An introduction to

January 2010
 Introduction to Spark Capital
Curtain Raiser

 Established in 2001 with an objective to “Enhance Value” for its clients - corporates, entrepreneurs and investors, Spark Capital
(www.sparkcapital.in) is one of South India’s leading “full service” and “life cycle” investment banks with strong referenceable client
relationships and service capabilities.

 Service offerings include:

 Investment Banking: Fund-raising, M&A Advisory, Category 1 Merchant Bank

 Brokerage Services: BSE, NSE and MCX Memberships

 Spark Capital has helped to raise equity capital to the tune of ~ USD 750 Million and has advised on the completion of strategic M&A
transactions aggregating in excess of ~ USD 1.7 Billion till date.

 Promoted, owned and privately held by an active management; Run by 30 professionals, based out of Chennai and Bangalore offices.

 Aggregate relevant experience of ~ 150 man years across investment banking, stock broking, asset management, corporate banking,
consulting and auditing.

 Focus on 3 broad themes –

 Infrastructure Spending: Power, Roads, Ports, Construction Services, Capital Goods

 Domestic Consumption: NBFC, Branded Goods, Retail Chains,

 Outsourcing: IT Services, IT Products, BPO, KPO

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 Introduction to Spark Capital
Service Offerings
 Investment Bank that provides high quality,
integrated value - added transaction & corporate
finance advisory services and investment banking
solutions
 Focused team with top management involvement in
all transactions
 Focused on sectors built around India as a originating
centre for outsourced manufacturing or services and
as a consumption destination for products or services
 Spark is registered with SEBI as a merchant banker
 Focused on offering fundamental research driven
recommendations to institutional clients
 Empanelled with domestic mutual funds, insurance
companies & FIIs as stock broker to execute trades
 Primary research focus is on South India based mid
cap corporates
 Spark is registered with SEBI as stock broker. It is a
Corporate member on BSE and NSE on the cash
segment as well as the derivatives segment. Also a
corporate member on MCX
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I Investment Banking

Private & Confidential – For Discussion Purposes only 4

 Introduction to Spark Capital
Investment Banking

Investment Corporate Advisory Equity Capital Markets

Banking
Service Private Equity Mergers & Acquisition Project Finance Private Placement Public offering
Offering Syndication
Mandate  Capital Raising  Buy side/Sell Side  Bidding Advisory  Institutional  IPO, Rights Issues
through equity/ investors
 Funding Transaction  SPV level financing  Buy-back, Open
equity linked
 Predominantly Offers
instrument  Balance Sheet
Equity
Structuring
 QIP, PIPE

Activities  Preparation of Info  Identification &  Interpreting RFP &  Evaluate transaction  Pre-sales and
Memo & Financial evaluation of target RFQ documents structuring options appointment of
Model (acquirer or seller)  Identifying commercial Merchant Bankers
 Preparation of Info
 Identification and  Pitching, negotiating drivers; Gap Analysis Memo & Financial  Aid in preparation of
evaluation of potential the transaction  Evaluating risks Model process documents
investors including terms & involved in project &  Identification and  Pitch with investors
conditions returns perspective
 Pitching, negotiating evaluation of
 Pricing and
the transaction  Assisting in Due  Preparing financial potential investors
structuring the issue
including terms & Diligence and model & sensitivity
 Support in Due
conditions documentation analysis  Coordination with
Diligence and
 Advice on terms &
various agencies
 Support in Due  Advise on selection of Documentation
Diligence and and co-ordination with structuring of project
Documentation other agencies finance
 Assist in
documentation

