December 16th, 2023
MergerDomo’s weekly Newsletter brings you the latest on M&As, JVs, Investments, IPO and noteworthy partnerships that are shaping the future of businesses in India.
This week's M&A highlights in India feature significant deals, such as -
SoftBank executed another strategic move by selling a 1.08% stake in Zomato through block deals, reaping INR 1,125 crore. The Japanese investor offloaded 9.35 crore shares to investors like Citigroup and Goldman Sachs. This follows SoftBank's gradual reduction in Zomato's stake post the Blinkit deal lock-in period. The move aligns with SoftBank's broader strategy of adjusting its investments, evidenced by recent exits from Delhivery and PB Fintech.
Read more lessMacquarie Capital, the investment arm of Macquarie Group, has acquired a minority stake in ChargeZone, a prominent Indian EV charging company. The strategic investment aims to expedite ChargeZone's business strategy and advance its cloud technology-enabled EV charging network. This collaboration, part of a series B round, positions ChargeZone to raise significant funds, estimated at INR 300-350 crore. The company actively focuses on utilizing renewable energy sources, with a vision to have a substantial number of chargers powered by renewables by 2030, supporting India's transition to sustainable urban transportation.
Read more lessPrivate equity firms ChrysCapital and Capital Group jointly divested a 7.6% stake in pharmaceutical company Mankind Pharma for INR 5,589 crore through open market transactions. Beige Ltd, an affiliate of ChrysCapital, and Capital Group affiliates Cairnhill CIPEF and Hema CIPEF (I) executed the stake sale. Chrys Capital's divestment amounted to INR 3,282 crore, contributing to a significant change in the company's free float. Mankind Pharma, known for its robust IPO and strong market performance, has exhibited a noteworthy 30% return over the past six months.
Read more lessIn a strategic move, Infibeam Avenues secures a 49% stake in Pirimid Fintech for INR 25.1 crore, aiming to seamlessly blend its digital payments prowess with Pirimid's capital market trading software. The acquisition positions Infibeam to diversify revenue streams by extending its digital payment platform to capital markets globally. The collaboration facilitates Pirimid's access to Infibeam's technology, enabling the development of cutting-edge digital lending solutions and advancing risk management through data analytics and AI algorithms. This synergistic partnership marks an exciting venture into the intersection of payments and capital market technology for both entities.
Read more lessUS-based Footpath Ventures, a backer of Indian unicorns like Dream11, is in advanced negotiations to acquire a stake in IPL franchise Rajasthan Royals at an estimated post-money valuation of USD 800-850 million. The investment firm is poised to lead a funding round ranging between USD 50 million and USD 80 million. As the IPL franchise engages with multiple investors, talks aim to conclude before the player auctions commence. Amid this, the fate of Tiger Global's potential investment remains uncertain, given the departure of its global head for private investments. Rajasthan Royals' valuation surged after a 2021 investment by RedBird Capital Partners.
Read more lessBNP Paribas has finalized the sale of its retail broking unit, Sharekhan, to South Korea's Mirae Asset Financial Group for INR 3,000 crore. The strategic move aligns with BNP Paribas' emphasis on core banking activities. Having acquired Sharekhan in 2016 for INR 2,100 crore, the French financial services major seeks to streamline its business focus. Sharekhan, an early player in online trading in India, with 6.3 lakh active clients, changes hands once again. Mirae Asset, eyeing expansion in the Indian stock broking sector, plans to enhance its presence with this acquisition.
Read more lessMax Healthcare Institute Ltd has announced the acquisition of Starlit Medical Centre Pvt Ltd, including the 550-bed Sahara Hospital in Lucknow, for an enterprise value of INR 940 crore. The deal expands Max Healthcare's presence into the growing Lucknow region, adding to its portfolio of 17 healthcare facilities. The acquisition, part of a trend in India's hospital space, positions Max Healthcare to tap into the region's healthcare demand, and analysts view it positively for growth and profitability.
