|Ind-Barath Power Infra Pvt Ltd. - Private Equity of Rs. 4,250 Million
Following the first round private equity funding of Rs. 2,900 Million in June 2007 syndicated by MOIAPL, Ind Barath Power Infra Limited was looking to raising equity for seeding new power projects of 1000 MW and finance acquisition of coal mines in Indonesia. MOIAPL advised the Company in raising second round of funding of Rs. 4,250 Million from three Private Equity Funds including Citigroup Venture Capital, Bessemer and Sequoia. MOIAPL was successful in raising second round funding at a pre-money valuation of 2 times the valuation at which the first round of investment was completed. With this investment, IBPIL has emerged as one of the prominent private sector power generation companies in India with operational capacity of 305 MW and additional projects aggregating to 3,050 MW capacity under various stages of implementation.
Vuppalamritha Magnetic Components Limited - Private Equity of Rs. 1,100 Million
Vuppalamritha Magnetic Components Limited (“VMC”) is a technology company focused on telecom equipment and power conversion products. MOIAPL has been advising VMC since December 2007 when the company had closed the previous financial year with net worth of Rs. 138 million and annual revenues of Rs. 590 million. The company, at that stage, was constrained by its net worth credentials and working capital requirements to address the available growth opportunities. MOIAPL was the sole advisor to VMC for the private equity round in October 2008 wherein Fidelity invested Rs. 1,100 million as equity into the company. Following the private equity infusion, MOIAPL has closely worked with the company to enhance its debt facilities also to provide the right platform for the company to capitalize on the opportunities in the rapidly growing telecom space. Today, VMC has emerged as one of the leading Indian telecom equipment companies with annual revenues in excess of Rs. 12,000 million and net profit of around Rs. 1,000 million.
Ind-Barath Power Infra Pvt Ltd. - Private Equity of Rs. 2,900 Million
Ind-Barath Power Infra Private Limited (“IBPIL”) a privately held company with a portfolio of ten diverse power generation projects had a requirement to raise equity funds of Rs. 2,900 Million towards fulfillment of its equity commitment towards projects under development. MOIAPL, acting as the sole advisor to the IBPIL, successfully ran a Private Equity capital raising process with multiple investors. After receiving bids and several rounds of negotiations, Citigroup Venture Capital (“CVC”) and UTI Ventures were inducted as equity investors. The valuation was linked to the achievement of certain key milestones for projects under development, to optimise dilution of promoters’ holdings in the company. This was the first private equity deal in the Indian power generation space and highlighted significant appetite among international investors for quality deals within the power sector. In addition, the funding was amongst the largest investment in India for CVC. Also this transaction helped establish a suitable platform for the company to consider significant capacity expansion as well as pursue backward integration for exploiting economies of scale resulting from capacity expansion.
Entertainment World Developers Pvt. Ltd. - US$ 38 Million Private Equity
Entertainment World Developers Private Limited (EWDPL) is uniquely focused on development and management of Malls, Multiplexes and Residential townships in non-metro cities of India. EWDPL had completed a round of private equity financing based on its flagship project Treasure Island’s runaway success. Subsequently, the company was pursuing opportunities to develop 13 more projects across 8 cities under various formats. To fund their growth plans, EWDPL needed to raise additional capital without diluting the terms agreed with the initial investor. MOIAPL structured and marketed a convertible equity structure which met all of the following objectives:
1. Helped EWDPL raise capital at the appropriate level within the regulatory framework.
2. Was neutral to the stake of the existing investor.
The structure of the instrument linked conversion to the company’s business performance, thereby providing for lower dilution on meeting business plan expectations