Private & Confidential – For Discussion Purposes only 5


December 2009
USD 100 Million Acquisition of
Manappuram Finance Tamil Nadu
by Manappuram General Finance
& Leasing
Financial Advisor
February 2008
USD 7.5 Million acquisition of
USD 14.25 Million acquisition
MAA Fruits India Pvt. Ltd.
Financial Advisor to the
Acquirer
Introduction to Spark Capital
Investment Banking – Select Sample Transactions – M&A
October 2009
USD 11 Million Acquisition of
Lasersoft Infosystems
Financial Advisor
January 2008
by Blue Star Limited
Financial Advisor to the
Seller
October 2008
October 2009
Acquisition of SEEC Inc.
USD 14 Million Acquisition of Blue
Ally by Trianz Inc
Financial Advisor to the
Acquirer
Financial Advisor
July 2007 April 2007
Acquisition of 100%
USD 65 Million acquisition by
shareholding of Ramco
WNS Holdings
Infotech Solutions Limited
Financial Advisor to the Financial Advisor to the
Acquirer selling shareholders
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 Introduction to Spark Capital
Investment Banking – Select Sample Transactions – Private Equity

October 2009 August 2009 February 2009 November 2008

Precision Diagnostics
Private Limited
USD 10.2 Million Private
USD 16.25 Million Private Equity Funding USD 23 Million Private
USD 19 Million Private Equity
Funding Equity Funding Equity Funding

Financial Advisor
Financial Advisor Financial Advisor Financial Advisor

July 2008 December September 2007 July 2007

2007

USD 32 Million Private Equity USD 7 Million Private Equity USD 5 Million Private Equity
USD 18 Million Private
Funding Funding Funding
Equity Funding

Financial Advisor Financial Advisor

Financial Advisor Financial Advisor

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 Introduction to Spark Capital
Investment Banking – Select Sample Transactions – Capital Markets

July 2009 August 2008 April 2008

Rights Issue of Dynamatic Technologies Ltd. Delisting of shares from

BSE and MSE
Sundaram Brake Linings Ltd USD 18 Million QIP Issue

Manager to the Offer

Sole Lead Manager to the
Sole Bookrunner
Issue

September 2007
December 2006 August 2006

Allsec Technologies Ltd

USD 55 Million Private Equity
USD 49 Million IPO
Funding USD 35.5 Million PIPE

CBRLM Lead Arranger & Financial Financial Advisor

Advisor

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 Introduction to Spark Capital
Investment Banking – Landmark Transactions in the past

June 2006 March 2006 February 2006

Acquisition of controlling USD 27 Million Private USD 30 Million Private Equity

interest by DB Zwirn & Co. Equity Funding Funding

Financial Advisor Financial Advisor Financial Advisor

January 2006 January 2006 October 2005

Allsec Technologies Ltd

USD 7 Million Private Equity

USD 23 Million Investment USD 4 Million acquisition of
Funding
B2K Technologies

Financial Advisor Financial Advisor Financial Advisor

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 Introduction to Spark Capital
Investment Banking – Landmark Transactions in the past

March 2005 February 2004 January 2004

Acquisition of 100%
Hyderabad International USD 6 Million Preferential
shareholding by ICICI One
Airport Ltd & NHAI Projects Placement of shares
Source

Financial Advisor Financial Advisor Financial Advisor

June 2003 March 2003 January2003

Gautami
Power
USD 43 Million Investment by
GVK Group USD 29 Million Investment
Tariff Advisory
by GMR Group

Financial Advisor Financial Advisor

Financial Advisor

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 Introduction to Spark Capital
Investment Banking – Landmark Transactions in the past

April 2002 April 2001 August 2000

USD 300 Million Merger USD 5 Million Private Equity USD 45.0 Million Investment
with Orbitech Funding by PSEG Energy in Tanir
Bhavi

Financial Advisor Financial Advisor Financial Advisor

Select Buy-Side Engagements

January 2008 November 2007 April 2007

Advised SAIF on a potential

Advised Carlyle Group on a
potential USD 100 Million
investment into a leading
manufacturer of
Power/Process Boilers
Advised Actis on a potential
USD 270 Million investment
into a leading provider of
integrated design,
engineering, procurement &
project management services
USD 80 Million investment
into India’s largest provider of
Transaction Processing &
Distributor Support services
to the Mutual Fund Industry

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II Brokerage Services

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 Introduction to Spark Capital
Institutional Equities