Read more lessCareStack, a dental software solutions platform, has acquired Waybeo, a startup specializing in advanced intelligence services for ad-generated phone calls. The strategic move aims to revolutionize patient-practitioner communication in healthcare. Waybeo's technology, in which Airtel holds a 10% stake, will be integrated into CareStack's dental care market, enhancing patient care experiences. The acquisition propels Waybeo's growth, expanding its presence in India and global markets, beyond healthcare to sectors like automobile, consumer durables, insurance, broking, and real estate. The deal underscores a commitment to elevating communication and patient care standards in healthcare facilities.
Read more lessSterling Accuris Diagnostics has acquired Vaibhav Analytical Services, a notable player in pharmaceutical analytical testing. This strategic move expands Sterling Accuris' service range, particularly in the pharmaceutical industry, aligning with the surge in Gujarat's pharmaceutical sector. Vaibhav Analytical's NABL-accredited lab, known for stringent compliance, adds value to Sterling Accuris' commitment to healthcare innovation. The collaboration aims to meet the rising demand for comprehensive pharmaceutical testing, ensuring safety and efficacy. Both companies express optimism about advancing standards in pharmaceutical analysis through this strategic partnership.
Read more lessM2P Fintech has acquired Goals101 in a deal valued at INR 250 crore. The equity-plus-cash transaction will see some of Goals101's investors gaining a stake in M2P, while others will receive cash. The acquisition enables M2P to enhance its credit card management suite and expand its value-added services, incorporating Goals101's big data analytics for hyper-personalization. Additionally, it marks M2P's entry into the wealthtech segment. Goals101's team, known for providing advanced algorithms to banks and online merchants, will join M2P, further strengthening its capabilities.
Read more lessSingapore-based Mapletree Logistics Trust (MLT) is set to acquire a Grade A warehouse in Farukhnagar, part of Delhi NCR, India, for USD 14.5 million. The deal represents a 2.4% discount to the asset's independent valuation. The acquisition, scheduled for Q4 FY24, will be fully funded by debt. The warehouse, completed in mid-2022, spans 51,446 sq m and is fully leased to one of India's major third-party logistics players. The move aligns with MLT's strategy to rejuvenate its portfolio with high-yielding modern assets, strategically positioning the trust in India's growing logistics market.
Read more lessMobile Premier League (MPL) acquires the complete NFT marketplace Good Game Exchange (GGX) protocol, buying out existing investor tokens. The board has approved the acquisition for USD 12.75 million, issuing Series E preference shares as consideration. MPL entered the NFT space with a 20% stake in GGX last year. The move comes amid challenges in the NFT sector post-2020 hype. GGX facilitates NFT trading and supports various games, allowing asset exchange within its ecosystem. MPL faced legal issues with Rario regarding NFT-based fantasy gaming. Despite the recent tax-related challenges, MPL reported substantial revenue growth in fiscal year 2023.
Read more lessNourish You, the superfood startup, has acquired vegan dairy brand One Good, blending their shared commitment to animal welfare and innovation. One Good's leadership, including CEO Abhay Rangan, will join Nourish You, aligning visions for a sustainable, plant-based future. Nourish You, backed by notable investors, expands into the superfoods realm with an array of products. The acquisition aims to propel India's largest plant-based dairy venture, combining values of nourishment, innovation, and animal protection.
Read more lessAnimal health leader Zenex, backed by Multiples PE, has successfully acquired Ayurvet, a former Dabur subsidiary specializing in ayurvedic and herbal solutions for animals. The deal's financial details remain undisclosed. The strategic move enhances Zenex's product portfolio, emphasizing herbal offerings. Dr. Arun Atrey, Zenex's MD and CEO, anticipates strengthened growth and expanded geographical presence, especially in the EU region. Renuka Ramnath, Chairperson of Zenex, hints at Zenex's ongoing pursuit of value-driven opportunities. This acquisition follows Zenex's notable INR 2921 crore acquisition of Zydus animal health business in July 2021.
