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HALF-YEARLY REPORT - 2016

CONTENTS
PRIVATE EQUITY INVESTMENTS
03
04
05
06
07
08
09

Overview
Deal Type Analysis
Median and Mean Vs Deal Type
Sector vs Deal Type Analysis
Sector Analysis
Venture Capital Deals Round-wise Contribution
Key Deals
PRIVATE EQUITY FUND RAISING

10
11
13

Funds Launched
Funds Raised
Fund Raising vs Investments and Exits
PRIVATE EQUITY EXITS

14
15
16
17

Overview
Deal Type Analysis
Sector Analysis
Key Deals
MERGERS & ACQUISITIONS

18
19
20
21

Overview
Deal Type Analysis
Sector Analysis
Key Deals
EQUITY CAPITAL MARKETS

22
23

Overview
Deal Type Analysis and Key Deals

Private Equity Investments: Overview

rivate equity investments,


excluding real estate
investments, in India in
the first half of CY2016
fell 45% to $5.86 billion from
$10.69 billion a year earlier. The
number of deals slipped 12% to
646 from 737 deals. Compared
with H2 2015, private equity deal
volume and value declined 25%
and 48%, respectively.

PE DEAL FLOW - VOLUME


Q1

The sharp decline in investments


can be attributed to unstable
valuations, declining interest
of investors in online and
e-commerce business models,
currency conversions, little
improvement in ease of doing
business and a challenging
environment for exits due to
lowering valuations.

Q4

Q3

407
378
175

190

217

Private equity inflow in Q2 CY16


slumped 62% to $2.3 billion from
$6 billion in Q2 of 2015.
In H1 2015, 25 big-ticket deals
($100 million and above)
contributed $6.7 billion to the total
deal value. This is more than the
total deal value in H1 2016.

Q2

277

229

172

H1

275

H2

201

H1

2012

H2

286

246

267

255
H1

2013

276

H2

453

359
H1

2014

H2
2015

370

H1
2016

PE DEAL FLOW - VALUE


Q1

Q2

Q4

Q3

(Figures in $ mn)
4,526
6,086

1,955

4,322
1,440

4,038
2,352

2,337

3,059
6,677

4,541
2,789
H1

H2
2012

2,093
H1
2013

2,376

2,517

H2

H1

3,152
H2
2014

4,601

3,523

H1

H2
2015

H1
2016

Deal Type Analysis

contributed 39% to the total


investment in H1 2016; it was
52% in H1 2015. Late-stage
contribution in H1 2016 is the
lowest in five years.

compared with 38% in H1 2015.

ngel/seed investments
grew 16% to 369 deals
in H1 CY16 from 318
deals a year ago, while
the deal value slipped 25% to
$101 million from $134 million,
suggesting a drop in average
ticket-size. Angel/seed funding
contributed 57% to total private
equity investments in H1 2016,

Venture and late-stage capital


declined significantly, down 64%
and 55%, respectively, between
H1 2015 and H1 2016. In terms
of deal volume, the fall across
the two stages was 33% and
41%, respectively. Venture and
late-stage capital together

Investments in public
companies declined 24% by
volume from a year earlier to the
lowest in five years.

DEAL TYPE ANALYSIS - VOLUME


Angel/Seed

Venture Capital

Private Equity

Pre-IPO

Public Equity

369
318
279

127
134

167

111
134

120

187

175
111

105

69

105

60

54

H1-2012

H1-2013

H1-2014

H1-2015

DEAL TYPE ANALYSIS - VALUE


Angel/Seed

Venture Capital

Pre-IPO

3,026

63

114
H1-2012

39

466

Public Equity

26

H1-2016

Figures in $ mn

3,170

2,574

2,200
762

5,647

Private Equity

3,357

62

34

2,851
1,471

864
26

H1-2013

71

0
H1-2014

2,532

2,039

2,147

1,037
134

16
H1-2015

101

43
H1-2016

Mean and Median Vs Deal Type

However, the average size of public


equity deals rose 34%.

he average deal size


slipped 15% to $14.47
million in H1 2016 from
$17.02 million in the
same period last year. The average
deal size fell across angel/seed,
venture capital and late stage by
4%, 32% and 16%, respectively.

