The Hindu Business Line : IBM eyes stake in UTI Venture

While highly placed sources at UTI Mutual Fund ruled out a strategic deal in the immediate future, they referred to a number of top international outfits that have shown interest in the venture fund's recent initiatives.

Mr K.E.C. Rajakumar, Managing Director, UTI Venture, told Business Line that IBM is indeed interested in striking a "preferred relationship" with the UTI MF subsidiary. He, however, mentioned that no stake sale is on the cards.

UTI Venture's latest efforts at mobilising commitments are now expected to cross its targets, it is pointed out. "We intended to raise $150 million, but are now hopeful of mobilising $180 million or so," said Mr Rajakumar.

The funds so raised will be allocated to promising companies operating in what are typically called "emerging" businesses, said Mr D.S.R. Murthy, Executive Director, UTI MF, adding that these may include biotechnology, knowledge process outsourcing and textiles.

An earlier fund, Mr Murthy further informed has seen significant growth (CAGR) of about 46 per cent, marked by major returns in one or two cases. "These have been multi-baggers," he remarked.

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