India In Sight #11
India In Sight #11
Weekly updates on Indian private markets
We are Ambassador Capital Partners, an investment firm with a focus on private credit and private equity. Deeply embedded in the private markets ecosystem, ACP works with large global institutions to provide creative capital solutions for companies and asset managers.
In the spirit of making Indian private markets more accessible and transparent to global LPs and GPs, we have launched ‘India In Sight’ – consolidating and curating relevant information and insights from Indian private markets including trends, key deals, fundraises, KPIs and top tier research.
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KEY DEALS
Equity
Credgenics, a debt collection focused software provider, announced a $50 million round led by existing investors Westbridge Capital, Accel, Tanglin Ventures and Beams Fintech Fund, at a valuation of c.$340 million. (August 9, 2023)
OTPP to invest into Highways Infrastructure Trust, an infrastructure investment trust (InvIT), and Highway Concessions One (HC1), a roads platform. OTPP owns a 7.5% stake in the InvIT while the majority 90% is held by KKR. The financial details of the transaction were not disclosed. (August 8, 2023)
Carlyle acquired a significant minority stake in Quest Global Services, an engineering services provider, for an estimated $500 million, valuing the company at over $2 billion. (August 8, 2023)
Waaree Energies, a solar panel manufacturer, raised $125 million from ValueQuest in its latest equity funding round. The latest funding will be utilized for 6 GW of capacity expansion. (August 7, 2023)
Expected
[Expected] Osaka Gas and Sumitomo Corp. are looking to buy out 30% stake in Think Gas Distribution, a natural gas supplier, from I Squared Capital at an expected valuation of c.$1.5 billion. (August 10, 2023)
[Expected] InsuranceDekho, an insurtech firm, is looking to raise c.$50 million from new and existing investors at a valuation of c.$500 million. Existing investors include Goldman Sachs, TVS Capital Funds, Investcorp, Avataar Ventures and LeapFrog Investments. (August 9, 2023)
Exits
[Exit] GEF Capital sold its its remaining 3% stake in Syrma SGS Technology, an electronics manufacturing services company for c.$30 million. GEF had invested c.$10 million in Syrma in 2020 and has made c.5.7x MOIC on the investment. (August 11, 2023)
[Exit] BPEA EQT sold c.20% stake in CMS Info Systems, a cash management and payments solution company, for $130 million. BPEA EQT had bought CMS for c.$280 million in 2015 and now owns 27% stake after the deal. (August 10, 2023)
[Exit] General Atlantic sold its remaining 1.1% stake in 360 One (formerly IIFL Wealth Management) for c.$25 million. General Atlantic had bought c.25% stake in the company in 2015 for c.$175 million and has made c.$400 million on the stake sale. (c.3x MOIC / c.20% IRR over 8 years) (August 8, 2023)
[Exit] Lighthouse Funds sold part of its stake in Bikaji Foods, a snacks company, for $20 million. Lighthouse had initially invested $30 million in two tranches for c.15% stake and is expected to fully exit the company at c.$150 million (c.40% IRR over 9 years). (August 8, 2023)
[Exit] Madison India Capital and Nexus Ventures are looking to monetize their investment in India Shelter Finance Corporation Ltd, a mortgage finance business for $97 million. (August 8, 2023)
[Exit] Gateway Partners, Tata PE fund and Kotak Special Situations Fund are planning to divest their stake in TVS Supply Chain Solutions, a logistics company, in the planned IPO of the company at a market valuation c.$1 billion. Some of the funds are expected to make c.40% IRR on their divestments. (August 7, 2023)
Credit
Air India looking to raise c.$375 million in debt from banks to finance its sale-and-leaseback agreements. Air India had ordered 470 aircrafts costing around $70 billion from Boeing and Airbus. (August 10, 2023)
GMR Airports looking to raise c.$625 million through issue of securities (mix of QIP and foreign currency bonds). (August 8, 2023)
Apraava Energy, an integrated energy solution provider and a CDPQ portfolio company, to raise c.$1.1 billion from REC and Power Finance Corporation to fund its wind, transmission, and advanced metering projects in the country. (August 7, 2023)
State Bank of India, is looking to raise c.$1.2 billion through another issue of AAA rated infrastructure bonds with a maturity of 15 years; Jamnagar Utilities & Power is looking to raise c.$500 million through the issuance of 5-year bonds with c.8% coupon; Vivriti Capital to launch a public issue of NCDs worth c.$60 million.
KEY FUNDS AND FUNDRAISES
CVC Capital is targeting to raise an overall corpus of $6 billion for its sixth Asia-focused fund. (August 11, 2023)
Quadria Capital closed a $200 million revolving credit facility to finance its healthcare investments in South Asia and Southeast Asia. The facility is structured so that loans drawn for the purpose of its investments may be eligible to be classified as “social loans”. Quadria recently invested $77 million in Maxivision Eye Hospital. (August 10, 2023)
CapitaLand launched a c.$400 milion fund to develop business parks in India. August 10, 2023)
MIXI Global Investments, a Japanese mobile entertainment company has set up an India-focused corporate VC firm. The VC firm will invest $50 million in early-stage entertainment and consumer services startups. (August 8, 2023)
Swedfund, Sweden’s development finance body, committed c.$25 million to GEF Capital, an India-focused clean energy investor. The PE firm is currently raising capital for South Asia Growth Fund III which will focus on climate benefits and resource efficiency sectors. (August 7, 2023)
MARKET INSIGHTS & RESEARCH
Articles
Production-linked incentive (PLI) scheme is likely to record a 4x rise this financial year as the government looks to step up its push to local manufacturing by increasing disbursals to c.$1.6 billion. PLI covers 14 sectors with an outlay of c.$25 billion. Read more.
Indian corporates raised over c.$100 billion via bonds issuances in FY23, up by 29% vs FY22. Read more.
The latest introduction by SEBI of a simplified process for the primary issuance of bonds via private placement could be quite helpful. Unlike equity issuances, bond issues are more frequent and very time and cost-sensitive. Why is private placement the right approach for these kinds of issuances? Read more.
The Union Government has prepared the first draft of the third phase of the Faster Adoption and Manufacturing of Electric (FAME) Vehicles Scheme and is considering a $6.2 billion outlay for FAME-III.
Reports
Read the ICRA Monthly research compendium which offers a summary of latest data and reports released last month across various sectors.
India’s BioEconomy is a $93 billion market and growing, with over 600 established companies and 7,300+ biotech startups. India Biotech Handbook 2023 offers insights into this market and the relevant players.
CBRE I&L report provides research and figures on the Indian industrial and logistics sector.
WEEKLY MARKET UPDATE (w/c August 7, 2023)
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