A Message from

Hormazd Charna

Founder & CEO

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.

Our Partner Ecosystem

225 Registered Investment Bankers

Target Market

Expert’s Opinion Corner

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.

Sanjeev Rao

CEO - S3 Consultants
MSME Committee Member - Western Region, Indian Chamber of Commerce

“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.”

“Indian companies raised ₹27,417 crore through initial public offerings (IPOs) this year, the highest in a decade.” -livemint

Industry Knowledge, Delivered Monthly

Pharmaceuticals & Healthcare

Pharmeasy acquires Thyrocare for Rs 6900 crore

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

Encube Ethicals raises $100-120Million from Quadria Capital at $800 million valuation

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

Glenmark Life Sciences may launch IPO in July to raise up to Rs 1,700 crore

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 buys out Bengaluru-Based Vikram hospitals for Rs350 crore

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

FMCG & Personal care products

Ruchi Soya to acquire biscuits noodles biz from Patanjali for ₹65 crore

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

HUL completes merger with GlaxoSmithKline Consumer Healthcare Limited for Rs31,700 crore

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

KKR Acquires Controlling Stake in India’s Vini Cosmetics for $625M

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

Infrastructure

Saudi firm Alfanar acquires wind turbine maker Senvion India

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

French group Assystem S.A. acquires Mumbai-based engineering consultancy firm STUP for €22Million

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

KKR inks deal to buy GIP’s highway portfolio in India

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

Financial

Sumitomo Mitsui to buy 75% in Fullerton India for $2 billion

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 Acquires 100% Stake in India’s Edelweiss Gallagher Insurance Brokers

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

MobiKwik looks to raise $255 million in IPO

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 acquires TERA Finlabs

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 ready for Rs 16,600-crore mega IPO

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

Deal Watch - We Make Deals Happen

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

Deal

Sector Pharmaceuticals
Deal Type Buyside Acquisition
Description 15-year-old State-of-the-art entity from Telangana, India is looking to acquire API manufacturers
Deal Size (INR Cr) 150-800
View Deal

Deal

Sector Pharmaceuticals
Deal Type Sellout
Description A Bulk Drug manufacturing entity from South India is looking to sellout.
Deal Size (INR Cr) 60-65
View Deal

Deal

Sector Software Development
Deal Type Fundraise
Description Technology driven Clinical Software products for hospitals and healthcare industry with USD 4 m in revenue.
Deal Size (INR Cr) 100-120
View Deal

Deal

Sector IT Computer Software
Deal Type Sellout
Description Established track record of 11 years in the space of software development and ERP Products.
Deal Size (INR Cr) 160-200
View Deal

Meet the Team

Our Investment Banking & SME Team

Sunny Garg

Associate Vice President - Corporates/SMEs

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

Sr. Associate

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 Chowdhary

Analyst

Aditya is our Analyst in the investment banking division of MergerDomo handling Deal Sourcing, Consulting, Investment bankers & PE relationships.

Editorial Team

Gaurav K Punjabi

Vice President - Sales (Startups) & Marketing

Aditya Chowdhary

Analyst

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Who we are?

MergerDomo is a technology-based Investment Banking marketplace, your one-stop shop to prepare, source and execute deals. We aim to assist Corporates/SMEs and Startups through their organic & inorganic journeys by connecting them with the right Financial Investors, Investment Bankers & Non-Financial Consultants.