The overall median deal value fell


to $1 million from $1.58 million
during the same period. Venture
capital median deal amount
dropped 25%, while it was up for

MEAN VALUE BY DEAL TYPE


Public Equity

H1-2016

H1-2012

Private Equity

Venture Capital

62.74

10.84

82.59

11.96
H1-2016

0.25

$35.23

5.76
0.52

3.90

0.00

H1-2013

33.62

4.70
0.43

0.18

22.45

48.65
57.19

3.89

8.16
16.51

9.13
10.32
11.50

10.03
H1-2012

3.32
0.25

42.79

11.79
15.90
10.47

3.00
0.20

42.90

8.56

6.80
0.58

H1-2014

22.07

2.94
0.29

H1-2015

28.83

0.00

Figures in $ mn

Angel/Seed

61.80

15.90
0.55

H1-2013

MEDIAN VALUE BY DEAL TYPE

42.79
52.75

7.35
0.53

H1-2015

H1-2014

Pre-IPO

angel/seed and late-stage deals


by 16% and 111%. The median for
private equity deals for the period
was $22.1 million, the highest in
the first-half period for five years.
The median value of public equity
deals was little changed during the
period under review.

9.70

57.23

*Mean value calculated on the basis of deal value disclosed.

Sector Vs Deal Type Analysis

In terms of deal value, industrials


($851 million) and financials ($531
million) were the favourite sectors
of investors in the private equity
segment. Information technology
($513 million) and consumer
discretionary ($334 million) got
the maximum deal value in the
venture capital segment.

There were 107 venture capital


investments in the information
technology sector, which shows
the confidence of the investors on
proven online business models.
Consumer discretionary, with 41
deals, was the other sector to
witness significant venture capital
deal activity.

nformation Technology, which


includes online businesses
and software companies,
led the angel/seed funding
round with 257 deals contributing
69% to total deals. Consumer
discretionary, healthcare and
industrials are the other sectors
that attracted angel investments in
52, 23 and 17 deals, respectively.

SECTOR SUMMARY FOR DEAL SUB-TYPE


Angel/Seed

Venture Capital

Private Equity

Pre-IPO

Public Equity

BY VOLUME
4

9
9

41

11

12
4
14

17

Materials

Industrials

2
1

107

17

Consumer
Discretionary

257

23

52

Consumer
Staples

Health Care

Financials

Information
Technology

Telecommunication
Services

Utilities

BY VALUE
Figures in $ mn

Industrials

Health Care

Information Technology
Telecommunication Services
Utilities

334

29

Consumer Staples

10

60
0.21

30
325

55

179
91

0
179

27
531

83

851

71

Consumer Discretionary

Financials

25

Materials

513

616

43
1,231

335
230

Sector Analysis

he information
technology sector
witnessed some
aggressive deal-making
in H1 2016 with 374 investors
reposing faith in such companies.
This is the only sector which saw
an uptick, of 4%, as compared with
H1 2015 when all other sectors
declined.

Consumer discretionary was the


other sector to cross the century
mark with 111 deals. Industrials
(48 deals), healthcare (41 deals)
and financials (36 deals) were the
other key sectors which kept the
ball rolling in H1 2016. The number
of deals in utilities and energy
sectors fell significantly from a
year earlier.

Energy
Consumer Discretionary
Consumer Staples
Industrials
Information Technology
Materials

Financials
Health Care
Telecommunication Services

In terms of deal value, information


technology with $2.13 billion and
financials with $1.27 billion joined
the billion-dollar club in H1 2016.
But the deal value declined 6% and
35%, respectively, compared with
H1 2015. Consumer discretionary
($867 million) and industrials
($953 million), which had crossed
the $2 billion mark in H1 2015, fell
significantly in H1 2016.

