Canbank Venture Capital Fund Ltd (CVCFL), a wholly-owned subsidiary of state-run lender Canara Bank, has invested Rs 25 crore ($4.1 million) in Mumbai-based paper manufacturing company Gayatrishakti Paper & Boards Ltd.
Founded in 1996, Gayatrishakti Paper & Boards is led by GN Agarwal and manufactures paper board, white back chromo board, coated packaging board, playing card board, blister pack board, etc. It has two paper mills in Gujarat.
Currently the firm is in the final stages of setting up a packaging paper board plant with a capacity of 300 tonnes per day which will commence operations by April 2015.
CVCFL, set up in 1989, is one of the country’s first and only public sector bank-sponsored, SEBI-registered venture capital fund. The fund was set up to invest in emerging Indian businesses in the small & medium enterprises in various sectors.
It has so far set up five funds with a total corpus of Rs 620 crore.
Early this year, the fund said, that it is targeting its sixth venture capital fund with a target corpus of Rs 500 crore ($81.6 million).
(Edited by Joby Puthuparampil Johnson)