The Hindu Business Line : SREI Infra to buy 76% in AP Govt venture fund

An agreement with the shareholders in the venture fund titled Hitvel was signed by the Kolkata-based SREI here on Wednesday. SREI will invest Rs 66.5 lakh for the equity.

In tune with the Public Private Partnership (PPP), the institutional stakeholders in the fund recently invited corporate bodies through a bid partner Hitvel, the asset management company.

From among the three major bidders, the Andhra Pradesh State institutions accepted the offer from SREI and agreed to divest 76 per cent equity stake in Hitvel to its venture capital arm, according to Mr Balagopal Chamarti, Chief Executive Officer, Hitvel.

Institutional holders

The prominent institutional stakeholders of Hitvel are the Andhra Pradesh Infrastructure Development Corporation (APIDC), Small Industries Development Bank of India (SIDBI) and Andhra Pradesh Infrastructural Industrial Corporation (APIIC).

Hitvel was floated in 1999-2000 with a fund size of Rs 15 crore. Its focus is on IT and ITES sector and has invested in seven companies so far. Post-divestment, the three institutions will hold the balance 24 per cent equity, Mr Balagopal told Business Line.

SREI will reinforce the management team of Hitvel with new strategy and direction given its investment experience, especially in building and funding of emerging and fast growing infrastructure companies.

In a statement Mr Hemant Kanoria, Vice-Chairman and Managing Director, SREI, said, “SREI would work alongside the investee companies in a bid to add value to their efforts and enhance profitability”. Mr Kanoria also said raising the corpus of the fund for investing further in companies in Andhra Pradesh was in the offing.

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