MeitY Startup Hub onboards MergerDomo to strengthen start-up ecosystem in India
I am pleased to present the July edition of the MergerDomo Bulletin, curated especially for corporates and SMEs. Amidst the turbulent market, we have seen some improvement in the previous month, in terms of increased registrations on the platform, clearly indicative of business being back in action post covid recovery. MergerDomo is all set and ready to go with its diverse product suite, catering to both the financial & non-financial growth needs of corporates and SMEs.
In spite of the strong impact that the pandemic has left on many businesses, SMEs have adapted admirably and attempted to digitize operations, which has been the one saving grace in terms of employment generation. A key challenge for most SMEs has been Financial Management & Planning, with cash inflows halting to nearly zero during lockdowns.
Despite the adversity, we’ve witnessed continued rise in venture funding in Indian start-ups, opening doors of opportunities for the ecosystem. With this ready inflow of funds from investors, similar traction can be expected for corporates/ SMEs as well, justifiable by the exponential growth and traffic on our platform.
Healthcare, pharmaceuticals, education and the automobile industry have previously emerged as key focus sectors in 2020 and will continue to see an influx of investments going forward.
Sanjeev Rao comes with over 35 years of Experience and runs his very own consulting firm ‘S3 Consultants’. In 2015, he was introduced to the world of Venture Capital funding and now has an established network of over 420+ PE and VC funds today.
“With the change in Geo-politics and the Government’s thrust on self-reliance (Atmanirbhar), India is poised to regain its position as a major manufacturing hub. This has further been augmented by the PLI schemes that are being announced by the Government. However, the Covid-19 pandemic has put a dampener on the M&A activity, which had gained good traction from mid-2019. Here, I present an outlook on how the M&A activity will pan out in the next few months, assuming that the pandemic will subside considerably in the coming months.
1. Pharma Industry
This is one sector that has not been affected by the volatility of the current market scenario. Indian pharma companies are going all guns blazing to expand their reach, specifically in the API and Generics manufacturing sub-sector. With companies also sensing opportunities in the Global market, many tier 1 and tier 2 companies should explore setting up additional manufacturing units in the African continent.
2. Electronics and Electrical Industries
MNCs are slowly, but surely, setting up their manufacturing units in the region, whether directly or through Indian partners. This is a major boost for the SME sector, as they can now tie-up (mergers and/or JVs) with the suppliers of these companies in their countries of origin.”
Online pharma startup PharmEasy is buying out the leading pathology laboratory chain to bolster its e-commerce play. This is a first, where a unicorn (valued at over $1 billion) is buying a listed firm.
Source: TIMES OF INDIA
The deal involves $15-25 million of primary capital that the company will use to launch a new line of products. Quadria will become a significant minority partner with almost 25% stake in the company along with its co-investors.
Source: THE ECONOMIC TIMES
The management has indicated that the API growth outlook remains strong for the next two-three years owing to a favourable demand-supply scenario.
Source: money control
Manipal Hospitals, the second largest hospital chain in India, entered into a definitive agreement with private equity firm Multiples for 100% sale. With Ikram Hospital in its stable, Manipal Hospitals now has 27 hospitals, more than 7,300 beds, a pool of 4,000 doctors and over 11,000 employees across 14 cities.
Source: THE HINDU
Ruchi Soya Industries, a company now owned by Patanjali Ayurved, will use Rs 2,663 crore from its share sale to repay part of its debt and utilise another tranche of Rs 593 crore as working capital of the firm.
Source: BUSINESS STANDARD
The company has additionally paid Rs3,045 crore to acquire the Horlicks brand. Apart from Horlicks, brands such as Boost, Maltova and Viva—all part of GlaxoSmithKline Consumer—will come under HUL’s umbrella.
Source: mint
Co-founders Darshan Patel and Dipam Patel will continue to hold a significant stake in the company and join KKR to embark on the next phase of Vini’s growth.
Source: yahoo finance
Alfanar will strengthen its competitive position in India to grow its multidimensional end-to-end competitive solutions in the field of renewable energy and grid transmission, along with powering Senvion India to continue to operate as a full-fledged OEM in the Indian market.
Source: CNBC TV18
The deal will help Assystem optimise its nuclear engineering services by capitalizing on STUP’s existing Indian base to support various players in the nuclear power plant construction program launched by the Indian government
Source: mint
Private equity firm KKR has stepped into India’s highway sector, signing definitive agreements to acquire Global Infrastructure Partners’ (GIP) entire stake in Highway Concessions One (HC1) and seven highway assets totalling 487km.
Source: mint
The investment brings together SMFG’s Asian push towards consumer and MSME lending, with FICC’s expertise in serving mass-market and MSME customers in India.
Source: THE HINDU Business Line
Gallagher previously held 30% in the business and is now acquiring all the remaining shares. This partnership marked Gallagher’s maiden presence in India and gave the company a footprint in the growing Indian insurance market.
Source: INSURANCE JOURNAL
The IPO also includes a fresh issue of shares worth ₹1,500 crore. It could seek a valuation of around $1 billion from the offering, The development comes just days after rival payments firm Paytm’s plan to file a DRHP.
Source: mint
Razorpay Capital along with TERA Finlab's technology capabilities will be able to service the credit needs of over 10,000 businesses in India by next year.
Source: YOURSTORY
Paytm filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an aggregate offer size of Rs 16,600 crore via an initial public offering. The IPO, which would be the largest since the 2010 issue by state-owned Coal India.
Source: FINANCIAL EXPRESS
|
Sector
|
Deal Type
|
Description
|
Deal Size
(INR Cr) |
Link
|
|---|---|---|---|---|
|
Pharmaceuticals
|
Buyside Acquisition
|
15-year-old State-of-the-art entity from Telangana, India is looking to acquire API manufacturers
|
150-800
|
|
|
Pharmaceuticals
|
Sellout
|
A Bulk Drug manufacturing entity from South India is looking to sellout.
|
60-65
|
|
|
Software Development
|
Fundraise
|
Technology driven Clinical Software products for hospitals and healthcare industry with USD 4 m in revenue.
|
100-120
|
|
|
IT Computer Software
|
Sellout
|
Established track record of 11 years in the space of software development and ERP Products.
|
160-200
|
Sunny is working as Associate Vice President - Corporates/SMEs in the SMEs / Investment Banking division of MergerDomo. He manages consulting, M&A, debt and equity syndication deals for SME clients along with investor relations.
Taran Bedi is a Senior Associate in the Investment Banking division of MergerDomo. He helps investment bankers by finding the right counterparties for their clients.
Aditya is our Analyst in the investment banking division of MergerDomo handling Deal Sourcing, Consulting, Investment bankers & PE relationships.
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