Gateway Financial Services Ltd ("Gateway") was founded in the year 2006 by two professionals with more than forty years of combined experience in the financial services industry in India and GCC .

The Company was set up, primarily, to leverage on the working relationships the promoters had developed over the years with reputed financial institutions, corporate groups, and private family offices globally.

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FortNightly PE Update

Dear Sirs,Please find herewith the highlights of "India Private Equity Weekly Analysis Report"  from 1st to 15th June, 2014.Please note that the information is compiled from various sources and is intended purely for information purposes only. 

Corporate Deals:

  • IL&FS Transportation Hikes Stake In Srinagar Sonmarg Tunnelway
  • Star India sells stake in home shopping company
  • Everstone To Pick Up Stake In Fun Republic
  • Bombay Shirt Secures Seed Funding From Patni Brothers
  • Future Lifestyle Picks Up Stake In Unico Retail
  • Idea Cellular To Raise Funds From Axiata
  • Cargotec Sells India Unit To Citec
PE Deals:  
  • Beauty Portal Nykaa Secures Funding
  • GenNext Ventures, Others Invest In Covacsis Technologies
  • Octro Raises Series A Round From Sequoia Capital
  • IFC Invests In Power Grid Corporation
  • AdSparx Secures Angel Funding From IAN, Others
  • KKR To Pick Up Majority Stake In Avantha Powers
  • TouchTalent Raises Seed Funding From SAIF Partners, Others
  • Aspada Invests In 3PL Firm Schedulers Logistics
  • Carlyle May Invest In Bharat Serums
  • IFC May Invest In IL&FS AMC
  • BanyanTree Invests In Packaged Food Maker Nilon's
  • Vizury Secures Series C Round From Intel Capital, Others
  • Cura Healthcare Raises Funds From Existing Investor Peepul Capital
  • Freshdesk Raises Series D From Tiger Global, Others
Mergers n Acquisitions:
  • Ezetap Buys Loyalty Platform Clinknow
  • Smart IT Card Solutions To Acquire Singaporean Firm
  • Rentokil Initial Buys Pest Control Service Provider PestconePlus
  • Cox & Kings Sells Camping Business To French Firm Homair Vacances
  • Amneal Pharma May Buy Oncology Products Maker Epsilon
  • Speciality Restaurants To Acquire Bakery Shop Love Sugar and Dough
  • Germany's Ceratizit Acquires GW Precision Tools
  • RAK Ceramic To Acquire A Morbi Based Company
  • IKYA Group Acquires Industrial Asset Management Firm Hofincons
  • WPP Buys Creative Agency Temple Advertising
  • en-Japan Acquires Recruitment Agency NewEra Consultancy
  • Eros Buys Mobile VAS Provider Techzone
  • JSW Steel To Acquire Welspun Maxsteel
  • Broadcom Acquires VC Backed Ittiam's WiFi Business Unit
  • My Mobile Payments Buys Into OSS India
  • Japan's Meiji Seika Buys Temasek Backed CMO Medreich
  • Telenor To Buyout Indian Partner In Uninor
Fund Raise:
  • DFJ Backed Attero To Raise PE Funds
  • Aster DM Healthcare Gets Additional Funding
  • Strategic Players To Acquire Stake In SMS Paryavaran
  • Online Fashion Retailer FashionAndYou Raises Series D
  • Massive Restaurants Plans PE Fund Raise
  • Packaging Material Supplier Dynaflex To Raise Funds
  • Programmer Hiring Platform HackerRank Raises Series B
Targets n Plans:
  • SAIF Partner Targets Eight Fresh Investments
PE Exits:
  • Bain Capital To Part Exit Hero MotoCorp
Corporate Exits:
  •  
  • Jammu & Kashmir Bank To Exit PNB MetLife
Corporate News:
  • Promoters Seek To Divest Stake In Ice Cream Brand Havmor
  • NSR, Promoters To Exit Nectar Lifesciences
  • Dalmia To Exit Two More Olive Oil Brands
  • Essar Looking To Sell UK's Stanlow Refinery
PE Industry News:
  • Last-mile funding is a good option for PE investors
  • PE investors not waiting for public issues, says PwC
PE Fund News:
  • Exfinity Technology Fund Achieves First Close
 
 
 
Chaitali Neogy

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Research Analyst GATEWAY CAPITAL LIMITED
 
 
 
 