Utilities

BY VOLUME
10

BY VALUE
181

13

421

162

2,202
2,264

24

H1 2015

208
521

H1 2015

53
44

358

68

1,952

2,100
834

Figures in $ mn

27

230

867

111
159

21
36

H1 2016

41
374

48

H1 2016

1,274

2,139
Figures in $ mn

211
953

Venture Capital Deals Round-wise Contribution

he Series A round,
which contributed
roughly 50% of the
overall venture capital
deal volume in the first half of
last five years, made up only
38% of the total deal volume in
H1 2016. However, the bridge
round contributed 11% to the
total venture capital deals,
proving the challenges in raising
fresh funding.
Growth-stage venture capital
funding (Series C and D) has
dropped to nearly half of the
first-half average deal volume in
the last five years. Deal volume
and value declined 56% and
60%, respectively, compared
with H1 2015.
Late-stage venture capital
rounds (Series E and beyond)
contributed just 1% (or $8
million) of the total venture
capital funding raised in H1
2016 as compared with 22% (or
$632 million) during the same
period last year.

VENTURE CAPITAL ANALYSIS FOR ROUND OF INVESTMENT


Bridge

Series A

Series B

Series C

Series D

Series E+

Figures in %

Others

BY VOLUME

2
61

H1-2012

18

10

4 2
2

52

H1-2013

19

12

1
47

H1-2014

23

11
2

51

H1-2015

21

10
2

11

H1-2016

38

18

23

BY VALUE
1
23

H1-2012

13

17

30

11

2
40

H1-2013

H1-2014

21

25

20

36

15
24

7 22

1
19

H1-2015

23

21

12

22
1

2
H1-2016

19

30

18

18

12

Key Deals

KEY DEALS - H1-2016


Deal Value
($ mn)

Date

Target

Buyer

Deal Type

Apr

Mphasis Ltd.

Blackstone Advisors India


Pvt. Ltd.

Public Equity

1,200

Bangalore
International
Airport Ltd.

Fairfax India Holdings


Corporation, Fairfax
Financial Holdings Ltd.

Private Equity

370

Airport Services

GE Capital
Services India

AION India Investment


Advisors Pvt. Ltd.

Public Equity

300

Consumer Finance

Greenko Energy
Holdings

Abu Dhabi Investment


Council, GIC Pte. Ltd.

Private Equity

230

Independent Power
Producers & Energy Traders

Janalakshmi
Financial Services
Pvt. Ltd.

GIC Pte. Ltd., QRG


Enterprises Ltd.,Morgan
Stanley Private Equity Asia
IV LP, TPG Asia Buyout
Fund VI, Havells India Ltd.

Private Equity

210

Specialized Finance

Jasper Infotech
Pvt. Ltd.

Bennett Coleman and Co.


Ltd., Ontario Teachers
Pension Plan, Iron Pillar

Private Equity

200

Internet Retail

Amber Enterprises
Goldman Sachs Group Inc. Private Equity
India Pvt. Ltd.

180

Electronic Manufacturing
Services

Kotak Mahindra
Bank Ltd.

Canada Pension Plan


Investment Board

Public Equity

168

Diversified Banks

Au Housing
Finance Ltd.

Kedaara Capital Fund,


Partners Group AG

Private Equity

139

Thrifts & Mortgage Finance

Max Financial
Services Ltd.

KKR Asian Fund II LP

Public Equity

139

Life & Health Insurance

Mar

Feb

Jan

Mar

Feb

Sub-Industry
Data Processing &
Outsourced Services

Private Equity Fundraising - Funds Launched

FUNDS LAUNCHED

n H1 CY16, a total of 24 India-dedicated


funds were launched targeting to raise a
total of $2.9 billion. The funds launched in
the first six months of this year declined
both in terms of the number and the targeted
capital as compared with a year earlier. A total
of 30 funds were launched in H1 CY15 targeting
capital commitments of $4.6 billion, which was
the highest both in terms of volume and value
for the same period since 2012.

