Private equity investment in India in August 2010 grew 7.5x as compared to the same period last year. Deal value reached $1,346 million as against $179 million in August 2009. Total deal count also increased by 45% to 35 deals, up from 24 in August 2009. When compared to July, deal value in August 2010 was up 60% due to some large deals during the month.

1. A RESEARCH PUBLICATION | September 2010
MONTHLY DEAL UPDATE
Aug ’10 Statistics and analysis of Private Equity, Venture Capital
and Mergers & Acquisitions in India

2. Contents
Page Number
I. Executive Summary 1
II. Private Equity Deal Flow
- Introduction 2
- Deal Breakdown 3
- Sectoral Breakdown 5
- Top 5 Private Equity Deals 6
- Fund Activity 7
III. Private Equity Exits 8
IV. M&A Round Up
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3. EXECUTIVE SUMMARY
Private Equity
 Total private equity investment in India grew 7.5x to $1.3 billion as against $179 million in August 2009.
 The first eight months of 2010 have seen private equity deal value at $6.5 billion as compared to $4.4 billion in the whole of 2009.
The median deal amount and the average value of private equity deals in August 2010 was $7 million and $45 million respectively.
Industrials, Telecom and Financials were the most targeted sectors for investment with deals worth $309 million, $304 million and $298
million respectively.
Mergers & Acquisitions
M&A value in India in August 2010 grew nearly seven fold to $4.2 billion, up from $629 million in August 2009.
 The number of domestic deals increased from 20 in August 2009 to 27 in August 2010. The value of domestic deals decreased from
$521 million to $364 million over the same period.
 In terms of value, the number of outbound deals jumped from $60 million in August 2009 to $3.35 billion in August 2010.
 Inbound deals increased to 10 valued at $442 million in August 2010 up from 8 deals worth $39 million in August 2009.
 Energy, Industrials and Consumer Discretionary were the most targeted sectors for M&A’s with deals worth $3.1 billion, $325 million
and $310 million respectively.
1
Monthly Deal Update - August 2010

4. PRIVATE EQUITY
INTRODUCTION
Private equity investment in India in August 2010 grew 7.5x August 2009 had seen the lowest monthly deal value since
as compared to the same period last year. Deal value the beginning of 2009, with the exception of March ‘09
reached $1,346 million as against $179 million in August which was at $136 million.
2009. Total deal count also increased by 45% to 35 deals, up
from 24 in August 2009. Since then an upward trend has been witnessed with deal
When compared to July, deal value in August 2010 was up value peaking during August 2010, suggesting a recovery
60% due to some large deals during the month. from last years slowdown.
August 2010 has seen the highest monthly private equity deal
value over the last thirteen months. August 2009 was the lowest.
Exhibit 1: Monthwise Private Equity Trend
1600 39 40 45
38 37 1346
1400 40
33 33
35 35
1200 28 28 29
977
Value ($mn)
26 30
1000 24 24 847 842
Volume
818 25
747
800 654
595 536 20
600 438 442 465 15
400 10
179
200 5
0 0
Aug '09 Sep '09 Oct '09 Nov '09 Dec '09 Jan '10 Feb '10 Mar '10 Apr '10 May '10 Jun '10 Jul '10 Aug '10
Value $mn Volume
2
Monthly Deal Update - August 2010

5. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 2: Private Equity Type - Volume Exhibit 3: Private Equity Type – Value ($mn)
35 32 1400.0 1298
29 29 1192 1163
30 1200.0
25 22 1000.0
21
20 Angel 800.0 Angel
14 VC VC
15 13 600.0
451
9 PE PE
10 8 400.0
5 230
4 171
5 3 200.0
2 2 64.1 48.0
1 21.9 13.7 8.3
0 0 0 0.2
0.0 0.3 2.0 2.5 0.0 0.0
0 0.0
Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10
The average deal amount went up five fold from $9 million in Aug ‘09 to $45 million in Aug ‘10. Median deal amount
went up 40% from $5 million to $7 million over the same period.
Exhibit 4: Average Deal Size ($mn) Exhibit 5: Median Deal Amount ($mn)
60 54
25 22
50 45
20
40 32 15
15
30 11
18 16 8
20 10 7
9 5
10 5
0 0
Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 3
Monthly Deal Update - August 2010

6. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 6: Number of transactions by deal size Exhibit 7: Total investment by deal size
100% 100%
90% 90%
80% 80%
70% $100m+ 70%
$100m+
60% $50m-$100m 60%
$50m-$100m
50% $25m-$50m 50%
40% 40% $25m-$50m
$5m-$25m
30% 30% $5m-$25m
Under $5m
20% 20% Under $5m
Undisclosed
10% 10%
0% 0%
Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug
'05 '06 '07 '08 '09 '10 '05 '06 '07 '08 '09 '10
In Aug ‘10, private equity deals under $50 million accounted In Aug ‘10, private equity deals under $50 million accounted
for 83% of total deal volume. for only 19% of total deal value.
Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10
Undisclosed 2 7 7 7 3 5 Under $5m 9 19 4 18 20 14
Under $5m 5 9 3 10 10 6 $5m - $25m 48 176 133 230 90 175
$5m - $25m 4 14 9 16 9 16 $25m - $50m 115 101 124 176 70 70
$25m - $50m 3 3 4 6 2 2 $50m - $100m 58 177 57 125 0 86
$50m - $100m 1 3 1 2 0 1 $100m+ 0 0 875 681 0 1001
$100m+ 0 0 5 4 0 5
4
Monthly Deal Update - August 2010

7. PRIVATE EQUITY
SECTORAL BREAKDOWN
Exhibit 8 Exhibit 9
Top 5 Sectors By Value ($mn) Top 5 Sectors By Volume
Healthcare, $ Information
66 Technology, 4
Industrials, $3 Consumer
Utilities, $290 09 Discretionary, Financials, 10
5
Telecom, $304
Financials, $2 Healthcare, 5
98
Industrials, 7
Exhibit 10: Sector Summary – August 2010
Sector Volume Value($Mn) Average Size In Aug ‘10, Industrials, Telecom and Financials were the most
Consumer Discretionary 5 34 11 targeted sectors for investment with deals worth $309
Consumer Staples 1 16 16 million, $304 million and $298 million respectively. Together, they
Energy 0 0 0 accounted for 68% of total private equity deal value during the
Financials 10 298 30 month.
Healthcare 5 66 17
Industrials 7 309 52 The most active sector in terms of deal volume was Financials
Information Technology 4 22 7 with 10 deals during the month. This was followed by Industrials
Materials 1 8 8 with 7 deals. Healthcare and Consumer Discretionary had 5 deals
Telecommunication Services 1 304 304 each.
Utilities 1 290 290 5
Monthly Deal Update - August 2010

8. PRIVATE EQUITY
TOP 5 DEALS Exhibit 11: Top private equity investments in Aug ‘10
S.No. Target Buyer Deal Value ($ mn)
1 Viom Networks Ltd. Macquarie-SBI Infrastructure Fund 304
2 Moser Baer Projects Pvt. Ltd. Blackstone Advisors India Pvt. Ltd. 290
3
•
GMR Airports Holding Pvt. Ltd. Macquarie-SBI Infrastructure Fund 200
GIC Special Investments Pte Ltd. , Temasek Holdings Pte.
Lodha Group, 117 Storey Residential Tower Ltd., HDFC Venture Capital Ltd., Abu Dhabi Investment
4 in Mumbai Council 107
5 Shriram Properties Ltd. TPG Capital Inc. 100
Two of the top three investments in August 2010 were made
by Macquarie-SBI Infrastructure Fund. It invested $304
million in Viom Networks and $200 million in GMR Airports
Holding.
Other large deals in August include the $290 million
investment made by Blackstone Advisors in Moser Baer
Projects, the $107 million investment by a consortium of
investors in Lodha Group’s 117 story residential tower and
TPG Capital’s $100 million investment in Shriram Properties.
The top 5 PE deals accounted for 74% of the
The investments in Viom Networks, Moser Baer Projects and total private equity deal value in August ’10.
GMR Airports Holding are also amongst the top ten deals of
2010.
6
Monthly Deal Update - August 2010

