Financial Daily from THE HINDU group of publications
Tuesday, Nov 08, 2005
Financial Daily from THE HINDU group of publications Tuesday, Nov 08, 2005 |
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Money & Banking
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Venture Capital Bharath Nirman Fund launched Our Bureau
(From left) Mr Sudhakar Shetty, MD, Canbank Venture Capital Fund; Mr M. S. Kapur, CMD, Vijaya Bank; Mr K. N. Prithviraj, CMD, Oriental Bank of Commerce; Mr M. B. N. Rao, CMD, Canara Bank; Mr V. K. Chopra, CMD, Corporation Bank; and Mr D. Swaminathan, Executive Director, Canara Bank, at the launch of `Bharath Nirman Fund' in Bangalore on Monday. - - G.R.N. Somashekar
Bangalore , Nov. 8 CANBANK Venture Capital Fund (CVCF) launched its Bharath Nirman Fund with a corpus of Rs 55 crore. The prime contributors to the fund's corpus are Canara Bank, Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Vijaya Bank, Allahabad Bank and the Small Industries Development Bank of India (SIDBI). Canara Bank, the promoter of the venture fund, has contributed Rs 15 crore and SIDBI Rs 10 crore. The rest of the participants have contributed Rs 5 crore each. The fund will be close-ended and redeemed after eight years, Mr Sudhakar Shetty, Managing Director of CVCF, said. Mr Shetty said that this is the largest fund launched by CVCF and one of the first collective initiatives of public sector banks and financial institutions in the country. The fund will leverage on the collective expertise and experience of all its partners for making investments. Each of the participants would have a representative for administering the fund, Mr Shetty added. The fund will focus on investments in manufacturing and services. The sectors include information technology, IT-enabled services, BPO, telecom, biotechnology, healthcare, pharmaceuticals, engineering, automobiles and ancillaries, textiles and infrastructure. The fund will be targeting a rate of return of at least 15 per cent. This was the average return of the three earlier funds floated by CVCF. These three funds, with an aggregate corpus of Rs 57 crore, had invested in 61 companies. CVCF, he said, had exited from 47 of these companies booking profits. If these returns could be improved, CVCF would look at floating larger-sized funds, he said. So far, venture capitalists and private equity investors, both domestic and those floated by cross-border financial institutions, have invested Rs 4,900 crore (about $1.5 billion) in the country — a 44 per cent surge over the previous year. If the investment tempo continues, venture capital and emerging market investments in the country would reach Rs 50,000 crore by 2008.
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