Volume
Total targeted Capital ($ mn)

The fundraising environment remains


challenging, as more than half the funds
launched this year are targeting sub-$100 million
in commitments. In H1 CY16, 14 out of a total
of 24 India-dedicated funds targeting sub-$100
million were launched. The year, however, has
also seen a few larger funds launch with four
funds targeting between $100-250 million and
two funds each targeting capital commitments
of $250-500 million and over $500 million.

4,302

2,966

3,062

22

22

23

H1-2012

H1-2013

H1-2014

4,601
2,933

30

24

H1-2015

H1-2016

FUNDS LAUNCHED BY FUND SIZE


Undisclosed

Less than $100 mn

$100 mn to $250 mn

15

H1-2012

3
0

H1-2013

4
1

$500 mn above

15

13

7 7
4 3

$250 mn to $500 mn

3 2

H1-2014

14

5 5
2
H1-2015

2 2

H1-2016

10

Funds Raised

n H1 CY16, the funds raised a total of $3 billion


across 27 closings as compared with $3.1 billion
across 23 funds in H1 CY15. The tough fundraising

conditions are clearly visible with a decline in average


capital raised per fund in the first six months of 2016
as compared with the same period in 2015.

FUNDS RAISED
Volume

Value ($ mn)

1,345
1,045

493
20
11

17

608
11

475

1,517

412

13

581

14

11

11

831

1,344

1,017 1,043

1,385
15

11

13

2,235
1,174

1,711

12

1,130

13

10

780
12
15

7
Q1

Q2

2012

Q3

Q4

Q1

Q2

2013

Q3

Q4

Q1

Q2

2014

Q3

Q4

Q1

Q2

2015

Q3

Q4

Q1

2016

Q2

FUNDS RAISED BY FUND TYPE


Private Equity/Buyout

Venture Capital (Incl. Seed)

27

H1-2012

H1-2013

18
13
7
10

H1-2014

H1-2015

H1-2016

15
15
9
16
14

11

Funds Raised

TOP FUNDS RAISED - H1-2016


Fund Name

Fund Status

Fund Size
($ mn)

Amount Raised
($ mn)

Asset Manager

Year
Launched

Sequoia Capital India V Ltd.

Final Close

800

HDFC Capital Affordable Real


Estate Fund-1

920

Sequoia Capital India Advisors Pvt. Ltd.

Oct-2015

First Close

758

405

HDFC Capital Advisors Ltd.

Jan-2016

Godrej Residential Investment


Program II

Final Close

275

275

Godrej Fund Management

Mar-2016

Kotak India Real Estate


International Fund III

Final Close

250

250

Kotak Investment Advisors Ltd.

Jan-2015

Oman India Joint Investment


Fund II

First Close

400

250

Oman India Joint Investment Fund Management Company Pvt. Ltd.

Nov-2015

India Advantage Fund Series IV

First Close

500

190

ICICI Venture Funds Management Company


Ltd.

Jan-2015

Matrix Partners India II LLC

Final Close

331

110

Matrix India Asset Advisors Pvt. Ltd.

Apr-2011

Gaja Capital Fund III Ltd.

Final Close

240

110

Gaja Capital

Dec-2013

ASK India Real Estate Special


Opportunities Fund Pte Ltd.

Final Close

200

96

ASK Capital Management Pte. Ltd.

Jul-2013

IDFC Score Fund

First Close

112

71

IDFC Alternatives Ltd.

Feb-2016

FUND FOCUS BY VOLUME OF FUNDS RAISED


H1 2015

H1 2016

11

10
8
5

00

Arts & Handicrafts

Technology

Retail

Renewable Energy

Telecom

00

Real Estate

Tourism

Pharma

Microfinance

2 22

Media

Manufacturing

1 1

Logistics

0 0

2 2

IT/ITES/BPO/KPO

Infrastructure

Hospitality

00

Healthcare

Food & Beverage (F&B)

