its Regulations for
Venture Capital in 1996, thus establishing the agency’s authority over the funds,
the limits on their activities, and incentives for them to finance and rescue
troubled companies. There are no legal or regulatory differences between
venture capital and private equity firms. The Government first permitted
financial institutions (Industrial Development Bank of India, ICICI, and IFCI),
commercial banks (including foreign banks), and subsidiaries of commercial
banks to establish venture capital companies under guidelines issued in 1988. In
addition, under current central bank regulations, banks’ investments in mutual
funds catering to venture capital funding are considered to be outside the
ceilings applicable to banks’ investments in corporate equity and debt.
| 2. Foreign venture capital funds have been permitted to operate in India since
1995. They may either hold the shares of unlisted Indian companies directly (up
to a maximum of 25% of equity) or route their investments through domestic
venture capital funds and companies. Before guidelines were issued in
September 2000, direct exposure by offshore private equity funds in shares of
unlisted companies was treated as a foreign direct investment and had to be
approved in line with the Government’s general policy on foreign investments.
Indocean Venture Fund (now Indocean Chase), originally set up by George Soros
and Chemical Bank in October 1994, was the first such overseas private equity
fund.
| 3. The regulatory environment for the private equity industry was simplified in
1995–2000. Foreign institutional investors participated in the growth of the
private equity industry through the foreign direct investment regulations of the
Government and the simplified tax administration procedures under the Indo-
Mauritius Double Taxation Avoidance Treaty. While the foreign direct
investment route offered minimum investment restrictions for private equity
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funds, exit pricing and repatriation of capital were regulated by the Reserve Bank
of India (RBI). To bring these capital flows under the regulation of the venture
capital industry, new SEBI regulations were issued with simplified exit pricing
and repatriation procedures for foreign investors.
| 5. SEBI was also made the sole regulatory authority, and private equity funds
must submit quarterly reports to it. In September 2000 SEBI announced the
guidelines that now govern venture capital investment, based on the January
2000 recommendations of the Chandra shekhar committee on venture capital.
After another set of amendments in April 2004, the following rules now apply:
(i) Foreign venture capital investors can invest in India without the need for
approval from the Foreign Investment Promotion Board if they register with
SEBI.
(ii) Each investor in a venture fund must invest at least Rs 500,000, and each fund
must have at least Rs50 mn in capital.
(iii) A fund may invest in one company up to 25% of the fund’s capital. It cannot
invest in associated companies of ventures that it finances.
(iv) A fund must invest 66.67% (lowered from 75% in April 2004) of its investible
funds in unlisted equity or equity-linked instruments. The remaining 33.3% can
be invested in subscriptions to initial public offerings (IPOs) of companies or in
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debt instruments of a company in which the venture fund has already made an
equity investment.
(v) The April 2004 amendments removed the previous 1-year lockup period for
IPO subscriptions. They also allowed investments within the 33.3% category in
preferential allotments of equity shares of a listed company, subject to a 1-year
lock-in, and in equity shares or equity-linked instruments of a listed company
that is financially weak.
(vii) The acquisition of shares in a venture fund by the investee company or its
promoters is exempt from the provisions of the takeover code and will therefore
not mandate an open offer.
(viii) Mutual funds may invest 5% of the capital of an open-ended scheme and
10% of the capital of a closed-ended scheme in a venture fund.
(ix) In April 2004 the SEBI also removed some previous restrictions and allowed
venture funds to invest in real estate companies, gold financing companies, and
equipment leasing and hire-purchase companies registered with the RBI.
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Because private equity firms are continuously in the process of raising, investing and
distributing their private capital rose can often be the easiest to measure. Other metrics
can include the total value of companies purchased by a firm or an estimate of the size
of a firm's active portfolio plus capital available for new investments. As with any list
that focuses on size, the list does not provide any indication as to relative investment
performance of these funds or managers.
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Background
¾ KSL is the torch-bearer of the seventy-year old financial services group of
Khandwala lineage.
¾ Incorporated as specialized Broking, Portfolio Management, Investment
Banking, and related financial services arm of the Group in 1993
¾ Top Management has combined wealth of experience in Indian Financial market
of several decades.
¾ Innovative initiatives as Principal broking Member of National Stock Exchange
in PMS and Indian Capital Market Developments
¾ Caters to several leading Foreign Institutional Investors, Mutual Funds, Banks,
Corporate and High Net-Worth Individuals
Business Segments
| Market Intermediation
¾ Capital Market
¾ Futures & Options
¾ Wholesale Debt Market
¾ Currency Derivates
| Investment Banking
¾ Merchant Banking
¾ Mergers & Acquisition
¾ Strategic Partnership
¾ Capital Raising and Debt Raising / Syndication
¾ Corporate Advisory and Restructuring
| Portfolio Management Services
| Wealth Advisory Services
| Investment Advisory Services
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Board of Directors
Mr. S. M. Parande, Chairman
Mr. Paresh J. Khandwala, Managing Director
Mr. Rohit Chand, Director
Mr. Kalpen Shukla, Director
Mr. Ajay Narasimhan, Vice Chairman & Managing Director – TruMonee
Financial Limited
Corporate Office
1st Floor, White House Annexe, White House, 91, Walkeshwar Road, Walkeshwar,
Mumbai – 400 006
Boardline: +91 22 4200 7300; Fax No.: +91 22 4200 7378
Branches
¾ HG 3, International Trade Center, Majuragate Crossing, Ring Road,
Surat - 305002, Gujarat
Boardline: +91 261 307 6276
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References
• www.wikipedia.org/wiki/Private_equity
• www.privateequity.com
• www.indiavca.org
• www.privateequityonline.com
• www.preqin.com
• www.warburgpincus.com
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