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Next Trillion Dollar Opportunity Fund

 Dear Sirs,

We are pleased to share with you the update as at August 31, 2013,  on the "Next Trillion Dollar Opportunity Fund" ("NTDOP"), a joint initiative with Gateway Capital & Motilal Oswal AMC, Mumbai. The Fund's investment strategy is managed by Motilal Oswal AMC. The Fund aims to invest primarily into mid & small cap companieswith a focus on identifying emerging sectors/stocks which are part of the Next Trillion Dollar GDP Growth Opportunity in India
Please find attached 
---Monthly Fact Sheet as at September 2013 
---September Newsletter  with updates on the portfolio companies of the fund
The Fund has significantly outperformed its benchmark (in USD terms), the CNX Midcap Index, across all time frames barring the last 3 months, since its inception in Sept 13, 2012:
  • Since its inception the fund has returned -17.74% vis a vis -24.52% by the benchmark index.
  • Fund Portfolio has a beta of 0.52 vs 1 thereby exhibiting lower volatility.
Performance Update:
During August 2013, Indian equities had a volatile period in Aug with the benchmark index Nifty losing 4.7% overall to end the month at sub-5500 level. The quarterly earnings season concluded mid-month with a mixed bag of results. 
On the global front, the Syrian crisis added to the INR's woes as the Brent spiraled up. With the INR continuing to depreciate, the RBI and Government took various measures to supppport the INR including the opening of forex swap windows to meet $ requirements for crude oil imports. Meanwhile, the National Spot Exchange (NSEL) payment crisis hit markets in early Aug as the commodities exchange suspended trading amidst fears of a default.
On the macro front, India's 1QFY14 GDP growth recorded a sharp deceleration, coming in at 4.4%. Over the month, two important Bills were passed in the Lower House of the Parliament - the Food Security Bill and the Land Acquisition Bill. The month also saw the appointment of Dr. Raghuram Rajan as RBI Governor from Sep 4.
Sector wise, banking, industrials and telecom were the worst hit while materials and IT were sectors significantly in the green. Flow-wise, August saw significant outflows from FIIs, who remained net sellers for the third consecutive month while DIIs switched to net buyers. On a positive side, FDI into India increased by 24.2% Y-o-Y to $3.95 bn in April-May 2013 vs. $3.18 bn of FDI in April-May 2012 according to data from the Department of Industrial Policy and Promotion (DIPP).
On the organisational front,
GlaxoSmithKline Consumer Healthcare, the makers of Horlicks, is revamping the £20.3m brand with new packaging, updated on pack claims and reformulation to help change the perception of the £143m malt category. 
Bosch has acquired 97 acres of land in Bidadi for the construction of this new manufacturing facility and is investing over Rs 250 crores for the initial development of the facility. The plant will be ready for commencement of production by the third quarter of 2015 with re-location of around 850 employees. The new Bidadi facility will house the production of several components of diesel fuel injection systems.
 
Fund Holdings and sector allocation:
The top five holdings of the funds as of date are as under:
  • Page Industries.
  • Pidilite Industries.
  • Eicher Motors.
  • GSK Consumer Healthcare.
  • Bosch Ltd.
Top three sector allocation are:
  • FMCG - 33.22%.
  • Banking and Finance - 21.64%.
  • Auto & Auto Ancillaries - 17.34%.
Market Outlook:
Market & Fund Outlook: 
As per the Fund Managers - 
September will keenly test the Government’s resolve to undertake some hard reforms as well such as a large quantum of diesel hike, pension and insurance bills and speeding up disinvestments which are key to repair the recent market damage and restore some government credibility. In the month, the Fed's meeting will be keenly watched for to provide further light on QE tapering plans even as the market will likely contend with the developments on Syria. The first RBI credit policy meet under the new Governor will also be an event which will be keenly watched for with regards to understanding future policy direction. 
We believe that while the current economic environment is challenged, there are certain concerns such as on the Current Account Deficit and Fiscal Deficit seems way overdone and do not warrant such adverse reaction for both the equity and currency markets.
We look forward to your participation in the fund with a 3 - 5 year time horizon, and a targeted return of around 15 - 20% p.a. While the portfolio comprises of high quality stocks, dollar cost averaging can be used a strategy to manage the volatility in Indian markets.
Best Regards,
Chaitali Neogy

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Research Analyst GATEWAY CAPITAL LIMITED
 

 

 

 

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