Weekly Finance and Corporate Deals

1. Top Headlines
Carlyle to offload entire 80% stake in Cyberoam to Sophos
Group for $70-80M.
Fashion e-tailer Myntra raises $50M led by Premji Invest.
Govt permits FIIs, NRIs to invest in insurance sector under
26% FDI cap.
UK-based CDC Group invests $27.5M in lifestyle e-tailer
Jabong.
Kolte-Patil acquires land parcel in Pune for $56M.
IFC raises $112M in fourth tranche of $1B rupeedenominated bond.
HCL Corp enters healthcare sector with multi-speciality
clinic chain, to invest $160M.
Truecaller secures $18.8M led by Sequoia Capital,
announces integration with Yelp.
MakeMyTrip acquires hotel aggregator EasyToBook.com
for around $5M
Inside The Story
Carlyle to offload entire 80% stake in Cyberoam to Sophos
Group for $70-80M
Private equity major Carlyle is looking to offload its 80 per cent equity
stake privately held network security solutions provider Cyberoam
Technologies to UK-based Sophos Group, according to two separate
reports in The Economic Times and The Times of India. The reports,
citing sources, pegged the deal value at Rs 430-500 crore ($70-80
million).Carlyle had initially invested around 60 per cent stake in
Ahmedabad-based Elitecore Technologies for around Rs 43 crore ($10.3
million then), the parent company of Cyberoam, and later hiked its stake
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2. in the firm to 87.5 per cent with additional investment.Later on,
Cyberoam was spun out of the company with Carlyle holding majority
stake and Hemal Patel, the erstwhile promoter of Elitecore, owning the
rest.The reports said Patel will continue to operate the company after
the majority stake acquisition by Sophos Group.
Fashion e-tailer Myntra raises $50M led by Premji Invest.
Bangalore-based fashion apparel e-tailer Myntra has raised $50 million
(about Rs 300 crore) in a financing round led by Premji Invest, along
with new and existing investors. This funding will enable Myntra to
strengthen its technology, infrastructure and customer experience and
fund its future growth initiatives.India’s $3.1 billion e-commerce market
(excluding online travel) is expected to grow by over seven times to $22
billion in five years, according to a CLSA report. Myntra is looking to
capitalise on this growth opportunity.
Govt permits FIIs, NRIs to invest in insurance sector under
26% FDI cap.
The government has permitted foreign institutional investors (FII) and
non-residents Indians (NRIs) to invest in the insurance sector within the
overall 26 per cent cap on foreign direct investment, under the
automatic route, according to a press note.The new norms also apply on
intermediaries like insurance brokers, third-party administrators
(TPAs), surveyors and loss assessors, apart from insurance companies,
the Department of Industrial Policy and Promotion, under the Ministry
of Commerce, has clarified.The new norms will however be subject to
the condition that foreign investors putting in money in Indian
insurance firms need to have necessary license from the Insurance
Regulatory & Development Authority. The decision will come into force
with immediate effect.
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3. UK-based CDC Group invests $27.5M in lifestyle e-tailer
Jabong.
Gurgaon-based lifestyle fashion and apparel e-tailer Jabong.com has
raised $27.5 million in equity funding from UK-based development
finance institution (DFI), CDC Group plc. The capital will help Rocket
Internet-backed Jabong to drive its business growth as well as enable
the development of its supply chain infrastructure and technology
platform. For CDC Group, this could be very likely the first technology
investment in India. Some of CDC's recent direct deals include
microfinance company Equitas and renewable energy developer
Kolte-Patil acquires land parcel in Pune for $56M.
Pune-based real estate developer Kolte-Patil Developers Ltd has
acquired a 34-acre land parcel at Wakad in Pune for Rs 350 crore
($55.87 million), as per a stock market disclosure. The property, located
on the Mumbai-Pune highway, makes for the single-largest land
transaction within the city.The company will develop a mixed-use
residential housing project with some commercial aspect.The
transaction was funded largely through internal accruals and post this
deal the company’s net debt-equity ratio stands at of 0.16.
IFC raises $112M in fourth tranche of $1B rupeedenominated bond.
International Finance Corporation (IFC), the private sector investment
arm of the World Bank Group, has raised an additional Rs 700 crore
($112 million) as the fourth tranche of its global rupee-denominated
bonds which seeks to generate around $1 billion.The new tranche of its
three-year bonds was lapped up by asset managers and banks from the
US and Europe, it said on Friday.With the new tranche, IFC has managed
to issue bonds worth Rs 3,000 crore (around $500 million) or half of the
target size to date. Last October, IFC had launched a $1 billion offshore
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4. bond programme denominated in Indian currency to increase foreign
investments and fund private projects in the country.
HCL Corp enters healthcare sector with multi-speciality
clinic chain, to invest $160M
Shiv Nadar-promoted HCL Corporation, the privately held group holding
company of HCL, has forayed into the healthcare sector with the launch
of HCL Avitas as the first subsidiary of HCL Healthcare in affiliation with
US-based John Hopkins Medicine International.Shikhar Malhotra, Shiv
Nadar's son-in-law, a board member of HCL Corporation, would be
leading the healthcare venture.HCL Corporation, the controlling arm of
IT services major HCL Technologies, decided to start the project with an
initial investment of Rs 1,000 crore ($160.5 million). John Hopkins will
provide consultative services.
Truecaller secures $18.8M led by Sequoia Capital,
announces integration with Yelp.
Truecaller, a collaborative mobile phone directory app developed by
Swedish startup True Software Scandinavia AB, has raised $18.8 million
in funding led by Sequoia Capital, the company said in a blog post.The
firm has also announced a partnership with US-based business
directory and review site Yelp.com to help Truecaller users identify
local, national and international businesses and also view their Yelp
rating.The Yelp integration takes Truecaller's own search engine to find
people and identify numbers, and combines it with Yelp's crowdsourced
business ratings to create one place for genuine and accurate
information to use without leaving the Truecaller app.
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5. MakeMyTrip acquires hotel aggregator EasyToBook.com
for around $5M
NASDAQ-listed online travel services firm MakeMyTrip (MMT) has
acquired the entire equity interest in a group of companies comprising
the EasyToBook.com Group (ETB). The company purchased shares from
the existing shareholders of ETB and also invested a further amount in
ETB. The total purchase consideration and investment in ETB stands at
approximately $5 million.The acquisition of ETB is expected to further
strengthen the existing travel technology stack of MakeMyTrip.com and
to enhance the international hotel room offerings for customers
travelling overseas (particularly to Europe), and vice versa.
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