EESL planning an IPO at ₹5,000 crore valuation
State-run Energy Efficiency Services Ltd (EESL) plans to tap into the capital markets by next year to bankroll its energy efficiency programmes, including leasing electric vehicles to companies and installing smart meters to measure power consumption, Mint reported citing Saurabh Kumar, managing director of EESL. The company, a joint venture set up by four state-run companies in the power sector, has been valued at around ₹5,000 crore by financial services company Investec. EESL is leading India’s ambitious energy efficiency programme that seeks to reduce carbon emissions as part of the country’s climate change goals. India, the biggest emitter of greenhouse gases after the US and China, has agreed to reduce its carbon footprint by a third from its 2005 levels by 2030, as part of its commitments to the United Nations Framework Convention on Climate Change adopted by 195 countries in Paris in 2015.
Software-for-dentists startup CareStack raises $28 million
CareStack, a cloud-based technology platform for the dental industry raised $28 million in a Series B round led by hedge fund Steadview Capital, along with the California arm of Delta Dental, the largest dental plan system in the US, Mint reported. Its existing investors — F Prime Capital, Eight Roads Ventures and Accel Partners — also participated in the round. CareStack’s flagship solution is a complete clinical and business management platform on the cloud to manage all major functions of a dental practice. CareStack leverages analytics and automation to enhance patient experience, maximize insurance reimbursement and improve patient dental care. CareStack, run by Good Methods Global Inc., last raised $16 million in a Series A round from Eight Roads and Accel, among others in September last year. It plans to use the funds for automation, and to expand in firms which have dental practices in multiple locations. It currently makes money by selling its software as a service, revenue cycle management, and patient financing.
Religare Enterprises to sell NBFC arm to TCG Group for ₹330 crore
Religare Enterprises Ltd (REL), which was stung by controversies surrounding its erstwhile promoters, Singh brothers Malvinder and Shivinder, has agreed to sell its 85.63% stake in its lending arm Religare Finvest Ltd for ₹330 crore to Chatterjee group’s TCG Advisory Services, Mint reported. The funds raised from the stake sale will be used to repay the outstanding loans to group companies, third parties and for other general corporate purposes. The firm also said it had settled a dispute with Axis Bank, which was restraining the capital raise plans in its various group companies. The transaction, subject to statutory and regulatory approvals and fulfillment of other conditions, is expected to complete before 31 December. While a binding term sheet was signed on 10 July, both parties signed the share purchase agreement on 1 October.
Amazon seeks CCI nod for Future deal
Amazon has sought Competition Commission of India (CCI) approval for its proposed ₹1,500 crore deal to acquire 49% of Future Coupons Ltd (FCL), a Future Retail promoter group company, even though it doesn’t have to, The Economic Times reported citing two executives with knowledge of the matter. Amazon wants to make sure that the transaction is in line with the tightened norms for foreign direct investment (FDI) in ecommerce. The US ecommerce giant’s investment arm, Amazon.com NV Investment Holdings LLC, which will be acquiring the stake, said in the CCI filing that it would acquire “voting and non-voting equity shares" of FCL in the proposed deal. Amazon had used a similar structure while acquiring 49% in More supermarket stores — 17% of equity with voting rights and 32% without such rights — to ensure that the deal was compliant with the revised FDI norms. While it couldn’t be ascertained whether the Amazon-Future group deal will have the same split, an industry executive told ET that FCL currently doesn’t have differential voting right (DVR) shares. FCL, owned by Future Group promoter, the Biyani family, holds 39.6 million warrants in Future Retail, which when exercised, will convert into a 7.5% stake in the latter. While the promoter group in total owns 47.02% in Future Retail, Amazon has the option to become the largest shareholder in Future Retail and can exercise this call option anytime between the third and the 10th year. Amazon is paying ₹660 per share, which is around 65% premium to the current share price."
Udaan raises $585 million at $2.8 billion valuation
Udaan, an ecommerce platform for businesses, has raised $585 million from a clutch of investors, one of the largest late-stage rounds this year, valuing the company at nearly $2.8 billion, The Economic Times reported. Tencent, Altimeter Capital, Hillhouse Capital, GGV Capital, Footpath Ventures and Citi Ventures led the investment, with existing investors Lightspeed Venture Partners and DST Global also participating. Udaan last raised $225 million in September 2018, led by DST Global and Lightspeed Venture Partners, making it one of the fastest startups to achieve Unicorn status. Unicorns are startups that are valued at more than $1billion. The company is estimated to be clocking $2 billion in annual gross merchandise value or GMV. It did five million orders last month. The Bengaluru-based company is an emarketplace that helps retailers purchase goods from wholesalers and traders, across categories including apparel, electronics, pharmacy, staples, fresh food and fast-moving consumer goods. Udaan has three million retailers across 900 cities and connects them to 25,000 sellers across 200 cities. It offers supply chain, lending, payments and marketing capabilities, enabling these sellers to source from large manufacturers and distributors.
PE firm Advent to acquire lingerie maker Enamor
Global private-equity fund Advent International is all set to acquire women’s innerwear maker Enamor for an enterprise value of around ₹900-1,000 crore, The Economic Times reported. Given the fast-growing innerwear category in India, Advent is trying to create a complete platform in this line of business as it already owns a controlling stake in men’s innerwear maker Dixcy Textiles. The deal has been signed and an announcement is likely soon. The existing early backers of Enamor — India Alternatives and Faering Capital — will get an exit, and are likely to make around two times the return on their investments. Gokaldas Intimatewear, the parent company, is also likely to exit completely via this deal. The company has a topline of ₹300 crore plus and is being valued at an enterprise value of around ₹1,000 crore. The innerwear category has seen unprecedented traction for brands and an organised retail play in the last few years. Advent International had acquired a significant stake in Dixcy for around ₹700-800 crore in 2017. Advent International has been looking at mostly controlled deals in India. Currently, its portfolio includes Dixcy Textiles, Quest Global Services, Crompton Greaves Consumer Electricals, Manjushree Technopack and Ask Investment Advisors. The Indian innerwear market offers an opportunity for consolidation in the sector. Enamor, which was launched in 2003, has around 4,500 points of sale and also sells through its own e-commerce site.