9. PRIVATE EQUITY
FUND ACTIVITY DURING AUGUST 2010
On The Road
•Clove Route Fund - Frontline Strategy Target Size - $150 million
•I-Farm Venture Advisors Target Size - $100 million
•India Buyout Fund II - Sonoma Management Partners Target Size - $100 million
•India Realty Fund 1 - Azure Capital Advisors Target Size - $106 million
•Stega Capital Fund I Target Size - $50 million
•Tata Capital Growth Fund (Tata Capital and Mizuho Securities) Target Size - $1 billion
Closed – First / Final
•Indivision India Partners II - Everstone Capital Management Target Size - $550 million
First Close at $250 million
•Faering Capital - Aditya Parekh and Sameer Shroff Final Close - $161 million
•SIDBI Venture Capital Fund III - SIDBI Venture Capital Final Close - $214 million
7
Monthly Deal Update - August 2010

10. PRIVATE EQUITY
PRIVATE EQUITY EXITS
Exhibit 12: Top 5 exits in Aug ‘10
Sno. Target Seller Exit Type Deal Value ($ mn)
Venture Infotek Global Pvt. Ltd. Kubera Cross Border Fund Ltd., Walden International,
1 Global Internet Ventures LLC M&A 100
2 Emaar MGF Land Ltd. Citi Venture Capital International Buyback 60
3 Dr. Lal Path Labs Pvt. Ltd. Sequoia Capital India Secondary Sale 35
The Infrastructure Fund of India, IDFC India
4 Gujarat Pipavav Port Ltd. Infrastructure Fund IPO 12
Equitas Micro Finance India Pvt. Aavishkaar Goodwell India Microfinance
5 Ltd. Development Co. Ltd. Secondary Sale 9.7
IPO, 2 M&A , 4
Secondary
Sale, 4 Buyback, 2
Open
Market, 6
The month of August 2010 saw 18 exits worth
$249 million.
8
Monthly Deal Update - August 2010

11. MERGERS & ACQUISITIONS
INTRODUCTION
M&A value in India in August 2010 grew nearly seven fold to Deal value in August 2010 was $1.2 billion lower than that in
$4.2 billion, up from $620 million in August 2009. Deal July 2010, and also lower than that in March, May and June
volume also jumped to 58 deals up from 34 in August last 2010. M&A value in all other months since August 2009 was
year. lower than that in August 2010.
March and June 2010 had seen some large deals which
resulted in deal value greater than $14 billion during these
two months. August was much lower in comparison. If
Vedanta's proposed $9.6 billion deal for Cairn India had gone August 2010 has seen the fourth highest monthly M&A deal
through deal value would have been much higher. value over the last twelve months.
Exhibit 13: Monthwise M&A Trend
16,000 72
14,347 80
67 14,098
14,000 64 70
59 58
54 55 54
12,000 60
Value ($mn)
10,000 44 41 8,641 42 50
Volume
34 35
8,000 40
5,397
6,000 4,227 30
4,000 2,816 2,817 2,324 20
1,774 2,092
2,000 1,310 10
620 650
0 0
Aug '09 Sep '09 Oct '09 Nov '09 Dec '09 Jan '10 Feb '10 Mar '10 Apr '10 May '10 Jun '10 Jul '10 Aug '10
Value $mn Volume
9
Monthly Deal Update - August 2010

12. MERGERS & ACQUISITIONS
DEAL BREAKDOWN
Exhibit 14: M&A Type - Volume Exhibit 15: M&A Type – Value ($ mn)
10 3500
9 3000
8
2500
7 M&A
6 2000 Domestic
IPO
5 Inbound
Secondary Sale 1500
4 Outbound
Buyback 1000
3
Open Market
2 500
1
0
0
Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10
Oct '05 Oct '06 Oct '07 Oct '08 Oct '09 Oct '10
The average deal amount went up by more than 325% from $31 million in Aug ‘09 to $132 million in Aug ’10. Median
deal amount increased by 50% from $10 million to $15 million during the same period.
Exhibit 16: Average Deal Size ($ mn) Exhibit 17: Median Deal Amount ($ mn)
140 132
119 16 15
117
120 14 12
100 88 12
76 10
80 10
7
60 8
5 5
40 31 6
4
20
2
0 0
Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 10
Monthly Deal Update - August 2010

