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Private Equity + VCs Activity in 2007

January 17, 2008

Our Analyst tracking the IPO market has done an excellent job by maintaining a spreadsheet of all the IPOs which were backed by Private Equity and Venture Capital players.

Other than Genpact [Indian company but IPO was in the US] all the following companies were funded by either PE or VC or Both.

Edelweiss Capital:
Edelweiss had raised $50 million via a pre-IPO placement in July from Sequoia Capital India, Lehman Brothers, Galleon Partners and Shuaa Capital. GIC and Galleon Partners have been investing into the company since 2006. Greater Pacific Capital’s investment in October 2005 provided exit for a prior investor Connect Capital. Americorp is another early investor in Edelweiss.

FirstSource Solutions:
In 2003, WestBridge Capital (now Sequoia Capital India), which was an investor in FirstRing, made an investment in FirstSource and subsequently increased its ownership stake in 2004 and in 2006, resulting in a 10.94% stake just prior to the IPO. In 2004, Temasek made its initial investment and later increased its stake to 25.80%. In addition, strategic investor Metavante held a 24.07% stake in FirstSource pre-IPO. US-based hedge fund Galleon Group had acquired a 5.84% stake (from FirstSource’s parent, ICICI Bank) just prior to the IPO. The IPO witnessed a sale of shares worth about $14 million by the promoters – ICICI Group.

Jyothy Laboratories:
CDC Group and the CDC-managed South Asia Regional Fund sold their 2.7% stake in the company as part of the IPO. CDC and SARF had purchased Baring Private Equity India’s stake in Jyothy in 2003 and later invested additional capital. (Baring had invested $3.5 million in November 1999.)

Motilal Oswal Securities:
In April 2006, Motilal Oswal had divested a 9.5% stake to New Vernon and Bessemer for $28 million. Post issue shareholding: New Vernon 6.4%, Bessemer 2.03%

MindTree Consulting:
IT Services firm MindTree Consulting raised $53 million via its IPO. Founded in mid-1999 by a group of ex-Wipro executives, MindTree Consulting received about $4 million (Rs. 169 million) from Walden International, Global Technology Ventures (GTV) and members of the founding team. In August 2001, Capital International (CI) led a $12.5 million (Rs. 590 million) second round. It is notable that Mindtree is probably the last significant IT Services company to be seed funded by VC investors. The shareholding of the VC investors just prior to the IPO were Walden 21.23%, CI 13.54% and GTV 8.36%.

Koutons Retail India:
“UTI Ventures invested $6.71 million in Nov ’06. Argonaut invested $10 million in Nov ’06. Shareholding (post issue)%:
UTI Ventures – 8.37
Argonaut – 5.65
Passport Capital – 3.49″

Redington India:
ChrysCapital invested $15 million for a 11.05% stake in March ’06

Zylog Systems:
UTI Ventures invested $6.5 million for a 8.95% stake (pre-issue). Argonaut invested $4.1 mn for a 4.87% stake (Pre-issue).

Vishal Retail:
Gaja Capital invested US$ 20 Million (Rs. 88 million) in March 2006 for a 2.73% stake (average price of Rs. 176). Post issue Gaja has a stake of 2.23%

Global Broadcast News:
IIML, which had invested $8.9 million in January 2006, held a 9.41% stake prior to the IPO, which came down to 7.93% post issue

Everonn Systems India:
“Net Equity invested $ 0.7 million in May 2002. Virmac Investments invested $0.6 million in March 2001.Temasek invested $ 3.2 million in a pre IPO placement in July 2006. Post issue shareholding:
Net Equity Ventures – 14.50
Virmac – 8.90
Temasek – 9.58 “

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