Fashion & Textiles

11

Entertainment

Electronics

00

Education

Aviation

00

Consumer Durables

Automobile and Ancillary industries

Biotechnology

00

Banking & Financial Services

00

Defence

Agriculture and Ancillary Industries

Energy

12

Fund Raising vs Investments and Exits

Fund Raising

Private Equity

PE Exit

6,496

2,390

H1-2012

10,687

Figures in $ mn

6,130

2,177

exits have declined significantly,


by 62%, reaching a five-year low in
the first six months with only $1.44
billion of capital being realised as
compared with $3.8 billion a year
earlier.

from $10.6 billion in H1 CY15. The


investors are waiting for market
conditions to recover, realising
the significant decline in the value
of their stocks given the drop in
valuations of many tech firms
such as Flipkart. The number of

lthough the funds


raised almost as much
in H1 CY16 as in the
year-earlier period, they
became cautious in investing. The
total investments made plunged
45% to $5.8 billion in H1 CY16

5,859

5,576

2,810
1,305

H1-2013

2,060

2,600

H1-2014

3,096

3,839
3,015
1,436

H1-2015

H1-2016

13

Private Equity Exits: Overview

rivate equity exits fell


to a five-year low on a
sequential basis. Private
equity investors unlocked
$1.4 billion worth of investments
across 98 exits in H1 2016. The
deal volume slipped 36% and deal
value dropped 63% compared with
the same period last year.
The deal volume in Q2 CY16, at
46 deals, was the lowest for 18
quarters. The deal value slumped
59% from $2.2 billion in Q2 CY15
to $894 million in Q2 CY16. The
deal volume fell 23% from 60 to 46
during the period under review.

EXIT DEAL FLOW - VOLUME


Q1

Q2

Q3

51

55

64
77

H1

H2

H1

2013

74

77

66

73

52

2012

Q4

63

59

H2

H1

60
74

75

2014

H2

46

93

H1

2015

53

52

H2

H1
2016

EXIT DEAL FLOW - VALUE


Q1

Q2

Q3

Q4

Figures in $ mn

H1

1,793

H2

1,963

384

2012

H1

1,449

H2

1,560

1,896

1,360

2013

H1

1,101

1,751

850

2014
H2

1,069

1,050

H1

2,159

1,680

2015

2016 H1

821

1,187

H2

543

894

14

Deal Type Analysis

EXIT BREAKDOWN - VALUE

he first half of 2016 shows a


significant change in trend of
the exit landscape from the
preferred open market, which
dominated the first half in the last five
years, to the M&A route. The period
recorded 46 M&A exits (contributing
47% to total exits), followed by 29
open-market sales (contributing 30%
of total exits). Secondary sales and
buyback fell to 11 and 5 exits, showing
the lowest number of exits in the first
half of last five years. The primary
equity markets picked up pace as
seven exits were recorded in the first
half of this year.

Merger and Acquisition


Equity Capital Market
Open Market
Buyback
Secondary Sales

Figures in $ mn

260
93
H1-2012

1,546

172
106
78

317

H1-2013

1,485

331

599

323

2,034

H1-2014

The exit value from secondary sales


plunged 94% to $59 million, recording
the maximum drop in the first half of
this year. Exits from buybacks slumped
83% to $70 million and from the open
market route fell 77% to $481.24
million.

31

213
137
134

H1-2015

2,116

405
1,047
299

Exits through the equity capital market


route showed the highest value,
while the M&A route showed good
improvement compared with the same
period of the last five years.

H1-2016

526
481

70
59

EXIT BREAKDOWN - VOLUME


Merger and Acquisition
Open Market

Equity Capital Market

Buyback

77

75

Secondary Sales

47
39
31

28

46

39

3
H1-2012

27

31

26

21
3

26
14

13
4

0
H1-2013

29

21

H1-2014

H1-2015

20
7

11

H1-2016

15

Sector Analysis

inancials topped
the exit list with a
cumulative value of $520
million, constituting
approximately 36% to the
total value recorded in H1
2016. This was followed by
telecommunication services at
$205 million and consumer staples
at $200 million. Materials ($190

million), industrials ($140 million)


and healthcare ($130 million) were
the other active sectors for private
equity exits during H1 2016.
Information technology led the
exit volume scorecard with 28
deals, followed by consumer
discretionary and financials with
19 and 18 deals, respectively.

