Sequoia Capital May Acquire 9.4% in CARE
Sequoia Capital may acquire 9.4% stake in 
Credit Analysis and Research Ltd for about $16.15 Mn. If the deal goes through it would value the credit rating agency at $171.2 Mn(Rs 782 Cr). The shares would be purchased from the existing shareholders of the company.
CARE – set up in 1993 - is a full service rating agency offering a wide range of rating and grading services across sectors. According to its website, it has completed over 6678 rating assignments having aggregate value of about Rs 19523 Bn, since its inception in 1993.
Transaction Reference: ET
Shareholders in CARE
IDBI Bank holds 26% stake in CARE. Canara Bank and SBI holds 23.67% and 9.97% stake repectively. Other shareholders in CARE are Federal Bank, IL&FS and ING Vysya Bank. CARE has a networth on Rs 133 Cr.
Crisil and ICRA are the other credit agencies in India and none of them have recieved PE funding so far.
| Particulars | CARE | CRISIL | ICRA Ltd |
| Income (Rs Cr) | 103.15 | 443.33 | 88.73 |
| PAT | 55.37 | 150.34 | 36.15 |
| Valuation | 781.91 | 3616 | 866 |
The valuation for CRISIL and ICRA is the market cap.
Sequoia Capital India, which was formed by the merger of Sequoia Capital and WestBridge Capital Partners in 2006, has invested in more than 40 Indian companies. It has invested in MFIs, healthcare companies, travel agencies, education and IT companies.
Recently, it invested $7 Mn in July Systems and Technologies Pvt. Ltd. It’s other investment in 2010 include StoveKraft, Equitas Micro Finance, Flightraja Travels and Coastal Projects.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 05/10/11 | CARE Ratings - IPO | IPO / Offerings | - | |
| 27/09/10 | CARE - Aditya Birla PE, Bajaj Holdings & Investment | Private Equity | Aditya Birla Private Equity Fund I | - |
| 01/09/10 | CARE - Sundaram Finance (Exit) | M&A | - | |
| 25/08/10 | CARE - Milestone Religare | Private Equity | India Build-Out Fund-I | - |
| 09/03/10 | CARE - Sequoia Capital | Private Equity | Sequoia Capital India | - |
| 01/01/07 | CARE - Sundaram Finance | M&A | Sundaram Finance Limited | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/02/12 | Private Equity | AU Financiers India Private Limited | - | Planned | |
| 01/02/12 | Private Equity | Vontobel Funds Inc | Kotak Mahindra Bank Limited | 174.39 | Completed |
| 01/02/12 | M&A | Kotak Mahindra Bank Limited | Credit Card Portfolio | - | Completed |
| 01/02/12 | Private Equity | Aberdeen Asset Managers Limited | Housing Development Finance Corporation Limited | 275.47 | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Sequoia Capital India | BFSI Healthcare Retail Infrastructure |
http://www.sequoiacap.com | Rajiv Sabharwal Mohit BhatnagarSumir ChadhaGautam MagoShailesh LakhaniPorko ElangoAbhay Kumar PandeyK P. BalarajShailendra SinghSurendra JainG V RavishankarV T BharadwajNikhil BalaramanTaru Kapoor | |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Credit Analysis and Research Limited | State Bank of India Canara Bank IDBI Bank Limited |
Godrej Coliseum,4th Floor, Somoiya Hosp Road, Off E Exp Highway,Sion(E), Mumbai-400022. |
ICRA Limited Crisil Limited |
www.careratings.com |
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