Dealtracker

Providing M&A and Private Equity deal insights

April 2015 | Volume 11.4

2015 Grant Thornton India LLP. All rights reserved.

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:

Monica Kothari, Sowmya Ravikumar

2015 Grant Thornton India LLP. All rights reserved.

Deal round up - April 2015

Deal summary

Volume

Value (US$mn)

2013

2014

2015

2013

2014

Highlights
2015

Domestic

13

20

35

622

4,090

794

Cross-border

24

25

23

1,121

1,338

401

60

1445

Merger & Internal

Restructuring
Total M&A

42

48 21%

58

1,803

6,874 83% 1,195

Private Equity

48

52 71%

89

1,349

676 194% 1,992

Grand Total

90

147

3,152

100

7,550

The month witnessed 147 deals worth US$ 3.1 billion, which was
higher in terms of volume (47%) and lower in terms of value
(57%), as compared to the same period in 2014
April 2015 saw an overall 83% decrease in M&A deal value,
though deal volume increased by 21%. April 2014 was the month
in which the US$ 3.2 billion Sun-Ranbaxy merger took place
PE investment activity witnessed 71% increase in volume and
194% increase in value, as compared to the previous period.
This was largely driven by e-commerce deals.

3,187

The month also saw 2 QIPs worth US$ 145 million and 5 IPOs
worth US$ 118 million.

Cross border includes

Inbound

14

14

14

631

636

107

Outbound

10

11

490

702

294

Total deal volume trend April 2015

Total deal value trend (US$ mn) April 2015

89

PE

1992
676

4,090

M&A

52

48

1349

2013

2014

2015

35
20

1,445
622

794

Domestic

490 702

631 636
60

14 14 14

13
107

Internal
Restructuring

Inbound

2015 Grant Thornton India LLP. All rights reserved.

294

Outbound

Domestic

10 11

Internal
Restructuring

Inbound

Outbound

Deal round up - YTD April 2015

Deal summary

Volume

Value (US$mn)

2013

2014

2015

2013

2014

Highlights
2015

Domestic

79

70

100

1,966

4,943

2,272

Cross-border

76

92

87

4,936

3,817

4,514

Merger & Internal

Restructuring

18

12

120

2,553

11

Total M&A

173

174 09%

189

7,022

11,313 40% 6,798

Private Equity

138

183 68%

308

2,650

2,680 72% 4,602

Grand Total

311

357

497

9,672

13,993

YTD April 2015 saw an overall M&A deal value decrease by

40%, as compared to YTD April 2014. This was largely because
the latter witnessed the US$ 3.2 billion Sun-Ranbaxy merger.
In terms of volume, there was an increase in overall M&A in YTD
April 2015, compared to YTD April 2014.
While cross-border deals have shown increased activity in terms
of deal value, the deal volume in YTD 2015 was relatively lower.
There were 3 inbound deals worth over US$ 500 million each
during YTD 2015

11,400

PE investments witnessed a quantum leap in volume and value

at US$ 4.6 billion (308 deals) in YTD 2015, against US$ 2.6
billion (183 deals) in YTD 2014..

Cross border includes

Inbound

45

57

43

3,593

2,622

3,651

Outbound

31

35

44

1,343

1,194

863

Total deal volume trend YTD April

Total deal value trend (US$ mn) YTD April

308

PE

4,602
2,680

2,650

183

138

4,943

2013

2014

2015

M&A

100
3,593
1,966

2,272

2,552

79

2,622

70
57

1,343
1,194
863
120

Domestic

3,651

45
18 12

11

Internal
Restructuring

Inbound

2015 Grant Thornton India LLP. All rights reserved.

Outbound

Domestic

43

31 35

44

Internal
Restructuring

Inbound

Outbound

M&A round up - April 2015

Key Sectors

Top sectors based on deal value (US$ mn)

Notable Sectors

Volume

US$ mn

IT & ITES

19

601

Manufacturing

10

232

Pharma, Healthcare & Biotech

164

Retail & Consumer

52

Media & Entertainment

42

Education

10

IT & ITeS sector continues to lead in terms of M&A activity, both with respect to values and
volumes. E- commerce remains the key driver in the sector
The month witnessed big ticket deals in manufacturing like MESCO Steel Pvt. Ltd's
acquisition of Maithan Ispat Ltd for US$ 187 million, contributing 19% of the total deal value

IT & ITES 50%

Others 9%
Media &
Entertainment
4%
Retail &
Consumer 4%
Pharma,
Healthcare &
Biotech 14%

Manufacturing
19%

Top M&A Deals of the Month

Acquirer

Target

Sector

MESCO Steel
Pvt. Ltd.