SECTOR ANANLYSIS - VOLUME


Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials

Healthcare with 11 deals and


industrials with 10 deals were the
other sectors to witness significant
exit activity during the period.

H1 2015

H1 2016

2 4

13

30
3

31

19
5

28

Information Technology
Materials
Telecommunication Services
Utilities

38

18
10

24
8

11

H1 2015

H1 2016

SECTOR ANANLYSIS - VALUE


Figures in $ mn

Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials

263
413

41

396

205

259

190

332

Telecommunication Services
Utilities

520

322
317

200

32

Information Technology
Materials

14

1,496

140

130

16

Key Deals

KEY DEALS - H1-2016


Exit Type

Exit
Value
($ mn)

Initial Public
Offering

224

Specialized Finance

Open
Market

205

Wireless
Telecommunication
Services

KKR India Advisors Pvt. Ltd.

M&A

181

Construction
Materials

Marico Ltd.

Arisaig Asia Consumer Fund

Open
Market

84

Personal Products

May

Ujjivan Financial
Services Ltd.

India Financial Inclusion Fund,


Unitus Equity Fund, Wolfensohn
Capital Partners, Netherlands
Development Finance Co., Sarva
Capital LLC, International Finance
Corp., Elevar Advisors Pvt. Ltd.,
Women World Banking Capital
Partners L. P.

Initial Public
Offering

79

Specialized Finance

May

Thyrocare
Technologies Ltd.

CX Partners Fund I

Initial Public
Offering

69

Health Care
Services

Jan

Britannia Industries
Ltd.

Arisaig Asia Consumer Fund

Open
Market

60

Packaged Foods &


Meats

Apr

Future Supply Chain


Solutions Ltd.

Fung Capital, Future Enterprises Ltd.

Secondary
Sales

59

Air Freight &


Logistics

Mar

HealthCare Global
Enterprises Ltd.

PremjiInvest, India Build-Out Fund-I,


Temasek Holdings Advisors India
Pvt. Ltd.

Initial Public
Offering

56

Health Care
Facilities

May

Cholamandalam
Investment and
Finance Company Ltd.

Creador I LLC

Open
Market

55

Other Diversified
Financial Services

Date

Target

Seller

Apr

Equitas Holdings Ltd.

Aavishkaar Goodwell India


Microfinance Development Co.
Ltd., India Financial Inclusion Fund,
MicroVentures SPA,ARIA Investment
Partners III LP, Sequoia Capital India
III LP, WestBridge Ventures II LLC,
Aquarius Investment Advisors India
Pvt. Ltd., Helion Venture Partners
II LLC, International Finance Corp.,
Netherlands Development Finance
Co., Creation Investments Capital
Management LLC, Sarva Capital
LLC

Jun

Idea Cellular Ltd.

Providence Equity Partners LLC

Jan

Dalmia Cement Bharat


Ltd.

Jan

Sub Industry

17

Mergers & Acquisitions: Overview

he first half of CY 2016


saw 481 M&A deals being
struck, worth $14.5 billion.
Compared with H1 2015,
the deal value is up 76% while the
deal volume dropped 3%. Compared
with H2 2015, the deal volume
and value dropped 7% and 5%,
respectively.
The value of M&A deals spiked 40%
to $4.9 billion in Q2 CY16 from a
year earlier. The deal volume rose
8% to 224 in Q2 CY16 from 208 a
year earlier.