Read more lessIn a bold move, Biocon, led by Kiran Mazumdar-Shaw, considers selling its USD 1.5 billion generic Active Pharmaceutical Ingredient (API) business to alleviate debt. Despite the recent USD 3.34 billion biosimilars acquisition from Viatris, Biocon is reevaluating its portfolio focus. Biosimilars, now constituting 50% of the company's revenue, overshadow the diminishing contributions from the API sector. As the pharmaceutical giant contemplates this shift, market speculations rise, questioning the alignment of chemical drugs with the ambitious biosimilars strategy. Biocon remains tight-lipped on the matter, navigating a transformative phase under Mazumdar-Shaw's leadership.
Read more lessReliance Industries Ltd (RIL) and Walt Disney Co. are nearing the finalization of a non-binding term sheet to merge their media and entertainment operations in India. The deal, poised to create the country's largest entertainment business, is expected to give Reliance a controlling stake of at least 51%. The negotiation includes a substantial cash injection, aiming for an immediate capital investment of USD 1-1.5 billion. The merged entity's board structure is set to have equal representation, with the deal likely to be announced as early as January end.
Read more lessEngineering-focused Happy Forgings is set to launch its initial public offering (IPO) on December 19, with subscriptions closing on December 21. The company, a manufacturer of safety-critical forged and precision-machined components, anticipates dual listings on major exchanges. Specializing in diverse products like crankshafts and transmission parts, Happy Forgings aims to raise INR 1009 crore through the IPO, comprising a fresh equity issue of INR 400 crore and a 71.59 lakh shares offer for sale. The move aligns with the optimistic growth projections for India's forging and machining markets, expected to reach USD 10.2 billion and USD 8 billion, respectively, by FY29.
Read more lessCredo Brands Marketing, the creative force behind the renowned "Mufti" brand, unveils its IPO with a price band of INR 266-280 per share. Focused on men's casual wear, Credo Brands eyes an ambitious INR 550 crore at the upper end of the band. The IPO, opening on December 19, entirely comprises a 1.96 crore shares offer for sale. With 1,773 touchpoints nationwide, including 379 exclusive outlets, Credo Brands marks its 25th anniversary, projecting market dominance. The OFS structure directs proceeds to selling shareholders. In FY23, the company recorded a robust 46% YoY revenue growth to INR 498 crore.
Read more lessRBZ Jewellers, renowned for its expertise in crafting antique gold jewellery, is set to launch its IPO on December 19, aiming to close on December 21. The company, focused on both wholesale and retail platforms, caters to a vast customer base across 19 states in India. With a fresh issue of 1 crore shares and a price band of INR 95-100, RBZ Jewellers targets raising INR 100 crore. In FY23, the company reported a robust 14% YoY revenue increase to INR 288 crore, signaling financial strength. The IPO, led by Arihant Capital Markets, marks a significant step for this traditional yet growth-focused.
Read more lessApeejay Surrendra Park Hotels, known for its iconic "The Park" brand, and health-tech innovator Medi Assist have secured approval from the Securities and Exchange Board of India (Sebi) for their respective initial public offerings (IPOs). Apeejay Surrendra Park Hotels plans a substantial IPO, combining a fresh equity issue and an offer for sale to the tune of INR 650 crore and INR 400 crore, respectively. The funds will primarily address debt and corporate needs. Meanwhile, Bengaluru-based Medi Assist gears up for its maiden public issue, featuring an offer for sale of up to 2.8 crore shares, facilitating exits for promoters and existing shareholders.
Read more lessLeading electric scooter manufacturer, Ola Electric, is set to file its Draft Red Herring Prospectus (DRHP) for an IPO, eyeing a public listing by the end of fiscal year 2024. The company, backed by Tiger Global, aims to raise between USD 700 million and USD 800 million, valuing the firm between USD 7 billion and USD 8 billion. Despite facing challenges, including a government subsidy rollback, Ola Electric experienced a market rebound, registering 30,000 new registrations in November. As it gears up for IPO, the company has raised USD 384 million in debt and equity in 2023, anticipating a transformative milestone in the electric two-wheeler market.
Read more lessThis week's M&A news reflects the dynamic nature of India's corporate landscape, featuring diverse transactions in real estate, finance, healthcare, biotechnology, FMCG, Consumer care, infrastructure, private equity, mobility, media, finance, banking, and automotive sectors. Stay updated on India's M&A developments as we continue to bring you the latest news and insights.
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