Long-standing linkages with corporates/ PE firms:

 Strong relationships with companies for whom investment banking services have been rendered; a spin-off is deep domain expertise
in sectors represented by clients

 Ability to access companies at multiple levels – better management reach leads to superior perspective

 Act as a bridge to senior management of unlisted outfits for an unbiased view of on-the-ground trend

 Insights and perspectives from PE outfits is invaluable to mutual fund managers;

 Sizeable shareholding will make PE investors critical in charting business direction and providing strategic inputs

Research – classical, focused and incisive:

 Adopt a sector-based approach – imparts an acute understanding of the overall business environment

 Unwavering focus on traditional valuation methodologies - parameters such a cash flow and cost of capital …. valuation tools
continue to be the cornerstone of our research effort

 Depth of understanding supersedes breadth of coverage, our research has consistently evoked positive opinions from investors

 Continuous Coverage - changing business dynamics, company-specific events and their impact on financials - through periodic
updates on all companies under coverage

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 Introduction to Spark Capital
Institutional Equities

New quant-based product provides a different flavor:

 Launched in June 08 two quant-based products

Long-Short (monthly) and Edge over Nifty (weekly directional call on the index)

 Back-testing of the product over the past nine years throws up impressive results

 Well-received by fund managers both in India and abroad

Engagements with marquee investors – a sample list

 One of the world’s pre-eminent global investment firms, which manages assets in excess of USD 100 billion; also engage
with a five other FIIs who manage a corpus of between USD100-400 million each

 Six mutual funds, of which the top four manage assets of ~ USD 15 billion

 Portfolio Management Services (PMS) arms of three leading mutual fund houses

 Three banks (combination of PSU and old private sector) and a private general insurance company

 Family office investment arm of one of the more-respected names across Corporate India’s landscape

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 Introduction to Spark Capital
Institutional Equities

Coverage of stocks

Infra/construction/utilities IT/ITES Banks Mid- and small-caps

 GMR Infrastructure  Infosys  Axis Bank  Amara Raja Batteries

 GVK Power  TCS  Canara Bank  MIC Electronics

 CCCL  Wipro  Corporation Bank  WABCO

 IVRCL  MphasiS  Bank of India  Shanthi Gears

 Nagarjuna Construction  Firstsource Solutions  Federal Bank  Manappuram Finance

 Simplex Infrastructures  Infotech  HDFC Bank  MARG Limited

 BL Kashyap  MindTree  Indian Bank Logistics/ transportation

 Neyveli Lignite  Polaris  ING Vysya Bank  Concor

 GIPCL  Patni  IOB  Gateway Distriparks

 Nava Bharat Ventures  Hexaware  Karur Vysya Bank Capital Goods

 Punjab National Bank  ABB
 Union Bank of India  Areva T&D

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 Introduction to Spark Capital
Institutional Equities

List of empanelled clients

1. Argonaut Ventures 10. Indian Bank 19. Religare AMC

2. AMANSA Capital 11. Indian Overseas Bank 20. Royal Sundaram Alliance Insurance
21.. Ruane Cunniff & Goldfarb
3. BOB Pioneer AMC 12. Inspire capital
22. Sequoia Capital
4. Birla Sunlife AMC 13. Monsoon Capital
23. Sundaram BNP Paribas Mutual Fund
5. City Union Bank 14. Nomura
24. Sundaram BNP Paribas PMS
6. Franklin Templeton MF 15. Pari Washington
25. Tamil Nadu Mercantile Bank
7. GMO (US / Singapore) 16. Premji Investments 26. UTI Venture Fund
8. HSBC - PMS 17. Reliance AMC

9. Indea Capital 18. Reliance Portfolio Management

Service

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 Thank You

Spark Capital Advisors (India) Private Limited

Reflections, New No:2, Old No. 12,
Leith Castle Center Street, Santhome High Road
Santhome, Chennai – 600 028
Ph: (91.44.4344.0000)
Fax: (91.44.4344.0080/90)

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