M&A DEAL FLOW - VOLUME


Q1

Q2

Q3

Q4

185

174

216
261
179

226
H1

H2

H1

2012

190

219

238

215

H2

H1

2013

213

208

260

257

H2

H1

2014

2015

267

224

250

257

H2

H1
2016

M&A DEAL FLOW - VALUE


Q1
H1-2012

Q2

Q3

4,746

Q4

Figures in $ mn

2,759

3,823
9,814

H2-2012
H1-2013
H2-2013

6,414
8,409

5,618
5,461
9,430

H1-2014

5,216

H2-2014

5,205

11,632

H1-2015

4,711

3,551

H2-2015
H1-2016

8,222
9,563

7,049
4,961
18

Deal Type Analysis

DEAL TYPE ANALYSIS - VALUE

omestic M&A deals saw


an uptick in value and
volume, growing 86% and
10%, respectively. Crossborder deal-making, however, slowed
down between H1 of 2015 and 2016;
inbound deals declined 17% and
outbound deals slipped 3%. In terms
of the deal value, inbound deals
dropped 14%.

Inbound

Outbound

Domestic

Others

Figures in $ mn

2,172
1,549
3,150
634

H1-2012

The deal value picked up for


domestic and inbound M&A
transactions but outbound deals
slipped 35% during the second
quarter of 2016. The deal volume
grew 10% and 12% for domestic
and inbound deals, respectively.
Outbound deals were little changed
at 27 deals in Q2 CY16 from 28 a
year earlier.

3,402
4,582
3,008

H1-2013

1,041
2,316
1,542

H1-2014

8,983
1,806
2,125
1,468

H1-2015

4,227
443
1,836
2,917

H1-2016

7,850
1,922

DEAL TYPE ANALYSIS - BY VOLUME


Inbound

Outbound

Domestic

Others

255

241

219

85

64

H1-2012

75

83

77
39

32
H1-2013

306

278

63

H1-2014

47

70

66

H1-2015

51

58

64

53

H1-2016

19

Sector Analysis

healthcare with $1.03 billion


were the other sectors to attract
more than $1 billion worth of
transactions.

aterials witnessed
the maximum M&A
value with deals
worth $3.4 billion.
This was followed by utilities
with $2.3 billion. Information
technology with $1.9 billion,
telecommunication services
with $1.6 billion, consumer
discretionary with $1.4 billion,
energy with $1.3 billion and

The sector that witnessed


maximum M&A deal-making
during H1 2016 was information
technology with 129 deals. At the
second spot was the consumer
discretionary sector with 78 deals,

closely followed by industrials


and financials with 66 and 64
deals, respectively. Including the
47 healthcare deals, the top five
sectors accounted for 80% of the
total 481 deals in H1 2016.

SECTOR ANALYSIS
Consumer Discretionary
Industrials

Energy

Consumer Staples

Information Technology

Materials

Financials

Health Care

Telecommunication Services

Utilities

BY VOLUME
H1 2015

40

BY VALUE
H1 2015

17

218

726

88

896
533
51

909
33
102

776

8
48
63

H1 2016

32

11

Figures in $ mn

57
23

1,747

1,634

H1 2016

78

770
2,283

1,438

1,312

25
6

1,611

877

64

129

197

1,030
475

66

47

Figures in $ mn

3,413

1,887

20

Key Deals

KEY DEALS - H1-2016


Deal Value
Sub Industry
($ mn)

Date

Target

Buyer

Deal Type

Feb

Jaiprakash Associates
Ltd., Five Cement
Plants

UltraTech Cement Ltd.

Domestic

2,313

Construction Materials

Jun

Welspun Renewables
Energy Pvt. Ltd.

Tata Power Renewable


Energy Ltd.

Domestic

1,383

Electric Utilities

Mar

Taas Yuryakh
Neftegazodobycha LLC

Bharat PetroResources
Ltd., Oil India Ltd., Indian Oil
Corporation Ltd.

Outbound

1,300

Oil & Gas Exploration &


Production

Mar

Alliance Tire Group B.V.

Yokohama Rubber Co. Ltd.

Others

1,179

Tires & Rubber

Feb

Reliance Cement
Company Pvt. Ltd.

Birla Corporation Ltd.

Domestic

705

Construction Materials

Mar

Videocon
Telecommunications
Ltd., 2*5 Megahertz
Spectrum Band

Bharti Airtel Ltd.

