Project Work Assignments

Private Equity and Venture Fund, Trimester VI, 2018-19

Project Report should cover, to the extent directly and indirectly applicable in relation to the
assigned topic, the following points with detailed bullet points as narratives from all strategic,
operating and financial perspectives:

i. Deal Thesis and rationale in alignment with Vision and Mission statement of the AIF;
ii. SWOT&C, and PESTEL analyses to the extent required;
iii. Any special event in the economy, sector and / or the company which has significant impacts;
iv. Five critical terms separately for Share Purchase Agreement and Shareholders’ Agreements;
v. Valuation of Equity with details of tools applied, major assumptions, etc.;
vi. Deal structuring and options for financing by the AIF;
vii. Options for exit post the investment period;
viii. Any other points as relevant to the specific requirements of the assigned project; and
ix. Final recommendation with major justifications.

Guidelines for Report Submission and Presentation

Report

1. The main report is to be prepared in minimum 2000 words. As many appendices as are
required may be added to the main report. Annexures should include print copies of excel
sheets for valuation wherever applicable.
2. The report is to be tested for plagiarism and a certificate is to be attached immediately after
the cover page and also the second slide for presentation.

3. To be printed in Times New Roman with font size 12. Headings and subheadings are to be
in bold fonts
4. The report must be submitted minimum four days before the appointed date for presentation

Presentation (Time 15 minutes)

5. To be prepared in 10 -12 slides, without counting the slide for plagiarism test as in 2 above

6. Excel Sheets are to be attached by way of Hyper Link for valuation model(s)

7. No slide is necessary for introduction and history of the company, members of the Board of
Directors, etc.
8. Font Type for all slides must be ‘Arial Rounded MT Bold’ and Sizes must be as follows: Main
Heading – 24, Sub heading 20, Sub-sub heading and main text 18.

PTO for Project Topics

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Topics for Project Assignments
1. Conduct a comprehensive element-wise PESTEL and SWOTC analyses of present
Indian Economy with all supporting data from reliable sources. Your objective is to test
the hypothesis that “Indian economy is outstandingly poised for investments from all
possible AIFs both in large numbers and much larger values than past three financial
years, including 2018-19 so far.”

Critically examine investments by PEs, VCs and Angels in India during 2016-17, 2017-
18 and till December of FY 2018-19 with the objective to appreciate what all have
happened in terms year-wise actual numbers and magnitudes of sector-wise
investments by the AIFs in India, including statistical analysis thereof. Also conduct
similar analytical study covering the said three years for exits by AIFs from their earlier
investments, including modus operandi for exits.

Please analyse the given hypothesis and submit a research report with your analyses,
findings, conclusions and recommendations.

2. The senior most Analyst of one of the large PE Investment Funds in India has
conducted exhaustive analysis of Jai Balaji Industries. He is eying the company as one
of the probable candidates for LBO. But the CEO and CFO of the Fund House are not
happy.
Assume that you and your team members are supporting that Analyst in her work. The
Fund House has now advised you to submit an exhaustive proposal after all possible
analyses and exploratory studies about the company, its past two years’ financial
results, present state of affairs, predictive performance in next five years, business
strategies, management planning, control and governance related measures that are
to be taken, financial restructuring that will be required, etc.
Your proposal should include the final decision about investment to be made or not, if
made what will be value of each share and the major terms to be included in the SPA
and SHA as well as recommended options for exit that may be considered.

3. Assume that India Bull Housing Finance Ltd., a listed company of India, is thinking of
restructuring their entire organisation, and if necessary, take resort to a large Private
Equity Fund for raising the company to further heights and diversify into other
infrastructure segments. Their objective is to position the company into top three
housing finance company of India in next five years and diversify. Your advisory group
has been retained by IBHF for the following:

 Conducting critical review of past performance of last three years in comparison

to the best in the industry bringing to the context findings from PESTEL and
SWOTC analyses of the sector in India.
 Preparing a detailed Information Memorandum for submission to the
prospective PE Investor; and
 Value the equity share of the company after explaining all the assumptions that
has been considered by your Group for predicting near actual performance of

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 the company for the future years that has been considered for valuation and
compare the same with recent movements in market price.
 How the deal will be structured, financed and what should be the exit strategy.

4. One of the largest PE Funds of the world is interested to bail out Jet Airways from their
current financial and operating state affairs and stay invested for about five years. They
want you to submit a comprehensive report on the current state of Aviation industry in
India and Company which will enable them to substantiate their proposal to invest.

After having done your very detailed analysis and recommendation about the proposal,
they want you to value the company, assess whether the market has priced the
company’s shares more or less than what you feel it should be. Finally recommend
your proposals with justifications for (a) Financial strategy for structuring the deal, (b)
Five critical terms to be included in the SPA Agreement, and (c) Your recommendation
for framing the exit strategy.

5. A large and successful PE Fund from the USA, with specialisation for small and
medium enterprises of any sector, is interested to explore various opportunities and
invest in one Indian SME entity to start with. Their idea is to pick up an entity which is
presently not doing well but has huge potential to grow into a large corporation in next
ten years’ time. One of the conditions they have set is that preferably the company
should have export turnover of about 40% and the product should be potential enough
to conquer the world market.

Their terms of reference to your consulting team is to select three companies from
SME sector which are listed in India. Please submit a detailed report with all
justifications covering three companies which will be fit for investment by them and
finally recommend the most potential for them to invest. They want you to also cover
valuation exercise for that Company and strategies they should follow for structuring
the deal, turn around from their current state of affairs and finally strategies for exit
after about five years.

6. Study the latest standalone and consolidated Annual Reports published by Motilal
Oswal Financial Services Ltd. from the perspective of the company’s major activities
related to investments in the role of a PE, VC and Angel investor. Bring out all your
observations from their Chairman’s Report, Directors’ Report, MD&A, Auditors’ Report,
Financial Statements, including Notes to Accounts, etc. What directional thoughts you
could locate from your study about the future of such investments in India by them?
What will be your recommendations to the company for achieving further excellence
in their operations as an AIF?

Finally, also present a comparative study of the Investment Philosophy and Business
Strategy of MOSF vis-à-vis General Atlantic, which is popular PE Fund from abroad.

7. Conduct an exhaustive research on Blackstone, USA and KKR, USA. Study their
comparative investment philosophy and strategies, portfolios of investments across

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 various regions of the world, success stories, etc. Also please study their investments
in India during 2017-18 and 2018-19 so far.

Submit a comparative report on your observations and learning points on all that you
have studied. Please include in your report a section as to why do you think India
should be one of the chosen destinations for both KKR and Blackstone to multiply
investment activities in India befitting their investment philosophy and strategy which
you have identified in your first part of the study.

8. Critically and analytically study all the six cases that have been covered during delivery
of the PE & VF Course and submit a report containing the following separately for each
of the six cases:

 Very brief synopsis of the case;

 Critical analyses of various dimensions and issues AIFs that have been dealt
with in the case;
 Findings, viewpoints and conclusions that emerged from the analysis; and
 Learning points.

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