Financial Daily from THE HINDU group of publications
Tuesday, Oct 26, 2004

Cross Currency

Group Sites

Money & Banking - Financial Institutions
Industry & Economy - SSI

SIDBI launches venture fund for SMEs

Our Bureau

Mr S.S. Kohli, CMD, Punjab National Bank, with Mr V.K. Chopra, CMD, Small Industries Development Bank of India, at a press conference in Mumbai on Monday. - - Shashi Ashiwal

Mumbai , Oct. 25

THE Small Industries Development Bank of India has launched the SME growth fund, a venture capital fund with a corpus of Rs 500 crore, dedicated to the SME sector.

The fund has an eight-year tenor and has been established with the objective of meeting the long-term risk capital requirement of innovation and technology-oriented units in this sector, said Mr Ajay Kumar Kapur, CEO of SIDBI Venture Capital Ltd.

So far, SIDBI has tied up around Rs 375 crore for the fund, with participation from banks such as Punjab National Bank, Oriental Bank of Commerce, Bank of Baroda, Union Bank of India and Bank of India. Other banks are also soon expected to join in, he said.

The focus of the fund will be the software, biotech, pharma, design, R&D and outsourcing sectors, where VCs are evincing an interest, said Mr Kapur. The fund will invest in domestic SME units having superior growth potential, rapid scalability.

SIDBI along with seven major banks is setting up a credit rating agency for SSIs and SMEs which is expected to be operational by January 1, The idea is to develop rating models that help gauge the viability of units, in need of finance.

More Stories on : Financial Institutions | SSI | Venture Capital

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

Stories in this Section
Legislation likely to be passed in winter session — Pvt pension funds may launch new products by end-2005

Rupee firmer; bonds decline
Bank stocks dip on fears of upward rate bias
HDFC Q2 net up 22 pc at Rs 248 cr
Vijaya Bank Q2 net declines 26 per cent
TCS is tech partner for Indian Bank
Plea to place NBFCs under DRT purview
HDFC to float real estate venture funds
Big-time share deals — Ministry asks RBI to explore `prior approval' for private banks
LVB offer for festive season
PNB gets nod for 2nd public issue
SIDBI launches venture fund for SMEs
UCO Bank looking at merger options

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line