13. MERGERS & ACQUISITIONS
DEAL BREAKDOWN
Exhibit 18: Number of transactions by deal size Exhibit 19: Total investment by deal size
100% 100%
90% 90%
80% 80%
$100m+
70% 70% $100m+
60% $50m-$100m 60%
$50m-$100m
50% $25m-$50m 50%
40% 40% $25m-$50m
30% $5m-$25m 30% $5m-$25m
20% Under $5m 20%
10% 10% Under $5m
Undisclosed
0% 0%
Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug
'05 '06 '07 '08 '09 '10 '05 '06 '07 '08 '09 '10
In Aug ‘10, M&A’s under $50 million accounted for 84% of total In Aug ‘10, M&A’s under $50 million accounted for only 7% of
deal volume. total deal value.
Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10 Aug '05 Aug '06 Aug '07 Aug '08 Aug '09 Aug '10
Undisclosed 14 15 19 17 14 26 Under $5m 10 13 20 22 17 7
Under $5m 5 7 9 10 6 7 $5m - $25m 32 64 71 39 94 154
$5m - $25m 2 5 7 4 8 12 $25m - $50m 29 81 0 62 110 142
$25m - $50m 1 2 0 2 3 4 $50m - $100m 95 56 215 215 74 213
$50m - $100m 1 1 3 3 1 3 $100m+ 593 1450 2546 2114 324 3711
$100m+ 1 4 5 2 2 6
11
Monthly Deal Update - August 2010

14. MERGERS & ACQUISITIONS
SECTORAL BREAKDOWN
Exhibit 20 Exhibit 21
Top 5 Sectors By Value ($mn) Top 5 Sectors By Volume
Consumer Materials, $ Information
Discretionar 159 Technology, Financials, 4 Consumer
y, $310 $151 Discretionar
Industrials, $ y, 13
325 Industrials, 7
Energy, $3,1 Materials, 9
Information
05 Technology,
13
Exhibit 22: Sector Summary
Sector Volume Value($Mn) Average Size In Aug ‘10, Energy, Industrials and Consumer Discretionary were
Consumer Discretionary 13 310 52 the most targeted sectors for M&A’s with deals worth $3,105
Consumer Staples 3 18 6 million, $325 million and $310 million respectively. Together, they
Energy 3 3105 1035 accounted for 88% of M&A deal value during the month.
Financials 4 68 23
Healthcare 4 28 28 The most active sectors in terms of deal volume were Consumer
Industrials 7 325 54 Discretionary and Information Technology with 13 deals each
Information Technology 13 151 30 during the month. This was followed by Materials with 9 deals.
Materials 9 159 40
Telecommunication Services 2 62 62
Utilities 0 0 0 12
Monthly Deal Update - August 2010

15. MERGERS & ACQUISITIONS
TOP 5 DEALS Exhibit 23: Top M&A deals in Aug ’10
S.No. Target Buyer M&A Type Deal Value ($ mn)
Linc Energy, Coal Assets
1 (Galilee Coal Tenement) Adani Enterprises Ltd. Outbound 2,700
Marcellus Shale Acreage in Central and
2 Northeast Pennsylvania Reliance Industries Ltd. Outbound 392
3 EIH Ltd. Reliance Industries Ltd. Domestic 220
4 BGR Turbines Company Pvt. Ltd. Hitachi Ltd. Inbound 169
5 INEOS Films GmbH Bilcare Ltd. Outbound 130
The largest deal in August 2010 was Adani Enterprise’s
acquisition of the coal assets of Linc Energy for $2.7 billion in
a cash and royalty deal.
This was followed by two acquisitions made by Reliance
Industries Ltd. The $392 million purchase of shale acreage in
Central and Northeast Pennsylvania and the 14.12% stake
purchase in East India Hotels for $220 million.
Other large deals include Hitachi’s investment in BGR
Turbines and Bilcare’s acquisition of INEOS Films.
Adani’s acquisition of coal assets in the galilee tenement is The top 5 M&A deals accounted for 85% of total
amongst the top ten deals of 2010. M&A deal value in August ’10.
13
Monthly Deal Update - August 2010

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