Industrial Finance Corporation of India (IFCI), the country's oldest financial institution in association with Sycamore Ventures, a global investment firm announced to set up a $500-million about Rs 2,250 crore infrastructure fund. As IFCI is the principal sponsor to the fund, it has committed to invest 10% of the total capital of the fund with a minimum commitment of $50 million.
The fund will be registered with SEBI as a venture capital fund and will raise capital from domestic and overseas investors. Foreign subscribers will invest in the fund through a Mauritius fund with domestic subscribers investing directly in the fund. The fund intends to consummate investments in equity or equity related instruments of infrastructure projects or holding companies, with sustainable cash flow and potential for significant long-term capital appreciation. The fund's focus includes all forms of power generation, transmission and distribution, gas distribution, coal mines, roads, railways, ports and airports.
IFCI was established with an intention to provide long-term finance needs of the industrial sector. It got listed in the year 1993 changed its status from statutory corporation to a company. It founded and developed various institutions namely ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for promotion of the hospitality industry, among others.
Sycamore Ventures is a venture capital firm specializing in expansion and growth investments in mid-size companies in the later stages. The firm seeks to invest in information technology, consumer, bio-pharmaceutical, manufacturing, and media. It seeks to make investments in companies located in Asia with a focus on Greater China and India and the United States.
| Company Name | CMP |
|---|---|
| Power Finance Corp | 473.60 |
| REC | 382.75 |
| Indian Railway Fin. | 103.11 |
| NHIT | 151.00 |
| Satin Creditcare | 171.25 |
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