Domestic

657

Wireless Telecommunication
Services

Apr

Aircel Ltd., Eight Circles


Spectrum Band

Bharti Airtel Ltd., Bharti


Hexacom Ltd.

Domestic

525

Wireless Telecommunication
Services

May

Tata Communications
Ltd., 17 Data Centres

STT GDC Pte. Ltd.

Inbound

470

IT Consulting & Other Services

Feb

HealthPlan Holdings
Inc.

Wipro Ltd.

Outbound

460

Data Processing & Outsourced


Services

Jun

Neotel Pty. Ltd.

Liquid Telecommunications
Holdings Ltd., Royal
Bafokeng Holdings Pvt. Ltd.

Others

428

Integrated Telecommunication
Services

21

Equity Capital Markets: Overview

preferred route with 37 companies


raising capital worth $1.22 billion in
the first half of 2016 as against 27
companies who took the IPO route
to mobilise $572 million in H1 2015.
The first half of 2016 recorded the
most IPOs in five years. However,

he number of ECM deals in


India decreased 15% in H1
2016 to 44 from 52 during
the same period last year.
The capital raised slumped 54%
from $1.35 billion to $2.94 billion.
Initial public offerings (IPO) were the

qualified institutional placements


(QIP) have lost their charm with just
one QIP in H1 2016 as against 20
during the same period last year;
the number of QIPs in 2016 was the
lowest in the first half of five years.

ECM DEAL FLOW - VOLUME


Q1

Q2

Q3

Q4

23
21
16

14

15

15

16

8
20

16
H1

H2

25

24

23

H1

H2

H1

2012

2013

37

H2

30

31

H1

2014

H2
2015

29
H1
2016

ECM DEAL FLOW - VALUE


Q1

Q2

Q3

Q4

1,820

99

1,661

Figures in $ mn

726
988

1,489

1,417
1,197

1,953

2,106

2,646

1,465

838

1,449

1,064

556

561
H1

H2
2012

H1

H2
2013

H1

H2
2014

H1

H2
2015

511
H1
2016

22

Deal Type Analysis and Key Deals

here were 37
IPOs, six rights
issues and
one QIP in H1
2016 as against 27 IPOs,
five rights issues and 20
QIPs. The capital raised
via IPOs was more than
double compared with
the same period last year
but slumped 73% and
99% via rights issues and
QIPs, respectively.

ECM BREAKDOWN - VOLUME


Initial Public Offering
Follow-On Offering
Rights Issue
Qualified Institutional Placement
Institutional Placement Programme

H1-2012

4
1

17

H1-2013

6
1

21

H1-2014

1
8
9

27

H1-2015

9
1

7
5

20

37

H1-2016

ECM BREAKDOWN - VALUE


Initial Public Offering

Follow-On Offering

H1-2012

270

99 68 135 89

H1-2013

261

175

H1-2014

Rights Issue

Qualified Institutional Placement

430

1,321

106 83 185

754

396
1,222

H1-2016

Figures in $ mn

2,439

572

H1-2015

Institutional Placement Programme

69
1,970

106 22

KEY DEALS CLOSED - H1-2016


Date

Target

Offering Type

Apr

Equitas Holdings Ltd.

Initial Public Offering

336

Specialized Finance

Jun

Mahanagar Gas Ltd.

Initial Public Offering

157

Gas Utilities

Ujjivan Financial Services Ltd.

Initial Public Offering

133

Specialized Finance

Parag Milk Foods Ltd.

Initial Public Offering

111

Packaged Foods & Meats

HealthCare Global Enterprises Ltd.

Initial Public Offering

102

Health Care Facilities

May
Mar

Offering Size ($ mn)

Sub Industry

23

Mosaic Media Ventures Pvt. Ltd. A-83, Sector 2,


Noida, UP - 201301 Phone: 0120-4171111
MUMBAI: Dow Jones & Co. Unit 93, 9th Floor. 2 North Ave., Maker Maxity, Bandra Kurla
Complex, Bandra (East) - 400051, India | Phone: 022-61456100
24