Maithan Ispat
Limited

Manufacturing

187 Acquisition

100%

Dr Reddy's
Laboratories Ltd

UCB

Pharma,
Healthcare &
Biotech

128 Acquisition

100%

Infosys

Kallidus Inc.Skava

IT & ITES

120 Acquisition

100%

Diageo Plc

United national
breweries

Retail &
Consumer

Increasing
36 stake to
100%

50%

Sadbhav Group

Dhule Palesner
Tollways Limited

Infrastructure
Management

33

2015 Grant Thornton India LLP. All rights reserved.

US$ mn

Deal Type

Majority
Stake

% Stake

60%

Top sectors based on deal volume

Manufacturing
17%
IT & ITES
33%

Pharma, Healthcare
& Biotech
15%

Retail & Consumer

9%
Others
19%

Media &
Entertainment
7%

PE round up - April 2015

Key Sectors

Top sectors based on deal value (US$ mn)

Notable Sectors

Volume

US$ mn

53

1034

Pharma, Healthcare & Biotech

177

Education

21

Banking & Financial Services

225

Real Estate

116

Professional / Business Services

11

IT & ITES

The month witnessed continued interest in IT & ITES (e-commerce & IT solutions)
contributing more than half of total PE deal values and volumes.

IT & ITES 52%

Others 6%

Real Estate
6%
Pharma,
Healthcare &
Biotech 9%

IT&ITES, Manufacturing and Pharma sectors have witnessed big ticket deals worth over
US$ 100 million

Banking &
Financial
Services 11%

Manufacturing
16%

Top PE Deals of the Month

Investor

Investee

DST Global,Accel Partners,

Tiger Global and Steadview
Capital

% Stake

US$ mn

Olacabs.com ANI Technologies IT & ITES

Pvt Ltd

N.A.

400

Advent and Temasek

Crompton
Greaves LtdConsumer
Products division

34%

JP Morgan Asset Management

Banking &
Canaan PartnersFinancial
portfolio in India
Services

Temasek

Glenmark
Pharmaceuticals
Ltd

Pharma,
Healthcare &
Biotech

Steadview Capital,Tiger Global

Management and Kinnevik

Quikr India Pvt.

Ltd.

IT & ITES

2015 Grant Thornton India LLP. All rights reserved.

Sector

Manufacturing

Top sectors based on deal volume

IT & ITES
60%

100%

4%

N.A.

316
Education
7%

200

151

150

Others
18%

Pharma,
Healthcare &
Biotech
8%
Banking &
Professional Financial
Services
/ Business
4%
Services
3%

Deal of the month - M&A

MESCO Steel acquires Maithan Ispat for
US$ 187 million

Deal of the month - PE

DST Global, Accel Partners, Tiger Global and Steadview
Capital invests US$400 million in Bangalore-based Olacabs
Sector: IT&ITES

Sector: Manufacturing

Acquirer

Target

Investor

Investee

MESCO Steel group Mideast

Integrated Steel Ltd. (MISL) was:
Incorporated in 1992, MISL is a
steel manufacturing company with
assets in Odisha. It belongs to the
MESCO Steel Group, which has
business interests in steel and
airlines.

Maithan Ispat Ltd is a part of the

Rs 15 billion Kolkata based Maithan
Group, having manufacturing
interests in refractories, ferro-alloys,
cement, direct reduced iron, rebars,
billets and sections. The company
was set up in 2004 under an MOU
with the state of Odisha at
Kalinganagar, Jajpur.

DST Global, Accel Partners, Tiger

Global and Steadview Capital are
growth focussed investment
companies, which help
entrepreneurs build lasting,
category-defining technology
companies.

OlaCabs is a technology focussed

cab aggregator based out of
Bengaluru.. Olacabs.com/Ola app
on mobile, is a marketplace for all
types of cabs and car rentals.

Rationale
The acquisition will provide MISL access to Maithan Ispat Limiteds iron
ore mines in Odisha. The deal will take Mesco Steels capacity to 2.2
million tonne per annum and will also help bail out Maithan, which is under
debt burden.

2015 Grant Thornton India LLP. All rights reserved.

Comments
This funding will be used for technology enhancement and to further
expand to Tier 2 and Tier 3 cities with a target to reach 100 cities by the
end of the year. Out of the US$ 400 million investment, US$ 100 million is
earmarked for TaxiForSure.

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