The Hindu Business Line : YES Bank sets up $100-m fund for farm sector

New Delhi May 30 YES Bank on Wednesday launched a $100-million (approximately Rs 400 crore) private equity fund called the Food and Agribusiness India Fund. The objective of the fund is to invest in around 10-15 companies in the food and agribusiness sector.

Addressing a press conference here, Ms Sonal Shah, Senior Director, Agribusiness Fund Management, said, "the objective of the fund is to identify the potential market leaders and obtain a minority position through the investment of expansion capital. The bank plans to invest the entire amount in the next one or two years in about 10-15 companies with an investment between $5 million and $7.5 million per company."

Annual return

According to her, the bank is looking at raising the funds through a mix of global and domestic investors. YES Bank is targeting an annual return of about 20-25 per cent from the investment through the new fund.

Ms Shah added the bank is in the process of shortlisting the companies, which it plans to invest in. She, however, did not name the companies. ``We would restrict investment to 10-15 per cent of the total commitment in a single company and look for diversification in the portfolio of the companies within the agri-business sector itself,'' she said.

The bank will also play an active role in facilitating exit from investments through appropriate routes such as financial or strategic sale and initial public offerings.

More Stories on : Private Banks | Venture Capital

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee falls on sustained buying

Sundaram Finance operating profit rises 22%

Max New York Life unveils new unit-linked plan

YES Bank sets up $100-m fund for farm sector

StanChart opens first all-women branch

StanChart woos women with special products

Bond prices down marginally

IBA: Work in progress for streamlining SME rating

Call rates decline