Financial Daily from THE HINDU group of publications
Friday, Jan 06, 2006
Financial Daily from THE HINDU group of publications Friday, Jan 06, 2006 |
|
|
|
|
|
|
|
Corporate
-
Private Placement Money & Banking - Financial Institutions Bangalore turbines co gets Rs 2.6-cr funding from IFC Our Bureau
Mr B.R. Krishna Kumar, Chairman and Managing Director, Turbo Tech Precision Engineering Pvt Ltd, and Ms Anita M. George, Chief Investment Officer (South Asia), International Finance Corporation, at a press conference in Bangalore on Thursday. - G.R.N. Somashekar
Bangalore , Jan. 5 THE International Finance Corporation (IFC), the World Bank's private sector financing arm, has picked up a stake in Turbo Tech Precision Engineering Pvt Ltd through a private equity deal. Speaking to newspersons here on Thursday, IFC's Chief Investment Officer for South Asia, Ms Anitha George, said, "Our investment in the company is $6,00,000 (about Rs 2.7 crore)." IFC's investment, entirely in the form of equity or quasi equity, was from its Environmental Opportunities Fund, she said. This fund specialised in investing in environment-friendly and cutting-edge energy savings technologies around the world. The fund, with a corpus of $10 million, was focussed on small and medium enterprises, she said. This fund would be periodically replenished, she added. Ms George said IFC's equity would be locked-in for three years and an exit would be either by way of a buyout by other private equity investors or promoter buybacks or even an initial public offering. But she said, "Depending on the circumstances IFC can be a long-term investor, since we have held equity in some Indian companies for periods in excess of five years." IFC, she said, would invest in more Indian companies in these sectors in the coming years. IFC had so far invested about $413 million in Indian equities last year. This level would be maintained, Ms George added. Turbo Tech designs and makes micro turbines for power generation applications, employing aerospace technologies. The product size ranges from 50 kilowatt to 2.5 MW for cogeneration facilities offering an energy savings of over 30 per cent. Turbo Tech's Managing Director, Mr B.R. Krishna Kumar, is an engineer from Allied Signals (now HoneyWell) of the US. Mr Krishna Kumar said Turbo Tech hoped to achieve a turnover of Rs 10 crore in the current fiscal year. To tap green funds: Mr Kumar ruled out any IPO in the immediate future. However, he said, the company proposed to tap some green funds, to augment its equity for expanding its manufacturing and marketing infrastructure. Green Funds refer to cross-border investments specialising in investments only in environment-friendly technologies and industries with low carbon di-oxide emissions. The company turbines are focussed on small and medium enterprises in the country and included distilleries. He added the company also exported steam turbines to Sri Lanka and expected to widen its market to Indonesia and Malaysia. But the newly developed gas turbines would be exported to the Gulf countries. Some, he said, have already been exported to Taiwan.
More Stories on : Private Placement | Financial Institutions
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, 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
|