Advisor to Bluestar for it acquisition of Naseer Electricals.

Service

Private Equity

Sector

Industrials

Date

February 2008

Deal Value

USD 15 MILLION

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Avendus advises Blue Star Limited in its acquisition of the business of Naseer Electricals

Blue Star completes the strategic acquisition of the businesses of Naseer Electricals, a Bangalore based electrical contracting firm, thereby enhancing its Mechanical, Electrical & Plumbing (MEP) contracting capabilities

Bangalore, February 14th 2008: Central air-conditioning and commercial refrigeration major, Blue Star Limited has completed the strategic acquisition of the businesses of Naseer Electricals Private Limited, a leading Electrical Contracting firm, for a consideration of up to Rs 42 crore, which includes upfront payment, debt and escrow amount payable on fulfillment of certain conditions. This move will enable Blue Star, which is the leader in central air-conditioning in the country, to deliver integrated Mechanical, Electrical & Plumbing (MEP) contracting projects for the commercial building and infrastructure segments.

Mr. A S Dawood, the managing director of Naseer Electricals, has been retained by Blue Star Limited as Corporate Advisor for the new venture.

Avendus Capital was the sole financial advisor to Blue Star for the transaction.

The growing Indian economy and the construction boom, specifically in the infrastructure, hospitality, healthcare, IT and ITES segments, offer attractive business opportunities in the MEP contracting space. Many customers of Blue Star have been seeking Electrical Contracting services from the Company. While Blue Star will continue to focus on its core businesses of air-conditioning and commercial refrigeration as manufacturer, contractor and service provider, it will enhance its capabilities in the MEP space by entering Electrical Contracting through this transaction.

About Blue Star Ltd.

Blue Star is India's largest central air-conditioning and commercial refrigeration company with a network of 23 offices, four modern manufacturing facilities and around 2000 employees. It fulfils the airconditioning needs of a large number of corporate and commercial customers. The company provides specialized solutions for industry specific requirements for Banks, Educational Institutions, Hospitals, Hotels, Industrial Applications, IT / ITES, Malls, Offices, and a variety of other sectors.

For more information, please visit www.bluestarindia.com

About Naseer Electricals Pvt. Ltd.

Naseer Electricals Private Limited, headquartered at Bangalore, is an Electrical Contracting firm with a strong presence in South India. Founded by Mr. A S Dawood, the Managing Director, Naseer Electricals enjoys an exceptional reputation in terms of customer satisfaction. The company has a strong order book in hand.

About Avendus Capital

Avendus is a full service Investment Bank with strong presence in M&A Advisory, Private Placements, Structured Finance Advisory, Equity Capital Markets, Institutional Broking and Alternate Investment Management. The company focuses on high growth industries where Indian companies have a strategic advantage globally, including IT Services, IT Enabled Services, Media, Lifescience, Automotive and Engineering, Real Estate, Infrastructure, Infrastructure ancillaries, Financial Services and Consumer Products and Services. Avendus clientele ranges from high growth mid cap companies to large companies represented in the BSE SENSEX and established Private Equity funds. Avendus was ranked 4th by Bloomberg in 2006 in number of transactions in M&A advisory and Private Placements. Avendus is head quartered in Mumbai and also has offices in New York and Bangalore. The firm currently operates through a JV in Europe.

For more information, please visit www.avendus.com

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